Desie Heita
9 November 2007
Windhoek — As part of its growth and sustainable strategy, the Ohlthaver and List Group is putting its dollars on "super" cows with huge udders that are capable of producing almost 50 litres of milk per day.
The super cow project is part of the almost N$1 billion investment, which the Ohlthaver and List Group intends to dish out to its subsidiaries within the next four years.
A total of N$54.8 million will be invested in this super dairy farm, which is to be located in Mariental. The farm will use the world's most advanced technology and will house about 2000 free range cows, each of which will produce more than triple the daily production of normal cows.
"Basically the concept is of caring after the cows, pampering them to a point of almost playing music for them," Sven Thieme, the group's executive chairman, told the Economist.
The farm is expected to be up and running within the next two years.
The farm will supply milk to Namibia Dairies, a subsidiary of the Ohlthaver and List Group, which currently sources its supplies from local dairy farmers.
"The implementation of a dairy super farm will ensure long-term profitability and sustainability of the dairy industry," said Thieme.
Besides Namibia Dairies, the Ohlthaver and List Group also owns the Namibia Breweries Limited, Hangana Seafood, a chain of hotels, and the Pick 'n Pay chain. It also has interests in information technology and ship repair services.
Up until this year, the Ohlthaver and List Group had never reported a profit in its entire existence since 1923. This year's N$107 million profit in earnings attributable to shareholders was achieved through streamlining the company's operations and the realignment of the group's focus from commodity to value addition.
Having achieved this goal, Thieme said the next step is to double profits by 2011. As from 2008, the group will invest almost N$800 million in its various subsidiaries. Besides the super cow farm, Namibia Dairies is also experimenting with giving some of its products longer shelf life so as to venture into neighbouring countries.
The new investment strategy will also benefit the group's fishing interests through an allocation of N$27 million. The group will also build new five star hotels at a cost of N$550 million, while its property portfolio will receive N$61 million.
Asked about the Ohlthaver and List Group's black economic empowerment partners, EPIA, Thieme said the relationship has progressed well.
As to EPIA's contribution to the group's success, Thieme said it has contributed "in many ways". He however said the Ohlthaver and List Group never needed a black economic empowerment partner who would help identify new businesses or assist in having the group accepted by the market.
"We were very accepted before, I do not think we need BEE partners to help us on that," he said.
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