SAGCOT Investment
Partnership Program
Mkata Ranch Site Profile
March 2013
To meet growing demands, Tanzania’s national ranching
company (NARCO) seeks co-investors across the value chain
Map of NARCO’s ranches
NARCO overview
Kongwa Ranch
Ruvu Ranch
Mkata Ranch
Kalambo Ranch
Priority ranches for
private investment
National Ranching Company (NARCO) was
established in 1968 as a wholly-owned
Government enterprise
The company owns and operates ten ranches
countrywide which together cover an area of
230,000 ha. An additional 289,000 ha have been
sub divided into 124 small ranches and subleased
to Tanzanian investors
In order to improve productivity, quality and value
addition, NARCO has decided to privatise key
assets across its ranches
In exchange for minority equity stakes NARCO is
offering its land and assets to investors with the
necessary technical skills
NARCO will receive dividends once the project is
profitable, but upfront investment costs for
investors are reduced
Investors do not have to invest upfront to buy land,
as NARCO is ready to provide the land in exchange for a minority equity stake
Source: NARCO
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Mkata Ranch Profile
Ranch size: 19,446 hectares
Location:
• Situated 258km from Dar es Salaam and 58km south west of Morogoro Municipality, a few kilometers off
the main highway to Zambia
Topography and Climate
• Lies in the humid lowland ecological climatic zone, 400 – 600m above sea level
• Centred within the Mkata plain with the Mkata River running through its northern border
• Vegetation is mainly woodland and wooded grassland (Themeda spp, hyperrhenia spp, Cymbopogon spp)
• Soil: dominated by black cotton soil and red laterite soil
• Bimodal rainfall; average 732 mm per year, long rains Mar – May; short rains mid Oct – Dec
Basic Infrastructure: 5 dams, power supply connected to National Grid, residential houses, close proximity of
Ruvu Abattoir
Livestock population:
• Cattle: 16,600 (under ranching conditions)
• Cattle: 100,000 (under optimum management and feedlotting conditions)
Ranch performance:
• Calving rate: 71%, Weaning rate: 65%, Off take rate: 14%, Mortality rate: 2%
Investment opportunities:
• Feedlotting
• Pasture and food crops development
• Animal husbandry
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Fertile land allow for high stocking rates
Map of Mkata Ranch
Facts about Mkata Ranch
Mkata was established as a livestock research centre
before it was handled to NARCO for cattle production
Mkata ranch is situated 258km from Dar Es Salaam
and 58km from Morogoro town, a few km off the
main highway to Zambia.
The ranch covers 19,446 hectares with a carrying
capacity of 16,600 animals
The ranch is bordered by the Mkata River on the
South West and by Mikumi National Park to the
South
The ranch is suitable for livestock and crop
production as it lies in the humid lowland ecological
climatic zone at an elevation of 400-460 meters
above sea level
Mkata ranch is situated near the Ruvu Abattoir which
is currently under construction
Source: NARCO
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With optimal soil, rainfall and vegetation conditions to
support livestock farming
Mkata Ranch topography and climate
Makata Ranch is situated in the Mvomero District of Morogoro Region
Flat grassland Lies in the humid lowland ecological climatic zone, 400 – 600m above sea level
Centred within the Mkata plain with the Mkata River running through its northern border
Vegetation is mainly woodland and wooded grassland (Themeda spp, hyperrhenia spp, Cymbopogon spp)
Soil: dominated by black cotton soil and red laterite soil
Bimodal rainfall; average 732 mm per year, long rains Mar – May; short rains mid Oct – Dec
Source: NARCO
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A physical verification and valuation of Mkata Ranch
assets was carried out by Dar es Salaam University
Asset Description and
Location/Station
Land, buildings and Infrastructure
Replacement Cost
Per Unit
Total
Market Value
Per Unit
Total
TZS 16 510 150 000
TZS 14 886 730 000
TZS 2 220 000
TZS 610 000
Household furniture
TZS 740 000
TZS 205 000
Office equipment
TZS 380 000
TZS 75 000
NA
NA
Plant & machinery
TZS 14 680 000
TZS 4 620 000
Motor vehicles
TZS 10 000 000
TZS 3 000 000
Fire Arms
TZS 5 100 000
TZS 2 040 000
Live stock
TZS 284 000 000
TZS 284 000 000
Office furniture
Household equipment
Total
TZS 16 827 270 000
Source: NARCO: Valuation of NARCO Assets for Financial Reporting Purposes, University of Dar es Salaam, June 2008
TZS 15 181 280 000
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Under optimum management and feedlotting conditions,
Mkata can produce more than 100,000 cattle/yr
Ranch Performance
Livestock Population
Cattle (optimum conditions)
100,000
Cattle (ranching conditions)
16,600
Calving rate
71%
Weaning rate
65%
Off take rate
14%
Mortality rate
2%
Site is located in the livestock catchment area (Kilosa, Mvomero, Morogoro, Kongwa)
Source: NARCO: Invitation to investors to submit Business Plans for the Development and Commercialization of NARCO Ranches
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Investment opportunities exist in 3 key areas
Opportunity
Feedlotting
Purchase of immature animals for fattening
Produce adequate quality animals for slaughtering throughout the
year
Local and International markets
Pasture and
crops
Ample arrable land to ensure that there is adequate:
• Pasture
• Food crop development for the animals
Breeding
Envisioned that the livestock population within the ranch will increase
Maximum holding capacity of 16,600 cattle through purchase of:
•
Quality breeder animals
•
Infrastructure development
•
Pasture and water facility improvement
Additional investor information
1.
2.
3.
The ranch shares an estabished Brand name “Kongwa Beef” with other NARCO ranches
Close proximity to Pride Meat Abattoir in Mvomero District and the Ruvu Abattoir that is currently under construction
Ranch products are acceptable in the domestic market (mining centres, tourist hotels and supermarkets) and export
markets (Gulf States, DRC, Rwanda, Burundi and Uganda)
Source: NARCO
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