adminIn a statement accompanying the company’s financial results, board chairperson Mr Simplicius Chihambakwe said negotiations with potential investors were underway.
“The group requires $8 million for this investment and is currently engaging potential funders for the investment,” he said.
Mr Chihambakwe said the CFI board of directors approved acquisition of the new abattoir in May this year given the age of the existing one which constantly broke down and was becoming expensive to maintain.
The new abattoir was expected to be built next to the recently commissioned environmentally-controlled houses at Glenara Estates to achieve critical mass for the business and buttress the poultry value addition chain.
At the Suncrest Division, Mr Chihambakwe said capacity utilisation and depressed margins were hampering profitability.
“The dumping of cheap imported GMO chickens distributed through the informal sector continues to significantly affect viability of small and established players,” he said.
Meanwhile, CFI recorded a $4 million loss during the full year to 30 September 2012.
The conglomerate invested $2,6 million through its division Crest Poultry Group, from loans obtained from the PTA Bank, the Government’s Distressed and Marginalised Areas Fund and Afreximbank.
A further $1,7 million was also invested in Victoria Foods.
Volumes at stock feeds producer, Agrifoods increased by five percent to 75 431 tonnes from 71 998 tonnes. Margins declined slightly but the business was generally profitable.
During the period under review, two additional depots were opened in Bindura and Zvishavane.
Revenue for the group dropped six percent to $92,4 million.
Poultry, retail and specialised divisions contributed 52 percent, 36 percent and 12 percent to group revenue, respectively. — New Ziana
Online Reporter
Londile Moyo