Government to reinstate 30% export levy

08 Oct 2014 15:10pm
WINDHOEK, 08 OCT (NAMPA) – Government will reinstate the 30 per cent export levy on slaughter-ready cattle in order to discourage the exports of live cattle, and thereby create employment.
The Minister of Trade and Industry Calle Schlettwein made this announcement during the opening of the Agricultural Outlook Conference 2014 here on Wednesday.
“While Government supports export on the hoof for those livestock which cannot be slaughtered locally such as weaners, we should endeavour to increase local value-addition so that we create jobs and ensure beneficiation by developing downstream industries,” he explained.
In another move, Government will continue to maintain the 1:1 (one to one) export ratio until the industry can develop a long-term small stock marketing strategy, which will ensure value-addition in the whole chain.
Cabinet introduced interim relief measures in July 2013 to support small stock producers during the drought conditions experienced countrywide.
Cabinet then approved the existing restriction of 6:1 local slaughter/export ratio to be amended to a 1:1 local slaughter/export ratio.
Schlettwein noted that a long-term small stock marketing strategy will ensure value-addition in the whole chain, which could reduce the dependency on the South African (SA) livestock export market in order to avoid future market interruptions.
He made reference to the decision taken by the SA authorities to introduce new animal health requirements, which have “brought local producers to their knees”.
Animals exported to SA have to comply with the new permit regulations in operation after the implementation of a standard operating procedure in that country.
Meanwhile, government may consider exempting the extremely remote and small farmers on the export of fat-tailed sheep from export measures, provided that a clear monitoring system is in place.
This is to discourage exports of raw materials.
“The key element of supporting industrialisation is to ensure that maximum value-addition takes place to raw materials before they are exported, thereby increasing the income and employment-carrying capacity of raw materials,” he added.