Last week a workshop was held at Otjiwarongo under the chairmanship of the Ministry of Trade and Industry with livestpck producers in order to discuss the proposals which were made by the meat industry regarding value addition. The proposals of the workshop which were also discussed previously under chairmanship of the Meat Board were given to the Ministry of Agriculture, Water and Forestry brought positive results, the Namibia Agricultural Union (NAU) reported.
·That 120 000 cattle (weaners) can be exported without any levies. This figure is based on a five year average which means that approximately 40 000 weaners are held back to try to provide a throughput at Meatco’s factories.
·That goats are exempted from a levy for a further 2 years subject to an attempt by the relevant institutions to get alternative markets for goat meat. (The original recommendations was for an exemption for 5 years)
·The small stock scheme which is currently subject to a 6:1 (local slaughtering to export) relation will be monitored regularly for further recommendations. Especially important here is that abattoirs should stick to the agreed price which will be reviewed from time to time. (Currently the agreement determines that Namibian abattoirs pay N$1,50 less for A2 grades than the Red Meat Abattoirs Association in South Africa).
·Producer prices paid by abattoirs are equal or better than the agreed upon Namibian Reference carcass price based upon South African Red Meat Abattoir Association Carcass Price for all classes and grades as well as being complimented by international market prices at export abattoir gate.
·Given the extra ordinary production systems in the country and perceived low prices obtained locally for certain categories of sheep, the Abattoir Association agreed to slaughter all such sheep at a mutually agreed upon Namibian reference carcass price reviewed bi-annually;
·Exempt pickled skins from the 15% export levy for two years, while capacity is created and market strategies are in place to market skins processed beyond the pickled stage;