Namibia’s oyster and beef exports to China benefit local economy
As China becomes Namibia's biggest export market, local-based enterprises in Namibia are at the helm of the increased trade volumes. There has been a considerable potential of growing opportunities and the benefits to the local economy for beef and fish exports to the Chinese market. According to press reports. Namibia to date has exported more than 973,412 metric tons of beef to the Chinese market.
Namibia through Meatco has been able to export beef products to the Chinese market since the export process was declared an essential service in Namibia under the COVID-19 State of Emergency regulations. A total number of 40 containers have been channeled successfully to the Chinese market since the beginning of last year. Namibia is set to increase its export quantities to China as most farmers are expected to come out of the restocking phase in which they are currently in and marketing to the export abattoir and other facilities will increase. At the moment there are beef orders that are still coming in and Namibia could find it loading five times more.
Statistics in June by Namibia Statistics Agency shows that China has become Namibia's biggest export market, surpassing countries like South Africa whom Namibia previously traded with extensively.
Oyster export and wholesale opportunities
To-date, local companies are trading in both fresh and frozen oyster products. At the moment, local companies concentrate on growing Pacific oysters from juvenile stage (around 30 grams) up to market size, which is between 40g and 150g". According to Blaauw, managing director of Tetelestai which export oyster to China , the markets for fresh live oysters are mainly Chinese destinations including Beijing, Guangzhou, Shanghai as well as Hong Kong.
The Namibian-based enterprise counts on its bountiful Pacific oysters in penetrating the Chinese market, to where they export the majority of the locally cultivated oyster products. "We had a market from the start, but it is only after our export to China that the demand increased as word spread about Namibia and the quality of our oysters," Blaauw said.
According to him, the Chinese market has created opportunities for the business expansion and the profit made. On average, export volumes of Tetelestai brand products to China range between 30,000 to 40,000 units per month.
"We have a low population in Namibia, and the local market cannot consume so much. So as China one of our main export markets, it has assisted us in expanding and stabilizing our business. Also, as we get more Chinese people visiting or working in Namibia, news about our name and the quality of our oysters is spreading and increases our sales in return," he added.
Local enterprises have partnered with Chinese Enterprises such as the Beijing Hi-Technology Energy Investments (Pty) Ltd which has also been instrumental in expanding trade to assists them in better understanding of the Asian market and also helps to break down language and trade barriers.
Fishermen and farmers optimistic
Unlike in the past when farmers had to depend on Namibian middlemen to market his fish and beef to other countries, nowadays the chain to Chinese Market is more convenient as he also sells directly to Chinese traders who buy and export it to China. "The middlemen used to cheat us by buying from us cheaply and selling at higher prices to the dealers. These days, we sell to the Chinese companies directly and earn more money [with which we can improve our lifestyles]," said coastal fisherman, adding that the payment is immediate now, as opposed to often waiting for days for payment in the past.
With recent trade developments between Namibia and China, Namibia projects that the market share and demand for oysters and beef may increase. The new partnership is also envisaged to yield growth. The Namibian local market for oyster and beef is also on the rise, which is connected to the increasing number of Chinese working in the country, especially in the construction and trade industries, who enjoy dining out on oyster and beef.