African agricultural business Zambeef (ZAM) has hit trouble on two fronts as some of its imported beef products have attracted food safety concerns and lower than expected wheat prices are likely to hamper profitability in its grains business.
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Some of Zambeef's imported beef products, which only account for 4 per cent of turnover, have been shown to contain levels of formaldehyde and have been withdrawn from sale. Meanwhile, lower than anticipated wheat prices mean that the excess production sold by Zambeef's grains business will command lower than expected sales prices, which could affect group profits.
