Beef value chain study results in
14 October 2020 | Agriculture
A study has been completed to understand the Namibian export value chain of beef.
The study showed that it is important that the livestock and beef export markets must be in balance to ensure a sustainable fair price for producers.
The study further showed that the beef export market can pay a premium price to producers in an unregulated competitive market and thus automatically attract more beef for slaughter purposes to this value chain.
The study was undertaken by the Livestock Producers Organisation (LPO) in collaboration with Namib Mills, and done by a group of independent experts, with Windhoek Consulting Engineers heading the research.
It sought answers on what the selling price of Namibian beef in international markets is, what the operating costs of a beef export abattoir should be and if a Namibian beef export abattoir can be operated competitively in an unregulated environment.
According to the Namibian Agriculture Union (NAU), Namibia benefits from the best-paid beef markets in the world, but the weaner calf export value chain attracts more competitive prices and therefore automatically results in attracting more beef.
The NAU said the LPO and Namib Mills had an online meeting with agriculture minister Calle Schlettwein last week to share the results of the study with him.
“From the beginning, the LPO confirmed that they support the minister's vision that agriculture offers the best opportunities to recover the Namibian economy and create employment to ensure food security.”
To reach this, the livestock sector is essential and certain critical factors are needed to bring about this growth, said the union.
“An urgent dialogue, led by the minister, with all stakeholders is necessary to find solutions to ensure that the complete value chain for beef exports may be competitive in an unregulated market,” said the NAU.
This meeting will take place before the end of this year.