Kakuzi eyes hotels in goat meat business

By VICTOR JUMA
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Summary

• Farming company Kakuzi has started raising goats, aiming to supply the animals’ meat to hotels and restaurants by June as part of its expansion and diversification strategy.
• The company aims to meet the demand for quality meat which can also be traced through the supply chain to the farm.
• Traceability helps ensure food quality, provide accurate information to consumers and maintain safety.

Farming company Kakuzi has started raising goats, aiming to supply the animals’ meat to hotels and restaurants by June as part of its expansion and diversification strategy.

The company aims to meet the demand for quality meat which can also be traced through the supply chain to the farm.

Traceability helps ensure food quality, provide accurate information to consumers and maintain safety.

“Although small, we have embarked on a dedicated goat meat production business, and we expect sales to begin in the second quarter of 2022,” Kakuzi says in its latest annual report.

“This company aims to provide quality traceable goat meat for the hotel, restaurant and cafe market.”

Most of the meat sold in the country is not traceable and comes from different suppliers or purchased from slaughterhouses.

Kenya’s red meat sector includes beef, mutton, goat and camel meat. It is estimated that two-thirds of red meat is produced in arid and semi-arid lands under the pastoral production system.

Apart from raising goats, Kakuzi is also increasing its production of avocado and macadamia in a big bet on products whose demand is increasing in international markets.

“The continued expansion of our avocado and macadamia nut production is in full swing. At the end of 2021, our avocado and macadamia orchards covered 927 hectares (ha) and 1,032 ha, respectively,” the company said.

“In 2022, an additional 60 ha of avocado trees and 100 ha of macadamia trees will be established. We predict that by 2026, all land previously dedicated to pineapple production will have been converted to these two crops. »

Kakuzi is set to pay a record dividend of 431.1 million shillings or 22 shillings per share for the financial year ending in December, when its net profit fell by almost half due to falling revenue from the lawyer.

The payment represents a 22.2% increase from the 352.7 million shillings or 18 shillings per share paid for the previous financial year, which was also a record.

The new dividend will be distributed on June 30 to shareholders of record on May 31.

The Nairobi Stock Exchange-listed company reported a net profit of 319.7 million shillings during the reporting period, compared to 622 million shillings the previous year.

The reduced profitability was mainly due to the fall in sales of 8.6% to 3.2 billion shillings.

Kakuzi joins banks among listed companies that announced record dividends, offering shareholders higher incomes after most listed companies suspended or reduced payouts in the previous two years amid the Covid-19 pandemic. 19 was taking place.