Senior Zimbabwe meat industry figures call for cost reductions to aid exports

Theo Kumalo, chief executive of Colcom, argued that the government needed to address the problem of high stock feeds, which continue to inflate costs.

"Colcom understands the government’s wish to encourage exports. The issue, however, is the ability to be price-competitive, especially to distant markets and against pig producers in other countries whose stock feed prices, notably for maize and soya beans which are major inputs and cost factors in pig production, are lower,"​ he said.

Kumalo said his firm continually monitors potential market opportunities in the region and is currently exploring opportunities in Angola. However, he said Colcom would find it difficult to compete with cheaply priced products from Europe and South Africa due to the disparity in costs and hence price.

According to a recent report by Zimbabwe’s Livestock and Meat Advisory Council (LMAC), feeds are a major cost driver in domestic livestock value chains and have inflated beef, dairy and poultry prices. It added that government taxes on imported raw materials and bureaucratic processes are also increasing feed costs.

According to LMAC’s figures, the price of maize for the first half of the year increased by 6% year on year, while the price of low cotton cake increased by 53% compared to the same period last year.

Solomon Zawe, president of the Poultry and Beef Association of Zimbabwe, agreed it was imperative to lower the prohibitive price of stock feeds.

"We need better prices for stock feeds, particularly maize and soya beans which are major raw materials. However, we need to look at this from a holistic point of view, the price can only come down if we have better yields, and better yield can only come about if we are able to educate our farmers adequately,"​ he said.

Zawe added that labour was also too expensive and the government should maybe assess Zimbabwe labour laws to increase flexibility.

Agricultural Marketing Authority (AMA) CEO Rocky Mutenha emphasised the need to make the country’s meat more attractive overseas as exports could have far-reaching benefits.

"Exporting our meat will boost the revenue inflows into the country. The benefits will not be confined in the livestock and meat sector, but will benefit the economy as a whole as we are currently in a trade deficit situation. It will also go a long way towards easing the liquidity challenges in the market,"​ he said.