CATTLE prices have rocketed by over 180% in the past few months as markets respond to an auction system introduced by the Agricultural Marketing Authority (AMA) in September, officials said this week.
In an interview with businessdigest, AMA director for agribusiness Jonathan Mukuruba said prices had gone up to US$1,70 per kilogramme of live weight currently, from US$0,60 before the auction kicked off in Insiza three months ago, relegating informal buyers.
“The cattle sales programme was launched this year at Mpalawani in Insiza District on September 22. This was after years of unscrupulous cattle buyers conducting door-to-door marketing and fleecing farmers,” Mukuruba said.
He said before the auction system was introduced, farmers were forced to accept prices as low as US$0,60 per kg.
The highest price offered to farmers through the informal sales was US$0,80 per kg, the AMA official noted, giving a positive outlook.
“The coming in of AMA has seen prices gradually increasing from an initial average of US$1 when the auction started to between US$1,40 to US$1,70 per kg of live weight,” he added.
Auction systems have been gaining prominence in Zimbabwe’s agricultural sector in the past decade.
As troubles pile up in other agricultural sub-sectors, the auction system has been credited for saving thousands of tobacco farmers by allowing market forces to determine prices.
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Key crops like maize have been affected by government’s control of prices.
During Zimbabwe’s land redistribution programme, which started in 2000, a considerable number of farmers switched to cattle ranching.
But many had warned that low prices offered by informal buyers were driving losses in the sub-sector.
Mukuruba said excitement over formal sales was high.
He projected that more farmers would come to cattle auctions when they begin to understand the benefits.
“In terms of numbers, farmers are still warming up to the idea of these sales but generally, we have had good numbers at many cattle sales. Farmers are very excited about the resurgence of formalised cattle sales as many buyers come to an organised market and bid for the animals,” Mukuruba said.
“Only the highest bidder takes all. Buyers have also been elated about the AMA organised sales as many animals are brought to a single place where the auction is conducted and so they save on time when it comes to cattle mobilisation as this is now being coordinated by AMA.
“Given that the cattle sales programme was launched less than four months ago, as AMA we are excited by the progress we are making and have made to date but we hope for an even more accelerated programme going into the year 2023,” he said.
According to the most recent statistics on the nine cattle sales conducted across the country, the highest price for one cattle came in at US$675. The lowest price was US$150.
There will be four more cattle auctions before year-end.
At its height, Zimbabwe's beef cattle herd numbered 1,4 million.
Beef exports generated US$50 million for the economy annually.
Most of the exports were destined for the United Kingdom, Germany, and the Netherlands.
About 80% of the income for the majority of Zimbabwe's cattle-producing provinces came from the selling of commercial beef.
Buyers have a large selection of livestock to pick from during cattle auctions, which means they can select from a variety of bloodlines or pedigrees that are offered on the auction market.
In order to efficiently bid for the cattle, the auctions provide favourable conditions.
When purchasing livestock from potential sellers, there are unique situations where some buyers receive exclusive discounts or special incentives.
The livestock at the cattle auctions have registered documents, which guarantee that they are healthy and well-cared-for.
