The farmers’ beef with BMC
- Free the market they say
A faulty meat commission, a veterinary department clutching at straws, high transport costs and an elusive European Market is now the farmer’s worst nightmare.
The time is 1600hrs and beef producer and chairman of the Ghanzi Beef Producers’ Association Alwyn van den Heever and two of his executive committee members, Khumoetsile Mautle and Gerhard Botha, have been talking, pleading and mapping the way forward for the beef industry.
The farmers-angry at the fact that they endure high transport costs to transport their cattle to the nearest abattoir (over 600 km away)-met in Gantsi Friday to discuss their next move. The Botswana Meat Commission has just asked them to sign a Livestock Purchase Agreement (LPA) not withstanding the low beef prices and a problematic livestock traceability system that they suffer. And as the three executive members settle for an interview with Botswana Guardian later that afternoon they were clear about what they think is best for the country’s bedridden beef industry. “The BMC has many challenges. Beef producers are not selling as much as they could,” notes van den Heever.
His point is farmers have to sell at any given point and not at the behest of the BMC. But the unexpected closures of the country’s meat commission disadvantage them. The other worrying factor is, currently the BMC is slaughtering only 300 heads of cattle daily even though they have the capacity to triple the amount. This underutilization of capacity results in higher slaughter cost per head and a lower price being paid to producers. One of the solutions the farmers think will end their misery is to remove the BMC monopoly. This is the conviction of van den Heever’s association and that of three other ones in the Gantsi District. This includes the Keledi Farmers’ Association, Okwa/Gwana Beef Producers’ Association and the Ovetore Farmers’ Association. One thing is clear; all the beef producers’ associations in the region are united in their demands. Recently minister Johnie Swartz also led calls for the removal of the monopoly in parliament. The removal of the monopoly has been a hot potato in the public debate and in parliament where a proposed law meant to amend the BMC Act was sent back to the drawing board as lawmakers had problems with it.
BMC, saddled with losses amounting to P406 million in the past three years has enjoyed the monopoly since its inception. The parastatal has been on a free fall for the past three years and at one point had to rely on government subsidies for survival. There were some suggestions within some quarters that Minister of Agriculture; Christian De Graaff is under pressure from some white farmers in Gantsi who want to takeover the BMC. The chairman shakes his head as he recalls what he termed “negative” media reports about farmers in Gantsi. This is not a colour issue, he says, maintaining that removing the monopoly will be in the interest of all. Besides, not a single farmer in the Gantsi region has enough money to open up an abattoir. “We have no hidden agenda and I know of no producer in Gantsi that wants to undermine the BMC and have it closed down to benefit his interest. We are not saying ‘close the BMC’ we are saying ‘free the market,” says van den Heever: The chairman rubbished claims that removing the BMC monopoly will disadvantage the small farmer. According to him the small farmer will benefit more because he will be able to take his one or two beasts for slaughter at an abattoir in Gantsi. “Small farmers are not selling right now because of the transport costs.”
Mautle joins the discussion saying currently farmers lose money on transport and on cattle weight. As the cattle are transported to Lobatse they lose about 10 percent of their weight, which is a loss to the farmer. Adds van den Heever, “we just want to farm (and have no business in operating an abattoir), we love farming and we want to make a good living out of it.” Botha, who is an additional member in the committee quips in that it is high time the beef industry finds it’s footing in contributing to the country’s Growth Domestic Product (GDP). The whole agriculture sector currently contributes less than 3 percent to the GDP. Says Botha, “”We are striving for excellence in the beef industry.”
Meanwhile, in the EU the rules are becoming stringent. Farmers are nervous as the EU Audit team descends on Botswana next week. They are not sure of the future. Will this year’s audit spell another doom? Their nervousness is expressed in a letter to the Department of Veterinary Services (DVS) as they feel the traceability system is not at the required standards. “We trust that you are aware of the EU inspection scheduled for March 2013, a mere two weeks away?” It’s a catch 22 for the farmers. Their lives depend on the outcome of the audit and should it come negative they know that their lives are over and are even considering approaching the High Court for relief. Many have pointed accusing fingers at Minister Christian De Graaff while others have even called for his resignation but the Gantsi farmers are careful not to. “We don’t know what is going on at BMC, but freeing the market will force BMC to look at their operations and up their game,” says van den Heever when asked if they blame the minister for the beef industry mess. The Gantsi region has been lucky in that the current and previous minister of agriculture came from the area. One will think the farmers in the region have the minister’s ear. But both Botha and Mautle say the Gantsi farmers do not benefit at all that the minister is from Gantsi.
