Canon Garth Ltd of the UK and CHC Commodities have formed a joint venture company in Zambia with equal shareholding and with the objective of developing a world class commercial groundnut production and processing operation which will produce a high quality end product suitable for customers of all types including the global manufacturers in snack and confectionery markets such as Mars, Hershey and Pepsico. CHC’s joint venture partners in NRZ, Canon Garth, have existing supply agreements with the aforementioned companies.
NRZ’s objective is to become the only high quality processor and marketer of edible groundnuts produced by small holder farmers (“SHF”) and commercial out growers in Zambia. NRZ is currently focused on domestic and regional markets including South Africa, Angola and the Democratic republic of Congo for the sale of edible peanuts, but ultimately targets from 2017 the European Union and other overseas export markets. NRZ is therefore driven to aggregate groundnuts from small holder and commercial farmers in the most efficient, cost effective way with a sharp focus on maintenance of quality and mitigation of aflatoxin contamination. NRZ is achieving this through the following initiatives:
- The introduction and development of new high yielding seed varieties suitable for both commercial and small holder farmers and highly marketable to global manufacturers.
- The development of a commercial production operation using the CHC farmer network.
- Investment in and development of all post harvest and processing infrastructure required to handle both commercial and small holders’ groundnut production.
- Investment in and development of 4 regional “buying points” to facilitate the purchase and basic processing of significant quantities of farmer stock (in-shell) groundnuts from small holder farmers.
- Through in-house expertise of Canon Garth, NRZ is to provide training for commercial and small holder farmers to maximise production and quality potential whilst mitigating risks of threats such as aflatoxin.
- Marketing and sale of peanuts from both small holder and commercial crops to domestic, regional and international markets.
NRZ intends to grow production from an anticipated throughput of 1,500mt in 2016 with a gross value of apx U.S.$1,500,000 to 9,000 mt in 2020 with a gross value of apx U.S.$9,000,000. The eventual aim is to increase production of edible groundnuts for export to 30,000 metric tonnes.