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NewsDay

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Pork output up despite low demand

Business
THE number of slaughtered pigs increased by 34,8% in the first seven months of 2016, but the industry remains constrained due to low producer prices, low demand of pork, lack of competitiveness, among other challenges, an official has said.

THE number of slaughtered pigs increased by 34,8% in the first seven months of 2016, but the industry remains constrained due to low producer prices, low demand of pork, lack of competitiveness, among other challenges, an official has said.

BY MTHANDAZO NYONI

Piglets ready for slaughtering
Piglets ready for slaughtering

Pig Industry Board director Andrew Shoniwa told NewsDay in emailed responses that the industry was currently facing viability challenges due to low producer and wholesale prices.

“A total of 98 612 pigs were slaughtered in registered abattoirs during the first seven months of 2016. The number slaughtered was 34,8% higher than the same period last year,” he said.

Shoniwa said a total of 6 929 tonnes of pork were produced through registered abattoirs during the period under review. The tonnage produced was 39,3% higher than during the same period last year, he said.

Shoniwa said the challenges in the pig industry include low producer prices, low demand of pork, lack of competitiveness in the region due to the high production costs.

“The liquidity challenges are negatively affecting the demand of pork. In order to induce demand producers and wholesalers have resorted to reducing prices,” he said.

Shoniwa envisaged that challenges facing the industry were likely to continue in the second half.

However, with the introduction of bond notes, the industry might stabilise, he said.

“The introduction of the bond notes might help to improve the liquidity situation, but its impact will depend on the acceptance of the bond note by the general public,” he said.

Reserve Bank of Zimbabwe governor John Mangudya, recently announced that the country will next month introduce bond notes backed by a $200 million facility guaranteed by the African Export — Import Bank to tackle cash shortages.