Seeking new avenues for meat Supply needs to be increased for market Namibia needs to innovate and diversify its meat markets and its capacity for production. Namibia’s meat industry is currently an export-oriented market with 85% of its products that are exported to other countries, however Namibia needs to increase its capacity to supply its established and new markets. This was highlighted last week when the manager of trade and marketing at the Meat Board of Namibia, Goliath Tujendapi, gave an overview of Namibia’s trade agreements with regard to livestock and the implications they have for the country.
Tujendapi said although Namibia had opened new markets such as China, Hong Kong and the US, the question was whether the country would be able to supply them with beef.
He pointed out that one of the ways to increase capacity was through bush eradication and changes to rangeland management.
Tujendapi also stressed the importance of retaining exports to South Africa and said they were critical to the short- and medium-term survival of the industry.
He added that it is important to resume a market for the beef in the Northern Communal Areas as this area has been left without a market since the foot-and-mouth outbreak in 2015.
According to Tujendapi live exports from Namibia make up 59% of the cattle market.
A total of 33% come from exports abattoirs south of the Veterinary Cordon Fence while 8% comes from local markets. Currently no marketing is taking place at abattoirs north of the Veterinary Cordon Fence.
Namibia currently exports some 240 000 weaners, 140 000 sheep and 250 000 goats per year to South Africa.
The country also exports 15 000 to 17 000 tons of beef to South Africa which is sold at places such as Steers and Woolworths.
Also, 9 500 tons of beef is exported to the European Union which includes the UK, Norway, Germany, Switzerland and Netherlands.
It was also pointed out that 58% of sheep are slaughtered locally in Namibia while 42% are exported live.
A total of 850 000 lamb carcasses are exported to South Africa to places such as Checkers, Pick n Pay and Spar, while 400 tons of mutton is exported to Norway.
Elaborating on the import requirements that were introduced by South Africa on 1 July this year, he said while goats and sheep could be exported easily cattle could not be exported under the stringent requirements.
Statistics show that exports of weaners to South Africa increased in May from 22 000 to around 33 000 and then dropped to zero in July when the restrictions came in.
He said while it was a slow process to finalise the Standard Operating Procedure (SOP) for abattoirs and feedlots the permit associated with these SOPs are much more beneficial to Namibia.
Referring to the SADC Economic Partnership Agreement (EPA) that was implemented on October 1 he said that beef exports translated into more than N$10.7 million last year.
He explained that this trade agreement provides preferential access for the European Union into SACU while it could have an impact on regional value chains such as food processing like beef.
Furthermore with regard to the Preferential Trade Agreement between Mercosur and SACU it was explained that Mercosur is one of the leading economic blocs, being the fifth largest economy in the world.
It’s five member states are Argentina, Brazil, Paraguay, Uruguay and Venezuela.
According to statistics provided Namibia in 2012/13 exported beef to the value of N$1.2 million to Brazil under this agreement and the following year imported it imported beef to the value of N$1.3 million from Brazil.
From Argentina poultry to the value of N$118 million has been imported by Namibia and also from Uruguay Namibia imported poultry worth N$23 million between 2011 and 2015.
During 2012 Namibia exported hides and skins worth N$900 000 to Argentina.
Tujendapi however raised concern about the fact that Mecosur countries are more cost effective with regard to beef production and can therefore easily flood the market with cheap products.
Another concern is that there has been an outbreak of foot-and-mouth disease in Paraguay in the past and therefore Namibia needs strong monitoring processes in order not to jeopardise existing EU and Norwegian markets.
ELLANIE SMIT