Agra implements stricter credit control for auctions

11 Jul 2016 11:00am
WINDHOEK, 11 JUL (NAMPA) – Agra has said it will implement stricter credit control measures at its livestock auctions due to the uncertainty of the export market for livestock in South Africa.
This will include only allowing cash buyers or buyers with a pre-approved credit facility to purchase livestock at the auctions.
South Africa implemented new livestock import regulations for Namibia, Botswana, Lesotho and Swaziland on 01 July 2016. The new legislation includes stricter measures on vaccination, testing and quarantine requirements of large and small livestock for disease prevention.
Agra, which provides agriculture and other industry-related products and services, has raised the concern that the new measures will have devastating consequences for local livestock producers for markets in SA on its website on Friday.
It has however also reassured producers that it will continue conducting livestock auctions to facilitate a marketing channel for producers to sell their animals.
“Agra anticipated that this new measure will have a significant impact on the ability of farmers to market livestock to SA. The effect on all auctions may result in reduced buying power available for livestock on offer,” it said, adding that due to the anticipated risks associated with an uncertain export market, Agra will implement firm credit control measures for all its livestock auctions.
“These measures will stipulate that only cash buyers or buyers with a pre-approved credit facility within their limits will be able to purchase livestock at a scheduled auction,” it said.
The company says this new move is meant to protect the interest of buyers and sellers, which make up the base of its auction partners.
“The measures are not to discourage participation at these auctions, but rather to safeguard stakeholders during these uncertain times while still continuing to deliver excellent services to our clients,” it added.
Agra manages around 350 commercial stock auctions where cattle, sheep and goats are auctioned on specific dates countrywide.
All cattle and small stock destined for export to South Africa would have to be tested for tuberculosis (cattle only) and Brucellosis (both cattle and small stock).
Exporters to SA whose animals have to be tested are required to apply in writing to the nearest local State veterinary office at least 10 working days prior to the day when samples are to be collected for TB tests done in the case of cattle.
(NAMPA)
PC/AS