Gushungo Dairy Estates has shutdown after former first lady Grace Mugabe sold about 700 dairy cows worth about US$1.4 million to a prominent butcher, rendering about 120 workers jobless.
The Independent reports that the company had a US$20 million debt, which forced the entity to auction some of its equipment to pay creditors.
The estate, formerly known as Foyle Farm before the property was parcelled to the Agricultural and Rural Development Authority (ARDA) by the then Agriculture ministry, measures 1 200 hectares.
Gushungo Dairy equipment was imported from South Africa for about US$15 million at a time when Mugabe was ruling Zimbabwe.
Th Independent reports that the dairy equipment is lying idle as a millionaire businessman who is renting the farm has not yet started producing.