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Foot & Mouth disease affects Koala beef exports targets

30 Nov, 2018 - 17:11 0 Views
Foot & Mouth disease affects Koala beef exports targets

eBusiness Weekly

Kudakwashe Mhundwa
HARARE – Ravaging Foot and Mouth Disease (FMD) has shattered Koala Park Butchery and Abattoir’s intention of exporting meat to Botswana and Europe Union early next year as the potential buyers have described the country as highly affected by the disease and may not trade in the next two years until the meat is cleared of free of the disease.

The disease was first reported in Chegutu, Mashonaland West Province then spread to Kadoma and many other areas across Zimbabwe causing the meat to be risky for exportation.

Government, through the Veterinary Services Department, has since suspended cattle movement into Harare and this has affected cattle sale, including at one of the country’s major cattle auctions supplying Harare.

Koala which has some of its major branches in Chitungwiza, Kadoma and Chiredzi was not spared with the infectious disease and the suspension.

Chiredzi Abattoir manager Jacobus Raath said that the meat company is facing difficult times as most cattle owners are charging in foreign currency.

“We were planning to export meat to the Europe Union and other areas early next year but with Foot and Mouth Disease spreading into most of the country we are starved of supplies from many areas around the country due to the fact that Veterinary Services Department has deferred cattle movement in Mhondoro, Ngezi, Rushinga, Mount Darwin and Dande among other areas.

“Again, the problem is that even if we manage to reduce foot and mouth, European Union advised that the country will have to wait for the next two years before exporting meat.

“The company is now only serving the local market where cattle slaughtering has gone down by 30 percent and this has caused supply issues along the way,” said Raath.

Average meat prices have increased to around $13 per kilogramme from $7 per kg a month ago, causing less people to buy the product.

This has caused Koala to slaughter only 2700 beasts monthly from 3600 they were slaughtering a month ago.

Meanwhile, Koala accountant and spokesperson Washington Kahari said meat sales have gone 30 percent down due to a number of factors which include the ever decreasing cattle numbers from February due to the January disease which swept across Mhondoro and Hwedza area where the meat supplier has heavily invested on cattle rearing project.

He said the suppliers are also demanding payments in US dollars with some charging from $250 per beast to around $400.

“Declining cattle supplies due to charging of hard currency payment by most of our suppliers have had a negative impact to our business. We are selling our meat in local currency hence we can’t buy cattle in   forex.

“Consequently, we are mainly relying on our feedlots which we were not doing in the past years. This is due to the fact that our producers apparently want to keep their cattle as they are uncertain about the value of their money,” he said.

Koala branches in Kadoma and Chiredzi meat is sent to Harare, where some is for further processing and most is distributed to supermarkets and butcheries.

The meat processor is mainly depending on hides’ exportation for foreign currency and the company is negotiating for a waiver to export at a low cost rather than the current prohibitive levy regime.

Since January, the company has stocked 38 000 hides which equate to 760 tonnes but cannot dispose of them due to high levies charged in exporting hides.

Government has since given tax reprieve for all exporters of raw hides from January 2019.

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