THE ailing Cold Storage Company (CSC)’s market share has shrunk, with the company processing 2% of the country’s 300 000 slaughter levels per annum, an official has said.
Responding to questions from delegates attending an on-going Leather Institute of Zimbabwe financial workshop yesterday, CSC meat processing manager, Tarirai Moyo, said the parastatal’s market share had shrunk alarmingly.
BY MTHANDAZO NYONI
“This is relative to the national slaughter levels. The current national slaughter level in the whole country of the animals that have been said to be 5,5 million we only get 280 000 to 300 000 cattle per annum,” he said.
“That’s the average national slaughter so that is relative number of hides that we are producing in the country assuming that all the hides are processed and go in the private sector although we know that others might be operating from backyards slaughter operating might not find the way into the formal channels of hide production. But official records show that we are producing 300 000 per annum as slaughter levels.”
Asked what CSC’s current market share was, Moyo said: “CSC’s market share has shrunk in a big way. Only 2% of that is what CSC is operating at. So actually you find that total off-take there is around 80% which now only 2% is in the CSC’s hands nationally and the rest is in the private sector’s hands, thereby signifying the importance of the private sector in the leather value chain industry.”
CSC was one of Zimbabwe’s most strategic assets, earning the country at least $45m annually before its collapse. It is currently operating below 10% of its capacity and reported to be making annual losses in the region of $6m.
The parastatal is saddled with a debt of more than $25 million mainly as a result of fixed costs such as wages, rates and taxes on land and it is in dispute with its creditors, including 413 former workers, who are owed about $4 million in salary arrears.
In a bid to revive the parastatal, the State-run pension fund, National Social Security Authority, has revealed plans to pour in $18m to recapitalise CSC in an equity investment deal.
The deal is still under consideration.