07 Sep 2020

 Parliament has adopted a motion that called on government to increase a weaner tollie price.

The motion, tabled by Member of Parliament for Ghanzi North, Mr John Thiite, asked government to regulate the beef industry by increasing the weaner tollie price from P12 to P19 per kilogramme in order to make it competitive to the regional industry export price parity that was at P23 per kilogramme.

During his presentation in Parliament on September 4, Mr Thiite highlighted that access to the European Union (EU) market came with a high price since traceability was a priority due to a sophisticated consumer who wanted to understand where the product came from and how it was produced.

He indicated that EU traceability requirements came with a heavy price to the farmer that impacted negatively on smallholder farmers who were concentrated on communal areas.

Mr Thiite pointed out that production costs did not align with the current prices thus making beef farming a nonprofit venture.

Increase in prices, he said, would motivate farmers to be part of economic revitalisation of the cattle industry, adding that it would also be a motivation strategy for the increase of the national herd.

When contributing to the debate, Minister of Agricultural Development and Food Security, Mr Karabo Gare, applauded Mr Thiite for the motion and admitted that the prices were low.

However, he indicated that low prices were attributed to a number of challenges including structural problems in the industry.

Mr Gare said in order to address the structural issues, stakeholders including farmers had to be involved, adding that his ministry was in the process of coming up with a solution.

“By November, we believe the ministry would have come up with a solution,” he added.

He indicated that there was need to set up a meat regulator, which would assist the industry to reach acceptable standards hence improved prices.

For his part, Palapye MP, Mr Onneetse Ramogapi, agreed that it was time for beef prices to be increased, adding that the prices had  remained stagnant for a  long time.

He highlighted that costs of production were high, hence the need to increase prices.

“It is advisable for different ministries to regard Parliament debates as another platform of consultations since we represent different constituencies,” he said.

Mr Ramogapi advised that if Botswana Meat Commission was not able to pay a reasonable price, farmers should be allowed to sell their herd outside the country.

He further indicated that farmers took loans to venture into business but when they sold their products there was no profit to service their debts.

Serowe North MP, Mr Kgotla Autlwetse, agreed with the motion, adding that a lot of farmers in his area were poor because of low prices.

He shared the same sentiments with Mr Ramogapi that running costs were high, adding that prices for other farming products had increased while beef prices remained the same.

Mr Autlwetse urged Minister Gare to come up with a temporary solution to cushion the impact on farmers while the ministry was still working on the issue.

Mr Carterpillar Hikuama of Ngami supported the motion, indicating that government should not just leave farmers to suffer.

A structure including farmers should be put in place to regulate beef prices.

He indicated that if the current pricing structure was not addressed, it would increase a gap between the rich and poor, adding that the motion safeguarded the future of the farmers.

Member of Parliament for Kgalagadi North, Ms Talita Monnakgotla, highlighted that cattle was a source of livelihood for most of Batswana.

She indicated that cost of farming was expensive, adding that if prices could be increased a lot of citizens would venture into cattle farming.

Ms Monnakgotla said farmers would also be able to be assisted financially by banks, taking into consideration that farmers would get a fair price for the produce and service their loans.

Mochudi West MP, Mr Mmusi Kgafela, said profits from farming were not able to finance farm activities and farmers sourced funds elsewhere to augment their budgets, hence the need to increase beef prices.

He said farmers should be allowed to sell outside the country which would eventually lead to increased local buying prices, adding that if prices were improved government would have to cut down on subsidies.

Mr Kgafela said employment would be increased since production would also improve therefore the need for more labour. Ends