The Zambeef Group has confirmed that it lost 175 dairy animals as a result of Foot and Mouth Disease which broke out in Chisamba and Chibombo last year.
Over 5,000 head of cattle were affected by the disease which led to government to impose a ban on movement of cattle in and out of the affected districts as part of efforts to contain the disease.
The disease affected Zambeef’s Kalundu dairy farm in Chisamba which supplies 40 per cent of Zambeef’s raw milk requirements which led to daily milk output falling sharply.
But in an operational notice, Zambeef has confirmed that it lost 175 dairy animals and received an insurance payout policy of USD240, 000 in compensation.
“The Group is pleased to report that the ban on the movement of live animals in and out of the Chisamba and Chibombo districts as a result of Foot and Mouth Disease (FMD) has been lifted,” the notice read.
Zambeef also confirmed that the volume of milk being produced by the dairy herd has fully recovered to levels that existed before the outbreak of the disease.
It says the financial effect of FMD was sufficiently provided for in the March 2018 interim results and reported on 6 June 2018.
Zambeef has also confirmed that the common bacterial disease, Bacteria Leaf Streak (BLS), has been detected in its winter wheat crop.
It says as a result of the disease, wheat yields are anticipated to be lower than initially budgeted.
“However, wheat sales contracts have been concluded at higher than budgeted prices per ton and therefore Zambeef does not currently anticipate that the BLS outbreak will have a material financial impact on the Group’s performance for the 2018 financial year,” it says.