adminSamuel Kadungure Agriculture Reporter
STAKEHOLDERS in the livestock sector are pushing for the removal of livestock transaction levies being charged by Rural District Councils arguing that they are negatively affecting the viability of the livestock value chain. The issue of fines and levies in the livestock sector took centre stage at a livestock workshop organised by Goal Zimbabwe in Buhera on Tuesday with farmers calling on Government to intervene.
Players in beef producing sector want the levies charged during the sale of cattle, fees for vet permits and costs for police clearance when moving livestock removed. They want the livestock policy reviewed to address issues of marketing procedures and marketing infrastructure. They said RDCs were ripping farmers off through levies. They further argued that nothing was being ploughed back to improve livestock production.
Farmers’ efforts to grow the herd have been derailed by a number of challenges such as lack of adequate funding to purchase feeds, dipping chemicals and loss of livestock to thieves. Makera Cattle Company chief executive officer Mr Max Makuvise argued that RDCs were merely reaping where they have not sown.
“It is an emotive issue (livestock levies), it is the farmer, not the buyer who suffers. It is a double loss, the farmer falls prey to parasitic middlemen who do not want to pay the levies and council demands its piece of the cake from the already exploited farmer, leaving him or her with nothing.
“Nobody knows what the RDCs use the money for. What is very clear is that those levies are not being ploughed back to promote livestock production, hence the loud calls their scrapping,” said Mr Makuvise. Speaking at the same event, Zimbabwe Farmers Union representative Mr Last Chikwiri said that levies charged by the different organisations were too high in comparison to the service offered back to the industry.
He said RDC fees were very unrealistic to the industry.
He said the levies were fuelling incidence illegal cattle sales and stock theft as “Players are not motivated to pay RDC levies because lack of service provision and accountability by the local authorities. Why is the farmer the obvious target? This is a form of exploitation which should be scrapped off, it gives the farmer no joy at all,” said Mr Chikwiri, adding that Government should remove multiple levies at the abattoirs which were being charged per animal.
Responding to the concerns, Director for Local District Councils in the Local Government Ministry Mr Abiot Maronge said Section 71, read together with the first schedule of RDCs Act empowers local authorities to impose a levy on any business operating in their areas of jurisdiction. “The levy is there for a means to an end. From levies collected, councils develop and maintain infra relevant to livestock production like roads, water points, marketing facilities and dip tanks,” said Mr Maronge.
Mr Maronge, however, admitted that the imposition of the levy has its own challenges. “The level of the levies is widely viewed to be very high and we have noted inconsistencies in amounts being charges from districts to district. There is absence of mechanism for plough back to the livestock sector.
“We also admit that the levy has resulted in the increase in illegal trade of livestock as people try to avoid paying them,” said Mr Maronge. He challenged local authorities to come with “reasonable” levels of levies in consultation with local farmers as well as incentivising partners to work with farmers and mainstreaming of livestock production issues into their systems.
“LAs should partner with the Ministry of Agriculture and stakeholders to enhance the livestock value chain as well as invest in infrastructure development vis-à-vis livestock production. Ring fencing the levies will help because payment of livestock levy is necessary, and the levy should be the means to an end that should be understood in the broader governance and developmental mandate of LAs,” said Mr Maronge.
According to the Crop and Livestock Assessment report, the national herd has increased slightly by two percent from to 5,36 million this season. According to the report, the country has 521 607 sheep, 3,7 million goats and more than 300 000 pigs. Day old chick production increased by 38 percent from 52 million in 2012 to 72 million in 2013.
Zimbabwe Farmers’ Union president, Mr Credit Nyathi urged policy makers to ensure consultations were exhaustive before putting in place legislation. “The reason why there are so many complaints especially from the farmers is because of some policies guiding the sector which they feel they were not consulted on hence they should be given room to have their say,” Nyathi said.
Mr Nyathi said the issue of levies and fines that has been a major drawback in the sector should be dealt with by the new policy. “These levies that are prevailing erode our earnings and if thorough consultations are done such concerns will be raised and addressed,” he said. “It is important that through this review process players in the sector interrogate the issue of levies and fines some of which are said to be stifling the growth of the sector.”
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