Horticulture MSP up by 3%
The Namibian Agronomic Board (NAB) has increased the Horticulture Market Share Promotion (MSP) from 44% to 47%.
The 3% increase directly translates, in monetary terms, to about N$20 million per annum worth of fresh produce to be supplied by local producers to the formal market.
This increase in the horticulture MSP was announced last week by the NAB.
According to the NAB, the MSP policy was established in 2005 as a tool to facilitate the increased production of horticulture products in Namibia, with the aim of achieving food self-sufficiency.
In terms of the MSP, importers of fresh horticulture products are required to source a minimum percentage of their products from Namibian producers, prior to qualifying for an import permit in a given quarter.
NAB chairman Michael Iyambo said that the decision to increase the MSP from the current 44% to 47% was taken by the NAB board in August. The 3% increase in horticulture MSP will be implemented effective 1 December.
“Therefore, any importer of fresh produce into Namibia will buy 47% first from local producers before they can be issued with a new permit to import the remaining 53%.
“Our future MSP target is to achieve an average of 60% of horticultural total consumption in the country,” he said.
The initial MSP started at 5% in 2005, but was increased to 44% during the 2015/16 financial year. Through the MSP, the reduction in marketing risks stimulated import substitution, and existing producers increased the area under production, new producers started planting for the formal market and subsequently the green schemes started increasing horticulture production.
NAB's CEO Dr Fidelis Mwazi encouraged local producers to increase their production in order to meet the demand from retailers.
According to the NAB it will, through AMTA as its implementing agent, closely monitor the production and supply situation to ensure quality and consistent supply of fresh produce to the Namibian consumer.
ELLANIE SMIT
The 3% increase directly translates, in monetary terms, to about N$20 million per annum worth of fresh produce to be supplied by local producers to the formal market.
This increase in the horticulture MSP was announced last week by the NAB.
According to the NAB, the MSP policy was established in 2005 as a tool to facilitate the increased production of horticulture products in Namibia, with the aim of achieving food self-sufficiency.
In terms of the MSP, importers of fresh horticulture products are required to source a minimum percentage of their products from Namibian producers, prior to qualifying for an import permit in a given quarter.
NAB chairman Michael Iyambo said that the decision to increase the MSP from the current 44% to 47% was taken by the NAB board in August. The 3% increase in horticulture MSP will be implemented effective 1 December.
“Therefore, any importer of fresh produce into Namibia will buy 47% first from local producers before they can be issued with a new permit to import the remaining 53%.
“Our future MSP target is to achieve an average of 60% of horticultural total consumption in the country,” he said.
The initial MSP started at 5% in 2005, but was increased to 44% during the 2015/16 financial year. Through the MSP, the reduction in marketing risks stimulated import substitution, and existing producers increased the area under production, new producers started planting for the formal market and subsequently the green schemes started increasing horticulture production.
NAB's CEO Dr Fidelis Mwazi encouraged local producers to increase their production in order to meet the demand from retailers.
According to the NAB it will, through AMTA as its implementing agent, closely monitor the production and supply situation to ensure quality and consistent supply of fresh produce to the Namibian consumer.
ELLANIE SMIT
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