A partnership between South Africa’s Philafrica Foods and Mozambique’s Novos Horizontes aimed to improve chicken production and supply in the coastal country.
Philafrica invested especially in locally sourced raw materials, while Novos Horizontes had provided inputs on credit to 250 smallholder broiler outgrowers, from which it purchased full-grown birds for slaughtering, processing, and marketing.
But, according to company’s website, production challenges had reduced smallholder numbers to 130.
Philafrica CEO, Roland Decorvet, said that currently 60% to 70% of Mozambique’s poultry demand had to be imported due to lack of local production.
“We see immense potential to replace imported [poultry] products with local production and are pleased to have found a strong operating partner in Mozambique with [nearly two] decades of experience in the poultry value-chain,” he said.
Andrew Cunningham, Novos Horizontes’ executive chairperson, said that with Philafrica’s support his company could continue working towards becoming Mozambique’s “premier poultry producer”.
Novos also wanted to expand into other value chains, where agro-industrial processing and building companies could pull production from Mozambique’s smallholder farmers.
A statement from Philafrica said it planned to invest between R1 billion to R1,5 billion in food categories across Africa over the next 18 to 24 months.
Source: Lloyd Phillips, Farmers Weekly, 17 October 2017