17 Mar 2016

Botswana Meat Commission (BMC) has heeded farmers’ call by increasing buying prices to P23 per kg per carcass.

BMC chief executive officer, Dr Akolang Tombale, said during a recent kgotla meeting that farmers had raised complaints in previous years with regard to BMC low buying prices, hence the increment from P18 to P23 without grading.

He said BMC bought cattle at a market related price and urged farmers to sell cattle to the commission in large numbers.

He also encouraged farmers to change the old ways of keeping cattle by developing them for purposes of business and avoid encountering losses at times of drought. 

Dr Tombale said Francistown abattoir had never reached its maximum capacity of 85 per cent since its establishment in 1987 and therefore, pleaded with farmers to sell more cattle to the abattoir. He also informed farmers that the commission aimed to revise its staff complement by reducing it by 50 per cent as a move to maximise profits.

Furthermore, he stated that most challenging issue affecting Boteti was Foot and Mouth Disease. He implored farmers to take the responsibility of maintaining the cordon fence separating wildlife from cattle upon themselves.

Dr Tombale also stated another factor that remains a challenge in Boteti is measles, saying it stood at 10 per cent in Botswana.

He urged Boteti Sub-district leadership to establish toilets alongside waiting rooms, boreholes as much as at the cattle posts to control the spread of measles.

He noted that P56 million was lost to cattle diagnosed with measles, citing that they keep beef in refrigerators for 14 days to a temperature of -20 degrees Celsius.

While Mr Gilbert Chilume of Botswana Unified Revenue Service Regional Manager, North stated that government has introduced four per cent tax on farmers with ownership of 300 cattle or more.

The four per cent tax also applies to those with ownership of 1800 small stock, feedlots owners, abattoirs and butcheries. He cited that farmers not registered on tax selling to businesses registered on tax will be charged tax.

Mr Chilume added that surplus benefits earned through selling to BMC are regarded as dividends, stating that a tax of 7.5 per cent is charged on them.

He further added that reduction in tax is only applied if a person has donated an amount not less than P1000 to an educational institution or sporting club. Tax he said, also applies to self-supply. Ends