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Nqobile Bhebhe, Senior Business Reporter
THE European Union (EU) Ambassador to Zimbabwe, Mr Timo Olkkonen, said his delegation is keen to assist Zimbabwe to resume beef exports to the Western bloc but several key production issues need to be ironed to achieve the breakthrough.

Zimbabwe’s beef exports to the EU were suspended in August 2001 after an outbreak of foot-and-mouth (FMD) disease, which dealt a huge financial blow to the then Cold Storage Commission (now Cold Storage Company CSC).
CSC had an annual quota to the EU of 9 100 tonnes of beef. It also had $15 million revolving payment facility A with EU under which it was paid in advance.

Mr Timo Olkkonen

Speaking during the International Business Conference (IBC) panel discussion in Bulawayo last week, Mr Olkkonen said the EU is offering support to pave way for the resumption of beef exports.

“There are issues outside of the trade rules that are creating technical barriers of trade that we have encountered and are restricting Zimbabwe’s exports to the European Union,” he said.

“Beef is a topic that I have been presented with often because Zimbabwe used to benefit from guaranteed prices and quotas for beef exports into the European single market.

“This is no longer World Health Organisation compatible. There are problems with health standards that we experienced about 20 years ago that are still hampering export opportunities.”

Mr Olkkonen said European consumers were extremely quality conscious and this is something that policymakers and regulators are very much aware of and take into account.

“So sanitary and laboratory standards or certification are still an issue in Zimbabwe and the country has to depend on regional laboratories,” he explained.

“But the EU has been collaborating and rendering support to Zimbabwe. We are very much interested to continue our support to boost Zimbabwe’s export to the EU.”

EU

Currently the giant CSC factory is undergoing rehabilitation in Bulawayo and hopes to regain its lost glory. The country’s largest beef processor and marketer was scheduled to resume operations in April this year after years of closure but has missed deadline again.

Its anticipated resumption of operations follows a US$400 million joint venture farming concession agreement the Government entered into with a United Kingdom-based investor, Boustead Beef Zimbabwe in 2019.

Under the arrangement, Boustead Beef Zimbabwe has taken over the management of CSC operations under a new name, CSC-Boustead Beef Zimbabwe for an initial period of 25 years.

Boustead Beef Zimbabwe

The resuscitation of the Bulawayo plant has largely been delayed by the Covid-19-induced national lockdowns as the investor would not import the critical spares to facilitate the rehabilitation project, management has said.

At its peak in the 1990s, CSC, which owns four abattoirs in the country used to employ 1 500 permanent workers and about 700 casual employees, thereby making it one of Zimbabwe’s biggest employers.

It is hoped that as capacity utilisation and throughput improve after resumption of operations, workforce figures will gradually improve starting with about 150 former CSC employees on condition of good health and ability. — @nqobilebhebhe