FMD to cost beef industry P400m

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Throughput at the Botswana Meat Commission (BMC) is expected to drop by 80, 000 cattle this year due to the foot and mouth disease (FMD) outbreak earlier this year.

This means the industry is losing about P400 million in revenues, BMC chief executive officer (CEO) David Falepau said in an interview with Business Monitor. He said last year BMC slaughtered 180, 000 heads of cattle but this will not be possible this year. "This was the highest in many years and was the result of the development of the feedlot sector increasing total turnoff from the national herd. The projected throughput for 2011 is now approximately 100, 000," he said.  However, he said that the longer term effect of the suspension of the feedlotting programme this year is that 2012 will likely only return 180, 000 cattle  as opposed to the 220, 000  cattle originally forecast.

Falepau further said that at an average price paid per slaughtered animal of P5, 000,  the 80, 000 head reduction, compared to 2010 throughput, has cost the industry approximately P400 million. "Slaughter of cattle held over will still be saleable.  However, they will realise a lesser return than if they had been slaughtered in their prime," he said. Falepau said that Francistown abattoir has not slaughtered in about six months while the Lobatse abattoir did not stop slaughtering. "Lobatse did not stop slaughtering as it had approval for export to South Africa from zones 10, 11, 12 and 13. Maun has not slaughtered for five months due to a separate FMD outbreak in Zone 2 and issues with electricity and water supplies,"added the CEO.

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