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Published On: Wed, Dec 17th, 2014

Colcom mulls regional exports

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Colcom is looking at the possibility of exporting its products into the region following massive investment in additional capacity over the past two years, CE Theo Kumalo has said. In an interview, Mr Kumalo said Colcom regularly monitors regional export possibilities. “Colcom understands Government’s wish to encourage exports. We regularly monitor potential market opportunities in the region. Colcom is not currently exporting any of its products. Any sales will be derived from Colcom’s processing facilities in Harare.

“As we announced in our financial year end results, these processing facilities and technologies in Harare have been significantly modernised through significant investment in new equipment and additional capacity over the past two years.”

Mr Kumalo said Colcom is still undertaking exploratory market opportunities in Angola.

“Colcom’s activities in Angola have been and are only to explore market opportunities for our products with potential customers. To this end, our sales executives have visited Angola and Colcom participated in a Trade Fair in Angola. But no sales have taken place as yet,” he said.

Mr Kumalo, however, urged Government to address the high stock feed costs which make Zimbabwean pork uncompetitive in the regional market.

“The issue is the ability to be price-competitive, especially to distant markets and against pig producers in other countries whose stock feed prices, notably for maize and soya beans, are lower,” he said.

According to a report by Zimbabwe’s Livestock and Meat Advisory Council (LMAC), feeds are major cost driver in domestic livestock value chains and have inflated beef, dairy and poultry prices. The report noted that government taxes on imported raw materials and bureaucratic processes are also increasing feed costs.

LMAC figures show that the price of maize for the first half of the year increased by 6 percent year-on-year while the price of low cotton cake increased by 53 percent compared to the same period last year.

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