Published January 14, 2011 14:15
Meatco Namibia is investigating the possibility of on-the-hoof-buying of cattle in communal farming areas south of the Veterinary Cordon Fence (SVCF). Striving to provide as much a hassle-free way of marketing as possible to communal producers, Meatco in December 2010 procured some 250 cattle in the Omaheke Region by means of live purchases.
As efficient as direct marketing may work for commercial farmers, Meatco is losing cattle in communal areas to buyers who are willing to purchase their live animals on the spot for cash.
According to Meatco’s Senior Manager for Livestock Procurement, Mr. Vehaka Tjimune, the typical communal producer sells his or her cattle because they are in need of immediate cash.
Meatco partially addressed this need through its advance cash payment system through which communal producers can opt for an deposit of N$1,500 per head of cattle in advance when loading their cattle to the abattoirs. The on-the-hoof buying system aims to further support the aforementioned.
“Communal farmers, traditionally, want to sell their animals with the least amount of effort and, generally, needed the cash ‘yesterday’. By buying cattle on the hoof, Meatco will compete in the same league as its opponents,” explains Mr. Tjimune.
“Communal farmers have expressed their appreciation for this type of exercise. Not only does live buying eliminate the risks involved with direct marketing when it comes to aspects like carcass condemnation, but the transport costs of the animals are also no longer something the producer has to worry about.”
The procedure is however only in its test phase at the moment and various logistical challenges still have to be ironed out. Should the system prove successful, it will be rolled out to the Otjozondjupa, Kunene South and Erongo regions.
Meatco has been buying cattle on-the-hoof in the Northern Communal Areas (NCA) of Namibia for more than a year and took into account the experience and the lessons learnt here before the pilot phase SVCF kicked off.
No less than 94% of the cattle slaughtered at the Oshakati factory during 2010, were procured via the cash buying system. Meatco’s Regional Procurement Manager for the NCA, Mr. Patrick Liebenberg, says although the system has its challenges; it has been invaluable to Meatco as a relationship building exercise with producers.
“Our relationships with producers have improved greatly because the farmer can decide right then and there whether or not the price of the day is reasonable and not only when he or she receives their slaughter statement.”
In terms of whether or not Meatco is, in fact, procuring more cattle with the live buying system, it is difficult to compare the 2009 figures to 2010, when the system was implemented, for the reason that the factory was closed for almost four months during 2009 due to Foot and Mouth Disease (FMD) outbreaks in the area.
As efficient as direct marketing may work for commercial farmers, Meatco is losing cattle in communal areas to buyers who are willing to purchase their live animals on the spot for cash.