Zambeef Products Share Discussion Threads

[tenapen] 12/1/2012 16:13

An Email update recieved today.
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Zambeef pumps K13bn in palm plantation

ZAMBEEF Products Plc has pumped more than K13 billion into the Palm plantation pilot project in Mpika to develop a raw material base for its palm oil requirements and cut down on imports.

Palm oil is the main ingredient used in the manufacture of cooking oil and stockfeed and Zambeef currently imports its raw materials for its Zamanita edible oil plant in Lusaka from East Asia.

Zambeef Chief Executive Officer Francis Grogan said up to US$2.6 million has so far been pumped into the 4,000 hectare land in Mpika which if successful, would see the development of more land for palm tree plantation.

"The pilot phase of the 4,000 hectare land is underway with $2.6 million already spent on it in 2011 alone. Should this be successful, it will lead to the development of the other land that we have," he said.

He said Zambia and the region remained a major importer of vegetable oils and that Zambeef was currently a large importer of palm oil from the Far East for its edible oils division.

"Once yields of palm fruit commences, it will allow us to substitute imported palm oil and thereby improve on margins through an extension of primary commodity production and processing.

The 4,000 hectares of land being used in the pilot project is just one-fifth of the total land the Group has reserved for the palm tree plantation bringing the total land for the project to 20, 000 hectares.

Should the entire 20,000 hectares become productive, Zambeef would then start feeding the entire region through exports And in order to meet the anticipated increase in processing palm oil from the Zampalm project, Zambeef has also invested K30 billion into upgrading and expansion of its Zamanita plant.

Through an investment of more than K30 billion, Zamanita will increase its crushing capacity and production efficiencies as the investment was expected to raise the production capacity to 100, 000 tonnes per annum from well below 50,000 tonnes.

Source: Times Of Zambia

[tenapen] 09/1/2012 21:14

Thanks

If I had the money i would buy JM Finn fund. Africa is a long term story so i will have to wait and hope work improves ;-).

Ha Ho.

[jonwig] 09/1/2012 19:18

Done that - didn't know Investorease was still around!

Very positive video on Africa investment story:

[tenapen] 09/1/2012 18:32

Hi John,
Would you please take a look at the below link to ZAM data, if you think it is up to standard would you then put it in the header.

Many thanks.

[jonwig] 06/1/2012 16:56

The Lusaka price has risen from ZMK 2,901 to ZMK 2,950 since Christmas:



Adjusting for forex moves that's 36.0p to 36.8p.

Volume this week over there 291,154 shs. London is much thinner most days.

If there were underlying issues, the price would surely have fallen in Lusaka, no?

[lennonsalive] 04/1/2012 09:04

Big 800K buy this morning at 42p

[valhamos] 04/1/2012 08:48

Excess demand for beef can't be anything but a good thing for Zambeef - in terms of increases in selling prices and transfer to substitutes they produce such as chicken and pork.

As suggested the other day I have bought more today looking to trade the next move upwards.

[jonwig] 03/1/2012 17:28

Can't really add anything to my post #105, Simon.

Of course, if supply bottlenecks are more than temporary, margins may be hit. And expansion into Nigeria might prove expensive and unprofitable. That's what you have to live with when you invest in frontier markets.

What would worry me is signs that management couldn't cope with the growth possibilities. I don't think they are either incompetent or self-serving (we know who those are, in Africa!), but Zambia is a long way away!

Anyway, I've bought the Africa growth story in a pretty big way (5% of my portfolio), and it could be bumpy.

Good luck with your 2012 investments - things seem to have got off to a good start.

[simon gordon] 03/1/2012 15:11

Hi Jonwig,

Any thoughts on why the share has been weak?

Based on the IC it should do 5.1p in 2012; bags of growth potential with the additional capacity and new farm.

Happy New Year

[jonwig] 31/12/2011 08:12

Lennon - right, the filter button is the only answer to troll-flaming.

The original link in post #91 didn't strike me a any big issue: it's what vertically integrated firms do when one end of the business gets out of joint with another. I'd have been concerned if ZAM hadn't been on the ball with imports. And predicting agricultural demand trends is not an easy task.

I gave a bit more thought to the political/religion situation in Nigeria, where ZAM is investing time and money.

ZAM is a play on pan-African growth. At 55-60p it wasn't cheap; at 45p it's still on a 2012 PER of around 12x. So you're going to have a bit of volatility.

Going back to vertical integration, Morrison's supermarket is going in exactly that direction. It has its own abattoirs, pie and sausage factories and now a farm in Scotland. A story worth following.

[lennonsalive] 30/12/2011 21:25

I'm in two minds to filter posters, on the one hand I want to see what they can contribute or even challenge, however there comes a bleedin time when it's just a waste of space on the thread......So for that reason your filtered! (fired).

Great results, growth company. I wonder if there is a seller, because when the buyers came in the price never moved. If goes below 40p, then who knows. However it may bounce like it did before.

[hvs] 30/12/2011 21:14

lol !!!!

When there is no BEEF

[valhamos] 30/12/2011 20:54

Don't worry, tenapen. Happy to give posters a chance to demonstrate their ideas. But in this case, continual repetition and failure to engage with basic economic concepts like supply and demand showed that none were likely to be forthcoming.

Not sure why the share price has fallen recently – it really is quite volatile. Perhaps I should buy some more to trade the next wave up.

[tenapen] 30/12/2011 12:36

I would not waist your time Valhamus, he is same one liner as on the LONR thread. he may be short Africa stocks or just 'short me'.

[hvs] 29/12/2011 20:13

Why Why IMPORT the prduct you are best at ???? Why ?

[valhamos] 29/12/2011 20:09

hvs - if you drop the combative style you might learn what a good investment Zambeef is. If you've already made up your mind that it's not, then you would be better served by developing a coherent and reasoned argument rather than merely repeating that Zambeef is importing; a fact that has been known for some time as they are struggling to keep up with demand.

It might be worth you considering this extract from 2011 Annual Report:

"The beef division is one of the largest divisions in Zambeef contributing 23per cent. of Group
turnover and 24per cent. of gross profitability.

Turnover of this division increased by 38per cent.and gross profitability increased by 26per cent., while gross margins declined from 31per cent. In 2010 to 29per cent. in 2011.

The beef division has had supply problems due to a scarcity of standard cattle in the market. Due to the continued bumper harvests of maize, small scale farmers, whom are the main source of standard cattle, have been reluctant sellers. As a result, the total amount of standard cattle sourced during the year has reduced by over 7,000 head of cattle.

The demand for choice cattle (premium beef) continues to grow. As such, the Group purchased over 17,000 animals from commercial farmers (2010:15,500). We will continue sourcing more choice cattle for supply to the market. During the year, we improved our feedlotting operations by opening a third feedlot in Mongu allowing us to source additional animals. We also opened a new abattoir in Mumbwa, allowing us to obtain a new avenue for animals.

Due to the lack of supply in the market, and the continuing increase in demand for beef products, the price of beef has increased by22per cent. In spite of the volume reduction of locally sourced cattle, the Group has sustained market growth in demand, aiding turnover growth through importations of key value items such as liver and kidney.

Although we expect the beef sector to continue to have supply issues in the short to medium term, Zambeef remains in a unique position within the beef industry with eight abattoirs and three feedlots strategically located around the country in order to gain access to cattle."

[hvs] 29/12/2011 19:56

The fact is they is importing beef

NOT EXPORTING.

[tenapen] 29/12/2011 19:54

As always a one liner with no facts. if your correct you will keep posting. If wrong you will be gone. so there is no point continuing with this.

[hvs] 29/12/2011 19:48

;p; !!!

Thats means no steak then. I have seen them coME AND GO.

[tenapen] 29/12/2011 19:16

I do not think you are grasping the 'supply and demand' bit !.

But as i have found in the past, all you can do is post one liner's with no beef to your comment.

[hvs] 29/12/2011 19:09

LOL wger is the profit when u is importing ???

Is it another case of IDIOTS ?????

[tenapen] 29/12/2011 18:54

... not enought to keep up with demand :-)

You know what they say about supply and demand, Grasshopper ?

higher prices & a BIGGER profit.

[hvs] 29/12/2011 18:16

Does that mean there is NO STEAK ?

Forget the gravy then.

[tenapen] 27/12/2011 13:31

Seasons Greeting's



Zambeef importing 100 tonnes of beef each month

By The Public - Tue Dec 27

ZAMBEEF Plc says it is importing 100 tonnes of beef every month to meet the shortfall of beef particularly during the festive period.

The firm has also said it may list on the Nigerian Stock Exchange in the next four years.

Cont...

[jonwig] 24/12/2011 09:19

Lennon... you make a good point, and it's one I was very careful to check before investing.

I get the impression that non-white Zambians are solidly represented on the main board and in middle management. (The AR lists lots of names.) If Zambia is building its own infrastructure without the "help" of China, so much the better.

The main problem as I see it, is population growth outstripping economic growth. At least ZAM is in a position to help in this aspect.