Deboned meat imports drop by 73%
Oliver Kazunga, Senior Business Reporter
CUMULATIVE imports of mechanically deboned meat into Zimbabwe dropped by 73 percent to 370 tonnes in the first six months of the year, according to the Livestock and Meat Advisory Council (LMAC).
The local meat processing sector largely imports mechanically deboned meat (MDM) from neighbouring South Africa. In its latest market watch report, LMAC attributed the decrease in MDM imports to depreciation of the local currency during the period under review as this made the imports more expensive.
“Cumulative imports of MDM for the first half of 2020 were 370 tonnes, a decline of 73 percent over the same period last year.
“The depreciation of the local currency has made imports more expensive relative to local animal protein substitutes, driving the decline in MDM imports for use in the processed meats industry,” said the advisory council. It projected a further decline as local meat prices continue to decrease in US dollar terms.
“Average monthly imports over the six months to June 2020 were 62 tonnes, compared to 169 tonnes over the same period last year.”
During the period under review, LMAC said the total value of MDM imports amounted to US$317 338 whereas in the same period last year, total imports amounted US$456 350.
Generally, the imports have been on a downward trend since 2015. LMAC said the global meat processing industry was expected to experience a soft recovery in the second half of the year as countries seek to re-open their economies.
The Covid-19 pandemic containment restrictions had a big impact on the food service and traditional distribution sectors and prices fell almost everywhere in the second quarter of the year.
“Severe supply disruptions have also been experienced. The outlook is gradually improving as measures are being eased in most markets,” said the council.
“In March this year, the South African government substantially increased the ‘applied most-favoured nation’ import tariffs on bone-in chicken meat as well as on boneless chicken meat.” — @okazunga.