[t4b-ticker]

Dark clouds loom over agri-sector… urgent relief offered for small stock producers

Home Business Dark clouds loom over agri-sector… urgent relief offered for small stock producers

Windhoek

Minister of Agriculture, Water and Forestry John Mutorwa has requested the Livestock Producers Organisation (LPO) and the Meat Board of Namibia to immediately review regulations and to make new proposals for amendments to the dilapidated Small Stock Marketing Scheme (SSMS) by August 21, in order to make them practically implementable as soon as possible.

This comes after a delegation of the LPO, under the leadership of chairman Mecki Schneider, together with a delegation of the Meat Board, under the leadership of chairperson Patricia Gurubes had a two-hour urgent discussion with Mutorwa last week about the future of the Small Stock Marketing Scheme.

Their proposals will be presented to the office of the minister by Friday this week. The viewpoint of the LPO remains that the joint proposals of 2013 should be implemented, which will eventually lead to the free trade of sheep without any restrictions, something Namibian small-scale and communal farmers would greatly benefit from in a time when the sector is under great pressure due to the drought and strict export requirements for livestock to South Africa.

In its current form the scheme has suffered losses amounting to millions of dollars for sheep producers, dating back to the implementation of the scheme in 2004. Various attempts to negotiate a better deal for sheep producers failed.
In 2013 a joint proposal was drafted on request of the minister of trade and industry, as well as the minister of agriculture, water and forestry, which was unfortunately not implemented. Additionally, regulations were introduced which have in time proved to be not practically feasible.

Government recently announced its drought relief programme for small stock farmers, by which a maximum amount of N$500 to a maximum of 600 head of small stock or a combination of two small and large stock is payable. As directed by Cabinet the agriculture ministry will, in consultation with farmers and other stakeholders, work out a strategy to assist farmers to restock after de-stocking as a result of the current drought.

Since the introduction of the SSMS in mid-2004, and through its various stages, the export of live sheep declined dramatically. For example, the decline from July 2004 to May 2008 was 84 percent. Over the same time frame slaughtering at export abattoirs increased substantially.

Prior to the introduction of the SSMS, Namibian A2 carcasses frequently received prices higher than the prices paid for similar graded carcasses in South Africa. After the introduction of the SSMS, the price per kilogramme of Namibian A2 carcasses dropped significantly and was constantly below the price paid for similar graded carcasses in South Africa.

The quota ratio of 6:1 meant that for every one lamb/sheep exported to South Africa by the producer, the sheep producer would be required to slaughter six sheep at one of the designated abattoirs in Namibia. This was supposed to expire on June 30, 2008, but continued due to the fact that no new quota ratio was agreed upon between different stakeholders.

During last week’s executive council meeting of the Namibia Agricultural Union (NAU) it became clear that the agricultural sector is under great pressure. The council expressed its gratitude to the government for the drought aid, which is made available to relieve the effect of the current drought.

The NAU also expressed its appreciation towards the Directorate of Veterinary Services and various commercial farmers who were involved in the repair of the veterinary cordon fence, which is the most likely reason the dreaded foot-and-mouth disease was not only limited to the original areas where it started, but also did not spread to the commercial sector.

Council expressed its concern over the effects that the drought and the next rainy season might have on agriculture. Dry land agronomic producers face some important decisions about when and how much must be planted, and the first rains will most probably give an indication thereof. The large number of animals that are currently being marketed due to the current drought can also have a big influence on production in the coming years.
It is also no secret that the dairy industry is under great pressure due to the import of cheap milk, and dairy producers are closely observing developments with a view to the future of the local industry.

The professional hunting industry is also under the spotlight and suffering a backlash due to the international outrage and resistance against the industry, following the shooting of a well-known lion, named ‘Cecil’, in Zimbabwe earlier this month.