The agreement signed between the Department of Agriculture and Livestock (Under LDC) and Australian Company, Taylor Pacific has attracted a number of backlash from the public.
This agreement will see the 9 mile abattoir capacity upgraded to receive 5 -600 cattle every month plus bring in income of about (K100 to every cattle brought in) 500 cattle X K100 = K50 000 monthly (for instance).
However many Papua New Guineans are arguing that this agreement has not been thought through, raising points that PNG has enough cattle to accommodate the growing demand of beef consumption.
This argument in itself is inaccurate, says Minister for Agriculture and Livestock John Simon.
At the moment PNG spends about K140 million on beef imports alone.
According to research around 90% of imported beef is used by the two commercial canneries to produce corned beef, luncheon meat and meat loaf products.
Total meat production is estimated to be 58 000 tonnes. Adding this to 30 000 tonnes in imports, PNG’s total meat consumption estimate stands at 88 000 tonnes.
PNG at the moment has only 30 000 herds of cattle, which could not cater for the large beef demand.
The new agreement will allow Taylor Pacific to bring in cows at their own expenses, however for each cow that is brought in, the company will pay K100, another K100 will be paid for each cow slaughtered.
Hence, if supply is at 500 cows per month, then 500 X K100= K50 000. The Department will be receiving K50 000 from these live cattle in a month. Say, if 20 cattle are slaughtered in a day, again the Department and PNG will receive K2 000 daily (K100 x 20) and about K10 000 by the end of the week.
According to Minister Simon, this agreement was signed taking into account the limited or diminishing domestic cattle industry.
“The beef import can also be decreased from its current state; and this company will not only help with beef production but also contribute immensely to the development of domestic beef”, he said.
