Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
THE revival of Bulawayo-headquartered Cold Storage Company (CSC)- Boustead Beef after 22 years of closure has excited livestock farmers and players in the leather sector who expect the giant beef processing firm to impact positively on several downstream industries.
The demise of CSC had spelt doom for many downstream industries including the leather sector as the meat processor used to be the key supplier of raw hides, a key raw material for the tanners.
Vice President, Dr Constantino Chiwenga, officially re-opened the revamped giant factory in Bulawayo last Thursday.
Under the renewed model, CSC-Boustead Beef has so far invested US$24 million and targets to slaughter up to 1 500 beasts per day at peak, starting with about 200 per day, and will work closely with livestock farmers across the country, who should supply 90 percent of feedstock.
In an interview, Bulawayo Leather Cluster secretary-general, Mr Fungai Zvinondiramba, said they were excited about the revival of CSC.
“CSC is very central to the revival of the leather industry because it has a large network to reach out even to rural communities in terms of collection of hides,” he said.
“Also, it has that much-needed capacity to grade hides that will give us the quality we require to manufacture quality shoes, which are more competitive in the local and regional markets.”
Livestock farmer, Mr Donald Khumalo, said the revival of CSC Boustead Beef is a massive boost for Matabeleland livestock farmers who stand to benefit more. He, however, said for farmers to benefit there is a need to transform their business model and at the same time CSC should be transparent in its dealings with farmers.
“It’s a serious window of opportunity for livestock growth in the region across the value chain. Livestock farmers should now consider going commercial, employ qualified people to manage their livestock and supply CSC with quality beef,” said Mr Khumalo.
“In my view, once CSC has high-quality beef, it would help to attract other source markets, which are not on their horizon at the moment. For CSC management, I implore them to aggressively engage livestock farmers and contract many of them. With contracts, farmers would be assured of ready markets for their livestock.
“The growth of CSC will generate employment and when more people are absorbed, that would lift a burden on the Government in taking care of people under social services.”
Bulawayo-based economic analyst and banker, Mr Morris Mpala, said the re-opening of CSC will make farmers realise consistent and better pricing for beef and livestock products.
“CSC resumption brings with it price discovery to the livestock industry for both cattle and goats that have been a challenge to smallholder farmers,” he said.
“It also comes with auctions around various coordinates and that brings markets to their doorsteps and aid livestock price discovery.
“This re-opening will make farmers realise consistent pricing on the market and better pricing due to the pricing model being encouraged.”
Mr Mpala urged farmers in the region to take up the opportunity offered by CSC to use feedlots for quality beef production and embrace advisory services that come with livestock and beef production.
“The model being employed will be very sustainable to the investor, financiers in the value chain, farmers and it includes logistics players. All chain players are complementing each other in a manner that maximising their returns more so the farmer,” he said.
During the re-opening ceremony, CSC investor representative, Mr Nick Havercroft, of Boustead Beef told Business Chronicle that they were confident of receiving support from farmers and downstream industries.
“On our part, we are committed to ensuring smooth operations and that comes with support from communal farmers. We hope to have a beneficial cooperation with communal farmers in terms of supply of quality livestock,” he said.
“Downstream industries are set to also benefit from the operations, especially the leather sector. It’s a win-win situation for everyone.”
Value addition and beneficiation is a top priority under the National Development Strategy (NDS1) and Government seeks to capitalise on these to foster rapid economic growth and employment creation in line with its Vision 2030.
In his remarks, VP Chiwenga said CSC will not be allowed to collapse again as its transformation was vital in the entire agriculture sector.
“This plant is a key component in the beef production value chain. May I hasten to state that this event is a crucial indicator of the private sector’s resolve to stimulate the growth of the livestock sub-sector by providing a steady market for the slaughter stock of our livestock farmers,” he said.
He implored the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development to ensure the effective implementation of the livestock growth plan from 2021 to 2025.
“The livestock sub-sector is pivotal in the agricultural industry not only as a key income generating enterprise for livestock farmers, but also for a whole range of social-economy and cultural benefits, which it provides,” said the VP.
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