Zambeef Ltd has exceeded its Novatek feed production capacity target by 14% in 2018 leading to a production capacity of 44.4% compared to 30% projected target. Zambeef Deputy Managing Director Walter Roodt says its new US$10 million Novatek plant in Mpongwe District which opened in 2017 is already operating at 44% production capacity bringing the total monthly production capacity to 25,000 metric tonnes of feedstock.
“Our target at the time of opening was to achieve 30% capacity but that has been exceeded as we are currently at 44.4% capacity. We produced 200,846 tons of feed in 2018 compared to 155,795 tons in 2017. There is still much room for growth and we aim to maximize production at the plant over time,” the director said.
Roodt has also reported that the company is seeing immense growth in the demand for feed for the livestock sector particularly in poultry which is considered to be the more affordable source of meat-based protein in comparison to others such as beef, pork and goat. The proximity of Novatek’s Mpongwe plant to markets on the Copperbelt and North-Western provinces as well as the Democratic Republic of Congo will not only increase efficiencies of service in those markets but also led to reduction in distribution costs that farmers stand to benefit from.
Opportunities in the form of outlets in border towns such as Nakonde and Kasumbalesa have allowed Novatek to tap into the region’s neighboring countries growing markets thus providing both local farmers and those from surrounding areas to access feed tailored to their livestock.
Increased capacity at Novatek also entails increased demand for inputs for one of the country’s largest buyers of soybeans and maize. In 2018 alone, 164,724 tons of material was procured from small and medium scale farmers in the stockfeed operations.Nearly 25% of Novatek’s production is consumed by its internal livestock divisions within the Zambeef Products Group with the remainder channeled to the external market both within and outside Zambia.
As livestock production regains popularity in farming communities across Zambia, affordability and access to stock feed becomes increasingly important. This also leads to other linkages such as growth of demand for Maize and Soyabeans which local small and medium scale farmers can benefit from.
