Trade restrictions strangle sheep farming
Investigations conducted by the Meat Board indicated that Namibian export abattoirs are N$5 per kilogram worse off than South African abattoirs.
ELLANIE SMIT
WINDHOEK
Lifting export restrictions may increase Namibia's small-stock production by 400 000 sheep per year - and this would mean an additional income of N$350 million per year.
According to the Meat Board of Namibia, this may also result in the additional employment of 1 200 people and appointment of 250 input supply employees.
Calculations made by the board indicate that the nominal producer value of the sheep export sector during the past five years was N$0.9 billion, compared to the slaughter sector of N$1.6 billion – a difference of N$0.7 billion.
“Considerable boardroom debates, discussions and communications regarding the feasibility of exporting livestock from Namibia versus local slaughter and thus employment creation are ongoing,” said the board.
No advantages
It said while the export of live sheep is a mature industry and has contributed considerable value to the Namibian economy, restrictions on sheep exports since 1 July 2004 showed no advantages whatsoever.
“Redundant slaughter capacity of five sheep slaughter lines with individual capacity of approximately 1 200 sheep per day with the noble intention of establishing jobs was created.
“However, at the time of postponement of the Sheep Marketing Scheme with its export restrictions on 6 August 2019, only two slaughter lines were operational – keeping in mind sheep slaughter lines and associated services employ 120 employees per line.”
According to the Meat Board, sheep producers lost millions of Namibian dollars in revenue by being forced to slaughter locally as Namibian abattoirs have a cost disadvantage because of South Africa's veterinary import requirements.
Industry under threat
Investigations indicated that Namibian export abattoirs are N$5 per kilogram worse off than South African abattoirs due to the cost of compliance.
It said that any further restrictions would be the “nail in the coffin” for sheep farmers, who are frustrated with increasing regulations and external influences, compounded by a struggle to cope with poor rainfall.
“Without maintaining and protecting market access, a sustainable Namibian meat industry is under threat.”
Strangled by restrictions
It added that an environment should be created where the full value chain can prosper and which is not disturbed with export restrictions, while abattoirs should continuously search for more lucrative markets.
“If employment creation is the ultimate objective, then government should incentivise job creation at all export abattoirs and processing plants to improve financial and operational efficiencies and which could be benchmarked internationally.”
WINDHOEK
Lifting export restrictions may increase Namibia's small-stock production by 400 000 sheep per year - and this would mean an additional income of N$350 million per year.
According to the Meat Board of Namibia, this may also result in the additional employment of 1 200 people and appointment of 250 input supply employees.
Calculations made by the board indicate that the nominal producer value of the sheep export sector during the past five years was N$0.9 billion, compared to the slaughter sector of N$1.6 billion – a difference of N$0.7 billion.
“Considerable boardroom debates, discussions and communications regarding the feasibility of exporting livestock from Namibia versus local slaughter and thus employment creation are ongoing,” said the board.
No advantages
It said while the export of live sheep is a mature industry and has contributed considerable value to the Namibian economy, restrictions on sheep exports since 1 July 2004 showed no advantages whatsoever.
“Redundant slaughter capacity of five sheep slaughter lines with individual capacity of approximately 1 200 sheep per day with the noble intention of establishing jobs was created.
“However, at the time of postponement of the Sheep Marketing Scheme with its export restrictions on 6 August 2019, only two slaughter lines were operational – keeping in mind sheep slaughter lines and associated services employ 120 employees per line.”
According to the Meat Board, sheep producers lost millions of Namibian dollars in revenue by being forced to slaughter locally as Namibian abattoirs have a cost disadvantage because of South Africa's veterinary import requirements.
Industry under threat
Investigations indicated that Namibian export abattoirs are N$5 per kilogram worse off than South African abattoirs due to the cost of compliance.
It said that any further restrictions would be the “nail in the coffin” for sheep farmers, who are frustrated with increasing regulations and external influences, compounded by a struggle to cope with poor rainfall.
“Without maintaining and protecting market access, a sustainable Namibian meat industry is under threat.”
Strangled by restrictions
It added that an environment should be created where the full value chain can prosper and which is not disturbed with export restrictions, while abattoirs should continuously search for more lucrative markets.
“If employment creation is the ultimate objective, then government should incentivise job creation at all export abattoirs and processing plants to improve financial and operational efficiencies and which could be benchmarked internationally.”
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