By Staff Reporter
WINDHOEK – New Era interviewed Peter Gruttemeyer, the acting chief executive of Namibia Dairies on the difference between South Africa’s imported dairy products, which are alleged to be cheaper since they are produced using hormones and Genetically Modified Organisms (GMO). Hormones stimulate dairy production, resulting in higher yields.
New Era (NE): O&L opened a Superfarm in Mariental where the cows are ‘pampered’ or made to feel at ease – a process that is meant solely to enable the cows to produce more milk. Could you please explain how the Superfarm’s rearing methods and milk production are different from GMO processes used in the South African dairy industry?
Peter Gruttemeyer (PG): We want our cows to be as comfortable as possible. Therefore, we supply dry manure daily to cultivate their bedding in the cow houses, allowing them to rest on a soft and comfortable surface. We also control the temperature in the houses and the milking parlour with fans and misters. We provide our cows with optimum living conditions that allow them to produce healthy milk without adding any hormones or GMO’s. By law we are not allowed to use any hormones or GMO’s like rBST or Rumensin to upgrade the cow’s rumen and get higher yields as farmers in other countries, such as South Africa, are able to do.
NE: How much in quantity of dairy products does Namibia Dairies source from independent dairy farmers and how much is sourced from the O&L Superfarm, Aimab?
PG: The Superfarm supplies 60 percent of the milk produced at Namibia Dairies, and the rest is sourced from the other farmers. However, should local farmers increase their raw milk production, we are ready to absorb this at Namibia Dairies.
NE: It is our understanding that the Superfarm is meant to increase local dairy production, allowing Namibia to export dairy products, instead of concentrating only on the domestic market. Is this understanding wrong? If correct, how has the Superfarm fared in the export market so far?
PG: The Superfarm was established to increase raw milk supply in Namibia. However, the Superfarm only delivers raw milk to Namibia Dairies and is not involved in any exports. In terms of raw milk, the local demand for raw milk is growing daily and it will take years for local producers to deliver more than the local demand. It is therefore highly unlikely that Namibia will export raw milk in the foreseeable future. While Namibia Dairies does export some final dairy products, this only takes place once local demand has been met.
NE: When the Superfarm was started there was talk of sourcing locally grown and produced inputs (services and fodder). Has this initiative failed or if it is successful, why has this initiative not contributed to lower prices for local consumers?
PG: We get all our fodder like lucerne, wheat straw and maize remainders, from local farmers, but we are subject to pricing structures whereby local suppliers of fodder always take the South African prices and add transportation costs to their products. This results in higher feed costs, which impact on our production costs and ultimately our final raw milk price. Furthermore, it is important to note that a dairy cow’s feed ration differs from that of a beef cow in that a dairy cow requires better quality fodder in order to produce milk, and this comes at a premium price. Therefore, while we do purchase our fodder locally, this does not translate into lower milk production prices.
NE: Local dairy farmers have often complained about the unbalanced playing field in the local dairy industry, with persistent allegations that milk producer prices are tilted in favour of Namibia Dairies – the country’s only and largest buyer of milk for mass processing. They have also, as late as last year, pointed out that the number of dairy farmers has gone down since the establishment of the Superfarm, with dairy farmers switching to other ventures, while those left in the industry can barely survive.
PG: The dairy industry has been under strain for a number of years, and reached a dire state in 2013, as a result of the drought and high feed costs. During this difficult period, many local dairy farmers sought to exit the dairy industry. Namibia Dairies and the Dairy Producers Association approached government for support in order to reverse this alarming trend and save Namibia’s dairy industry.
In addition to seeking the support of government through the quantitative support measures, and passing on price increases to local raw milk suppliers while absorbing these costs and not passing them on to the consumer, Namibia Dairies also tried to assist dairy farmers to increase their production and reduce costs by selling some cows and heifers from our herd to them.