Drought increased agri debt by N$3bn

During the seven-year drought experienced in Namibia, agricultural debt increased by more than N$3 billion.This is according to the just released Namibia Agricultural Union (NAU) Annual Report for the period 2020-2021, which provides an overview of the country’s commercial agricultural sector.It said since the beginning of the drought, agricultural debt rose from N$4.5 billion in June 2013 to N$7.8 billion in June 2020, showing a significant increase in debt level of about 73.7% in nominal terms.The report, however, said despite the challenges, 2020 commenced on a good note, with Namibia receiving good rains in most cattle-producing areas, which encouraged producers to start restocking to increase Namibia’s national herd.“The Swakara sector incurred major losses in terms of production value for three consecutive years and Covid-19 further added to the sector’s woes in 2020.”Therefore, at the end of 2020, the sector saw 8 354 pelts sold, resulting in a production value of about N$2.8 million and a drastic loss of about 87.9% in revenue when compared to 2019.Production value declinesAccording to the report, the cattle and sheep production value dropped by 33% and 43.8% respectively, while the goat production value for 2020 declined by 13.9%.Statistics provided in the report indicate that the production value of cattle dropped from N$3.6 billion in 2019 to N$2.1 billion in 2020, while the sheep production value declined from N$733 million to N$419 million, and that of goats from N$136 million to N$117 million during that period.The report further said raw milk production decreased to 17.2 million litres in 2020 from 21.8 million litres in 2019, demonstrating a 21.1% decline.“This reduction emanated mainly from the 2019 drought that caused low water levels in dams until March 2020, a significant decline in fodder production at the Hardap Dam where close to 80% of the milk is produced, and producers ceasing production, which also decreased the supply of raw milk.”Statistics show that the production value of the dairy sector declined by 18% from N$122.2 million in 2019 to N$99 million in 2020.MarketingFurthermore, a total of about 28 887 tons of white maize and 4 466 tons of wheat were marketed during the 2019/2020 marketing season.“However, white maize and wheat improved to 66 641 and 11 498 tons respectively. The growth in the weight produced increased the production value of white maize and wheat significantly by 123.3% and 174.3% respectively, thus explaining the impressive agronomy production value of 142.7%.”According to the report, the grape sector exported an estimated seven million cartons of grapes (weighing 4.5 kg) in 2020, as opposed to 6.1 million cartons (weight at 4.5 kg) in 2019, hence recording a production value of about N$1.1 billion in 2020 and demonstrating a 39.6% increase in value.

Drought increased agri debt by N$3bn

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Namibian Sun 2025-09-19

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Drought increased agri debt by N$3bn

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Namibian Sun 2025-09-19

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