Strategic Issues
With 60% of the world’s uncultivated arable land and seven of the top ten fastest growing economies, Africa
is a natural home for the next agricultural revolution. Zambeef’s future plan is to become one of the biggest
food producers in the West African region. Zambeef plans to operate with reduced risk and earning volatility,
increasing production and efficiency in all areas of the farm, securing the supply chain and the addition of more
wholesale and retail outlets in all countries of operation(World Bank 2013).
Irregularities of regulations across borders are a major threat to Zambeef’s market share. Food and drug
regulations in countries where they have operations are different. This may affect their market penetration as
bottlenecks, restrictions, and import laws may add another layer to their cost of operation. Ghana allows the
importation of beef, dairy and poultry products, with stringent conditions, but Nigeria does not. Even with the
modification of the Tariff Book 2008 in Nigeria, beef and poultry products have not disappeared from the Tariff
Book and the restriction continues With this regulation, animal products have to be produced locally.
With the increase in the number of ShopRite outlets in Nigeria from one in 2005 to 12, demand for Zambeef
products will soon surpass supply. Meeting the demand for beef, dairy and poultry products through local
production might be difficult to achieve in the long run. Other products that are not banned may be imported
by Zambeef. To avoid a deadweight loss of profit as a result of banned importation of animal products, capital
investment will be necessary for expansion to occur and acquisition of new facilities in Nigeria will be necessary
in the long run to address supply constraints.