UGANDA – Uganda is set open a new abattoir at the Sino Industrial Park in Mbarara, west of Uganda, targeting the export market including regional and global destinations.
The state-of-the-art slaughter house is currently 95% complete with close to US$7m injected in the project.
According to reports by Daily Monitor, the modern facility will attract local demand of about 150 cattle per day but has an installed capacity to handle 400 cattle.
The livestocks will be sourced locally through the community and synergies with National Animal Genetic Resources Centre, revealed Mr Stephen Kaboyo, Sino Industrial Park and Economic Zone chairman.
“So far the flagship project of the modern beef abattoir is 95 per cent complete and close to US$7m in investment so far.
“Our approach is to engage the local communities as much as possible so that they can benefit from this investment in terms of supply and job opportunities,” he said.
The establishment is mainly eyeing entry into the Chinese market due to its competitive and lucrative prices.
According to a recent report by USDA, China’s beef imports are forecast to be 4 percent higher at 2.9 million tons in 2021 due to evolving tastes and relatively modest production growth.
“So, it is high time for Ugandan exports to reach areas like China. We are also looking at the regional markets that can take Uganda’s beef,” said Stephen.
The five square mile industrial park, will in its first phase house 15 factories including a mineral water factory, among others.
Once completed, the industrial park, which is targeting to have over 500 factories at peak capacity, is expected to employ about 5,000 people.
“So far the flagship project of the modern beef abattoir is 95 per cent complete and close to US$7m in investment so far.”Sino Industrial Park and Economic Zone chairman – Mr Stephen Kaboyo
The establishment of the slaughter seems to be a saving grace to most farmers in Mbarara who are predominantly known for dairy farming.
With the increase in milk supply, plummeting prices amid a narrowing market, especially on the export side, the emergence of the beef processing plant has made most dairy farmer to seek to shift to the beef sector.
African economies ramp up investment in beef sector
The Middle East & Africa meat market in 2018 was worth US$30.01 billion and is poised to grow at a CAGR of 8.16% during the forecast period 2019–2024, indicates Industry Arc.
In a bid to leverage on the market opportunity, countries in the regions have been mulling investments and make strategic arrangements in the beef industry.
In neighbouring Uganda, the Kenyan government transferred the management of the state-owned meat processor, KMC from the Ministry of Agriculture, Livestock and Fisheries to the Ministry of Defence following.
The change of guard has started to bore fruits with KMC having so far met the bulk of its debts owed to livestock farmers and other suppliers since the military takeover, clearing Ksh250 million (US$2.2m) worth of debts.
In Ethiopia, the government inaugurated a new slaughter house in Eastern Ethiopia near the Somali border.
The abattoir has a capacity to slaughter more than 3, 000 sheep and goats per day and 100 camels, targeting the export market.
Southern African country Namibia also recently commenced operations at the Katima Mulilo abattoir after the government injected N$14 million (US$845K) to renovate the facility.
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