Nam’s cattle industry worth N$4.6bn
Exports beef to SA, EU, Norway
The report encouraged the domestic production of bush-based animal feed and fodder, specifically through green schemes.
Namibia’s cattle industry is valued at approximately N$4.6 billion and accounts for 4.3% of all goods and services produced by the country every year.
The World Bank group and the International Finance Corporation - in a recent private sector diagnostic report - said Namibia is a net exporter of beef, and approximately 85% of the exported meat (N$2.6 billion) goes to South Africa, the European Union, Norway, Russia, China and Angola, with the rest exported to other African and emerging market countries.
In 2017, Namibia was the world’s 26th largest exporter of bovine meat, up from 38th position in 2016.
According to the report, there are opportunities to increase the value addition in the beef sector.
“Farmers have to decide between producing weaners for live sale at the age of seven months versus fattening the ox to a 27-month age for sale to Meatco or abattoirs.”
It added that given the historic price ratio, once the weaner price is above 60% of the ox carcass weight price, it is typically more profitable to produce for the weaner market, including for export to South Africa.
“Because South Africa has richer pasture and feed resources than Namibia, where rangeland productivity is low and imported feed costs are high, South Africa can offer prices that make exports to that destination more attractive than selling animals to Meatco.”
Policy reforms
The report noted that policy reforms for the livestock value chain need to address production constraints, maintain export quality, promote investments in product diversification and local value addition and strengthen resilience to climate change.
There are several reforms needed to enhance the global competitiveness of the livestock value chain and support inclusive and green growth of the industry, it said.
These include addressing the non-tariff and logistics barriers that hinder access to competitively priced inputs, leveraging trade agreements in the African Continental Free Trade Area to develop strategies for market diversification into other African and Middle Eastern markets and establishing strategic partnerships with Botswana.
It also said establishing measures to increase domestic production of bush-based animal feed and fodder is important - specifically through green schemes. This in addition to effectively implementing industry recommendations under the nationally determined contributions for climate-smart livestock practices such as improved feed management, animal health and rangeland management as well as the use of drought-tolerant breeds to reduce the industry's carbon footprint.
The World Bank group and the International Finance Corporation - in a recent private sector diagnostic report - said Namibia is a net exporter of beef, and approximately 85% of the exported meat (N$2.6 billion) goes to South Africa, the European Union, Norway, Russia, China and Angola, with the rest exported to other African and emerging market countries.
In 2017, Namibia was the world’s 26th largest exporter of bovine meat, up from 38th position in 2016.
According to the report, there are opportunities to increase the value addition in the beef sector.
“Farmers have to decide between producing weaners for live sale at the age of seven months versus fattening the ox to a 27-month age for sale to Meatco or abattoirs.”
It added that given the historic price ratio, once the weaner price is above 60% of the ox carcass weight price, it is typically more profitable to produce for the weaner market, including for export to South Africa.
“Because South Africa has richer pasture and feed resources than Namibia, where rangeland productivity is low and imported feed costs are high, South Africa can offer prices that make exports to that destination more attractive than selling animals to Meatco.”
Policy reforms
The report noted that policy reforms for the livestock value chain need to address production constraints, maintain export quality, promote investments in product diversification and local value addition and strengthen resilience to climate change.
There are several reforms needed to enhance the global competitiveness of the livestock value chain and support inclusive and green growth of the industry, it said.
These include addressing the non-tariff and logistics barriers that hinder access to competitively priced inputs, leveraging trade agreements in the African Continental Free Trade Area to develop strategies for market diversification into other African and Middle Eastern markets and establishing strategic partnerships with Botswana.
It also said establishing measures to increase domestic production of bush-based animal feed and fodder is important - specifically through green schemes. This in addition to effectively implementing industry recommendations under the nationally determined contributions for climate-smart livestock practices such as improved feed management, animal health and rangeland management as well as the use of drought-tolerant breeds to reduce the industry's carbon footprint.
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