Farmers’ Kraal with Erastus Ngaruka – An overview of the beef industry

Farmers’ Kraal with Erastus Ngaruka – An overview of the beef industry

Agriculture in Namibia is a key sector of the economy on which over 70% of the population directly depends for food, income, employment, and social stability.

As a socio-economic pillar, it contributes about 5% to the country’s Gross Domestic Product (GDP) and is the largest employer. 

The agricultural sector is dominated by livestock production value chains, primarily cattle, sheep, and goats. Moreover, other significant production value chains in the sector include those in crop, poultry, piggery, and charcoal production, among others. 

Despite hostile conditions, Namibia’s agriculture sector has demonstrated considerable resilience over the years. For example, the sector has been hit by adverse disruptions resulting from recurrent droughts, the Covid-19 outbreak, and global economic hardships. 

This indicates that, despite its inherent weaknesses and threats, the Namibia livestock industry still strives to leverage its strengths and opportunities. One of the critical strengths emanates from the existing governance structures that support the industry across the entire value chain, from production to consumption. 

Namibia has a well-regulated livestock industry, with the Directorate of Veterinary Services (DVS) of the Ministry of Agriculture serving as the custodian of livestock disease control, and the Livestock and Livestock Product Board (LLPB) as a regulatory institution supporting the industry through compliance measures to secure access to and participation in established markets. 

In addition, farmers’ unions and their associates play a critical role by serving as producers’ mouthpieces and providing linkages to relevant services such as markets, inputs, and information, among others. 

These structures enhance adherence to trade protocols and provide recognition on regional and international market platforms.

The greater part of the country is classified as an FMD-free zone and carries an export status. The disease control protocols and animal welfare practices in the country are in accordance with the World Organisation for Animal Health (OIE). 

Hence, Namibia has access to high-value markets such as the European Union, the United Kingdom, and Norway. Furthermore, the country continues to diversify and expand its markets, including China, the Middle East, West Africa, and, more recently, the Mauritian beef market.

Despite challenges stemming from climatic events, limited knowledge and technology, and market complexities, the beef industry and farmers in general continue to display notable resilience. 

In particular, the beef industry continues to sustain and expand its export, while competing with other major livestock producing countries such as Argentina, Brazil and Uruguay, among others.

Namibian rangeland types are ideally suited for livestock farming, particularly cattle production, especially in the central and northern parts of the country. 

Weaknesses

Generally, agricultural sector productivity is compromised or not fully realised, especially in communal farming areas. This is due to various limitations related to a lack of knowledge and skills, limited access to improved technologies, inputs, finance or credit, and land, among others. 

As a result, this increases some farmers’ vulnerability to the sector’s threats and challenges. Many farmers struggle to achieve optimal production and income levels, primarily due to high production costs and limited expertise. 

For example, many communal and small-scale farmers in remote areas face difficulties accessing information, production inputs, and markets for their products, or incur higher production costs that ultimately limit productivity.

Moreover, access to productive land is another major limitation to the growth of agricultural production and livelihoods for communal farmers. Another weakness is the slow or poor implementation of supportive programmes for farmers. 

In addition, the absence of robust drought recovery programmes that target livestock restocking, input acquisition, and market access support could cripple productivity or lead to the abandonment of farming areas, fuelling rural-urban migration.

Opportunities

Namibia is party to regional and international trade agreements, which place it at global market platforms to leverage for greater market development and expansion. The country is a net exporter of beef to regional and international markets, earning significant income for the economy. 

Namibia is the only African country certified to export beef to the USA and the EU, and it has maintained access to these lucrative markets over the years. To this end, the demand for our beef continues to increase. 

Recent examples include Germany expanding the distribution or the availability of Namibian beef in German steakhouses, and China’s interest in reaching about 20 000 tonnes per month of Namibian beef supply. 

One of the latest developments is the export of Namibian cattle to Mauritius, an opportunity emanating from the outbreak of the Foot and Mouth Disease (FMD) in South Africa. This provides an opportunity to negotiate more long-term trade deals. 

Other market opportunities exist, including the Middle East and West African countries.

Threats

Generally, agricultural production is vulnerable to disruptions and shocks arising from climate, technology, markets, and politics, among others. 

Common events that compromise productivity in Namibia include the recurrent droughts, floods, land degradation, pests, and diseases.

Land degradation is a major threat to sustainable production, as large tracts of land in the country, especially communal areas, have lost their productive capacity due to factors such as overpopulation and overgrazing. The main forms of land degradation in the country are bush encroachment and soil erosion, amongst others.

Furthermore, water scarcity is a common threat in the country, characterised by high water supply costs and salinity in various farming areas. 

In addition, the cost of electricity on farms contributes to higher production costs and disruptions to certain farm operations, such as on farm water supply.

Other areas of focus and improvement are rangeland restoration, farm water and electricity provision, production-oriented land reform approaches, access to affordable finance, capacity building, and the enhancement of farmers’ participation and linkages to local and export markets. 

These interventions require coordinated efforts from all stakeholders to eventually achieve organised agriculture and sustainability.

*Erastus Ngaruka is Agribank’s technical advisor on livestock and rangeland.