Abattoirs reject livestock study

A STUDY on the small-stock sector, which compared prices paid to farmers by local abattoirs with those paid for sheep exported to South Africa, has attracted strong criticism from the local abattoir association, which called it “destructive and invalid.”

The study was commissioned by the Ministry of Agriculture through the Meat Board and has not been made public yet. A multimedia presentation of the report was made at the Livestock Producers Organisation’s (LPO) congress at the start of this month.On Monday, Diana Mueseler, Chairperson of the Abattoir Association of Namibia (AAN), said: “Our association was not offered any opportunity to give input.We reject it because it is flawed in terms of research methodology, interpretation (of information material) and in terms of communication with stakeholders.”Should the Meat Board be unwilling to recall/reject the report, then the Ministry will be approached in order to intervene in ensuring that this destructive and invalid report be withdrawn.”The study was compiled by the auditing firm PriceWaterhouseCoopers (PWC), which recruited two consultants.The study investigated the difference in prices offered by local and South African abattoirs for Namibian sheep and recommended that a nominal levy could be introduced on sheep exports to South Africa.This could ruin the business of Namibian abattoirs, the AAN said.”Slaughter fees were between N$10 and N$20 cheaper at South African abattoirs, which put them at an unfair advantage,” the AAN added.Cabinet decided in October 2003 that exports of live sheep should be exempted from a 15 per cent export levy – which is applicable to cattle exports – for four years until November 1 2007.This was resolved on the condition that more sheep be slaughtered locally so that the slaughtering capacity of Namibian abattoirs and tanneries could be fully utilised within the four-year period.According to Mueseler, local abattoirs had invested heavily during this period to create “sufficient world-class slaughtering and tannery capacity locally” to increase value addition within Namibia.Introducing a ‘nominal’ levy would achieve the opposite, she said.Cabinet will have to decide in the next few days whether to keep the levy exemption in place.A multimedia presentation of the report was made at the Livestock Producers Organisation’s (LPO) congress at the start of this month.On Monday, Diana Mueseler, Chairperson of the Abattoir Association of Namibia (AAN), said: “Our association was not offered any opportunity to give input.We reject it because it is flawed in terms of research methodology, interpretation (of information material) and in terms of communication with stakeholders.”Should the Meat Board be unwilling to recall/reject the report, then the Ministry will be approached in order to intervene in ensuring that this destructive and invalid report be withdrawn.”The study was compiled by the auditing firm PriceWaterhouseCoopers (PWC), which recruited two consultants.The study investigated the difference in prices offered by local and South African abattoirs for Namibian sheep and recommended that a nominal levy could be introduced on sheep exports to South Africa.This could ruin the business of Namibian abattoirs, the AAN said.”Slaughter fees were between N$10 and N$20 cheaper at South African abattoirs, which put them at an unfair advantage,” the AAN added.Cabinet decided in October 2003 that exports of live sheep should be exempted from a 15 per cent export levy – which is applicable to cattle exports – for four years until November 1 2007.This was resolved on the condition that more sheep be slaughtered locally so that the slaughtering capacity of Namibian abattoirs and tanneries could be fully utilised within the four-year period.According to Mueseler, local abattoirs had invested heavily during this period to create “sufficient world-class slaughtering and tannery capacity locally” to increase value addition within Namibia.Introducing a ‘nominal’ levy would achieve the opposite, she said.Cabinet will have to decide in the next few days whether to keep the levy exemption in place.