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Aug 07, 2014 News
Whilst the local cattle industry is growing, the absence of a modern abattoir that meets international standards is restricting local farmers from exporting beef to the lucrative CARICOM market.
But, Hakim Mohamed, proprietor of Liberty Livestock Farm, situated on Liberty Island, Essequibo River, has taken the initiative to invest in a private abattoir that would meet international standards.
His farm has almost 2,000 heads of American pure breed cattle. That number would increase significantly once the abattoir which is being built at La Parfait Harmonie is completed.
Selling Mohamed’s Barga and Brahman breeds of cattle on the local market is not feasible. It costs about $1M to import one of the American pure breed to Guyana. They are more suitable for the export market, particularly CARICOM which imports the majority of its meat. Instead, these high quality beef are being sold on the local market at the same price as other breeds, he said.
According to Mohamed, several years ago Government had promised the construction of a modern abattoir on the East Coast of Demerara but that was never realized. Farmers are dependent on the Georgetown Municipal Abattoir, which does not meet international standards.
Livestock farmers’ inconvenience may end shortly, as Agriculture Minister Dr. Leslie Ramsammy will be including the upgrade or construction of an abattoir in the National 2015 Budget.
Dr. Ramsammy said that Government is doing an environmental study to ascertain whether the abattoir could be improved or a new one would have to be constructed. Depending on the size, to erect an abattoir could cost between US$500,000 and US$5M.
The Minister acknowledged that Guyana is missing out on the lucrative CARICOM market. He said CARICOM countries import the majority of its meat, including beef. However, the Guyanese market needs to ensure the production cost is competitive. For instance, producing poultry in Guyana is uncompetitive since the cost of production is high.
Government is open to approving lands to the private sector to invest in the cattle industry. He alluded to the fact, that the Ministry approved the construction of an abattoir in Region Three. The abattoir he is referring to is the one being built by Mohamed.
Mohamed, who has been in the cattle business for decades, said that for any large abattoir to be profitable, about 40,000 to 50,000 heads of cattle need to be slaughtered. Therefore, local farmers need to increase the amount of cattle being reared. As such, he is aiming to increase his herd to have sufficient heads available for his abattoir.
He said to have a profitable cattle business a farmer needs to invest large sums. For instance, the construction of the abattoir costs roughly US$2M. He recently acquired more lands to expand. But, not all farmers are willing to take the risk involved. However, there are those that are willing to take the risk but do not have enough capital.
According to Mohamed, for the agricultural sector to grow whether in livestock or cash crops, more financing should be made available to farmers. He pointed out that some farmers cannot access loans from commercial banks because of the lack of collateral.
Cattle farmers could establish cooperatives to propel the industry. He said that pooling resources is ideal for the industry but not many persons want to get involved in agriculture.
“People prefer to import shoes and clothes rather than get involved in agriculture…but they must know agriculture is profitable once it is done the right way and on a large scale,” he said.
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