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Farming in dire straitsLivestock producers in Namibia have been making losses for around ten years and will take many more to recover, if at all. Losses piling up for a decade Image may be NSFW.
Clik here to view. Since 1960 Namibia has been unable to rebuild its national herds to its former glory.
The chairperson of the Livestock Producers Organisation of Namibia, Mecki Schneider, said at the opening of the organisation’s 53rd congress that over the past 40 years, the country has never regained the herds’ pre-drought production figures.
Schneider said that Namibia this year faced the fourth year of a below average rainy season.
He pointed out that this means that cattle herds again decreased in numbers and quality and it will take years to rebuild.
“We, the commercial farmers, have to realise that we must plan and make provision for dry years.”
He said that cattle farming is currently worse off than sheep farming and has reached a level of 8% losses per year over the last ten years.
“You need to farm 8% more effectively per year to achieve the same level of disposable income.”
Schneider said that stock farming is under incredible financial pressure and he emphasised that the rate whereby input costs are increasing is much faster than any growth of income.
He said that it is once again worrying that weaner prices and carcass prices have not remained in step with input costs.
“Slaughter prices have not increased and weaner prices plummeted when export regulations closed the border to South Africa for all practical purposes.”
He added that agri-inflation is much higher than the general consumer inflation rate.
He elaborated on value addition in the livestock industry. He said that the value added by farmers themselves is simply ignored or viewed as inferior.
According to him value addition starts with mating selection, the production and ends in a marketable product.
Concerning the sheep industry, when farmers sell to South Africa they receive about 50% of the value of the sheep carcass when they deliver live, market-ready products.
According to him, the abattoir adds value of 2% maximum and that means that 48% is taken up by the processing and trade partners.
He said that this value addition of 48% takes place in South Africa through the marketing channels of small stock abattoirs.
Clik here to view.
Farming in dire straitsLivestock producers in Namibia have been making losses for around ten years and will take many more to recover, if at all. Losses piling up for a decade Image may be NSFW.Clik here to view.
Since 1960 Namibia has been unable to rebuild its national herds to its former glory. The chairperson of the Livestock Producers Organisation of Namibia, Mecki Schneider, said at the opening of the organisation’s 53rd congress that over the past 40 years, the country has never regained the herds’ pre-drought production figures.
Schneider said that Namibia this year faced the fourth year of a below average rainy season.
He pointed out that this means that cattle herds again decreased in numbers and quality and it will take years to rebuild.
“We, the commercial farmers, have to realise that we must plan and make provision for dry years.”
He said that cattle farming is currently worse off than sheep farming and has reached a level of 8% losses per year over the last ten years.
“You need to farm 8% more effectively per year to achieve the same level of disposable income.”
Schneider said that stock farming is under incredible financial pressure and he emphasised that the rate whereby input costs are increasing is much faster than any growth of income.
He said that it is once again worrying that weaner prices and carcass prices have not remained in step with input costs.
“Slaughter prices have not increased and weaner prices plummeted when export regulations closed the border to South Africa for all practical purposes.”
He added that agri-inflation is much higher than the general consumer inflation rate.
He elaborated on value addition in the livestock industry. He said that the value added by farmers themselves is simply ignored or viewed as inferior.
According to him value addition starts with mating selection, the production and ends in a marketable product.
Concerning the sheep industry, when farmers sell to South Africa they receive about 50% of the value of the sheep carcass when they deliver live, market-ready products.
According to him, the abattoir adds value of 2% maximum and that means that 48% is taken up by the processing and trade partners.
He said that this value addition of 48% takes place in South Africa through the marketing channels of small stock abattoirs.
