Botswana Meat Commission (BMC) on Friday revealed the state-owned meat processing group is burdened by huge debts and cash flow problems which are threatening its recovery to profitability. 
Addressing a press briefing at BMC headquarters in Lobatse, Akolang Tombale, BMC’s chief executive officer said the commission owes farmers huge amounts due to a costly short term financing model which is worsened by delayed sales proceeds.
While he admitted BMC has cash flow problems, Tombale however denied that it is insolvent.
“Delayed payments to farmers are caused by a serious cash flow problem in our company. We take other people’s money and tie it in cattle stock whose proceeds come five to six months later. This therefore creates a serious cash flow problem for us,” he said.
BMC was de-listed from the European Union list of approved export abattoirs after it failed to guarantee that beef meant for the EU met the set standards for animal health, identification, movement control and traceability as well as abattoir and meat hygiene.
A 2010’s review of Botswana’s livestock tracking project by the Food Agriculture Organization (FAO) found the bolus traceability system was in a state of systemic failure. On Friday, Tombale revealed the government injected a lot of cash into BMC during the delisted period in 2011/12 when there was virtually no production at its abattoirs.
BMC owes the government around 594 million pula (about 66 million U.S. dollars), he said.
BMC also borrowed 125 million pula from the bank to upgrade its Francistown abattoir, and borrowed 50 million pula to resuscitate the Maun plant. Enditem
Source: Xinhua
