Namibia: Livestock farmers resilient and looking for solutions

Namibia’s livestock industry is alive and well and despite concerns about intensifying drought, exports reached record highs in the first quarter of 2024.

Simonis Storm, a Namibian financial services company that offers inter-generational wealth solutions and integrated and sustainable investment strategies, said marketing activity across all livestock sectors saw a significant uptick in March 2024 compared to both
February 2024 and March 2023. “Of particular note, 34 196 head of cattle were marketed in March 2024 – the highest monthly figure recorded since August 2023,” said Simonis Storm Economic researcher Halleluya Ndimulunde. “This total included 12 709 cattle slaughtered within domestic facilities and 21 487 exported live, predominantly to South Africa.” During the first quarter of 2024, Namibia exported 2 936 183 kilograms of beef, a 106% year on year increase from the prior year.

South Africa remains the primary destination for the majority of Namibia’s livestock exports, followed by Botswana, Angola, Zambia and Zimbabwe.

Challenges

Despite these successes, livestock farmers experience challenges. The Livestock Producers’ Organisation (LPO) visited seven locations across the country in August and September 2024 to assess the challenges and to find solutions to alleviate pressure on the sector.

Throughout these visits, the positive energy of producers was infectious, driving a collective search for solutions, reports the Namibian Agricultural Union (NAU) in its weekly newsletter on 11 October.

The primary aim of the visits to the seven locations was to gather feedback from LPO members about the biggest challenges they face and potential solutions.

In Aranos, Aroab, and Helmeringhausen, the discussions focused on
issues pertaining small livestock, while weaner and ox production were examined in Okahandja, Gobabis, Grootfontein, and Otavi.

At each of the meetings, the conversation started with an overview of the current state of the livestock industry and the LPO’s actions to address the issues in each area.

While farmers of small and large livestock experienced similar challenges, the solutions they offered differed. The six main challenges include:

low profitability
control of the value chain for small livestock
bush densification and rangeland restoration
government regulations
succession planning
crime

Livestock farming in Namibia is flourishing, but despite successes, farmers experience challenges. (Source: https://thebrief.com.na/2024/05/livestock-marketing-soars-amid-2024-drought-threats/)

Challenges and solutions

Low profitability

Effective production depends on the rangeland’s carrying capacity and how efficiently the grass is converted to meat.

Profitability is directly related to effective pasture and herd management. Young farmer study groups, the use of technology and partnerships between weaner and ox farmers can improve profitability.

Value chain

Small livestock: Some 80% of Namibian sheep farmers’ income is generated by sales to South African consumers. Market diversification to reduce this dependency is essential.

The LPO undertook to create a business plan for small livestock to identify profitable opportunities and advocate for simpler carcass grading for the local market.

Large livestock: High-quality meat produced for niche export markets gives Namibia a competitive edge. However, it is vital that the cattle export value chain fairly compensates producers.

The LPO will focus on enhancing market intelligence to understand product pricing and the costs of value addition.

Bush densification and rangeland restoration

Namibia’s competitiveness can be improved by creating a balance between grassland and bush. Rangeland grass continues to be the most affordable feed, and veld-produced meat is a key advantage.

Producers need a cultural shift to encourage investment in land productivity. This can be achieved by identifying success stories and analysing the cost-benefit of restoring rangeland and thinning bush to encourage new growth.

Government regulation

Up to 70% of Namibia’s meat production relies on regional and international export markets. Therefore, import regulations from export countries form an integral part of the smooth operation of the industry.

The conclusion was that addressing bureaucratic frustrations and improving service delivery were essential, along with the consistent implementation of export regulations in order to advance the livestock sector and maintain the good reputation of the industry.

Succession planning

According to the opinion aired during the meetings, there is a need for the preparation of a new generation of livestock farmers to succeed the current generation. However, low profitability complicates retirement for older farmers to make room for a new generation to step into their shoes.

The solution is to prioritise timely retirement planning and to promote a positive image of the livestock industry among youth.

Crime

During discussions, it emerged that crime remains a significant and ongoing concern for livestock farmers.

The collective decision was that the solution is to strengthen existing crime prevention forums, improve the legal system, and create information systems to identify habitual offenders.

“Despite these challenges, the meetings made it clear that Namibian livestock farmers remain resilient,” reports the NAU.