Hands off the beef industry

The government must not interfere in the marketing of cattle by implementing export restrictions and closing Namibian borders.

This may result in another fiasco in the livestock industry, reminiscent of the sheep marketing scheme.

This the view of the executive manager of the Namibia Agricultural Union, Roelie Venter, who said export restrictions would neither generate economic growth nor create jobs.

In an exclusive interview with Namibian Sun, Venter said on average about 200 000 weaners are exported annually, the same number as the cattle slaughtered locally.

He said there has been a drastic shift from slaughtering cattle at export abattoirs to opting for slaughter at local abattoirs. According to him this shift was caused by a drop in the producer price.

“The perception being created that more farmers are exporting cattle is not true. More cattle are being slaughtered at local abattoirs because of under-recoveries.”





Venter said the fact that the government was now pushing for a cattle scheme and considering closing the borders for cattle exports was causing panic among farmers.





“The industry does not want interference in the marketing of cattle. This must be prevented at all costs. Take for example what happened to the sheep marketing scheme and the fiasco it turned into.”





Venter said the push to close the borders for cattle exports would also have a huge impact on communal farmers, as two thirds of the weaners sold at auctions are from communal farming areas.

According to Venter a sustainable and profitable livestock industry needs internationally competitive export abattoirs to market to South Africa and the rest of the world. “But it also needs a local slaughter market for Namibian consumers and a live export market to SADC.”

The restriction of exports would not generate economic growth for Namibia.

“The control of weaner exports to SADC negatively affects primary cattle production and will have similar effects to what happened in the sheep sector,” Venter said.

Furthermore, an alignment of export abattoirs to the market supply should be done to put the industry on a sustainable growth path.

In his view, the sheep marketing scheme must be abolished and local abattoirs should be developed to improve their export competiveness to SADC. An open market should be ensured to export livestock to SADC.

Statistics provided by the union show that the annual number of cattle slaughtered locally have remained at about 200 000 for the past two decades, slightly dropping during 2006 to 2012, but recovering by 2014.

According to Venter roughly 67% of cattle offered were slaughtered locally between 1990 and 2017.

Furthermore, statistics indicate that cattle slaughter has shifted to B- and C-class local abattoirs and away from export abattoirs.

From 2015 to 2017 a drop from 120 000 to 80 000 in cattle slaughter numbers can be seen at export abattoirs, whereas the throughput at local abattoirs increased slightly from 90 000 to 100 000.

“Producers must already compete with the best producers in the world in a competitive market. Profitability is low, with a return on investment lower than 3% per year,” said Venter.

He explained that it is currently much more profitable to be in weaner production compared to the slaughter market. A weaner producer can make a profit of N$43 by selling a 220kg animal at N$31.74kg.

However in the slaughter market a producer who raises a weaner to an ox for slaughter makes a loss of N$21, selling a 260kg carcass at N$41.20.

“A producer has to look at where he or she will make the most profit.”

Venter further pointed out that net-importing industries such as dairy, poultry, pigs, grain and vegetables all experienced growth and investment which improved diversification and reduced risk in these industries.

He believes different growth strategies are required for net importers and net exporters.

He said the challenge is to grow the agri-export industries and not to close the borders.

“The two industries are totally different and exports should not be limited.”

Venter further explained the economic importance of the livestock value chain and said there are 17 000 employees in the industry with 75 000 dependants and in 2017 it earned N$3 billion in foreign exchange.

ELLANIE SMIT