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Agric contribution to GDP decreases

Home Farmers Forum Agric contribution to GDP decreases

WINDHOEK – Figures show that the contribution of agriculture towards the Gross Domestic Product (GDP) of Namibia has decreased from 17% in the 1950s to 2,5% in 2014.

To bring about a positive contribution to the situation, the Namibian Agricultural Union (NAU) has declared its full support to the government’s strict application of veterinary standards to ensure that exports of meat products and livestock comply with the strict European animal health status requirements.  This is the message of the President of the NAU, Derek Wright, in his annual overview, released last week. Wright says it was thus with shock that the NAU learned in December 2013 that the Republic of South Africa (RSA) was planning to implement new, stricter veterinary requirements for the import of livestock. After negotiations it was agreed that the effective date of these requirements be postponed until 1 May 2014. “As is known now, the RSA authorities went out of their way to implement their new protocol which closed the borders for our livestock”, he notes.

Wright says the result of this policy of the RSA is in direct conflict with the Southern African Development Community (SADC) Free Trade Agreements as well as with the OIE Protocol which was signed by both the RSA and the Namibian government. The NAU immediately implemented an action plan to address this radical and illegal policy trend of the RSA authorities (whom we have always seen as a reliable economic and political partner). One of our actions was to invite the management of the Red Meat Producers Organisation (RPO) to the NAU’s 2014 Executive Council meeting to discuss the new requirements.”

“The introduction of the strict requirements for imports of animals by our reliable partner, the RSA, can force Namibian livestock producers as well as the whole value chain of this industry to its knees. The financial loss for our farmers, including our communal partners, is estimated at N$2,3 million per day,” says Wright. “The chances are that the contribution of agricultural production could increase from the current 2,5% of the GDP of Namibia, are most unlikely at the moment. Hopefully the position will improve in the medium term due to the fact that the government, through the Meat Board on the one hand, and Meatco on the other, is busy to identify and exploit additional markets for livestock producers,” he remarks.

Wright also appreciates  those farmers associations and regional agricultural unions who contributed towards the socio-economic progress in their regions. “With our visits to the different regions during the past year, we saw good examples of the positive development of our smaller towns, which can mainly be attributed to the contributions of the farming community in the area around the town,” he says.

“Another producer organisation that experienced challenges the past year was that of our dairy producers. To protect our dairy producers against dumping of cheap dairy products on the Namibian market, the Minister of Trade and Industry took legal steps to limit the import of these products in order to support the local industry. The matter has not yet been solved, but producers expressed their appreciation. “An interesting intervention this year was the tabling of a “Study into Agricultural Land Prices in Namibia”, prepared by the Food and Agricultural Organisation of the United Nations, which was released by the Minister of Lands and Resettlement this March. The NAU time and again emphasised the importance of agriculture for the economy of Namibia.

 Wright announced that on June 30 this year, a total of 71 farmers associations were affiliated to the NAU. “Liaison with members and all role players remains one of the NAU’s biggest priorities. This liaison is used, not only to give information but also to give the NAU’s viewpoint on various forums and to represent producers’ interests. Liaison is done through the printed and electronic media, radio programmes, sms messages on cellphones, visits to and attendance of workshops and other events,” he concludes.