Namibia's N$6.3bn livestock sector in need of urgent growth
Sustained growth requires support
The Meat Board says global meat production is estimated to amount to 335 million tonnes, compared to Namibia's meat production of 49 444 tonnes and Meatco's 8 845 tonnes of meat processed in 2021/22.
Worth N$6.3 billion, Namibia’s livestock farming sector is in dire need of growth.
The 2.5 million cattle in Namibia’s herd represent only 0.25% of the global herd, which is estimated to amount to 1 billion in 2022.
This is according to Meatco’s financial report covering the period from 1 February 2021 to 31 January 2022.
"Growth starts at farm level, but will only happen when it is profitable to producers. Only a conducive policy and regulatory environment, as well as a common vision for the red meat industry, will enable substantial growth to take place".
Crucial Namibian market
According to the Meat Board of Namibia, the production of meat worldwide is estimated to amount to 335 million tonnes, compared to Namibia’s meat production of 49 444 tonnes and Meatco’s 8 845 tonnes of meat processed in 2021/22.
"Due to Namibia’s insignificance in the global environment, it is imperative for Meatco to focus on selected niche or premium markets for its products. In the global context, Namibia’s red meat industry is the proverbial grain of sand in the desert."
It says that even though agriculture’s contribution to GDP (excluding the fishing sector) over the last five years has been just under 4%, it remains one of Namibia’s most important sectors, as the majority of Namibia’s population is dependent directly or indirectly on the agricultural sector for their livelihoods.
Livestock farming contributes to approximately two-thirds of agricultural production, with crop farming and forestry making up the remaining one third.
"Meat processing, which the government accounts for under manufacturing, contributes to another 0.2 to 0.4% of GDP."
Demanding customers
The report further points out that beef is one of the most consumed meats in the world after pork and chicken, as it is a source of high-quality protein and essential nutrients.
However, there are a number of supply-chain issues facing the beef industry globally, such as the sustainability of beef production.
A growing world population and increasing affluence are driving demand for red meat and animal proteins.
"However, consumers are also increasingly wary of the impact of beef production on the environment."
The report says that globally, the sector is faced with the dilemma of reducing each animal’s environmental farm-to-fork ‘hoofprint’, without compromising the quality or quantity of beef.
Another concern are highly contagious transboundary animal diseases.
"While not directly affecting human health, they can cause high rates of deaths and diseases in animals, and thereby have serious socio-economic consequences," Meatco states.
Diminished appetites
The report also notes that global political and economic uncertainties contribute towards instability in the global agriculture sector.
For instance, the Covid-19 pandemic has impacted upon the logistics value chain, further eroding stability.
Furthermore, numerous animal welfare organisations worldwide have consistently promoted curtailing the consumption and production of meat.
"Their media campaigns have heightened awareness of animal welfare, which impacts the standards expected in farming practises and slaughter processes."
The growing trend of vegetarianism and veganism in developed countries has also shown a negative trend towards beef consumption.
Lastly, climate change can disrupt food availability, reduce access to food, and affect food quality. For example, projected increases in temperatures, changes in precipitation patterns, changes in extreme weather patterns, and reductions in water availability may all result in reduced agricultural productivity.
"Meatco is aware of the need to collaborate on regenerative farming practices and to assist in addressing growing concerns regarding the environment we live in."
The 2.5 million cattle in Namibia’s herd represent only 0.25% of the global herd, which is estimated to amount to 1 billion in 2022.
This is according to Meatco’s financial report covering the period from 1 February 2021 to 31 January 2022.
"Growth starts at farm level, but will only happen when it is profitable to producers. Only a conducive policy and regulatory environment, as well as a common vision for the red meat industry, will enable substantial growth to take place".
Crucial Namibian market
According to the Meat Board of Namibia, the production of meat worldwide is estimated to amount to 335 million tonnes, compared to Namibia’s meat production of 49 444 tonnes and Meatco’s 8 845 tonnes of meat processed in 2021/22.
"Due to Namibia’s insignificance in the global environment, it is imperative for Meatco to focus on selected niche or premium markets for its products. In the global context, Namibia’s red meat industry is the proverbial grain of sand in the desert."
It says that even though agriculture’s contribution to GDP (excluding the fishing sector) over the last five years has been just under 4%, it remains one of Namibia’s most important sectors, as the majority of Namibia’s population is dependent directly or indirectly on the agricultural sector for their livelihoods.
Livestock farming contributes to approximately two-thirds of agricultural production, with crop farming and forestry making up the remaining one third.
"Meat processing, which the government accounts for under manufacturing, contributes to another 0.2 to 0.4% of GDP."
Demanding customers
The report further points out that beef is one of the most consumed meats in the world after pork and chicken, as it is a source of high-quality protein and essential nutrients.
However, there are a number of supply-chain issues facing the beef industry globally, such as the sustainability of beef production.
A growing world population and increasing affluence are driving demand for red meat and animal proteins.
"However, consumers are also increasingly wary of the impact of beef production on the environment."
The report says that globally, the sector is faced with the dilemma of reducing each animal’s environmental farm-to-fork ‘hoofprint’, without compromising the quality or quantity of beef.
Another concern are highly contagious transboundary animal diseases.
"While not directly affecting human health, they can cause high rates of deaths and diseases in animals, and thereby have serious socio-economic consequences," Meatco states.
Diminished appetites
The report also notes that global political and economic uncertainties contribute towards instability in the global agriculture sector.
For instance, the Covid-19 pandemic has impacted upon the logistics value chain, further eroding stability.
Furthermore, numerous animal welfare organisations worldwide have consistently promoted curtailing the consumption and production of meat.
"Their media campaigns have heightened awareness of animal welfare, which impacts the standards expected in farming practises and slaughter processes."
The growing trend of vegetarianism and veganism in developed countries has also shown a negative trend towards beef consumption.
Lastly, climate change can disrupt food availability, reduce access to food, and affect food quality. For example, projected increases in temperatures, changes in precipitation patterns, changes in extreme weather patterns, and reductions in water availability may all result in reduced agricultural productivity.
"Meatco is aware of the need to collaborate on regenerative farming practices and to assist in addressing growing concerns regarding the environment we live in."
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