Agricultural Sector Growth Slows Down
By Catherine Sasman
WINDHOEK
The Bank of Namibia (BoN) has noted a slower growth in the agricultural sector in its second quarterly review compared to the first quarter.
Value addition in the sector increased by 4.8 percent as opposed to 8.1 percent during the first quarter of the year, with performance in agriculture heavily influenced by developments in the livestock industry.
However, the sector showed an increase of 3.3 percent compared to the same period under review last year, which the bank attributes to an increase in the number of livestock marketed.
The marketing of cattle rose by 2.1 percent, and small stock marketing rose by 17.6 percent, mainly on account of the impending drought that resulted in relatively poor grazing and the seasonal production peak for small stock.
The total number of cattle marketed locally declined by 1.6 percent, while on-hoof cattle marketed in South Africa increased by 8.6 percent.
Also reported was a continued downward trend in beef and lamb prices in Namibia, which is also coupled with the prevailing drought that caused oversupply of livestock.
Despite the sluggish performance of the sector, said the bank, agriculture remains one of the key pillars of the Namibian economy in terms of food provision, employment, income and foreign exchange.
In 2004, the sector accounted for 11.5 percent of the country’s total foreign exchange earnings, and about 39 percent and 19 percent of the country’s total maize and wheat consumption respectively.
It further supplied about 100 percent of Namibia’s beef, mutton and pearl millet, and contributed two percent to the total manufacturing output.
The bank recommended that concerted efforts should focus on expanding production in beef, karakul and horticultural products in the communal areas.
It further suggested that rural areas should be modernised by putting up proper infrastructure such as roads, marketing facilities and feedlots.
While commending efforts made through Namibia’s Green Scheme project to increase agricultural production through irrigation, the bank also recommended that emphasis be placed on the production of crops in which the country has a comparative advantage such as horticultural crops.
If supply warrants, suggested the bank, the recent regulation by the Namibian Agronomic Board that compels retailers to source 15 percent of their supply of horticultural products as an import substitution strategy, could be increased, with local consumption to be encouraged.
Within commercial farmland, BoN recommended the intensification of de-bushing to increase the carrying capacity of the land.
The Ministry of Lands and Agribank are further urged to strengthen the evaluation of farmlands to guard against overpricing of land, which might affect the Affirmative Action Loan Scheme.
“The land policy must be implemented in such a way that it dispels uncertainties to farmers, areas earmarked for resettlement must be defined clearly, and resettled farmers should be grouped in clusters. These areas should be equipped with the necessary infrastructure and be nearby markets to enhance productivity,” the BoN report advocated.