Pig genetics deal foundation of new agribusiness

Mthembu put together the consortium, which has bought 28% of Kanhym. He won’t divulge how much his consortium paid, but it is believed to be around R140-million. Eight percent of the 28% stake will be held by Kanhym’s black workers. The remaining 20%, was funded by Standard Bank, Mthembu and two other partners.

Using Kanhym as a vehicle, he intends providing access to modern technology and sustainable markets to emerging black farmers. Kanhym specialises in pig farming and producing feed for chickens, cattle and pigs. Its most valuable asset, says Mthembu, is a deal with the UK-based Pig Improvement Company, which gives it the right to market and sell its sophisticated pig-breeding genetic technology throughout sub-Saharan Africa.

This will greatly enhance the quality, and marketability, of the pigs emerging farmers produce. And when thinking of markets for Kanhym’s pig genetics, feedlot technology and feed don’t just think 40 million in South Africa, he says. Think 200 million in Southern Africa. Think of the huge potential market in Mozambique and in Zimbabwe when white farmers get their farms back and it begins to rebuild its shattered agricultural sector.

Sizable investment
Mthembu says his interest in a sector, that has been pretty much shunned by most ambitious black people, is driven by idealism as well as the business opportunity it represents.

This is a sizeable amount of money to invest in a sector that he admits is not nearly as “sexy” as mining, banking and information technology — which have attracted most black interest up to now.

He admits that agriculture is a new world for him, which is why he has joined forces with Afrikaner Thys Pelser. Pelser studied agriculture and has a serious farming background. The partnership are now close friends and also joint owners of a 2000- hectare cattle farm in Naboomspruit.

His motivation is the belief that agriculture is “the main base for any economy. "If black people don’t look into food security, making sure that they participate in serious commercial farming, you are leaving the whole responsibility for this to other people,” he adds.

For further information click here

ThePigSite News Desk

Sign up for our
regular news updates

More of the latest Pig Industry News

•   OIE Monitors Global Pandemic H1N1 2009 Situation
•   CPC Urges Action on Canada-Columbia FTA
•   Guidance Document on Pig Protection Endorsed
•   NFUS Urges Participation in Carbon Footprint Study
•   Defra's New Guidelines to Reduce Salmonella in Feed
•   Study to Bring Benefits to Meat Sector
•   New Merck Company Begins Operations
•   Influenza A/H1N1 Outbreak in Swine Confirmed
•   Ensuring the Most Exposed Animals the Best Welfare
•   Pork with Anabolic Steroid Found in HCM City