Meatco stopping dual price system

18 Jun 2013 11:50
WINDHOEK, 18 JUN (NAMPA) - Meatco has decided to put an end to its dual pricing system as from 01 July 2013 due to the decrease in the number of non-compliant animals being delivered to the corporation.
The number of non-compliant animals delivered to the Meat Corporation of Namibia (Meatco) has at this stage decreased to below 0,5 per cent.
In its latest newsletter published on Tuesday, Meatco’s Manager of Communications and Marketing, Mario Poolman said many factors have contributed to the delivery of non-compliant animals.
?The implementation of the dual price system, the introduction of the additional Namibian Livestock Identification and Traceability System (NamLITS) registration requirements by the Directorate of Veterinary Service (DVS), new processes by Meatco to minimise non-European Union (EU) animals and good co-operation by the producers all contributed to the number of non-compliant animals being delivered to Meatco decreasing to below 0.5 per cent currently. This has allowed Meatco to reconsider its decision and to do away with the dual price system,? he explained.
Poolman said the decision by Meatco to charge a 25 per cent penalty on all non-EU qualifying cattle in the past was necessitated by the introduction of the 90/40 day EU export requirement two years ago. The DVS introduced NamLITS to keep track of this requirement. The dual price system by Meatco was implemented because EU qualifying animals realise better market returns than non-qualifying animals, and Meatco wanted to pass the value back to producers as an incentive to comply with the residency requirements, according to Poolman.
The DVS also introduced a requirement that producers should provide proof that their animals are registered on NamLITS before issuing a movement permit to allow animals to be transported. This includes transportation to abattoirs and auctions and between farms. The implementation of this specific requirement by DVS further promoted the compliance by producers with the 90/40 day requirements.
However, the same requirements exist for the registering of animals on NamLITS and the compliance of the 90/40 EU exports.
Poolman explained that doing away with the 25 per cent penalty does not mean producers are no longer required to tag and register their animals on NamLITS, and that they do not have to comply with the 90/40 requirements anymore.
?The DVS requirement that animals must be registered on NamLITS before the movement permit is issued is still valid. Meatco also still wants EU-compliant cattle and will continue with its processes to minimise non-EU cattle and will strictly monitor the situation. If the amount of non-compliant animals gets too high, Meatco will likely impose a penalty again,? he stressed.
Cattle that comply with the national 90/40-day animal movement regulations are exported to lucrative markets such as the European Union and Norway, while those that do not comply are not.
Returns from exports to these lucrative markets at one stage were more than 45 per cent higher per head of cattle than returns from cattle that could not be exported.