WINDHOEK - The Poultry Producers’ Association (PPA) last week gathered with various role players in the industry to look at possibilities for growing the egg and broiler industry. 

This resulted from a study conducted by Cirrus about the micro and macroeconomic impact of the local poultry industry. The study showed that there are many opportunities for growth in this sector for both the broiler and egg industry locally. It also showed a favourable picture of what these industries could contribute to the GDP if it reaches its full potential. However, the industry is fragmented and high input costs are just one of the challenges making it unattractive for new producers to enter the industry. Policy security is also lacking and without it, an industry cannot grow. Investors must be attracted and investments must be protected.

Ultimately, the finalisation of the Bill on Trade and the establishment of a Board of Trade is the lasting solution. In the interim, the industry will investigate to what extent industry protection is possible. The study analysed the effects of different broiler production systems on health care costs. In addition to the conventional production system, the analysis also included alternative animal welfare systems. The study was limited to the most prevalent and economically relevant endemic diseases in the broiler farms. Health care costs consisted of losses and expenditures. The study investigated whether higher animal welfare standards increased health care costs, in both absolute and relative terms, and also examined which cost components (losses or expenditures) were affected and, if so, to what extent. The results show that health care costs represent only a small proportion of total production costs in each production system. 

The PPA has to increase its production by 30 percent in just two years to achieve the ultimate goal of Vision 2030. This goal is to become a totally self-sufficient industry that can produce more than 53,000 tonnes of broilers by 2020. By upping the current production of 40,827 broilers per annum to some 53,100 tonnes per annum, Namibia will also have to increase its egg production from layers, from the current 200,000 eggs per day to some 364,000, and reduce industry insecurity from the current 25 percent to below 12 percent.

Food insecurity is and will remain the biggest global issue. The focus of NDP5 for 2017/18 is on agriculture, logistics, tourism and manufacturing. Now is the time for the poultry sector to come on board. PPA’s goal is independence from South Africa.
The study concludes that Namibian producers will have to change their thinking and start adding value to poultry products. Poultry products are not just meat, eggs, the industry will have to look at diversifying and also pay attention to its packaging of products and marketing strategies.