Namibia will weather the storm

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In one of the busiest weeks in the history of the Namibian agricultural sector, three conferences – the annual Namibian Agricultural Union Conference, the Agricultural Outlook Forum and the Livestock Producers Organisation’s Conference – took place Windhoek. All three occasions were marked by heated discussions on the future of the Namibian livestock export industry. New Era’s senior journalist for agriculture, and the coordinator for our Farmers Forum section, Deon Schlechter, spoke to the chairperson of the Namibian Livestock Producers Organisation (LPO) Mechi Schneider about the road ahead for one of the most important pillars of the Namibian economy.

The Livestock Producers Organization (LPO) of Namibia has just learned about the new bid by the Red Meat Producers Organisation of South Africa (RPO) to have beef exports on the hoof banned from our country. This has sent shockwaves through the livestock industry who had its hopes pinned on relaxed requirements from South Africa for Namibian beef exports. Where does this situation leave Namibian livestock exporters?

We live in challenging times and the unexpected stance of the RPO is right now on top of the list of challenges for our livestock industry. But we will weather this storm as we have done since last year and the scenario has indeed served as an eye-opener for our industry and presented us with various exciting opportunities and marketing possibilities.
Is it true that South African authorities have maintained that their almost impossible new requirements are the result of more strict animal health requirements?

Not at all. The basis for their action was not to protect the animal health status of South Africa. Namibia has for decades not posed any health risk to the South African market with its livestock exports. If the veterinary experts of South Africa were honest in their decision, they would have applied these impossible requirements not just to cattle, goat and sheep imports from Namibia, but also to game exports to that neighbouring country. These requirements are not applicable to game exports and this leaves me with only one conclusion: SA’s decisions were based on trade limitations to halt imports of Namibian weaners based on the false perception that our weaners influence the prices in South Africa.

Is there any substance in this line of thinking?

No. Namibia’s 160 000-plus weaners have no effect on the prices in South Africa. Our weaners represent less than five percent of the total weaners available to SA. The price of maize and fodder and the buying power of South Africa have a much greater effect on the prices of meat in that country and South Africa must remember one thing: the country will forever remain a net importer of red meat, whether in the form of weaners or carcasses. If not from Namibia, then elsewhere in the world.

What is to be done in the meantime about this delicate issue that affects some 70 percent of the Namibian population directly or indirectly?

In the months to come, the local livestock industry will have its work cut out for itself. The industry, in close corporation with the Meat Board, will as from this moment pay full attention to solutions for all three above-mentioned terms and this will be no easy task. We will most probably have to restructure the composition of our national herd. It will take time and dedication but we shall overcome.

There has been a national call to slaughter all our animals locally and upgrade our abattoirs countrywide. Is this not one of the solutions?

No, we can never allow the export markets to South Africa and anywhere else to slip beyond our grasp. Namibia has the most insecure rainfall pattern south of the Sahara and will always be subjected to droughts and these export markets provide excellent relief in critical times.

One of the biggest concerns for communal farmers is the situation regarding the export of some 260 000 goats annually to KwaZulu-Natal. What can be done to keep this market alive?

This is a real concern to all of us as SA is currently the only export market for these communal and small-scale farmers and they make a big contribution with their goat farming. Goat exports to SA have already been identified as a priority and will be treated as such in the weeks and months to come.

The export of small stock is something very close to the hearts of many communal, small-scale and emerging farmers and serious concerns have been raised since last year about the national marketing scheme. During last year’s drought, the export ratio was upped to 6:1 and yesterday it was learned that it will remain at only one animal for export for every one animal produced. What progress has been made by the small stock marketing initiative and can Namibian farmers look forward to some kind of relief?

After ten years of strife and turmoil regarding this scheme, the small stock industry has now finally responded to a ministerial request for unity and Namibia’s small stock farmer can look forward to a process whereby the small stock scheme will be phased out with no limitations on marketing. Value will be added by bone-in products but unfortunately our application to the European Union has not been finalised by the Directorate of Veterinary services.

Amidst the drama of weaner exports to South Africa, Namibia recently made a breakthrough with the signing of the Economic Partnership Agreement with the European Union. What are the implications of this agreement?

This was indeed a glorious day for our meat industry. It was of utmost importance for the profitability of our industry and the opening of doors to other export markets like the one to Russia which is now open and the soon to come markets in Hong Kong, China and the USA as well as some 26 African countries.

The possible exports to the rest of Africa sound very exciting. Where are we with this initiative? And what is the situation regarding the much and heatedly debated beef exports to Norway?

The Livestock Marketing Committee of the Meat Board has been in constant negotiations with the abattoirs – big and small – to ready themselves for exports to Africa and in some cases upgrading of current facilities has already begun for this exciting possibility. An analysis by the EU last year clearly showed that Namibian producers do not receive the full benefits of the Norwegian quota. We thank government for the decision last year to allocate the annual quota on a pro rata basis that took into account the possibility of newcomers like Brukkaros Meat Producers (BMP). This opens the door for other abattoirs with EU status to fully utilize the benefits of the 100 tonnes allocated to BMP, should the company not make use of its allocation this year.

What are the main focus points of the LPO for the immediate future?

The Joint Vision of the Meat Industry. This vision will have to be coordinated with the government’s sectorial plans. It is of utmost importance that the livestock industry and government share the same vision. We will also have to debate the issue of switching over from a weaner production system to an oxen production system on national level. Solid relations with all role players, including other agricultural unions in the SADC Region will be a key factor. The ultimate aim is to establish better animal health status for the whole SDAC region and Namibia has already taken the initiative with its NamLITS (animal health traceability system).

You were in conversation with the chairperson of the Red Meat Producers Organisation (RPO) in South Africa, Lardus van Zyl as well as the Executive Manager, Gerhard Schutte, last week in Pretoria. What were your feelings when you left the conference room?

From the talks it was clear that the RPO maintain their view point that the import of animals from Namibia to South Africa do not comply with all the requirements as contained in the South African legislation and that they will request the South African Department of Veterinary Services to re-instate the strict requirements for exports to South Africa. The South African meat industry expects that the South African Department of Veterinary Services will announce certain regulations in this regard whereafter role players in the South African meat industry will have the opportunity to react. At the same time talks were held between the Namibia Agricultural Union (NAU) under leadership of the president, Derek Wright, and the Meat Board with the South Africa Feed and Abattoir Association. This association was successful to have the strict import requirements of animals from Namibia to South Africa put aside. This point of view is however perpendicular with the point of view of the RPO which puts the South Africa Department of Veterinary Services in a very uncomfortable position as no uniform point of view can be formulated from the South African meat industry. The Meat Board of Namibia in the meantime is busy with proactive actions to prove the free of sickness animal health status, especially of sicknesses such as lung sickness, brucella and tuberculosis of Namibia to South Africa.”