Livestock industry experiencing positive developments

Although cattle producers are watching with concern the developments at Meatco, big things are happening at private export abattoirs.

While Meatco's market share is falling and its financial loss of N$206.29 million in the previous financial year was the largest ever, its competitor, Beefcor Meat Suppliers, is increasing its footprint in the European export market.

This private export abattoir at Okahandja has not only doubled its slaughter capacity, but intends to export high-quality beef from its feedlot at Hochfeld to European markets under a new brand.

This was announced last month by the CEO of Beefcor, Jurgens Twyman, during the Livestock Producers' Organization (LPO) congress in Windhoek.

Beefcor expects a throughput of 30 000 cattle this year, a figure it expects to double by 2024, said Twyman.

Meanwhile, the wheels are rolling to have Savanna Beef Processors, planned export abattoir of the Value Chain Forum (BVCF), in operation by April next year.

Mecki Schneider, chairman of the BVCF, explained that Savanna will initially slaughter the cattle that are marketed at the Brukarros abattoir outside Keetmanshoop. This will be the operational arrangement while Savanna's world-class export abattoir and meat processing plant is set up on the farm Teufelsschlucht outside Okahandja.

He said at the LPO congress that the new abattoir is expected to be put into use in October 2024.

Another positive development in the red meat export industry is the reopening of Farmers Meat Market's sheep export abattoir on Mariental by Hartlief. It is now known as the Mariental Abattoir.

According to Günther Ling, managing director of Hartlief, the reopening, together with the regional and international certification of the abattoir, is a great achievement, not only for Hartlief and the O&L Group, but for Namibian livestock producers and the country in general.

All the necessary audits have already been completed and as soon as the export certificate is issued, reporting can start in full swing. The abattoir hopes to export its first consignment of boneless lamb meat to Norway already this month.

Namibia, Botswana and Eswatini (formerly Swaziland) together have an annual quota of 400 tonnes, but the latter two countries are not currently in a position to export there, he explained in his presentation at the LPO congress.

Ling says the abattoir creates a market for Namibian sheep producers and provides an opportunity for the country to export its quality lamb meat to the international market.

By obtaining export status, Mariental Abattoir is able to capitalize on the lucrative, untapped international market as well as the Southern African and the greater African market.

Possible future markets for bone-in exports of mutton are the USA and Angola.

HUGE DEMAND FOR NAMIBIAN GENETICS

Meanwhile, the demand for good breeding material from neighbouring countries is increasing, which means that the prices of good quality breeding animals have also increased a lot.

Gert van Wyk of Namibia Livestock Auctioneers (NLA) in Mariental told congress attendees that online auctions are here to stay.

From last year until now, 42 000 ewe lambs have been marketed on WhatsApp groups. This created a need for an additional 1 800 rams, he said.

"The fact that the free market system is applied in the livestock industry puts more money into farmers' affairs.

There are a huge number of buyers in Zambia, Zimbabwe and South Africa. The industry is booming," he said about the demand for Namibian genetics.

"In the past, the leading breeders bought animals in South Africa, but this is no longer the case. We are now selling the best genetics in Namibia," Van Wyk said, adding that the standard of the animals that are auctioned improves every year.

DROP IN THE BUCKET

Roelie Venter, executive manager of the Namibia Agricultural Union (NAU), reminded producers that although positive things are happening, the Namibian livestock industry is only a drop in the bucket in a global context.

Namibia consumes approximately 15 000 tonnes of beef and 5 000 tonnes of mutton per year. In contrast, South Africa consumes 740 000 tonnes of beef and 150 000 tonnes of mutton per year - so 30 to 50 times more than Namibia.

Furthermore, Namibia is a net exporter of red meat as it can only consume 30% of its production itself. In contrast, South Africa consumes 95% of the meat that its farmers produce.

In 2021, Namibia exported nearly 5 500 tonnes of beef to markets in the European Union (EU), Norway and China.

Without these export markets, the Namibian meat industry cannot continue to exist and grow, Venter said.

He says policy certainty, fair competition between value chains, the maintenance of the country's high animal health status so that it can export, improved pasture and higher yield per hectare as well as the recovery of trust in the export value chain are necessary to grow the meat industry.