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Zimbabwe’s Crocodile Farms: Lucrative Investment
By admin November 7, 2014

crocodile farm

 

Looking for a lucrative investment opportunity? Look no further than Crocodile farms. This sector makes $100,000,000 a year and sells its meat for human consumption and skin for the fashion industry. The fashion industry highly demands crocodile hide making it hard for the farmers to meet the demands because of the time it takes to grow the crocodiles to the desired size and skin consistency.  This business significantly contributes to the southern African nation’s $11 Billion GDP and unlike your conventional farmer, crocodile farmers did not suffer lowered demands for their product during the Zimbabwe economic crisis in 2007. Zimbabwe is the hub of crocodile farming, having 20 farms in its borders. Among them is Binga Crocodile Farm and Padenga Crocodile Farm.

Binga Crocodile Farm, which opened in 2007, would try to put out six to nine thousand crocodiles a year in order to meet with their consumers’ demands. Anthony Sheren, manager of Binga, states that the high competition in the crocodile farming industy in Zimbabwe makes for high quality product and Binga has 32,000 crocs with a target of 60,000 in order to accommodate consumer demand. Binga has exported skins to countries like Japan, Singapore, US, Namibia, Belgium, and Australia.

Padenga Crocodile Farm harvests 50,000 crocodile skins a year. Oliver Kamundimu, financial director of Padenga Holdings, stated that they sell most of their skins to France and their smaller skins to other tanneries in Europe. They also sold to tanneries in Singapore which in turn create handbags using those skins and sell them to markets all over Asia. Last year Padenga sold 42,000 skins to tanneries in Europe where on average each skin costs $550.00.This makes for a very lucrative business; however, it comes with heavy investment.

Crocodile farming is a money spending business. It is capital intensive and you must pay attention to detail throughout the whole process. However, you can be certain that the skin will sell and be converted into high end fashion products, even though success does not come cheap or fast. Jimmy Kazangarar, Chairman of Zimbabwe Crocodile, states that it takes five to seven years before you start making a profit out of the crocodile skin business. Unless you have vast financial backup via investors, it is hard to start a crocodile farm because it is difficult to get a loan in Zimbabwe, and if you do get a loan you look forward to very high interest rates and not enough time to pay them back. Therefore, crocodile farms look forward to investors that have deep pockets and the patience to wait for the business to become profitable. However, once these farms do become profitable investors should look forward to a heavy return on their investment due to the high demand that croc skin has in the fashion industry.

 

For more information:

Investing in Zimbabwe’s crocodile farms

Zimbabwe’s crocodile farming ready for a major comeback

Vegetarian Crocodiles in Zimbabwe

Turning the tables on crocodiles: Eating and exporting them

Crocodiles being fed vegetarian diet at farm in Zimbabwe so their skin makes better handbags and shoes

 


Thanks for sharing !


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