Namibia eyes Middle East and China meat markets

ELLANIE SMIT

A study on the financial viability of exporting red meat to the Middle East and China has identified lucrative opportunities.

The study focused on the United Arab Emirates (UAE), Saudi Arabia, Kuwait, Bahrain, Qatar and China.

The desktop study found that several of the identified markets have lucrative potential for beef and lamb exports.

This is according to Desmond Cloete, the chief marketing officer at the Meat Board of Namibia.

Cloete says that accessing the lucrative Middle Eastern and Chinese markets for Namibian lamb, mutton, goat meat and northern communal area (NCA) produced beef has been high on the agenda of the Meat Board.

The Meat Board in consultation with key role players within the livestock sector, conducted financial viability as well as market research studies in an effort to acquire export market access for selected meat products.

Cloete says that the Middle East market is traditionally known for its lamb and mutton affinity, which prompted Australia and New Zealand to export huge annual quantities. South Africa also exported up to 5 458 tonnes of deboned beef in 2019 to this destination.

“However, considering South Africa’s current animal health status, which is no different from that of the NCA, it remains relevant for Namibia to penetrate these markets, especially now that the two export abattoirs in Oshakati and Katima Mulilo are operational.”

With the Chinese market, Namibia applied to have import protocols for beef amended to include mutton, lamb, goat meat and offal, says Cloete.

Overcoming challenges

“Namibia, as a net exporter of red meat and meat products, depends on an array of lucrative markets. The country’s production output is, however, under severe pressure due to reoccurring droughts and declining carrying capacities abetted by increased bush encroachment.”

Cloete says considering that the volumes are declining, the Meat Board believes the red meat industry should rather focus on improved quality to maintain a return on investment.

He says for decades Namibia has depended heavily on the South African live on-hoof and carcass market for lamb and mutton.

“This market remains important because of its vicinity and affinity for naturally raised Namibian lamb and mutton.”

According to Cloete, due to logistical and market share challenges experienced in this market, the competitiveness of additional markets remains crucial.

Thriving

Meat Board data has shown that most of the cattle (63%) and sheep (62%) marketed in Namibia during 2019 were exported live, predominantly to South Africa.

Furthermore, of the total number of locally slaughtered sheep in 2019, 54% were destined for export markets.

Meanwhile, Cloete says that sheep meat consumption for most of the selected Middle Eastern markets shows a higher consumption demand compared with the South African market.

He says that the main motivators for consumers to buy lamb include 100% natural, Halal certification, animal origin and welfare, quality grading and food safety certification.

Sheep meat currently accounts for only a small proportion of dietary protein consumed in China (3,2 kg per capita).

“However, with rising incomes and continued urbanisation, per-capita sheep meat consumption is forecasted to increase significantly over the next decade.”

The study conducted by the North West University found that for beef, Bahrain and Qatar are the most lucrative markets, especially with regards to bone-in cuts.

With regards to sheep meat, China, Kuwait and Qatar are likely to be the most lucrative markets for specifically fresh/chilled boneless cuts. Least profitable are likely to be exports of goat meat from Namibia into the Kuwait and Qatar markets.