THE fledgling ostrich skin and meat processing industry has been dealt a severe blow following the redesignation of two farms belonging to Dollar Bubi (Private) Limited. The company is a joint venture between an Indonesian businessman, Cayhad Kumala, and a Zimbabwean company, PT Royal Ostrindo.
The farms, Dollar Bubi Block and Mimosa Park, have the world’s largest ostrich egg hatchery producing over 50,000 eggs.
The redesignation jeopardises investment of more than US$11 million (Z$605 million) made by the Indonesian investor who has threatened to enact a compensation clause of the trade agreement, which allows for investment protection. The fate of over 1,000 workers is in the balance following the designation of the farms.
Kumala has an 88% shareholding in Dollar Bubi and a 50% in PT Royal Ostrindo. The exporting company, PT Royal Ostrindo, realised a turnover of $903 million last year. This revenue was sourced mainly by meat sales to Belgium and German markets and skin sales to the United States.
Concerns have been raised regarding the future of the investment and the stability of the downstream developments of three additional companies, a slaughterhouse, PT Royal Ostrindo, a tannery and marketing concern for meat and skins, and a processing plant for ostrich meat, called Ostrindo Meats.
