BMC owes farmers P67 million

BAKANG TIRO

editors@thepatriot.co.bw

Botswana Meat Commission (BMC) is finding itself grappling with P1.5 billion profit loss while on the other hand it owes farmers nationwide P67 million which forms largest part of P98 million debt to the creditors, a development which farming community and MPs say will in future lead to BMC shutdown.

The financial anguish of the meat commission was laid bare by the Acting Minister of Entrepreneurship Molebatsi Molebatsi answering a question Parliament on Tuesday from Nkange MP Dr Never Tshabang.

Molebatsi said the audited financial statements for the year ended December 2022, the commission had recorded an accumulated loss of One Billion Five Hundred and Forty-Nine Million and Sixteen Thousand Pula (P1 549 016.00, adding that at the present moment the meat commission is technically insolvent.

MP for Ngamiland Caterpillar Hikuama said BMC has been marred with corruption of high proportion.

“It has resulted in the creation of unnecessary structures in between, coming to mind quickly foreign marketing agencies that take huge amounts of money before the BMC taking its share, that on its own is a loss to the BMC as an investment agency and less money to the farmer who supply cattle,” he added.

He also said the situation is not helped by the fact that the management of the meat agency recruitment was based on more political allegiance than merit and competence.

In addition, Hikuama said Botswana Democratic Party (BDP) activists and functionaries were the ones deployed to BMC, with that denying or depriving competent people a chance to make BMC a profit-making organization.

“I am not yet sure if privitisation of the BMC would be a best option. Recruiting competent people based on merit to run the BMC and allow it to compete with other abattoirs in the market, I see it as a viable option,” said Hikuama.

Commercial beef farmers across the country lament that the delays by BMC to pay them in time is causing inconvenience for them and as such farmers from regions such as Ghanzi resort to sell their cattle in Namibian market, a development that can also cripple BMC chances to meet export quotas.

In the past, farmers have made calls that they should manage BMC to end its monopoly when it comes to pricing and that was expected to be a case if the now whither privitisation of BMC could see the day.

In an interview, prominent beef cattle farmer from Hainaveldt Commercial Ranches in Ngamiland region, Simon Bojosi said farmers have invested all their resources to improve quality of cattle for the large benefit of making Botswana beef competitive while exported but BMC is now depressing their efforts.

He said Hainaveldt commercial farmers are frustrated by delayed payments from BMC which can took over six months pending, adding that’s unfortunate more so that BMC tax them 4% for each beast they sell to BMC.

“BMC has negative impact on farmers and we are not deriving value from our cattle. As commercial farmers, our expectation is that BMC should take livestock farming as what it is- a business that also pay taxes. For its failure to pay farmers  well on time, it is effectively taking us out of the business,” he said.

Value

Meanwhile, Molebatsi said there is no question about the fact that Batswana have been getting sub optimal value, adding that with the 2022-25 BMC Meriting Strategy, they are in the process of turning things around towards ensuring that Batswana getter better value for supplying BMC with their cattle.

He said in the meantime, farmers continue to get their value for their livestock through the varied valued added services and benefits of selling, or marketing cattle through the meat commission.

This, he said, include among others free transport services across the country, since November 2022 for non-European Union (EU) designated suppliers.

“This is to assist all small holder farmers, mainly in communal setups, to gain access to the BMC abattoirs (both for Lobatse and Maun abattoirs). Between 2022 and 2023, the BMC increased cattle purchase prices more than twice- and as such for EU eligible cattle the BMC offers the best rate within Southern Africa, at P45 per kilogram,” said Molebatsi.

MP for Nkange Dr Tshabang had asked the minister to give an update on the status of BMC for each year since 2019 and the cumulative amount owed to date, as well to state if Batswana have been getting value for their livestock from BMC.