Problem areas identified by Meatco and Producers

Currently

Proposal

First run maximum quantity allocation per period (Cap).

Last 3 years average delivered x 100 %

Last 3 years average delivered x (Y) % ((Y) determined by Livestock Procurement)

Announce the slaughter producer price before advance booking request period close.

Weekly announced price

Monthly announced price before the period close for advance booking requests

The 10 booking points change the merit point too fast.                                                           Multiple small quantity bookings per truck to correct the merit point.

Maximum points for one booking is 100 and the average of the last 10 booking points become the producers' accumulated merit point.

Introduce a period point on a weekly basis. The average of all booking points for the week = period point. Maximum points for a period point is 100 and the average of the last 10 period points become the producers' accumulated merit point.

Off season = high % cancellations.                                                                                    The 10 % default deduction for cancellations is to low, 10 cancellations can result in a 90% merit point.                                                                                 Producer price changes results in booking cancellations.

All cancellations have a default of a 10-point penalty. All cancellations within 30 days will attract an additional 3 points penalty for each day as the delivery date approaches.

All cancellations will have a default of a 40-point penalty. All cancellations within 30 days will attract an additional 2 points penalty for each day as the delivery date approaches.

No shows.

Booking point = 0

Period point = 0

New legal entity registrations.

Starting merit point = 85 %.

Starting merit point = all active producers average merit point. First run maximum quantity allocation = 1 Load.

Deliver other producers animals.

None

First run maximum quantity allocation per period.

Equal merit point allocation.

None

Make use of Producer classification criteria ranking.

30 Day cancellation period till slaughter to long - proposal 14 days.

30 days

Advance booking requests determine the capacity, factory need minimum 30 days for efficient planning.

Want a % deviation from actual number booked vs delivered.

None

None, this will result that most producers will have 100% merit point

Pay "agterskot" (backlog) end of year / Financial benefit.

None

Merit point % x announced N$ = pay-out end of period/ year. Proposal to Board of Directors for final approval.