Cows do burn petrol Deputy President

Deputy President William Ruto on Monday last week warned butchers against increasing the price of meat due to the eight per cent value added tax (VAT) on all petroleum products.

Speaking during a function in Nandi County, Mr Ruto warned businessmen against taking advantage of the current situation to “fleece Kenyans.” “Some butchers have also increased the price of meat because of the VAT. Do cows burn petrol?” posed the DP.

But with due respect to the DP, here is an explainer to show how cows burn petrol, your Excellency. Transportation is an important component in the life cycle analysis of beef production because cattle are typically transported, before being slaughtered while the animal feed is also transported to farms.

According to a study by Narayanan Kannan, Ali Saleh and Edward Osei in Texas, feeder cattle have been transported an average of 150km to reach feedlots.

They are also transported over a similar distance to reach slaughterhouses whereas animal feed is transported for 22km. Their results on transportation in beef cattle production show a total of 24 litres of fossil fuel is needed.

Now, the 16 per cent VAT before it was reduced to eight per cent, increased the cost of a 350-kilometre trip from Sh982.9 to Sh1,098 on average as diesel prices went up from 87.8 last year to Sh103.69 per litre this September, according to the Kenya National Bureau of Statistics (KNBS). KNBS also measured that petroleum prices rose 18.5 per cent within the year from Sh99.2 to Sh114.5, with fears that the prices may continue to shoot through the roof over a rise in global oil prices.

A farmer using a diesel vehicle paid Sh381 extra to transport feed and the cows to the slaughterhouse while the one using a petrol vehicle had to cough up an extra Sh368.

The farmer will likely transfer the cost to the butcher who uses a refrigerator to keep the meat fresh.

However, under the Energy Regulatory Commission reviewed tariffs on power, the cost of running 50-kilowatt-hour of electricity rose 82 per cent to Sh1,063, up from Sh581 in September last year. The cost of 200Kwh of electricity rose from Sh3,665 to Sh4,392 within a year or a 19.9 per cent jump. This cost will then be passed on to the consumer.

According to KNBS, the price of beef with bones, rose from Sh420 per kg in September 2017 to Sh442 last month, a 5.5 per cent increase. With the adjusted fuel prices owing to tghe eight per cent VAT, costs are likely to go up.

So, the Deputy President is wrong in his assertion that cows do not drink petrol and hence the price of meat will not increase. His sentiments mirror those of Isaac Ruto who asserted in 2012 that rain does not come from trees but falls from the skies.