Best Cut meats in huge KZN expansion

2008-04-03 00:00

KZN-based meat retailer and food processor Best Cut Limited is investing close to R3 million in expanding its Empangeni factory in order to intensify its assault on the processed meat consumer market in KZN and Gauteng.

Speaking to The Witness shortly after releasing unaudited results for the six months ended December 31 2007, Best Cut CEO Nick Serfontein said processed meat is fast becoming a cheaper, value-for-money alternative to fresh meat.

The 60% expansion of the factory will include the acquisition of additional plant and equipment that will increase output in a single shift from 26 tons per day to 42 tons per day.

Serfontein is bullish about the prospects of the business, which targets lower- to middle-income consumer groups.

Best Cut experienced a 25% increase in the demand for processed meat products over the past year, while the overall market demand also increased dramatically.

The cost of fresh meat has risen rapidly in recent years, driven by higher maize prices and other input costs.

Serfontein said the company are looking to expand at a fairly rapid pace, both through organic growth and acquisitions.

Best Cut listed on the JSE’s Development Capital Market in January this year.

The company came on to the market via a reverse listing into the Integrear cash shell, marking the first listing on the JSE of a vertically-integrated meat business.

kavith@witness.co.za

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