Padenga searches for alternative export markets

Padenga searches for alternative export markets
Published: 30 May 2014
Padenga Holdings Limited CE Gary Sharp told the AGM this morning that the demand for crocodile meat remains weak in Europe and Asia, as the group's efforts were focused on searching for alternative viable export markets whilst expanding the local market.
 
"There has been a steady increase in the volume of crocodile meat being sold in the local market. We are now selling an average 14 tonnes of meat per month in this market," said Sharp.
 
Giving the trading update, he told the meeting that in Zimbabwe culling for the current financial year started this month adding that the quality of the cull crop in the pens gives them confidence that they will attain their full  target cull of 43 000 crocodiles of 36.6cm belly width average.
 
Sharp said the first grading and sale will be conducted in June 2014.
 
In the United States, he indicated that 1 833 medium sized alligators carried forward from prior year were culled in April.
 
"This operation currently has 20 059 animals on the ground. Of these, 15 200 will be culled in October and 4 600 will be carried forward to 2015 to be culled as medium sized skins of 32cm average size," he noted.
 
On non-culling crops, he indicated that they currently have 47 972 B12 and 47 147 B13 crocodiles on the ground in Zimbabwe.
 
Both crops are doing well in terms of growth and the numbers are in line with the group's objective of increasing production by approximately 10% in 2015, he added.
 
Padenga's capital expenditure was focused on acquiring equipment that increase production efficiencies and reduces costs and to this end, new generators and a 40 tonne transport boat were purchased for servicing the remote Ume farm.
 
Commenting on the financial position of the group, Sharp said; "The first half of the financial year is largely a cost accumulation period with the greater portion of culling and turnover coming in the second half of the year. Total expenses for the four months to April 2014 are in line with budget."
 
Turning to the market outlook, he noted that demand remains extremely strong for premium quality skins.
 
"We are confident of achieving our operational and financial targets for the year," he concluded.
 
The group's directors were re-appointed and fees of $76 576 approved while auditors Ernest and Young were re-elected with remuneration of $112 609 also approved.

- zfn
Tags: Padenga,

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