Farmers seeking relief from FMD restrictions face a tenfold live cattle export levy increase as government reopens exports under a six-month dispensation.
SESUPO RANTSIMAKO
The government has increased the live cattle export levy from P30 to P300 per head, a tenfold rise equivalent to a 900 percent increase, as farmers struggle with the economic fallout of Foot and Mouth Disease (FMD).
Export Reopening
The increase, announced by Minister of Lands and Agriculture Dr Edwin Dikoloti this week, comes as government reopens live cattle exports under a six-month dispensation intended to help distressed farmers recover income.
Higher Costs
A farmer exporting 100 cattle will now pay P30,000 in levies, up from P3,000, an additional P27,000. For 500 cattle, the bill rises from P15,000 to P150,000, adding P135,000 in costs.
Botswana National Beef Producers Union (BNBPU) spokesperson Alfred Pilane said the union had sought the dispensation to provide financial relief but had not anticipated the levy increase.
“Our position is that we could have maintained the P30 export levy and reviewed it at a later stage. So this increment from P30 to P300 is going to negatively affect farmers, more so that we are from a devastating FMD situation which is yet to normalize. The dispensation we asked for has come with cost,” Pilane said in an interview.
Export Conditions
Dikoloti said the arrangement would allow live cattle exports for six months, limited to slaughter-ready steers, while meat and meat products would qualify for export for 12 months.
“This is an important development that provides eligible farmers and businesses with additional opportunities to recover income while supporting responsible livestock management,” he said.
The minister did not explain the rationale for the levy increase or indicate how the additional revenue would be used.
The domestic slaughter levy will remain at P30 per head until the local market stabilises sufficiently to warrant a review.
FMD Pressure
The decision follows months of livestock movement restrictions imposed to contain FMD, limiting market access and putting pressure on farmers’ incomes.
Dikoloti said farmers needed access to markets to generate revenue, pay workers and maintain farm infrastructure. The dispensation is also intended to reduce accumulated livestock, potentially supporting disease-control efforts and lowering testing costs.
Permit Limits
Dikoloti acknowledged that the previous export dispensation, introduced in 2019, disproportionately benefited a small number of participants. Renewed four times before expiring on 30 April 2025, it facilitated exports of more than 551,570 cattle, mainly to South Africa and Namibia.
Under the new arrangement, each farmer or livestock buyer will be restricted to one export permit, while meat exports will be reserved for citizens and citizen-owned companies.
Individual livestock slaughter will also be permitted across all veterinary zones, subject to prevailing disease conditions.
Dikoloti said FMD had disrupted trade, threatened livelihoods and forced government to commit substantial public resources to disease control.
“The FMD outbreak has tested our farmers, institutions, and agricultural economy,” he said.
Post Views: 98