The Sunday News
Gabriel Masvora, Business Editor
THE shortage of cash on the market is likely to hit hard on cattle farmers especially those in rural communities who are still not comfortable with the use of plastic money, an official has said.
Bulawayo Agricultural Society vice-chairman Mr Richard Wakefield, told farmers who attended the Sunday News Agribusiness seminar held in Bulawayo on Thursday at a local hotel that cattle sales were mainly conducted on cash basis and it will be a problem to the business if the cash problems persist.
The country is experiencing acute shortage of cash which has seen some banks limiting daily withdrawals to just $200, an amount which is not enough to buy one beast.
“If the cash problems persist, it will affect the cattle sales business. You can go to the communal areas and offer farmers good prices, but if you do not have the money then there is a problem. The farmer will be expecting hard cash to use it there and there. You can’t convince him that you will transfer the money into an account because some do not have, accounts,” he said.
Mr Wakefield said cattle buyers cannot even convince the farmers to use the mobile money transfer system.
“Even if you say you are going to transfer the money using EcoCash, the farmer knows that the next local shop has a float of maybe $30 when he wants to withdraw the whole amount after selling a beast,” he said.
He said abattoirs were also not supporting cattle sales in the region and preferred to deal directly with farmers.
“Abattoirs are arguing why they should come to cattle sales when cattle is flowing into their pens from farmers, “ said Mr Wakefield.
He said the Bulawayo Agricultural Society which is also responsible for running the Bulawayo Agriculture Show was facing a lot of challenges after the suspension of cattle sales at the ZITF. The sales and exhibitions were suspended as part of controlling the spread of Foot and Mouth Disease.
“The society might be forced to close,” said Mr Wakefield.
Speaking at the same seminar, farmers and representatives of farming organisations said the livestock value chain was facing a number of challenges that was threatening its viability.
Zimbabwe Commercial Farmers Union representative Mr Fred Mpofu said there were a number of middlemen who were fleecing farmers of their livestock and often impose prices which were not viable.
“In rural areas we now have some businessmen who run butcheries who are now keeping their ears on funerals knowing that these families will be desperate to sell their cattle to meet expenses. Some take the livestock on credit and they do not pay on time,” said Mr Mpofu.
Zimbabwe Poultry Association Matabeleland region chairman Mr George Nare said although the sector has been meeting national demand, it was still worried about the pricing of stockfeed.
“Stockfeed manufacturers must reduce their prices. There is also the problem of collateral where it is difficult for the poultry farmers to access loans from banks,” he said.
Zimbabwe Pig Producers of Zimbabwe coordinator Mr Sipho Donga said pig farming in the southern parts of the country was almost collapsing.
“We are being shortchanged by middlemen and we are not being treated fairly like our counterparts in other parts of the country. In Bulawayo there is only one abattoir which charges $20 to slaughter while in Harare farmers are charged $10,” he said.
Livestock Production Department director Mr Bothwell Makodza said his department was in the process of revising the statutory instrument that deals with classification of animals to ensure that it addresses the challenges farmers face when their animals are graded at cattle sales.
“The document is now with our legal advisor who will then advise us on the way forward,” he said.
