Mozbife is a vertically integrated cattle ranching and feedlot production business which is developing into a "field to fork" producer, to capture more of the added value available higher up the food chain, benefitting profitability.
The board believes that beef ranching offers a material value opportunity in Africa and its beef business remains an area of significant expansion and investment for the Group. The Company's objective is to build a breeding herd in excess of 10,000 with an initial target for 2012 of over 5,000 head across the 1,000ha Mavonde and 15,000ha Dombe ranches.
Mozbife was established to supply premium beef to both the domestic market in Mozambique as well as for export. Beef consumption in Mozambique has been steadily rising and is forecast to continue to grow in the future as living standards across the country improve. The Company is in the process of building a sizeable herd of pedigree Beefmaster cattle, which has been developed for its high quality meat, top weight gaining ability and suitability to hot climates such as Mozambique.
In line with Agriterra's vertically integrated "field to fork" strategy, has developed the Vanduzi feedlot project. The feedlot is currently housing animals ahead of slaughter at the Beira abattoir, with dress out weight percentages between 58% and 63% and an average sale price per animal in excess of US$835. The attractive sale price for the animals highlights the possible financial returns for an established beef ranching operation in Mozambique and underpins the huge potential of Mozbife.
Agriterra is also in the process of establishing an abattoir at Chimoio, to ensure the Company benefits from the full value uplift of the butchered product. The abattoir is targeting a 4,000 head per month processing rate in addition to a goat processing line, and and throughput for both the feedlot and abattoir will be augmented by bought-in local animals which will further contribute to revenues.
Beef consumption in Mozambique has been steadily rising and is forecast to continue to grow in the future as living standards across the country improve.