Africa's agriculture and value addition magazine

Agribusiness firm plans modern abattoir, butchery in Dar

Posted in Dairy & Livestock

TANZANIA - Iringa-based agribusiness company, Mtanga Foods Limited is planning to invest in a modern abattoir in Kisarawe and processed meat selling outlet in Dar es Salaam during the first half of 2016.

Mtanga Foods Limited chief executive officer, Trevor Shaw said in Dar es Salaam yesterday that the company has  butcheries in Iringa and Mbeya regions. 

“Our main base is in Iringa where we also have farms and meat processing plant, we have just opened an outlet in Mbeya and next year we will be in Dar es Salaam,” said Shaw who said the exact size of the investment to be made will be known later this year.

He said in order to address growing demand for processed meat products, the company will invest heavily in Kisarawe where it already has hundreds of herds of cattle. “We cross breed local cattle with Boran to get hybrids which are good for beef and milk,” Shaw noted.

Mtanga Foods is a vertically integrated business with an established food production chain from seed to feed, delivering quality food from farm to fork. 

The company’s product range includes certified clean seed potatoes, cattle and sheep. Crops include maize, soya and barley and an on-site abattoir and butchery make for essential tools to ensure the highest level of quality control.

The company which buys the bulk of its cattle, goats and other products from local farmers, has a long term lease of over 8,000 hectares of land formerly of Sun Biofuels Limited after the collapse of the British firm’s jatropha project.

Among Mtanga Foods equity partners is Agri Vie which invested US$ 6m in 2013 which is a private equity investment fund focused on food and agribusiness value chain in sub-Saharan Africa.

Managing partner of Agri Vie, Herman Marais, said soon after the investment that there is a growing demand for quality meat products due to a growing middle class, increased investment, increasing awareness of food safety and the growth and development of a number of sectors in the country.

“Tanzania once had a thriving beef industry and there is now ample potential to revive the market,” Marais said.

Marais also pointed out the significant scope for value added products, as around 700 metric tonnes of processed meat is currently imported into the country each year. 

The Mtanga plans to use the funding to improve the local beef industry to meet a growing local and regional beef demand.

Mtanga operates mainly in the southern highlands of Iringa and comprises a value chain of abattoir and processing facilities, sales and distribution channel, an estate rearing beef cattle, in combination with a supply chain for a fattening herd of cattle and sheep and an arable farming operation focusing on maize and soya as a basis for animal feeds.

November 20, 2015;