Harare — EXPORT prospects for the Cold Storage Company, the country's largest beef processor, seem to be looking brighter as the company is set to strike another deal with Malaysia.

The would come only a few weeks after the firm clinched a similar export deal with Hong Kong, CSC chief executive Mr Ngoni Chinogaramombe revealed this week. Beef exports to Hong Kong are set to begin next month. CSC has been on the hunt for foreign markets over the past few years following the suspension of fresh beef exports to the European Union as a result of a major outbreak of foot-and-mouth disease in 2001.

The EU was CSC's biggest export market. Before the foot-and-mouth outbreak, which was compounded by successive droughts, the company had an annual quota of 9 100 tonnes of fresh beef to the EU. Several joint efforts have been made by CSC and Veterinary Department in view of resuming exports to the EU but without success, prompting the company to search for new markets in Asia in line with the Government's "Look East Policy".

Lack of foreign currency has been partly blamed for the under-performance of the parastatal. But with the emergence of the new markets, CSC is set to earn foreign currency for the country and to finance some aspects of its operations. However, observers have already raised concerns as to whether the beef processor would be in a position to sustain the new markets considering the operational constraints that the company is facing. Recent Press reports indicated that the company was in need of $82 billion for recapitalisation but the $10 billion it was allocated under the 2007 National Budget falls far short of the stated amount.

The money would be used for boosting the national herd through various livestock schemes and to revive other CSC operations across the country. CSC operated at less than 15 percent capacity throughout last year. Agriculture Minister Dr Joseph Made said Government would soon embark on the National Livestock Development Programme to boost the national herd. Under the programme, Dr Made said they would look at ways of "rapidly multiplying" the current herd, which is estimated to be at around 5,5 million. Zimbabwe has potential to rear between 10 000 and 15 000 cattle. This would go some way in enabling CSC to sustain new markets and increase market share in existing ones. "There is great potential in the beef industry and with the emergence of these new markets, we really have to work extra hard," he said in an interview yesterday.

Mr Chinogaramombe was also optimistic about the possibilities brought about by new markets but underscored the need for improving capacity. "Prospects for export markets are looking very bright and we are going to engage Government with a view to finding ways of improving capacity," he said in an interview.