Farmers’ Kraal with Erastus Ngaruka – FMD crisis: Potential impact of an outbreak

Farmers’ Kraal with Erastus Ngaruka – FMD crisis: Potential impact of an outbreak

The agricultural economy of Namibia relies heavily on livestock production, which is valued at around N$6 billion to N$15 billion. Beef production contributes significantly to the country’s GDP. 

However, livestock production in Namibia faces several challenges, including climatic events such as droughts and floods, as well as the prevalence of livestock diseases. 

The development and sustainability of Namibia’s beef industry have relied on export markets such as the EU, UK, Norway, and South Africa, amongst others. 

Despite recurring challenges, the industry has shown resilience and market expansion, targeting new destinations such as China, the US, the Middle East, and other African markets. This growth can be attributed to a well-organised sector in terms of governance and compliance efforts with international trade protocols, and the World Organisation for Animal Health (WOAH). 

Therefore, compliance with animal health regulations is a key factor in market access, enhancing consumer confidence in our livestock and associated products. This compliance also ensures the competitive survival of our meat industry against major global producers.

Despite Namibia’s excellent animal health status, the country faces an imminent threat from Foot-and-Mouth Disease (FMD) in neighbouring countries, particularly South Africa, which has struggled to contain the disease’s spread. It has been reported that FMD has been confirmed in the northeast district of Botswana and is suspected in the Northern Cape of South Africa, which borders Namibia to the south. This indicates that the disease is spreading rapidly and that Namibia is at risk.

To this end, Namibia’s livestock industry players should be on high alert and prepare to manage the consequences of an outbreak. 

There are concerted efforts by the government, through its Directorate of Veterinary Services (DVS), and industry players, such as the Livestock and Livestock Products Board of Namibia (LLPBN), to strengthen inspection and biosecurity measures at all borders. 

These include the disinfection of vehicles and people, and movement restrictions on livestock and their by-products from South Africa. These efforts require all stakeholders, including government institutions and the private sector, to collaborate to prevent an outbreak in any form, as the consequences would be devastating for the country’s economic sectors that employ farmers and consumers.

Furthermore, farmers’ unions/associations, cooperatives, retail shops, butcheries, lodges, hotels and restaurants, and every individual farmer and consumer need to come on board to protect the industry and the economy from collapsing.

Possible impacts of FMD  

Loss of export markets and income: The country would be stripped of its longstanding access to lucrative markets, losing current and future markets.

Increased GRN spending: The government would be obliged to increase budgetary spending on agriculture, especially towards vaccination campaigns and biosecurity measures against FMD. This may divert funds from other development needs.

Low livestock prices: prices will drastically decline due to lower demand for livestock and the by-products, and from an oversupply of livestock within the country due to the loss of export markets.

Increasing cost of production and food prices: certain costs of production, such as veterinary, will increase, and thus force price increases for certain products such as milk.

Increased debts and poor repayments: The reduced incomes (household or business) could spike borrowing or failures to repay farm business loans due to reduced livestock sales and strains on salaries and disposable incomes to fulfil loan obligations with banks or other lenders.

Loss of employment and income

Due to loss of farm business and income, the farm workforce would be reduced, retrenched, or face pay cuts. Casual workers are highly vulnerable. With reduced demand for meat or market closures, abattoirs would scale back or close operations. 

Thus, the workforce would be reduced, affecting household disposable income. With restricted livestock movement, transport operators could come to a standstill, resulting in layoffs for drivers and loading masters. 

This could, in turn, affect fuel suppliers and motor mechanics businesses that serve the transportation industry. And with no or reduced farm production and loss of farm income, the supply of animal feeds, ear tags, fuel, and breeding animals will be reduced. 

In turn, suppliers would reduce their workforce due to lower sales and revenue. Restrictions on livestock movement and the consumption of livestock by-products could cripple informal businesses, such as common Kapana vendors, who would not be able to buy or transport beef for sale.

What can Namibian farmers do to assist the government and safeguard their livelihoods?  Here are some tips:

Adherence and Reporting: Please adhere to the proposed disease control protocols, especially at borders or entry points. Report any suspicious movements of livestock from affected areas or countries, and report any suspicious symptoms related to FMD to the relevant authorities.

Information updates: Keep updated with relevant information from reliable sources (e.g., GRN, MAWLR/DVS, LLPBN, and farmers’ unions).

Biosecurity: Implement appropriate internal biosecurity measures at the local level, e.g., auction sites, farm gate, kraal gate.

Emergency livestock sales: Sell the least productive animals or the “kraal fillers” while their body conditions and prices are favourable before the outbreak hits. These could be old cows, barren cows, poor performers, oxen, and castrates. This action needs to be well-calculated and executed without delay, as we cannot predict how the disease may spread.

Emergency savings and sustainable spending: Save money from emergency livestock sales, or use sales income to take care of workers’ wages, feeds, and veterinary costs, fuel, household costs such as food, medical, education, and upkeep or sustenance of livelihoods in the meantime.

Farmers need to be brave, positive, patient, ambitious, and strategic to survive through this difficult time, just as they did previously during challenges of Covid-19, lumpy skin disease, droughts, floods, and pests (locusts), amongst others. As we say, no farmer, no food, no life!

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