FMD could cost livestock industry N$2.4bn in 6 months - NAU

The Namibia Agricultural Union (NAU) estimates that foot-and-mouth disease (FMD) could cost Namibia's livestock industry N$2.397 billion over six months, equivalent to approximately N$13 million a day.The union warned that prolonged restrictions on livestock movement and marketing could threaten the financial viability of farmers, abattoirs, transporters, auctioneers and agricultural suppliers, many of whom must continue meeting operating expenses and debt repayments despite declining revenue.According to the NAU, livestock producers alone require approximately N$230 million monthly to meet essential expenses and debt repayments, even after cutting normal expenditure by 50%.Of this amount, N$155 million covers operating expenses, while N$75 million is needed for debt repayments, translating into daily financial obligations of approximately N$7.7 million.The NAU said agricultural input suppliers generate annual turnover exceeding N$6 billion, while livestock marketing, including live animal exports, generates approximately N$9.15 billion annually.Cattle and small-stock slaughtering contributes an estimated N$3.66 billion in annual producer value, with another N$914 million generated through value addition at slaughtering facilities.Livestock auctions facilitate approximately N$2.69 billion in annual sales, generating N$162 million in commissions, while livestock transport expenditure amounts to approximately N$228 million annually.For producers south of the Veterinary Cordon Fence, annual operating cash expenses are estimated at N$3.73 billion.The sector supports approximately 52 000 agricultural jobs south of the fence, with these incomes potentially sustaining around 200 000 dependents.The union warned that prolonged marketing disruptions could therefore affect household incomes and businesses throughout the agricultural value chain.The NAU's six-month scenario identifies N$1.382 billion in cash operating expenses and debt repayments for primary livestock production.Domestic marketsAbattoirs face N$378 million in continuing fixed expenses, while reduced slaughtering for export markets could result in losses of N$331 million.Livestock transport operators could lose N$114 million in revenue, while auctioneers face N$81 million in lost commissions.Reduced slaughtering for domestic markets accounts for another N$47 million, while agricultural input suppliers could lose N$64 million in gross margins.Together, these figures produce the projected N$2.397 billion impact, excluding potential additional pressures from drought and rising input costs.The NAU called for a coordinated recovery strategy alongside efforts to contain FMD, warning that disease control alone would not restore the industry's economic stability.It wants a national roadmap covering surveillance, testing, livestock traceability and movement controls, with clearly defined responsibilities, resources and implementation milestones.The union also called for engagement with veterinary authorities and trading partners to establish conditions for maintaining or restoring livestock and meat exports.It proposed exploring alternative markets that accept eligible livestock products from recognised FMD-free zones where vaccination is practised, subject to veterinary and importing-country requirements.The NAU maintained that the success of Namibia's response should ultimately be measured by both disease containment and the restoration of viable livestock marketing opportunities.

FMD could cost livestock industry N$2.4bn in 6 months - NAU

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Namibian Sun 2026-10-26

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FMD could cost livestock industry N$2.4bn in 6 months - NAU

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Namibian Sun 2026-10-26

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