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Mhlupheki Dube
THE past week has seen interesting and encouraging developments in the beef value chain. Beef prices have been rising almost exponentially giving hope to the multitude of farmers who had almost given up on prices for this year.
It is important to note that the beef price this year had stubbornly remained subdued resulting in most farmers being affected.
By the way the term beef price in the livestock value chain refers to the prices that are offered to the farmers when they sell their animals not the price of beef at your local butchery.
Butchery prices do not drop they know no market fluctuations and don’t ask me why because I don’t know why.
Most farmers have been writhing in agony because of extremely suppressed beef prices and this was even threatening to derail numerous cattle fattening projects that had been taken up by most communal farmers especially in Matabeleland North as the prevailing prices meant that they barely covered their pen fattening costs.
The prices had remained stagnant since May this year, pegged at $3 for commercial grade and super at $3.40. However, since last week the price has risen tremendously with the economy grade jumping to $3.50 while the commercial grade is now at $3.85 up from $3.20 last week. The super grade is now sitting at $4 leaping from $3.40. All the prices are per kilogramme of cold dressed mass.
Farmers are therefore encouraged to utilise the increase in beef prices and start selling their stock.
It is anticipated that the prices will continue marginally increasing, hitting the peak towards end of December.
It therefore makes business sense to utilise the chance of good prices that are being offered in the market rather than trying to sell in January under school fees pressure.
The prices will have begun dropping by then. With the current prices your animal in economy grade will fetch better than the same animal in commercial grade next year in January.
This is the kind of market intelligence information that all stakeholders who interact with farmers especially the Government extension workers, need to share with farmers so as to aid in their business decision making.
Talking of Government extension workers, I had an opportunity to interact with some of them in Hwange district in my interaction with farmers and I must applaud the level of professionalism exhibited by these officers.
It was refreshing to realise that we still have such kind of officers and the level of commitment to their work despite many challenges.
Keep up the good work guys and continue to help our farmers.
About helping farmers, private players in the beef value chain also need to devise methods of helping farmers, not for free but if anything for the benefit of the value chain itself and inevitably for their benefit as well.
One area which big players such as abattoir operators and meat wholesalers can exploit is the provision of survival meal stock feed in exchange for animals.
Despite losing animals to drought year in year out farmers still find it difficult to sell a few of their animals and buy stock feed to save the remainder.
However, farmers seem agreeable to the concept of exchanging one or two of their animals for stock feed to feed the remaining herd.
Shouldn’t therefore big livestock industry players consider buying stock feed and exchange for livestock with such farmers?
In my view it is a win-win situation with farmers saving their head and industry players getting their stock. Also we get to prevent losses due to drought which impact negatively on our national herd. Just a thought.
On a separate note it was very encouraging to see that there are still communities in drought prone areas who have taken small grain production seriously.
They do not just produce the small grains but they consume the small grains. Communities in Jambezi, Mbizha and Sidinda area of Hwange district are massive producers and consumers of small grains and as such they have a relatively better food security situation.
I know for a fact that extension workers had lobbied and almost failed in most parts of Matabeleland South and some parts of Matabeleland North for the adoption of small grain production as opposed to maize as a drought mitigation method. Perhaps they need to learn what method was used in the areas I mentioned and see if they can copy and paste in their districts.
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