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Horticultural Market eases life for farmers

Horticultural Market eases life for farmers

Marekisetso a morogo wa rona (PTY) Ltd, better 
known as Botswana Horticultural Market (BHM) will introduce another business
 model in an effort to improve the market for horticultural farmers in 

During a
 meeting with stakeholders at Denman in Sebele on Friday, November 21, the acting 
BHM CEO Mr Simon Meti said change of business model came as a result of
relevant studies that were undertaken. BHM has
 since decided to change their business model from commission to wholesale 

The farmers he said were complaining that the commission charged at 12.5
per cent coupled with the mandatory 12 per cent VAT scared farmers away from

He further said farmers were being manipulated by traders including the fact that
they were also not paid for their produce immediately upon delivery.

Meti said
with the new model, farmers would not have to take risk in case their product
get rotten and discarded because the loss will remain with BHM instead. 

However he said as a company jointly owned by the ministry of Agriculture
 through Botswana Horticultural Council (BHC) and Botswana Development Corporation
(BDC), they were failing to raise enough money to sustain themselves.

He said they 
were formed as part of the broader government initiative of boosting local
 horticultural production, food security, economic diversification and citizen
e mpowerment but they needed support from Batswana as a large. 

He specifically singled out government institutions to provide support through
 purchasing of local produce.

Also at the
meeting was the chairperson of BHC Mr Boikaego Phole who edged everyone to be
proud of local products.

“The market
 belongs to all of us, therefore we must all participate and get involved because
the horticultural market serves all of us,” he said.

He said the producer and consumer should work together to improve the quality
of products from Botswana.

The new 
model which be introduced by BHC entails purchasing produce from local producer 
markets according to agreeable terms.

The new model is expected to create a
 conductive and inclusive trading environment that protects farmers in terms of
 market access, fair price for buyers and reduced barriers of entry for small 
traders. It is expected to be launched next year in February. ENDS

Source : BOPA

Author : Mompati Tlhankane

Location : GABORONE

Event : Business stakeholder's meeting

Date : Nov 23 Sun,2014


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