Food security still problematic
Around 28% of Namibians cannot afford to buy food simply because of the cost of imports.
The livestock and meat sector plays a critical role in economic growth and job creation in Namibia, and specifically in food security. However, the country is still very dependent on imports which can be risky for food security.
The commercial farming sector, which is mainly based on livestock farming, is considered to be the largest source of private employment in the country, providing jobs to 25 000 to 30 000 workers.
This is according to Dr John Purchase, the CEO of the Agricultural Business Chamber in South Africa, who spoke about food security and the contribution of the livestock sector at the congress of the Livestock Producers' Organisation of Namibia.
Referring to last year's World Food Report, Purchase said Namibia is classified as an upper-middle-income country and between 2000 and 2015 Namibia saw sustained economic growth.
However, rapid urbanisation and persistently high unemployment rates - at 34% of the total labour force, affecting mostly young people and women - have contributed to a growing number of poor people lacking access to food and basic social services. In 2016 the poverty rate stood at 18%.
According to the report, Namibia produces about 40% of the food it consumes and is highly dependent on imports. This means that while food is available, price fluctuations can make it difficult to afford for 26% of Namibian families. This particularly affects the 80% of the population who depend on markets to fulfil their food needs.
Purchase added that according to the report 18% of people live on less than US$39 a month while 60% of cereal needs in Namibia are covered by imports.
He said the decline in the quality of governance and low productivity were some of the problems at national level that need to be addressed.
Land tenure and ownership challenges which restrict access to land, also by foreign investors, are other challenges that were identified.
“A deficit of technical skills and policy restrictions on labour migration which restrict the entry of highly qualified staff from outside the country, even for a temporary period, to transfer knowledge is also a problem affecting the industry.”
According to Purchase unreliable national data on key indicators, such as animal inventories and land availability affect investment and national planning for the sector.
He lauded the livestock sector in Namibia, though.
“Namibia enjoys a comparative advantage in exporting cattle and beef, and is one of very few African countries able to meet strict import regulations in Europe,” he said.
He said the sector accounts for 7% of national merchandise exports.
According to Purchase, the relevance of the sector to livelihoods and food security is further revealed by the fact that over 40% of households own or have access to cattle.
“I think you have a wonderful industry, but critical thinking is necessary to add more value to it.”
Purchase said while South Africa is ranked as one of the most food secure countries in Africa the problem is that about 28% of the population is unable to buy food.
He said Namibia has a similar problem, except that the country also has to import a lot of its food products pushing the price up.
According to him, it is important to know how the demographics of the continent will change as it is expected that over the next 35 years the population will double.
“This can create either an opportunity or a risk for the continent as it will also have to double its production.”
Namibia has a population of 2.3 million people and its agricultural contribution to GDP was 7.1% of which more than half comes from livestock.
According to him, Namibia's top exported products are beer made from malt to the value of U$60 million followed by live animals to the value of U$46 million.
Grapes are the third biggest export product with a value of U$29 million followed by bovine meat with a value of U$23 million. The fifth biggest export product is live sheep and goats to the value of U$22 million.
“Your industry is a very strong earner of foreign currency,” said Purchase.
Cane or beet sugar is the top imported product by Namibia to the value of U$61 million, followed by maize to the value of U$48 million. The third biggest import product is alcohol of less than 80% volume to the value of U$47 million.
ELLANIE SMIT
The commercial farming sector, which is mainly based on livestock farming, is considered to be the largest source of private employment in the country, providing jobs to 25 000 to 30 000 workers.
This is according to Dr John Purchase, the CEO of the Agricultural Business Chamber in South Africa, who spoke about food security and the contribution of the livestock sector at the congress of the Livestock Producers' Organisation of Namibia.
Referring to last year's World Food Report, Purchase said Namibia is classified as an upper-middle-income country and between 2000 and 2015 Namibia saw sustained economic growth.
However, rapid urbanisation and persistently high unemployment rates - at 34% of the total labour force, affecting mostly young people and women - have contributed to a growing number of poor people lacking access to food and basic social services. In 2016 the poverty rate stood at 18%.
According to the report, Namibia produces about 40% of the food it consumes and is highly dependent on imports. This means that while food is available, price fluctuations can make it difficult to afford for 26% of Namibian families. This particularly affects the 80% of the population who depend on markets to fulfil their food needs.
Purchase added that according to the report 18% of people live on less than US$39 a month while 60% of cereal needs in Namibia are covered by imports.
He said the decline in the quality of governance and low productivity were some of the problems at national level that need to be addressed.
Land tenure and ownership challenges which restrict access to land, also by foreign investors, are other challenges that were identified.
“A deficit of technical skills and policy restrictions on labour migration which restrict the entry of highly qualified staff from outside the country, even for a temporary period, to transfer knowledge is also a problem affecting the industry.”
According to Purchase unreliable national data on key indicators, such as animal inventories and land availability affect investment and national planning for the sector.
He lauded the livestock sector in Namibia, though.
“Namibia enjoys a comparative advantage in exporting cattle and beef, and is one of very few African countries able to meet strict import regulations in Europe,” he said.
He said the sector accounts for 7% of national merchandise exports.
According to Purchase, the relevance of the sector to livelihoods and food security is further revealed by the fact that over 40% of households own or have access to cattle.
“I think you have a wonderful industry, but critical thinking is necessary to add more value to it.”
Purchase said while South Africa is ranked as one of the most food secure countries in Africa the problem is that about 28% of the population is unable to buy food.
He said Namibia has a similar problem, except that the country also has to import a lot of its food products pushing the price up.
According to him, it is important to know how the demographics of the continent will change as it is expected that over the next 35 years the population will double.
“This can create either an opportunity or a risk for the continent as it will also have to double its production.”
Namibia has a population of 2.3 million people and its agricultural contribution to GDP was 7.1% of which more than half comes from livestock.
According to him, Namibia's top exported products are beer made from malt to the value of U$60 million followed by live animals to the value of U$46 million.
Grapes are the third biggest export product with a value of U$29 million followed by bovine meat with a value of U$23 million. The fifth biggest export product is live sheep and goats to the value of U$22 million.
“Your industry is a very strong earner of foreign currency,” said Purchase.
Cane or beet sugar is the top imported product by Namibia to the value of U$61 million, followed by maize to the value of U$48 million. The third biggest import product is alcohol of less than 80% volume to the value of U$47 million.
ELLANIE SMIT
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