Windhoek
A sharp drop in cattle prices and a dramatic decline in livestock numbers at auctions countrywide have Namibian livestock producers in the grip of sheer panic, one week after the strict new South African import rules were implemented.
Auctioneers confirmed to New Era yesterday that prices for weaners, heifers and tollies dropped rather dramatically even before the new regulations came into effect. Prices now hover between N$10 and N$12.50 p/kg on average.
Auctions in communal and commercial areas are seeing fewer and fewer animals due to the low prices, as fears mount that the new rules will rob especially communal farmers of their livelihood.
The financially draining situation that is affecting a chain of industries, such as transport and other service providers, resulted in vice president of the Namibian National Farmers Union (NNFU) Abdal Mutjavikua asking for immediate government intervention to halt the implementation of the almost impossible to meet livestock import regulations imposed by South African on the grounds that these could be catastrophic for the local industry.
Mutjavikua says the negative consequences of these new requirements will lead to a drastic reduction in export volumes and massive losses of export revenue earnings for the country and the entire sector.
“It is too early to assess the consequences of these rules just days after it was implemented on July 1, but the NNFU has urged that in the short run, Namibia needs to re-engage with its SA counterparts to negotiate a revision of separate Standard Operational Procedures (SOPs) between animals exported for breeding and those destined for feedlots and slaughtering,” he observed.
He says in the long run, Namibia needs a complete turnaround strategy for the entire industry that transforms the sector from an industry-based sector towards the development of an agro-ecological system where livestock production systems, aquaculture, forestry and horticulture and crop production systems form the pillars of the industry.
Owner of Namboer Auctioneers Piet Coetzee complained that sales on auction have declined due to the ridiculously low prices.
“Speculators don’t buy at auctions, because they cannot meet all the new requirements. No one knows what the true agenda behind these new regulations are, because the feedlot and abattoir associations of South Africa are in favour of doing business as usual with especially Namibian weaners, but the SA Red Meat Association is firmly against it and has for some reason influenced decision-makers in gazetting the new rules and implementing them to the detriment of Namibian producers,” he observed.
“SA should relax the regulations to at least allow Namibian weaner producers to have a free-flow of animals across the border. Our animal health standards are regarded as among the best in the world. We must re-negotiate this and SA can’t use animal health status as an excuse to implement the stringent new set of rules,” he noted.
Martin Koen of Blaauwberg Auctioneers in Grootfontein agrees with Coetzee and says no farmer – whether commercial or communal – will be able to survive if these rules are to be implemented permanently.
“All auctioneers are experiencing the same trend of fewer auctions and dropping prices. These new regulations are eating away at the very core of many other industries involved in livestock exports. It’s a vicious cycle because transporters have been dealt a severe blow, as their work becomes less, affecting other service providers from fodder suppliers to service stations and workshops. The effects have only started to reverberate through the industry now, but the long-term consequences will be devastating,” he predicted.
Deputy-director of the Directorate of Veterinary Services Dr John Shoopala said the new import regulations of South Africa are complex and compound the difficulties faced by farmers due to the debilitating drought in Namibia, as many producers lack grazing to bring their animals up to the required weight in the different categories.
“Things are not looking up and prices have dropped significantly. The message from this is loud and clear that the Namibian livestock industry needs to diversify markets for livestock and livestock products,” he said.
Evidence shows that Namibia’s producers cannot keep up with the demand for beef to the UK and Norway markets. There are opportunities for diversification into those markets.
Shoopala noted that all might not be lost for local producers, as the Namibian authorities are still waiting for a response from their South African counterparts on the possibility of revised and relaxed SOPs and health permits, which would differentiate between animals meant for feedlots in SA and animals meant for slaughtering there.
NNFU says Agribank and lending institutions should be at the heart of the turnaround strategy in order for the bank to provide more funding and to develop innovative and accessible products that can be accessed by low-income producers.
The NNFU also advised that a policy framework be put in place by government to provide for detailed and continuous research into the identification and development of new markets on the African continent.
“A review of the Meat Industry Act and associated pieces of legislation is needed to ensure adequate provision is made to facilitate this,” Mutjavikua suggested. He stressed that whilst the export of livestock on the hoof to SA has been very lucrative, it is not the best option for the future of the industry.
“Government needs to increase efforts aimed at developing and upgrading feedlots, increasing the capacity of local abattoirs and the establishment of meat processing facilities to export processed meat, This will create more jobs and eventually generate more revenue for the country, whilst offering an outlet for local livestock,” he said.