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Marketing of small and large stock

Home Farmers Forum Marketing of small and large stock

WINDHOEK – During the Animal Health Consultative Forum (AHCF) meeting, the Namibian livestock industry was informed about the one-sided decision of the South African Department of Veterinary Services regarding stringent new import permits to South Africa.

The implementation thereof was postponed to May 1 this year. The application of these measures (testing of the whole herd for tuberculosis and brucellosis melitensis, quarantine for export animals, etc.) meant the closure of South African borders to Namibia imports. Numerous meetings were held in an attempt to find a solution. Industry meetings, meetings with the minister and meetings on the political level with the government authorities  of the Republic of South Africa (RSA) were repeatedly arranged by the Livestock Producers Organisation (LPO). The LPO even met with their South African counterpart, the Red Meat Producers Organisation  (RPO) and initiator of these restricting measures, in an attempt to convince them to stop this senseless action, as Namibia’s animal health status is above suspicion.

There are attempts on all levels to find a solution. In reality the implementation of strict measures has hardly anything to do with Namibia’s animal health status but is rather a trade barrier with the aim to get a better producer price by stimulating increased demand. After the drought ended, the marketing of animals decreased greatly. The total marketing of cattle decreased by nearly 50% at the beginning of the year, but recovered later and Meatco was forced to

open both abattoirs. The export of livestock before the implementation of the strict export measures had already decreased by 58%. As from May 1 the borders for all livestock exports were closed for all

practical purposes and no cattle or sheep were exported. Only 3 200 goats were exported in May through the Ariamsvlei border post. The effect of these strict measures by the RSA only became clear when the marketing season (end of July/beginning of August) for weaners started. Producer prices for cattle at abattoirs improved drastically at the end of last year with another

increase at the beginning of the new year. The cycle tendency could not be followed as usual but

prices rather moved sideways. Meatco’s good prices can partially be attributed to the weak exchange rate but mainly to Cabinet’s redistribution of the Norwegian quota, which was strongly driven by the LPO. This quota was shared on a 50:50 basis between  Meatco and Witvlei abattoirs. This sharing was not in proportion to the different abattoirs’ slaughtering and might therefore be considered to be unfair with Meatco slaughtering many more cattle than Witvlei.

As can be expected, the total marketing of sheep was also lower than last year, but it still follows more of less the same trend as the five-year average. The small stock producers at least still have a marketing channel, whereas the weaner and goat producers do not have any alternative. Producer

prices (abattoir prices) improved substantially at the beginning of the year and are maintaining a higher level than last year. The current small stock marketing scheme of 6:1 (but due to the drought currently 1:1) is still

applicable. A plan has however, on request from the ministries of Agriculture, Water and Forestry and Trade and Industry, and following intensive negotiations within the industry, been tabled to investigate an

alternative for the 6:1 scheme. The aim of this plan is to bring about more free marketing and to get more competitive prices. During the drought Cabinet agreed to change the 6:1 to 1:1 until the drought was over (30 April 2014). An export levy of 6,5% should be implemented from May to July, and from August to October the levy should decrease to 4% and from November 1 there will be no export restrictions on live sheep any more. Up to date the Government (WHICH GOVERNMENT????) has not agreed to this joint industry proposal and the 1:1 scheme is still applicable. With the new developments regarding exports to the RSA, sheep cannot be exported either, unless the necessary tests have been done.