Agro Strong (Pvt) Ltd has announced a major US$6 million investment initiative to expand its beef and dairy operations in Matabeleland South, targeting critical supply deficits in Zimbabwe’s livestock sector.
The project utilizes a 5,500-hectare estate that has been operational since 2021 and features abundant grazing and water resources for large-scale production.
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The venture is a direct response to a national beef supply deficit ranging between 25% and 40%, alongside a severe dairy shortage where local production currently meets only 50% of the 140 million liters required annually. To address these gaps, Agro Strong plans to acquire 5,000 breeding cows with a target of producing 3,000 calves per year.
The company's long-term strategy includes vertical integration through the establishment of export-certified abattoirs and dedicated feed production facilities.
While the immediate focus is on stabilizing the local market, the project is designed for international growth, aiming to export organic and natural beef to the Middle East, European Union, and SADC regions. Financial projections for the expansion indicate a net present value of US3.5 million and a projected five-year revenue of US9.1 million.
The venture expects a 25% net profit margin and a 14% annual return on investment, with a capital payback period estimated at four years.
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