D.E.C.A. – Working for development

Agriculture is an increasingly important part of CAMEC's operational strategy in Mozambique. It not only acts as a revenue generator but also underlines the Company's commitment to the country. In line with this, it is expanding Desenvolvemementa E Commercializacao Agricola (D.E.C.A.), its agricultural trading and processing operation based at Chimoio in central Mozambique. The established operation run by a team of highly experienced individuals is a stand alone operation that provides revenue for the Group without consuming a significant amount of management time.

D.E.C.A. was founded in 2005 with the construction of a warehouse for storing maize and the building of a processing facility. Since then an additional four warehouses, ten 1,000-tonne silos, an office block, parking garages, a maintenance work shop have been added and a fleet of 50 vehicles ranging from light motor vehicles to 30-tonne trucks acquired. A current work force of circa 200 people is being employed and a second office block and another 6 x 1000m tonne silos for next years crop are being erected, giving the facility a capacity of 16,000 metric tonnes.

The Company has also installed a mill, at a cost of US$800,000 to make maize meal. This important African food staple is packaged, branded and sold to wholesalers and retailers across Mozambique and for the export market. These products are experiencing high demand from the local markets and the plant is working to full double shift capacity to meet demand. The maize meal is vitamin enriched at the mill and is recognised as one of the finest products available on the Mozambique market at this time. To increase sales and awareness CAMEC recently launched a nationwide marketing campaign. Additionally, it sells 50kg bags of maize to local missions, the World Food Programme and NGO's, and as a by-product from the maize processing, it produces cattle feed called Harmony Chop, which is sold to local farmers.

The buying operation is focussed in the Manica Province and purchases directly from indigenous farmers. Although the collection operation is seasonal it collects enough produce and has the storage space to mill throughout the year, thus stabilizing its revenue stream. Due to its successes CAMEC is expanding into other commodities which will further solidify its market position in Mozambique agriculture.

Importantly, it works closely with the Government, the Ministry of Agriculture and local officials, who are keen to expand the operation nationwide. Furthermore, the business’ early achievements have given CAMEC the blueprint to replicate the operation in other countries, which it is now looking to implement.