Farmers gather to address challengesFarmers will gather this week to discuss some of the major challenges facing their industry at two of the most important conferences on the agricultural calendar. Report bemoans non-transparent directorates 0 The agriculture sector is confronted with increasingly difficult circumstances to maintain sustainable production. Some of these include the closing of the Meatco feedlot, the drought, new stringent export requirements as well as low producer prices.These are among the challenges to be discussed at the 70th congress of the Namibia Agricultural Union (NAU) and the Livestock Producers Organisation (LPO) congress in Windhoek.
Annual reports released by these two organisations prior to the conferences both cite drought as a major challenge for the sector.
According to the LPO report, this year marks the third consecutive year of serious drought for Namibia, following a series of good rainy seasons experienced until 2012.
It also cites the implementation of revised import regulations by the South African authorities on all livestock from Namibia from 1 July 2016.
“The next crisis hitting Namibia is the water shortage,” the report states.
Low rain resulted in a lack of water inflow for two consecutive years into dams that provide water to Windhoek.
“If this water shortage continues, it is estimated that dams will run dry. This means that Windhoek will have no water, and the first to be forced to downsize their activities are industries such as Meatco and other abattoirs.”
The report also addressed the role and functions of government in the livestock industry and organised agriculture.
It says the Directorate of Planning and Business Development in particular is not transparent and its actions are not executed in line and in cooperation with the industry.
It says to mention just a few examples there is uncertainty regarding the function of the Agricultural Business Development (AgriBusDev) and the Agricultural Marketing and Trade Agency (AMTA) in the meat industry.
Furthermore it says levy financing for agricultural unions was withdrawn and uncertainty exists whether this will continue.
The annual report of the NAU says there are numerous challenges in the agricultural sector which put pressure on the profitability of the producer. Due to the below-average rainfall since 2013 production conditions (rangeland) are poor to critical in certain parts.
According to the report interest rates and inflation increased and put pressure on food prices, which as a result keep on rising.
“Besides the increase of land tax, a new environmental tax has been implemented.”
Also the report states that electricity tariffs were increased by 16% and even though meat prices increased globally, Namibian producer prices are still under pressure.
“The NAU’s viewpoint with regard to land tax is very clear. The NAU committed itself to the payment of land tax as a contribution towards land reform in Namibia,” it said.
The NAU says that land valuations must be realistic and determined according to the Act and Regulations.
The union added that land tax must in all cases be reasonable, fair and affordable.
“There are shortcomings in the current model according to which land tax is determined. Consequently the current land valuations are questioned. Land tax which is paid according to the current rate and values is in our opinion not fair and affordable.”
Therefore, the union said it is negotiating with the ministries of finance, agriculture and land reform to adapt the rate of land tax.