28 Sep 2015

The Minister of Finance and Development Planning Mr Kenneth Matambo has implored the Botswana Meat Commission (BMC) management to find ways of increasing the beef market in order to maximise on its revenue with the aim of making profit. 

The minister said this during his tour of the BMC recently. Mr Matambo told the BMC management that for the commission to realise profit and continue to function well, there was need for the commission to be reinvented and well managed. 

He therefore called on the management to find a way of exploring and expanding its market to other areas of the world. 

In as much as the BMC has to expand its market, Mr Matambo also said there was need for constant supply of cattle to the plant for slaughter and therefore the need to also find a way of bringing in farmers to the fore for continuous supply. 

Mr Matambo however said, he was impressed with the commission’s balance sheet which was proving to be coming well, especially after government took a decision to exempt it from tax payment. 

He said it was also evident that the commission’s future was not bleak as its balance sheet was showing a sign of recovery after reeling in debts for quite some time. 

He said after government took a step to inject P600 million to the commission, he is hopeful that there will be improvement in the commission’s cash position. 

For his part, BMC Chief Executive Officer Dr Tombale concurred with the minister that the BMC is hopeful to fully recover as currently its balance sheet is on an upward direction. 

Dr Tombale indicated that the closure of the commission due to Foot and Mouth disease outbreak and Measles in 2010 had a negative impact on the commisison’s cash flow. 

He said, back in time, the BMC could slaughter 1 200 cattle per day, but at the moment it can only do 600 per day. 

He said with all in place, the BMC has a potential to have a P2.5 billion turnover, but is currently faced with challenges.

The condition of the plant, he said also played a role in the decline of numbers of cattle slaughtered per day, a thing he said results in the commission not being able to supply adequately to its market which is mainly in Norway, United Kingdom, the Middle East and Hong Kong. 

He also indicated that the commission’s debt stood close to P900 million, owing to both government and commercial banks. 

Minister Matambo said the BMC’s balance sheet however needs to be recapitalised sufficiently to sustain its operations up to the end of 2015. 

“BMC together with its consultants would like to work closely with key stakeholders in the coming weeks and months in order to implement this interim financing solution”, he said. Ends