Namibian small-stock producers in a perfect storm

Small-stock producers in the southern parts of Namibia have found themselves in a perfect storm, according to Thinus Pretorius, chairperson of Namibia’s Livestock Producers’ Organisation (LPO).

Coming out of a seven-year drought and with livestock herds reduced by as much as 80% in some cases, these producers have found it very difficult to obtain production credit to start all over again.

Pretorius said that financial institutions were hesitant to extend loans, given the country’s weakening economy after the COVID-19 pandemic.

“The national sheep marketing strategy also added insult to injury.

At the [beginning] of the drought, [Namibian] sheep farmers were required by law to slaughter six sheep before they were allowed to export [a single] sheep to South Africa. Although [this] marketing strategy has since been cancelled, at the time it had a severe financial impact on [farmers’] cash flow, which was exacerbated by the dearth.”

The LPO consequently initiated an investigation into viable international market opportunities for Namibian sheep, as well as establishing a sustainable local supply line to assist local abattoirs. As Namibian sheep were all being exported to South Africa, the abattoirs were finding it difficult to survive financially. Goats were also included in the study.

According to Pretorius, a considerable number of smal lstock producers in southern Namibia converted to beef cattle production to mitigate the devastating impact of the drought. Others invested in the tourism industry, but were dealt a double blow by the pandemic. In the rest of the country, the livestock production industry was faring reasonably well. Grazing was in excellent condition and, for the first time in decades, Namibian cattle prices exceeded those in South Africa. At the time of going to print, the adult slaughter cattle rate was as high as R60/kg on auction, while even underweight weaners went for R50/kg.

He ascribed this to supply and demand, and the fact that the national herd was reduced by between 40% and 60% following the devastating drought in the central and northern parts of the country in 2019. – Annelie Coleman