BMC secures facility to ease cash flow woes

Speaking in Parliament last week, the assistant Minister of Agriculture, Oreeditse Molebatsi said BMC is required to pay farmers within three days of cattle delivery. But this creates a cash flow problem as the commission only receives cash from the sale of the meat after about six months from the time of procurement of cattle.

“The problem arises from having to pay farmers cash within three days and wait for the six months to realise the cash from sale of meat products from cattle it has already paid for. The set up results in BMC having its cash tied in stock.