In the National Assembly |14 June 2023
STC importing animal feed will create a more competitive environment on the market
Designated Minister Jean-François Ferrari has said the decision for the Seychelles Trading Company to import animal feed is to create a more competitive environment that will benefit farmers and consumers.
He was answering a question for oral answers and a question without notice from two United Seychelles members of the National Assembly – Hon Egbert Aglae and Hon Wallace Cosgrow – in yesterday’s session on behalf of the Minister for Agriculture, Climate Change and Environment, Flavien Joubert, who is on overseas mission.
Hon. Aglae wanted to know whether the ministry had consulted the three businesses offering animal feed on the local market, prior to announcing that the Seychelles Trading Company (STC) was also going into the business, whereas Hon. Cosgrow wanted to know the impact of the removal of subsidy on farmers rearing animals.
When answering their questions, Designated Minister Ferrari stated that the ministry remains engaged to supporting local production and at the moment farmers are still benefiting from a lot of services put in place to help them, especially local meat producers. Such include concession on the importation of materials, loan with a low interest, subsidy on animal carcass, on day old chicks and transportation between islands.
Mr Ferrari explained that there are presently three local companies providing animal feed, with two importing from Mauritius and one producing locally.
He informed the National Assembly that the agriculture department’s initial plan was to engage with them to find ways to bring down the cost of animal feed, making it affordable.
However, the talks did not yield positive results as the department could not convince them to lower their prices.
Mr Ferrari said with the recent new announcement on subsidy, the department held talks with two main producers, while discussion is planned in the coming days with the third one. The decision taken is to re-negotiate with them and get them to revise their costs.
“The discussion with STC is to create a more competitive environment that will benefit farmers and consumers,” stated Mr Ferrari, adding that they were also being approached by several other companies and individuals willing to provide animal feed under the new conditions, but these are still under discussion.
“In our consultations so far, there are no indications that the businesses are about to close down. On the contrary, some have stated that there is a huge possibility that animal feed could become more affordable,” he said.
Minister Ferrari told the National Assembly that the government’s main reason to remove the subsidy was that it was not sustainable.
“Between R80 million and R85 million of taxpayers money go into subsidy for animal feed every year and that is a sum that government cannot absorb,” he explained.
Mr Ferrari said although it was too early to see the impact, all indications, based on conversations with the actors in the field, are that the prices would go down.
The department of agriculture said it would intensify its consultative meeting with local producers to take into account their concerns when measures are announced.
So far, several concerns have been raised such as a special loan to sustain their production for a period of time and also for the government to negotiate with STC to buy more local productions from them. All these have been welcomed, according to Mr Ferrari, including proposals for the government to help them raise the standard of abattoirs.
Patsy Canaya