Ostrich Farmers Demand Exports Levy Cut

Date: 15 July 2004

Source: Financial Gazette (Harare)

Author: Anon

Ostrich farmers have called for a reduction of the two percent levy charged on their exports under the Convention for International Trade in Endangered Species (CITES), arguing that the existing levy was crippling the sector.

The Department of National Parks charges ostrich farmers two percent of the value of their exports and this is further stretching the farmers, already reeling from high operating costs.

Cedric Wilde, the chairman of the Ostrich Producers' Association of Zimbabwe (OPAZ), said this levy was reducing returns from skin exports.

"This levy is crippling and it greatly reduces returns from skin exports," Wilde said.

The OPAZ boss added that the levy forced farmers to increase the price of exports at a time when competitors such as South Africa were exempt from levies.

Morris Mutsambiwa, the director of National Parks, said that his department used to charge a flat rate of $5 000 as processing fees for each invoice.

"We are now levying export invoices at two percent rather than a flat rate of $5 000 as it was unfair to some producers with small exports," Mutsambiwa said.

He also said National Parks, was still negotiating to see if they could reduce the levy, but it was still premature to say anything tangible.

The ostrich farmers said if the two- percent levy was reduced, they would then be in a position to channel their funds towards buying inputs and increasing their flocks as part of efforts to revive the once booming sector.

At its peak the ostrich sector used to rake in US$3 million annually but this has slumped by a massive 75 percent since the unplanned land reform kicked off in 2000 while the number of players in the sector has been drastically reduced from 60 commercial to about 15.