Annual Report 2017-2018

Namibia Agricultural Union Annual Report 2017-2018

ISSN: 2026-7843

Advertisers Contents Napha 3 Presidential Review 4 - 5 Windhoek Digital Communications 7 Overview of the commercial agricultural sector 6 - 7 Super Game Dealers 9 Organisational Matters 8 Kaap Agri Namibia 10 Save your Socks 12 Executive Council/Management Committee 10 - 12

FNB Namibia 15 Liaison 14 Virbac 16 Congress 2017 12 - 13 Meatco 18 Meat Board of Namibia 20 Livestock Producers Organisation 17 - 22

Henties Vervoer & Soutwerke 24 Agricultural Employers Association 23 - 25 Engineered Plastics 26 Agronomic Producers Association 26 - 27 African Drilling 27 Dairy Producers Association 28 - 29 Feedmaster Futterfos 31 Agra 32 Poultry Producers Association 30

Namibia Agricultural Union Tel: +264 (0)61 237838 • Fax: +264 (0)61 220193 E-mail: [email protected] Private Bag 13255, Windhoek Agri House, c/o Robert Mugabe Ave and John Meinert St, Windhoek

napha namibia professional hunting association for peace of mind - hunt with a napha member Sustainable trophy hunting is applied conservation since 1974

NAMIBIA www.napha-namibia.com [email protected]

NAU Annual Report 2017-2018 3 President’s review 2018

Thank you for the opportunity to give an over- to the Minister of Agriculture last year, have view of the most important issues and chal- again been discussed with the current Minis- lenges of the past year. ter of Agriculture, Mr Alpheus !Naruseb. Un- fortunately, no progress has been made yet. First of all I would like to welcome our new Furthermore the Ombudsman, Adv Walters, Executive Manager, Mr Roelie Venter, to the compiled his report and recommendations agricultural family. We are convinced that he in June this year. These recommendations are has the qualifications, background and abili- currently with the Minister of Agriculture for ty to promote our interests. We look forward consideration. to a successful working relationship. Producers furthermore expressed much con- I again realised that weather patterns in Na- cern about the financial sustainability of Meat- mibia differ from year to year, are difficult co, the national large stock export abattoir. to forecast and that a producer will have to Meatco’s proposals to limit the export of wean- adapt to this. The rainfall patterns this year ers are aimed at addressing symptoms rather were very erratic and some parts had far be- than a critical evaluation of what the actual Mr Ryno van der Merwe, NAU President low average rainfall. Producers will have to reasons for their poor financial performance ensure that they do not overestimate the and incompetence are. The reality is that the rangeland capacity. ratio of total cattle slaughtered locally versus weaner exports since Independence has re- advantage of Namibia. The best vehicle to This rainfall pattern put more pressure on the mained the same. However, there has been create employment opportunities and alle- recovery capacity of rangeland. The produc- a shift in delivering to local abattoirs rather viate poverty is economic growth. Therefore, tion potential changed from below average than to Meatco and 2016 was the first year the biggest challenge is to stimulate prima- to average. For this reason, producers will more cattle were slaughtered at local-mar- ry production, acknowledge the role of the have to apply rangeland management sen- ket abattoirs than at export abattoirs. This is primary producers and create a policy envi- sibly. The below average production condi- in shrill contrast with 20 years ago when ex- ronment to ensure an optimal and sustaina- tions put pressure on production, profitabil- port abattoirs slaughtered more than 80% ble production environment. ity and the disposable income of producers. of the total slaughtered cattle in Namibia. The NAU also visited the Minister of Finance The negative effect of the slowdown of the The reasons behind this shift should be looked to discuss the principle of value addition and economy in Namibia continues. Businesses at objectively and honestly. The NAU is in fa- long-standing VAT payments from the Min- are under pressure and retrenchments are vour of effective value addition where value istry that are in arears. still taking place. This increases unemploy- should be unlocked to the advantage of all ment which in turn increases social prob- participants in the value chain. Producers, Concerning land tax, after the verdicts of lems and poverty. however, cannot be limited regarding their the valuation court the NAU decided to get marketing options and should not need to pay involved in a supporting and administrative Agriculture’s contribution to the Namibi- for the inefficient management of the value capacity in the review application against the an economy is much more than merely the chain. Drumming up political support with- procedures followed to draft the valuation contribution to the GDP. Agriculture is the out the prior knowledge of the producers, rolls as well as the appeal against the verdict most important driver of the rural economy will cause a breach in confidentiality which of the valuation court. The NAU is still con- and the agricultural export industry current- will be difficult to restore. fident and prepared to discuss proposals to ly employs approximately 31 000 employees adapt the regulations according to which the on a full-time basis, while Namibia earned ap- The NAU also had the opportunity to visit His land values were compiled in order to make proximately N$5,9 billion in 2017 from sales Excellency Dr Hage Geingob, President of the adjustments. Despite the pending court case, of agricultural products outside the country’s Republic of Namibia, and table a submission the Ministry of Land Reform sent out land tax borders. Without a growing agricultural sec- reflecting the contribution of agriculture to assessments early this year which were sup- tor, rural businesses will be unable to expand the economy as well as to give our viewpoints posedly payable by 31 March 2018. The NAU and uncontrolled urbanisation will increase. and proposals regarding value addition and brought an urgent court application against While import replacement must continue, employment creation. this and was successful. The NAU’s viewpoint no economy can grow if exports are limited. remains that we are prepared to pay land tax A committee has been formed comprising as long as it is reasonable, fair and afforda- The continued uncertainty in the market- representatives of various ministries and the ble. The actions of the NAU are to bring this ing environment holds certain risks. The private sector with the aim to investigate about and not, as certain officials alleged and recommendations regarding the Small sustainable solutions to problems of value reported in the media, because commercial Stock Marketing Scheme submitted addition and employment creation to the farmers do not want to pay land tax.

4 NAU Annual Report 2017-2018 The second national land conference was order to prevent duplication. tion and Social Welfare, Bishop Zepha- postponed in 2017 and rescheduled for Oc- nia Kameeta tober 2018. The reason for this being that The NAU took note with shock and sorrow of more opportunities are to be given for con- the deaths of our former president, Mr Derek • Meat Board of Namibia sultations. The objective of the conference Wright as well as the NAU representative on • Agronomic Board of Namibia is to take stock of the progress made regard- the LRAC, Mr Frank Heger. Our deepest sym- • SWAKARA Board of Namibia ing the goals of the land reform programme pathy goes to their families. We are extreme- • Meatco since Independence. At this stage the NAU is ly grateful for the valuable input both gave • Agra part of planning meetings under the chair- over the years. • Namib Mills manship of the Office of the Prime Minister. • Feedmaster With special acknowledgement to: • Namibia Dairies The NEEEB business equity proposal consists of six elements, one of which is business own- • His Excellency Dr Hage Geingob, the Pres- ership which has caused the most uncertain- ident of the Republic of Namibia The sponsors: ty and the greatest concern. After wide con- sultation with especially the private sector, • His Excellency Dr Sam Nujoma, the Found- • Old Mutual which included the NAU, President Geingob ing President of Namibia • First National Bank this year announced that the 25 percent eq- • Standard Bank uity stake will not translate into broad-based • Right Honourable Prime Minister, Saara Ku- • Pupkewitz Megabuild empowerment as wished and is therefore ugongelwa-Amadhila • Total done away with. Instead Government will • Aqualand rather focus on the acceptance of employee • Deputy Prime Minister and Minister of For- • Agra share schemes in order to address poverty. eign Affairs, Netumbo Nandi-Ndaitwah • Namib Mills • Feedmaster The NAU this year made various proposals and • Honourable Minister of Presidential Af- • Meatco held talks with ministries and organisations fairs, Frans Kapofi/Immanuel Ngatjizeko/ • AgriGro in order to ensure a sustainable production Amb Martin Andjaba • Plastic Packaging environment. I can assure each member that • Komnick & Frank much time and energy was spent by this office • Honourable Minister of the National Plan- • Namibia Dairies and Executive Council to try and influence or ning Commission, Tom Alweendo/Obeth • Namibia Breweries change policies and schools of thought to the Kandjoze • Polyoak Packaging benefit of a profitable agricultural sector for everyone in Namibia. Unfortunately, the re- • Honourable Minister of Land Reform, Uto- Lastly, I would like to thank my fellow Exec- sults of these talks are not necessarily in our ni Nujoma utive Council members and the agricultural favour or are drawn out. However, success- family for their contributions to the success ful negotiations make it worthwhile for the • Honourable Minister of Agriculture, Wa- of our industry in Namibia. Through your pos- NAU to keep on trying. ter and Forestry, John Mutorwa/Alpheus itive involvement we can be assured that we !Naruseb make a difference in our environment and I am aware of the numerous challenges Na- leave a better future for our descendants. mibian producers face to produce profitably. • Honourable Minister of Justice, Albert Kawa- However, I am always surprised and amazed na/Sackeus Shangala I also would like to thank our previous Exec- at the endurance, willpower, passion and pos- utive Manager, Mr Sakkie Coetzee, and our itive attitude with which they accept and ap- • Honourable Minister of Labour, Industrial previous Manager: Finance, Ms Elsabé Steen- proach these challenges. This makes me excit- Relations and Employment, Erkki Nghimtina kamp, who both retired towards the end of ed about the future – agriculture will flourish last year. Thank you for your input to ensure and there will always be producers. • Honourable Minister of Finance, Calle sustainability in agriculture as well as to man- Schlettwein age our office administration effectively. I am grateful for the opportunity the NAU had to consult with President Geingob and • Honourable Minister of Environment and My thanks also go to our new Executive Man- his ministers. The NAU and the role of com- Tourism, Pohamba Shifeta ager, Mr Roelie Venter, and his staff for their mercial agriculture is acknowledged by Gov- incredible contributions during the past year. ernment. • Honourable Minister of Industrialisation, I also would like to welcome all new mem- Trade and SME Development, Immanuel bers who joined the NAU during the year. The NAU took note of the number of farm mur- Ngatjizeko/Tjekero Tweya ders committed this year and the brutality involved. Even though the Inspector General of • Honourable Minister of Safety and Securi- the Police assured us that he will accept re- ty, Maj Gen Charles Namoloh sponsibility for the safety of each citizen and the incidents were also communicated with • Honourable Minister of Urban and Rural State House, we will have to accept respon- Development, Sophia Shaningwa/Dr Peya sibility for our own safety. Thus, rural safety Mushelenga is a priority for the NAU and we are acting as facilitator to support the processes. The first • Honourable Minister of Works and Trans- phase was to create structures and identify port, Alpheus !Naruseb/John Mutorwa responsible persons and train them. Current- RYNO VAN DER MERWE ly the NAU coordinates all safety agencies in • Honourable Minister of Poverty Eradica- PRESIDENT: NAU

NAU Annual Report 2017-2018 5 OVERVIEW OF THE COMMERCIAL NAMIBIAN AGRICULTURAL SECTOR

Production value of different enterprises Table 1 contains the estimated production value of various agricultural enterprises. It is defined as the annual output from primary producers based on the formal marketing at actual nominal producer prices. Agriculture contributed significantly more in terms of production value in 2017 due to the general production environment improving in 2017. The cattle industry, in particular, experienced strong growth due to both a rise in producer prices and record marketing volumes in 2017. The growth in sheep and goats was primar- ily driven by higher producer prices, as marketing volumes remained flat. Source: NAU

Crop farming also reflected a significant spike exported live on the hoof, mainly to South Af- Small Stock Marketing Scheme led to a dra- in production value as improved rainfall in rica. During the period 2010-2017, this figure matic decline in the number of sheep market- 2017 led to a recovery in particularly dry-land stayed the same, at 66% as in the past. Fur- ed in Namibia over the past 12 years. Sheep white maize harvests. The dairy industry was thermore, since Independence the relation- production declined from 1.2 million per an- one of the weaker performers with a decline ship between the 5-year moving average of num to 700 000 in 2017, which translates into in litres marketed to Namibia Dairies while cattle slaughtered locally, and the number of a 40% decline. More employment opportuni- prices remained unchanged which led to a weaners exported live remained constant at ties have been lost in the primary sector than slight decline in production value for 2017. It about 200 000 head slaughtered locally, while have been created by the abattoirs. must further be noted that some of the fig- approximately 200 000 were exported live. ures for 2017 are still an estimate. National debt (agri) The low feeding cost in South African feed- The total national agricultural debt increased Table 1: Estimated Namibian agriculture produc- lots fuelled a spike in weaner prices, which steadily from 2012 to 2015. National debt how- tion value outpaced the rise in the local slaughter price. ever decreased significantly in 2016, due to 2016 2017 This led to a significant increase in the weaner a decrease in the total net debt at commer- Cattle 2 047 200 946 3 403 613 974 price as a percentage of slaughter price, same cial banks as well as at AgriBank. The fact that Sheep 577 977 003 705 464 949 as in 2006 and 2011. A record number of 313 2016 was the third dry year in Namibia since Goats 109 518 022 130 665 020 000 weaners were exported in 2017. In com- 2013, probably resulted in farmers repaying Agronomy 267 208 677 408 181 874 parison, the average number of weaners ex- debt thanks to their drought-induced exces- Dairy 142 723 955 141 838 062 ported during the previous four years (2014- sive marketing during this period. Pigs 114 268 583 124 245 405 2017) is 208 000. The increase in live exports during 2017 was mainly due to the export re- This trend however reversed in 2017 as na- Grapes 770 000 000 818 537 625 strictions during 2016 and the resultant drop tional debt increased by a total of 22.5% YoY, Poultry 735 965 000 850 653 292 of 30% in the market price, which resulted in a driven mostly by an increase in debt at com- Fresh produce 150 000 000 210 832 000 significant number of the 2016 calf crop only mercial banks. This is expected as improved (veg and fruit) being marketed during 2017. Export abattoirs rainfall will lead to re-stocking and the asso- Swakara on the other hand experienced their weak- ciated rise in debt. Sub total 4 714 862 186 6 794 032 201 est annual slaughter number for the past 12 Charcoal 168 000 000 184 800 000 years, as only 84 000 cattle were slaughtered Production cost index Trophy hunting 540 000 000 540 000 000 at Meatco and Brukarros. This was however The cattle industry, to the great relief of pro- Total 5 422 862 186 7 518 832 201 offset by an estimated 100 000 head of cat- ducers, staged a major comeback in the past tle slaughtered at local B and C grade abat- 12 months with respect to the cost-price Source: NAU toirs. This figure is estimated from the num- squeeze, which has eased significantly since ber of local hides processed at local tanneries. the 1st quarter of 2017. This was driven by Market statistics both a rise in cattle prices, while agri-inflation For the past 28 years since Independence, an While cattle marketing remained robust over eased due to lowered fuel prices, a stronger estimated 68% of the total cattle (live weight) the years, sheep marketing is an industry of local currency as well as a bumper harvest in were slaughtered in Namibia, while 32% was concern as the negativity surrounding the South Africa which drove down lick and feed

6 NAU Annual Report 2017-2018 of an 84% increase in the weaner price, while the slaughter price increased by 30% (figure 2).

Sheep prices increased by 15% YoY, but the more robust long-term growth profile meant sheep also posted an impressive 189.97% growth over the 12 years of monitoring.

Source: NAU In conclusion, even though the cost-price squeeze improved for both cattle and sheep during 2017, the effect thereof is still signifi- costs. The annual agri inflation rate decreased al production input increased by only 1.35%. cant and highlights the need to improve con- from 7.09% in the 4th quarter of 2016, to only For the entire 12 years of monitoring (figure sistently on productivity and efficiency. Over 1.35% in the 4th quarter of 2017. 1), the cattle price increased by 174.15%, while the past 12 years, cattle and sheep produc- agricultural production input increased by ers had to improve their productivity and ef- Cattle prices increased by a staggering 59% 165.96%. The growth in the total weighted ficiency with 6.15% (cattle) and 1.58% (sheep) YoY in the 4 th quarter of 2017, while agricultur- cattle price over the past 12 months consists per annum to maintain margins.

NAU Annual Report 2017-2018 7 ORGANISATIONAL MATTERS

Affiliations On 30 June 2018, sixty-nine (69) farmers associations were affiliated to the NAU. Management

The Executive Council Mr R van der Merwe – President Mr P Gouws – Livestock Producers Organisation Mr D de Klerk/G Eggert – Agronomic Producers Association Mr J Engelbrecht/K Adriaanse – Dairy Producers Association Mr H Förtsch – Agricultural Employers Association Mr R van der Merwe Mr PS Gouws Mr R Werner – Poultry Producers Association Mr W Visser/Ms J Meyer – Swakara Industry Forum Mr F Heger – NAPHA Mr J Visagie – Agra Mr W Kruger – Kaap Agri Mr E Erni – Southwestern region Mr J Adriaanse/K van der Merwe – Karasburg region Mr JC de Klerk – Keetmanshoop region Mr H Visagie/J van Wyk – Mariental region Mr K von Kühne – Gobabis region Mr L de Jager/T le Roux – Windhoek region Mr B Coetzer/M Hilbert – Okahandja region Mr T Pretorius – Otjiwarongo region Mr HHT Förtsch Mr JC de Klerk Mr A van Niekerk – Outjo region Mr P Stoman/D Mouton – Grootfontein-Tsumeb-Otavi region The Management Council The Management Council mainly attends to staff matters and matters referred to them by the Executive Council. The Management Council comprises:

Mr R van der Merwe (NAU President) Mr P Gouws Mr H Förtsch Mr JC de Klerk

Executive Manager On 15 January 2018 Mr Roelie Ven- ter commenced duties as Execu- tive Manager at the NAU after Mr Sakkie Coetzee had retired on 30 November 2017.

Mr Venter is well known in agriculture in Namibia and obtained a BSc Agric Hon degree at the Free State University in 1995 after obtaining a BSc Agric (animal and pasture science and agri- economics) in 1993. He also has a master’s degree in business leadership (MBL) which he obtained from Unisa in 2001.

He started his agricultural career in 1994 as agricultural extension officer and after moving to Namibia he worked at the NAU as Manager: Commodities as from 1995. From June 2002 – March 2010 he was involved at Ohlthaver & List (Namibia Dairies and O & L Farming).

From 2010 to 2015 he undertook various agricultural business consultations and started in April 2015 as National Co- ordinator for the implementation of the Namibia Range- Members of the Executive Council land Management Policy and Strategy (NRMPS) before becoming Executive Manager of the NAU.

8 NAU Annual Report 2017-2018

MATTERS DEALT WITH BY THE EXECUTIVE COUNCIL/MANAGEMENT COUNCIL

NAU planning session For the commercial farming sector certainty aim may be realised in a specific value chain The Executive Council of the Namibia Agri- about land and land ownership is a primary without affecting other players in the same cultural Union again committed itself to the prerequisite for further investments, one of value chain negatively, local value addition development of strategies in support of the the corner stones of economic growth. is supported. The total value chain from pri- 5th National Development Plan (NDP5) as mary production to the processing to the well as the Harambee Prosperity Plan (HPP). The NAU also expressed its concern that not- marketing must all enjoy the advantage of withstanding the high salary bill of the civil value addition, while various value chains The main objective of the NAU is to create service in the current budget, more often than (including across the border) should be al- an optimal environment for the stimulation not poor service is rendered to the public. lowed to compete with one another to re- of the agricultural economy, to ensure opti- alise the highest possible value from locally mal production and thus create prosperity. A further concern of the NAU is the increase produced raw materials. To reach these objectives, it is however very in crime which not only influences the agri- important that the role and function of the cultural sector negatively, but also other in- The unintended consequence of the im- state and the private sector in economic de- dustries such as the tourism sector. plementation of the value addition policy velopment are clearly defined and clarified. at all costs has the potential to destroy cer- During the NAU planning session the Execu- tain industries. The effect of the Small Stock The NAU acknowledges that the agricultural tive Manager, Mr Sakkie Coetzee who worked Marketing Scheme on the Namibian sheep economy needs to be regulated to a certain at the NAU for the past 15 years, was bidden industry, which was implemented in 2004, extent, but that these regulations should not farewell. The President of the NAU thanked is a classic example. This caused producers be restrictive but should rather play a sup- Mr Coetzee for all his input and loyal service to lose their confidence in the sheep indus- portive role in order to give the private sec- and wished him a prosperous future. try and move to other sectors such as cattle tor the opportunity to grow and develop. It and game which are less labour intensive. is also very important that the strategies of Value addition in agriculture Sheep production thus has decreased from the state and the private sector are harmo- The aim of local value addition is to bring 1,2 million head per year to 700 000 during nised so as to create an optimal environment about economic growth as well as create ad- 2017 and the contribution of the sheep sec- for economic growth. ditional employment opportunities. If this tor towards the national GDP has decreased

10 NAU Annual Report 2017-2018 by more than 40%. Furthermore, more em- Apart from the definition of the valuations as committee. It is evident that it is vital for Gov- ployment opportunities were lost in the contained in the valuation roll and which led to ernment that the conference will be success- primary sheep sector than were created the appeal/revision application, the valuation ful. Regional consultations were held in the by abattoirs. roll was further plunged into controversy be- whole country during the last two weeks of cause only land owners who were represent- July 2018 to get input from the nation. The The NAU has addressed this matter as high- ed by legal representatives at the valuation most important matters discussed are the est priority with President Geingob, sen- court, received a 40% discount on their land principle of willing buyer/willing seller, ances- ior cabinet ministers as well as the business values while land owners who individually tral land claims, the relocation of the veteri- community. A public-private task team was objected and represented themselves, did nary cordon fence and land values and land established, of which the NAU is also a mem- not get any discount on their land values. prices. It is a top priority for the NAU to en- ber, to develop study cases of best practic- sure surety of land ownership and a success- es and to develop lessons learned in the ag- A joint application for putting aside the 2017 ful land reform programme. ricultural sector in order to influence future land tax by land owners who were represent- policy trends. ed in the valuation court by legal representatives as well as land owners who were rep- Agricultural Trade Forum (ATF) Land reform resented by the NAU, served before Judge The ATF is the only private institution which Valuation rolls Angula on 21 February 2018. This urgent ap- is directly involved with the policy creation In its verdict on 23 November 2017, the valua- plication was submitted in December 2017, and acts of the Ministry of Finance and Min- tion court gave a 40% discount to all land own- pending the verdict of an appeal/revision ap- istry of Industrialisation, Trade and SME De- ers who had objected to their land valuations. plication which had been submitted in March velopment. The NAU is also a member of the 2017 at the high court against the disputed ATF and thus invited to negotiations. In July The 40% discount which the valuation court verdict of the valuation court or alternative- 2017 Mr Anton Faul started as new advisor granted to the objectors however does not ly the administrative procedures which were at the ATF. He worked for 12 years at SACU solve the problem of the valuation roll. The followed with the drafting of the 2012/2017 and also at the Directorate of Planning of the problem is that the valuation roll still disre- valuation rolls. Ministry of Agriculture. Currently it is busy gards certain regulations according to which with the protection of the dairy industry and it was drafted, hence the valuation roll does The court gave its verdict on 21 February 2018, also looking into protection for the poultry not take the production potential of land into prohibiting the Ministry of Land Reform to industry. Various matters to which they are consideration. Furthermore, it also does not charge land tax until the revision application also attending are the export of meat to the address the problem that neighbouring land has been heard in court. The various legal rep- USA market, the increase of the Norway meat owners, who form part of two different val- resentatives are in the process of preparing quota, looking for a market for goat meat in uation zones, differ as much as 100%. This for the revision application. This implies that Eastern Africa and also for wheat discount causes a complete disproportional distribu- currently no land tax is payable pending the for Namibia. tion of land values appearing within the same verdict of the revision application. zone which makes the valuation roll ridicu- lous. Against this background the NAU can- However, the NAU still commits itself to the National Rangeland Manage- not accept the verdict of the valuation court. payment of land tax as long as it is reasona- ment and Policy Strategy ble, fair and affordable. The NAU decided to join up with the legal rep- The objective of the NRMPS is to bring about resentatives who represented land owners in Following the court verdict which granted an optimum production of livestock, while the the valuation court in an attempt to address interdict against the payment of land tax un- national rangeland condition is improved. The the core of the problem as described above. til the revision application has been conclud- NAU is currently implementing a four-year- ed, the Ministry of Land Reform stopped is- long project to speed up the implementa- The legal representatives who represented suing all land tax assessments and clearance tion of the NRMPS. This project is jointly fund- the objectors, decided to appeal to the high certificates. The implication thereof was that ed by the Ministry of Agriculture, Water and court against the decision of the valuation no farm transfers could take place. The Exec- Forestry as well as the European Union. The court, as well as to bring a revision application utive Council had an urgent discussion with project focuses mainly on making Namibian regarding the administrative process which the Valuer General, Mr Rudolf !Nanuseb in or- producers aware of principles of good range- was followed. The objective of the appeal/re- der to solve this problem. land management. In addition, it focuses on vision application to the high court is to cor- the availability of best practices and the de- rect the 2012/2017 provisional valuation rolls On 18 May 2018 AgriBank obtained an urgent velopment of incentives on how rangeland in line with the production potential of land, court application against various ministries conditions may improve over the long term thereby ensuring fair land tax. Land owners and organisations in order to continue with as well as the evaluation of the rangeland were requested to make a financial contribu- agricultural land transactions and on 21 May condition at national level. tion towards this legal action. 2018 the court decided in favour of AgriBank and ordered that all agricultural land trans- The Project Coordinator, Mr Roelie Venter, re- This appeal/revision application to the high actions must continue. signed at the end of 2017 and has been re- court is a confirmation of the NAU’s viewpoint placed with Mr Colin Nott who will handle since 2013 and the NAU thus decided to sup- The Ministry of Land Reform in the meantime the project implementation until the end of port this high court application. decreased the rate against which land tax is the project in 2019. levied to 0,4% (previously 0,75%) for Namibi- The Minister of Land Reform certified the ans and 1,4% (previously 1,75%) for foreigners. The Rangeland Advisory Committee (RAC) 2012/2017 valuation roll on 19 October 2017 which is also the pilot committee of the pro- for the payment of land tax. This certification Second national land conference ject, meets regularly. The committee was done in spite of the appeal/revision ap- a committee under the chairmanship of the is satisfied with the progress made, plication which land owners had brought to Prime Minister prepared for the second na- but also realises the complexity of the high court due to the controversy of the tional land conference to be held in Octo- the environment in which the pro- valuation roll. ber 2018. The NAU is also represented on this ject operates.

NAU Annual Report 2017-2018 11 MATTERS DEALT WITH BY THE EXECUTIVE COUNCIL/MANAGEMENT COUNCIL NEEEF and commercial agriculture Congress 2017 The NAU was invited to a public workshop presented by the Ombudsman in June 2017 about human rights and racism and the submission of the NAU was mainly about land reform, land tax and NEEEF. The 71st NAU Congress was held on 11 October 2017 under the theme “The role of the private sec- In his State of the Nation address on 11 April 2018, President Geingob announced that tor in NDP5”. Government shall remove the 25% share provision which is part of the New Equita- ble Economic Empowerment Framework (NEEEF). As President Geingob said: “Let me No congress points were submitted to Congress. take this opportunity to put the share pillar of NEEEF into perspective. The 25 percent equity stake will not translate into broad-based empowerment and is done away Levy financingof the NAU was, however, dis- with”. Instead they will rather focus on the acceptance of employee share schemes cussed in detail: to address poverty. The Chairperson asked congress delegates wheth- According to President Geingob, Cabinet took note of his decision to remove this con- er they think the NAU should continue to exist and flicting condition as most Namibians, especially the previously disadvantaged, do not that a decision had to be taken that day. have sufficient funds to participate in such transactions. As a possible solution Geingob mentioned employee share schemes as an effective policy intervention under NEEEF. The Chairperson noted that he is aware that farmers always ask what the NAU does for or means to Rural safety them and gave two examples of what the NAU has The NAU noted with shock the farm murders this year and the brutality of these mur- achieved, namely the lifting of import restrictions ders. The NAU thus decided to look at rural safety as a matter of urgency and a com- to SA for weaners and the re-opening of the Meatco mittee was tasked to draft a plan. This plan consists of two departments, namely first feedlots. In both cases it was due to the NAU’s actions on how to be prepared in your personal situation on the farm and secondly which that Government reacted and solutions were found. actions at regional level should take place. Young farmers were identified in regions to act as safety coordinators and they also received training. The Executive Manager presented a submission of finance options and mentioned that the NAU The next step with the implementation of the National Safety Strategy was discussed will close with a surplus and the LPO with a defi- at the beginning of July 2018. The aim of the second phase of the implementation is cit. If the NAU and LPO are pooled together, there to determine how this strategy can be effectively implemented in all FAs and RAUs will be a deficit of about N$1 million in the budget. on a continuous basis in order to ensure that everybody knows the actions to be taken in case of a farm attack. As soon as the plan has been finalised, members will be The LPO Congress recommended an additional informed accordingly. member fee of N$521 besides the normal annual

12 NAU Annual Report 2017-2018 5% increase, in lieu of a voluntary levy con- Gold – N$80 000, platinum – N$50 000, sil- gion; Mr Hannes Visagie of the Mariental re- tribution. Congress accepted the member- ver – N$30 000 gion, Mr Lenn de Jager of the Windhoek re- ship fee subject thereto that the increased gion; Mr Bossie Coetzer of the Okahandja membership fee will only be calculated at the region and Mr Piet Stoman of the GTO region. end of the year after the effect of the under- Awards The presentations were done by the president spending for the 2017/18 financial year has The following awards were presented at the of the NAU, Mr Ryno van der Merwe. been taken into calculation. 2017 official opening: Mr Willem Enslin of the Grootfontein Farm- Community Project of the Year ers’ Association presented a certificate to its Corporate membership The trophy for the Community Project of the treasurer, Ms Lizette Cloete for long service. Congress takes note that the following cor- Year was presented to the Witvlei FA for its porate members have joined under the var- involvement at the Nossob Primary School, NAU president presented Mr Sakkie Coet- ious options: Witvlei. The presentation was done by Mr zee with a long service award. Mr Coetzee Dawid Krause of Feedmaster. started service at the NAU on 2 January 2003 Bank Windhoek, gold and retired at the end of November 2017. He Namib Mills, gold AgriStar thanked Mr Coetzee for all his input and loy- Feedmaster, gold Mr Japie Engelbrecht of Omuramba FA was al service and wished him everything of the Namib Poultry Industry (NPI), gold presented with an AgriStar for his involve- best for the future. Agra, gold ment in the dairy industry. The presentation Pupkewitz Holdings, gold was done by the president of the NAU, Mr The Manager: Finance, Ms Elsabé Steenkamp, Santam, platinum Ryno van der Merwe. retired at the end of September 2017 after Alexander Forbes, platinum serving 44 years at the NAU. During a fare- KaapAgri, silver Long service awards well function with the Executive Council, the FNB, silver Certificates for long service on the Executive President of the NAU, Mr Ryno van der Mer- Cymot – silver Council were presented to the following EC we thanked her for outstanding and loyal ser- Namibia Charcoal Association, silver members: Mr Jan Adriaanse of the Karas re- vice all those years.

Dairy legend honoured with highest award

The respected agricultural leader Japie Engel brecht, the 2017 receiver of the NAU Ag- Japie Engelbrecht and riStar award for extraordinary contributions, his wife, Christa, from achieved this distiction through 17 years of Gobabis receive the long service as Chairman of the Dairy Produc- NAU’s highest award for ers Association and executive board member extraordinary contribu- under eight NAU presidents. In his 29 years tions to organised ag- of involvement in organised agriculture he riculture, the AgriStar, only missed one year as a board member of from NAU president the Dairy Producers Association. Ryno van der Merwe (right). It is a weighty al- During the handover Sakkie Coetzee, execu- lotment over which the tive manager of the NAU, said Japie has been NAU gives careful con- a NAU member since 1974 after joining the sideration. Therefore the Dorsland Farmers Association, where he also AgriStar is not necessar- became a board member and chairman. Ja- ily awarded every year. pie’s positivity was a major driver in prevent- Japie says his contribu- ing the demise of the dairy industry. “In this tions were made thanks way he kept members of the association to- to the positivity and sup- gether in a spirit of cooperation. He contrib- port of the NAU office. uted to harmony and enthusiasm with fellow “This has carried me and producers, even in extremely difficult times made what I had to do when disunity was the order of the day. He easier.” handled the farmers association meetings on his farm Kroonster in a calm and effective manner.” neer Koos Engelbrecht, made exceptional con- ing able to make a meaningful existence and tributions from the time when dairy cans were the industry to be built into a unique model of ”Japie also served on various other commit- still collected to the sophisticated industry that extensive and intensive milk production. Vari- tees, twice in the committees of the nation- we have now. “The Engelbrecht family has been ous articles have been published to this effect, al braai competition hosted by the Dorsland invovled in the dairy industry for six decades. among others in the Landbouweekblad. Japie is Farmers Association. Later dairy producers Furthermore, Japie was involved in difficult ne- currently involved in a family inisiative to uti- started the Omuramba Farmers Association gotiations with Werner List of the former Bon- lise invader bush in making paper – a project where Japie and Christa pulled their weight milk and Rietfontein dairies for some leeway with many challenges requiring international as braai team members as well as members for smallscale farmers. With government he research and which could lead to a of the NAU braai team.” spearheaded negotiations over price structure, revolution in making grazing availa- standards, droughts, marketing and support of ble in a cost-effective manner,” con- Sakkie added that Japie, as son of the dairy pio- the dairy industry. This led to dairy farmers be- cluded Sakkie.

NAU Annual Report 2017-2018 13 LIAISON

Liaison with members and all role players is Manager and other executive members liaised • Five-year plan of the Roads Authority still one of the top priorities of the NAU. This at various opportunities during the year with • International trade liaison is not only to provide information, but the authorities, parastatals, non-governmen- • Climate change also to present the NAU’s viewpoints at vari- tal and international organisations. This liai- • Rural development ous forums and to look after the interests of son included – • Biosafety regulations the producers. Liaison is done through printed • Power supply and electronic media, radio talks, brief mes- • His Excellency Dr Hage G Geingob, the Pres- • Crime sages on cell phones, attendance of work- ident of the Republic of Namibia shops and other meetings. • The Minister of Presidential Affairs • The Minister of Land Reform Regional liaison AgriForum • The Minister of Finance SACAU (Southern African Confederation AgriForum, the monthly magazine of the NAU, • The Minister of Agriculture, Water and Forestry of Agricultural Unions): SACAU’s AGM was is published by AgriPublishers under editor- • The Minister of Information and Commu- held in Cape Town, South Africa, on 24 and ship of Mrs Marietjie van Staden. AgriForum nication Technology 25 May 2017 under the theme “Skilling for ag- is still very popular and covers a wide spec- • The Minister of Public Enterprises riculture in the future” and was attended by trum of agricultural aspects. All NAU mem- • The Economic Advisor of the President, Ms Mr Sakkie Coetzee, the Executive Manager of bers receive the magazine as part of their Inge Zamwaani the NAU. During the conference it was under- membership benefits. • The Office of the Attorney General taken to support young farmers through the • The Inspector General of the Namibian Young Farmer Forum and similar initiatives of Radio programmes Police national farmers organisations. Landboumikrofoon on the Afrikaans service • The Ombudsman of the NBC is broadcast each Saturday morn- • The European Union During SACAU’s AGM Dr Theo de Jager of Ag- ing at 06:00 by Mrs Hermien Coetzee with a • The Roads Authority riSA was re-elected president. Dr De Jager is re-broadcast on Sunday afternoon at 13:15. • AgriBank also the chairperson of the Pan African Farm- This programme is also very popular. • GIZ ers’ Organisation (PAFO) at which five regional organisations such as SACAU are affiliated. Thanks to sponsorships by FNB, two programs Various regional agricultural unions and farm- are broadcast weekly on Channel 7. The one ers associations AgriSA: To save funds, AgriSA was not visit- is on Wednesday afternoon at 14:10 and the ed and the annual Agricultural Outlook Con- other on Saturday mornings at 06:00 with a Liaison by the secretariat ference did not take place in 2017. re-broadcast on Wednesdays at 20:00. Various farmers associations were visited by the secretariat on invitation, but due to sav- Bodies on which the NAU A short programme, Farmer Infos, is broad- ings the visits are coordinated with those of and commodities are cast on Fridays at 16:10 on the German Ser- the regional representatives and the pres- vice of the NBC. ident. Various ministries were visited and represented workshops and meetings attended. • Agronomic Board Hitradio Namibia offers an agricultural pro- • SWAKARA Board gramme for farmers on Friday evenings at Liaison by regional • Land Reform Advisory Commission (LRAC) 19:10 with a re-broadcast on Saturday morn- representatives • Lands Tribunal ing at 06:50. • Namibia Employers Federation (NEF) Regional representatives continuously liaised • Namibia Water Resources Management Kosmos Radio broadcasts a short agricultur- with farmers associations, regional agricul- Review (NWRM) al programme on Friday mornings at 06:00. tural unions and regional authorities as part • National State of Environment Report of their duties. Task Force Electronic newsletter • Social Security Commission (SSC) The weekly e-mail newsletter is still very pop- The private sector • Meat Board ular and provides NAU members with impor- The NAU sponsors were again entertained • Namibia Agricultural Labour Forum (NALF) tant information. This newsletter is also sent this year by the EC during a barbeque at the • Forestry Council to all Agra offices so that those members who NAU office. • Kunene/Karas/Erongo Regional Resettle- do not have e-mail facilities may collect a copy ment Committees of the newsletter at their nearest Agra branch. Three-monthly meetings were held with • Program Advisory Committee on Child La- The newsletter is also sent to all media and corporate members as from the beginning bour (PACC) interest groups who use it as a news source. of 2018. • Agricultural Trade Forum (ATF) • NUST Council NAU website Non-governmental • Woodland Management Council The NAU website (www.agrinamibia.com.na) organisations, parastatals • Namibia Training Authority (NTA) has been redesigned and is very popular, to- • Namibia Rangeland Forum talling on average 162 000 clicks per month. and other organisations • Joint Crime Prevention Forum (JCPF) Various meetings and workshops were attend- • Namibia Qualification Authority (NQA) Liaison with authorities and ed about, inter alia, the following subjects: • Upper Swakop Basin Management Com- organisations mittee • Land reform • CPP Council The President of the NAU, the Executive • National rangeland policy and strategy • Water Council

14 NAU Annual Report 2017-2018 Cultivating relationships, nurturing growth.

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References: 1. Daugherty, S.R, Carstens, G.E, Barling, K,S, and Randel R.D. (2006) Effects of prenatal and prebreeding trace mineral/vitamin E injections on calf health and reproductive performance of beef cows. Retrieved from http://www.multiminsa.com/files/pdfs/multimin_in_beef_cows.pdf 2. Hoon, J.H & Herselman M.J. (2007) Trace mineral supplementation of sheep and angora goats in the different grazing areas of South Africa. Retrieved from http://gadi.agric.za/Agric/Vol7No1_2007/Hoon-trace-mineral-supplementation.php.

Shaping the future of animal health

Virbac RSA Pty (Ltd) (Reg. No. 1990/003743/07) Private Bag X115, Halfway House 1685, Tel: 012 657 6000, Fax: 086 565 7208, www.virbac.co.za | © 08/2018 Virbac all rights reseved

Multimin Advert.indd 1 2018/10/29 14:49 LIVESTOCK PRODUCERS ORGANISATION

Introduction From table 1 it can be derived that the mar- Production conditions for livestock produc- keting of large stock has increased enormous- ers this year differed vastly. Producers in the ly. Weaner exports increased by 89% in com- deep south (Karas and Southwestern region) parison to 2016. This is attributed to the good as well as in the west and northwest (Khomas weaner prices due to the low maize prices in and Outjo/Kamanjab regions) experienced the RSA. The increase in cattle slaughtering a drought for the fifth consecutive year. Fel- can mainly be attributed to a more accurate low producers, in empathy, supported the af- figure from the Meat Board since taking into fected producers in the form of among oth- account the number of hides from the tan- ers hay and transport. At the end of the rainy nery. Unfortunately, the B and C class abat- season low rainfall brought some relief to the toirs did not provide complete figures to the drought-stricken areas. Generally, the rainfall Meat Board. It should, however, be kept in in the whole country was very erratic. The late mind that weaner prices and figures are cy- Chairman: PS Gouws rain (middle March to middle April) brought clic and that the figures will probably change. relief to a certain extent. Production condi- The low number of sheep marketed is again clared tuberculosis and brucellosis free since tions improved but producers still need to alarming. This can mainly be attributed to the so far no cattle or sheep have tested positive utilize their rangeland cautiously. negative effects of the Small Stock Marketing for these diseases. It is hoped that exports to Scheme which has caused the producers in South Africa may then continue unhindered. There are still numerous challenges in the the south to diversify into other farming av- livestock sector. To start with, the Small Stock enues. Due to the large number of weaners LPO Strategic Vision 2030 Marketing Scheme has not been abolished. exported, there is a lot of external pressure The LPO Vision 2030 document containing Public utterances are being made that the ex- to limit the weaner exports. The LPO is fol- the vision, mission, objectives, required report of weaners should be limited. The ques- lowing a strategy to inform the politicians, sults and actions serves as guideline to reach tion of Meatco’s ownership has not yet been Government officials, banks, other agricul- the objectives of the organisation by way of solved and, in addition, Meatco has ended tural unions and producers on the impor- strategic decision-taking processes. During their fiscal year with big financial losses. The tance of not limiting weaner exports. Table 2 the LPO’s planning session in November each budget deficit of Government still limits the compares the average prices of the past year. year the action plan of the previous year is activities of the Directorate Veterinary Ser- Table 2 evaluated, and the most important issues of vices. The Abattoir Association of Namibia 2016 2017 % change each sector are identified. These are then in- obtained a directive from the Commission- Cattle abattoir 29.48 35.30 20 % cluded in the actions for the following year. er of Inland Revenue exempting the abat- Cattle auction 16.72 25.19 51 % Attention is given continuously to these sec- toirs from VAT on livestock purchases. There tor issues and progress is monitored and dis- were numerous other matters which need- Sheep abattoir 36.93 40.07 8.5 % cussed during the LPO management meet- ed the attention of the LPO during the past Sheep auction 20.91 26.09 25 % ings. This action plan is a dynamic document year and feedback will be given in detail in which can be adapted according to the needs the annual report. Goat prices 691.31 938.18 36 % and changes in the meat industry.

Meat prices increased during the past year. Animal Health and Small and large stock marketing Weaner prices showed a big increase, but Veterinary Services (DVS) Numbers of cattle at auctions and abattoirs unfortunately cattle slaughter prices did not in general were high and no marketing pres- follow the same trend. This is also the rea- The LPO was instrumental in establishing the sure was experienced. On the contrary, the son why so many weaners were exported, Animal Health Consultative Forum which is export abattoirs have slaughtered under ca- because the local weaner buyers could not a good platform for communication and ad- pacity. Exports to the RSA resumed their nor- let the weaners mature to slaughter them lo- dressing problems between the different role mal trend after adaptions were made to com- cally. The improved prices brought relief to players in the meat industry and DVS. Un- ply with the strict export requirements to the producers, especially those who have a lot fortunately, the Permanent Secretary of the RSA. All cattle (weaners) that are exported are of debt, as is later indicated in the produc- Ministry of Agriculture gave written notice at tested for tuberculosis, while sheep and goat tion cost index. Despite the good price in- the end of April that the forum did not serve are tested for brucellosis (except sheep born creases for small stock, the prices in the RSA its original purpose for which it was created, from a certified brucellosis-free herd). Table were still on average N$5,00/kg higher. Local and it was thus dissolved. Even though this is 1 clearly indicates the numbers of marketing small stock abattoirs are still uncompetitive a concern, the LPO still has access to the Di- of large and small stock (goat and sheep) as and after Farmers Meat Market of Mariental rector of DVS and regular appointments are well as the percentage change. closed its doors, the concern is even greater made with him to discuss problems in the that the local slaughtering capacity is not ad- livestock sector. As the livestock status is an Table 1 equate to slaughter all the small stock. It is as- important aspect to give the necessary guar- sumed that meat prices will move sideways. antees to trade partners, the Meat Board es- 2016 2017 % change tablished an Animal Health Committee to Cattle slaughtered 129 290 171 520 33 % In conclusion it can be mentioned that the keep consultations going. Cattle exported 165 927 313 401 89 % LPO is intensively involved to ensure an op- Total marketing 295 217 484 921 43 % timal market for the producer. The LPO raised The financial situation of Govern- Sheep slaughtered 390 154 309 969 - 0.21 % the problems of the Small Stock Marketing ment has not yet improved, and Sheep exported 290 389 393 543 36 % Scheme with the Ombudsman who made a the budgets of all the ministries Total marketing 680 543 703 512 3 % recommendation to the Meat Board that the and directorates have been Goat exported 158 421 139 275 - 12 % scheme should be put aside. Furthermore, cut. DVS is also affected by the LPO is attempting to have Namibia de- this. The maintenance of

NAU Annual Report 2017-2018 17 LIVESTOCK PRODUCERS ORGANISATION the border and veterinary fences is still a con- Kudu rabies project It is planned to, in cooperation with the UNAM cern. The LPO is doing regular inspections of The kudu rabies project originated from a School for Veterinary Health, do further stud- these fences and remains in dialogue with DVS 2010 congress resolution of the LPO where ies on kudu which are kept in confinement and the Meat Board in an attempt to rectify instructions were given to develop an effec- with bait containing the vaccine. It was pro- the state of disrepair. In addition, rural DVS tive vaccine and vaccination method for the posed that part of the funds for the project offices often still experience power cuts due kudu population of Namibia. After the suc- which was budgeted for the rental of a facil- to non-payments and thus animal movement cessful conclusion of the first two phases of ity and staff for the confinement of experi- permits cannot be printed. This hampers the the project (1 March 2015 to 15 August 2016) mental animals be given to UNAM to assist marketing process. The LPO remains of the consensus was reached to proceed with the with the construction of the facilities. In ex- opinion that agriculture is the most impor- project. The bait development study as well change the project can make use of the fa- tant sector in Namibia and, in order for the as the principle of oral vaccination of kudu cilities free of charge. economy to recover, the marketing of live- was very successful. stock must continue unhindered. A study of kudu ecology, biology and de- In April 2018 a meeting was held between mography at farm level must be done. Such Double ear tags for the representatives of the LPO, the Friedrich Lo- studies will help to understand the horizon- identification of sheep for export effler Institute (FLI), Agra ProVision and Dr tal transfer of rabies better and will be sup- purposes to the RSA Rainer Hassel, project leader. FLI informed portive with the drafting of oral vaccination the meeting about the final interpretation of protocols of bait. These however fall out- The implementation of the electronic dou- the laboratory results of the first two phases side the financial means of the project and ble ear tags for sheep to be exported to the as well as the current and proposed future talks will have to be held on how it can be RSA abattoirs is very expensive and time con- research activities by FLI in support of the implemented. suming, considering that the tagged sheep project, including the development of a se- are slaughtered the very next day. The LPO rological test validated for kudu, the devel- The FLI is in the process of developing oral is again attempting to convince DVS that this opment of a new rabies vaccine construction vaccination for jackals which are still the main aspect is an over-requirement and that there in the form of a recombined vaccine with the source of infection of the kudu. This vaccine are cheaper solutions to guarantee the trace- non-pathogen stem of Newcastle sickness study on jackals will be implemented sepa- ability of sheep. The BVS has agreed and is virus as benignity carrier as well as manip- rately from the project at the UNAM School of negotiating with their peers in South Africa, ulations of vaccine in cooperation with IDT Veterinary Medical Science with funds which also regarding the required testing for dis- Biologika to improve the oral absorption of the IDT will provide. eases as mentioned above. vaccine by kudu.

Meatco revises booking and merit point system To enhance and simplify the producers’ access to 12 per year Short-Noti ce Booking Request to the market for their livestock, Meatco has • The merit points will be calculated real-time at The Short-Notice Booking Request allows produ- simplified its booking and merit point cal- each booking instead of over a period cers to book one day up to one month ahead of culation system which goes into effect as of the delivery month, depending on quota availability 1 October 2018. The newly updated and more • The merit-point calculation will be based only on (slaughter space available) at the respective facility. flexible system isProof imple mented on a test basis the reliability, or subsequently accuracy of the for six months. load of cattle delivered. The difference between the new booking system and The main changes to the new system, to ease the previous delivery agreement is that deliveries are The new system allows for two types of booking marketing to Meatco, are as follows: measured according to a specific booking and one • No Delivery Agreements need to be signed requests: booking does not influence another. • The contract premium will be paid weekly with • Advance Booking Request Producers will now have their N$2.50 per kilogram settlement • Short-Notice Booking Request contract premium included in the announced prod- • The four contract signing periods will in crea se ucer price when delivering to the export abattoir. Advance Booking Request With the new merit point’s calculation system, A producer who intends to deliver his/her cattle Meatco wants to distinguish the probability of con- to a Meatco facility will request a booking one or verting a booking request into a delivery. Therefore, two months prior to the delivery month. This would book ing preferences will be awarded to the legal consequently result in 12 delivery periods per year. enti ty with the highest merit points, in other words, Meatco will no longer award merit points based on The main advantage of an advance booking request producer numbers, but only on a legal entity regis- for the producer means that his/her request will be tered on the company’s database. considered first during the allocation run every The new merit point calculation system is used and month and will receive their booking confirmations measures reliability and accuracy of bookings and approx imately one month before delivery. deliveries.

18 NAU Annual Report 2017-2018 LIVESTOCK PRODUCERS ORGANISATION attoirs will also have to comply with certain standards such as animal welfare. This will Alternative marketing the agreement. Negotiations should be con- be attended to within the next few months. opportunities for red meat cluded by the end of 2018 and Namibia could especially benefit in bigger quotas for beef NamLITS traceability The trade under the Economic Partnership and mutton in the Norwegian market as well The NamLITS system was developed to ensure Agreement (EPA) between the European Un- as lower tariffs for meat and table grapes in traceability and is applied each time animals ion (EU) and the Southern African Develop- the Swiss market. It is also attempted to in- are marketed. NamLITS control is important, ment Countries (SADC) continues. After Na- clude the current unilateral general system especially with regard to sickness administra- mibia had ratified the EPA, all the SADC EPA for preference trade (GSP) which Norway has tion. The NamLITS system is based on a soft- member countries have in the meantime rat- implemented for Namibian meat exports un- ware program and its functionality is contin- ified the agreement. These include Botswa- der the free trade agreement to bring about uously improved to make it more accessible na, Lesotho, Namibia, South Africa, Eswati- more surety for Namibian exporters. and consumer friendly. Unfortunately, the ef- ni (previously Swaziland) and Mozambique. fectiveness of the system is also dependent Angola did not sign the agreement but can Farm Assured Namibian on the human factor. Therefore, investigations still do so in future. The EU countries are still Meat (FANMeat) are underway to change the functionality so busy with the process. that producers may get improved direct access The FANMeat system is one of the most im- to manage their own herd data (registrations, The Brexit negotiations continued intensely portant pillars on which the meat industry replacements, cancellations, terminations). during 2017 and even though a lot of work was done by the United Kingdom to ease their withdrawal from the EU and to ensure very lit- tle disruption, all indications are that it is not an easy process. The envisaged exit date is 31 March 2019 and British legislation will have to be concluded by that time to ensure their withdrawal from the EU. Negotiations with the EU however presented numerous obstacles and it has become clear that Britain will not necessarily get the agreement from the EU which they want. Internally there is large division amongst the British concerning which option the British Government should bar- gain for with the EU. Regarding the Brexit influence on Namibia as part of SACU, Namibi- an negotiators are discussing an agreement with the objective to protect existing trade interests. SACU already made quite some progress with this process and the objective is to duplicate the EPA with the United Kingdom. Namibia’s interest in these negotiations is of great importance as the country currently exports beef, dates and table grapes to Brit- ain in terms of the tariff and quota-free access of the EPA.

After Namibia received approval to export beef to the United States of America (USA), Meatco exported the first consignment of meat to the USA. According to American export regulations, Namibia may export raw beef relies to ensure access to niche markets, es- Meatco (not minced) of specific cuts such as chuck rib, pecially in Europe and countries such as Nor- Meatco is seen as the most important factor shoulder blade and beef extracts to the USA. way which pay the highest prices. It is thus im- in the stabilising of the Namibian meat in- portant that producers adhere to the quality dustry. Unfortunately, producers finally lost The requirements regarding lumpy skin dis- control of the FANMeat scheme. This means, confidence in the corporation after the Min- ease within the trade agreement with China inter alia, that no prohibited feed and other ister of Agriculture unilaterally appointed a have again been negotiated this year and al- prohibited remedies should be used for live- Board of Directors without allowing nomi- lowances have been made that meat from a stock, that the healing period after treatment nations from the members of Meatco. This farm where no lumpy skin disease outbreak should be honoured and that proper record- year Meatco closed their books with a loss of has occurred, may be exported. The previous keeping should be maintained. N$51,2 million or rather N$64,4 million (prof- restrictions which were applicable were that it before tax) whereas the previous year had in case of a lumpy skin disease outbreak, the The FANMeat committee, on which the LPO shown a profit of N$22,5 million. The Board of whole country would not be allowed to export. is also represented, meets regularly to deter- Directors started a reversing strategy and is mine how the system can improve the assur- hopeful that the financial situation During 2017 Namibia, as part of SACU, started ance and guarantees of FANMeat. In addition, will improve. with negotiations to re-negotiate the EFTA- attention is paid to ensuring that the whole SACU free trade agreement which had been chain from producer to abattoir is FANMeat The LPO had an analysis done implemented since 2009. The objectives of assured. Apart from producers complying of Meatco’s financial state- the negotiations are to ensure better market with FANMeat regulations, the other role play- ments for the past 11 years access as well as to upgrade and modernise ers such as transporters, auctioneers and ab- which shows that the cor-

NAU Annual Report 2017-2018 19 WE LOVE OUR MEAT Premium quality Namibian meat controlled and guaranteed by the Meat Board across the value chain according to highest quality and safety standards.

Meat Board Tel. 061 275 830 • [email protected] • www.nammic.com.na of Namibia LIVESTOCK PRODUCERS ORGANISATION more than 15% against the American dollar. This pushes the agricultural inflation up. The poration has been on a downwards trend for Human-wildlife conflict exchange rate is also of exceptional impor- the past five years. The operational costs and Introductory to this subject it must be men- tance for beef producers as Meatco exports debts increased, yet the turnover of Meatco tioned that the LPO also tried to contact MET a large percentage of its meat overseas. The did not increase. At Meatco’s annual general to address the human-wildlife conflict. Unfor- better rainfall in both Namibia and South Af- meeting a motion was tabled by Mr H Eras- tunately, this was not successful. rica influences both agricultural inflations and mus expressing the members’ deep concern producer prices as lick and feed prices have regarding the performance, corporate man- Elephants decreased substantially in the past months, agement practices and accountability of the As elephant conflict is not only restricted while better grazing and a shortage in cattle Meatco Board of Directors. to the northwestern parts of Namibia but lead to an increase in producer prices in the is now also in the northern parts of the first quarter of 2018. The increase in the oil Meatco must be managed on healthy busi- Grootfontein district, the LPO is consider- price as well as the weakened rand is howev- ness principles to be able to survive with- ing making a report available to the Om- er counteracted by the decrease in feed and out interference from the Government. The budsman in order to request an investiga- lick prices which ensured that the agricultur- change of the Meatco business structure as tion into the responsibility of the Ministry al inflation was kept considerably under con- well as the appointment of a capable Board of Environment and Tourism. trol over the past 12 months. The sharp in- of Directors form part of increasing Meatco’s crease in especially the cattle prices since the effectiveness and both aspects are driven by Predators beginning of 2018, led to a notable recovery the LPO at all levels. All regions report that the occurrence of in the income/expenditure balance. predators has increased. The LPO is active- No further steps have been taken to transfer ly obtaining statistics of predator numbers Even though the cattle and sheep industries Meatco to the Ministry of Public Enterprises. as well as damage caused by predators. in Namibia are still feeling the pinch of input costs over the long term, there was dra- Value chain management plan Statistics matic relief in the first quarter in terms of The 2010 LPO Congress requested an investi- Determination of production per ha and the production cost index as the agricultur- gation into an optimal value chain manage- farming profit al inflation stayed reasonably constant since ment plan and if viable, the execution there- the first quarter of 2017, while the beef and of with all role players in the meat industry. Each livestock producer should know how sheep income rose steeply. The decrease of his grazing can be effectively converted into the annual agricultural inflation of 3.83% in This resolution was concluded after an investi- meat, because the main objective is to pro- the first quarter of 2017 to 1,54% in the first gation showed that producers do not wish to duce maximum livestock while improving the quarter of 2018 was driven by the strength- get involved in slaughtering and processing. rangeland productivity over the long term. ening of the rand at the end of 2017 as well In the meantime, an opportunity was created During 2017 the LPO offered a service to cal- as the sharp decrease in the price of lick and for producers to negotiate beef and mutton culate the production per ha for producers feed. The increase of especially beef income at the Johannesburg Stock Exchange (JSE). and to compare this with fellow participants. was driven by the better rainfall which was Producers can buy or sell future contracts in experienced in both Namibia and South Af- order to minimize price risks. The entrench- Individual producers receive individual fig- rica and has increased the demand for live- ment of a price risk for producers consists of ures in terms of the average stocking/ha, live stock. Sheep income however moved side- buying future contracts in an attempt to fix kg produced/ha and the production percent- ways as the continuous drought conditions in a minimum price. age (expressed as kilogrammes produced as the south of Namibia as well as in the North- percentage of kilogrammes stocked). These ern Cape in South Africa placed the price un- Due to current uncertainties, the LPO decid- figures are also compared with the average der pressure. Even though the beef industry ed to do a feasibility study relating to a large of fellow participants in their region as well as is still worse off in the long term, the dramat- stock abattoir. During the congress feedback against the average figures for all participants. ic recovery in the past six months has led to a will be given about the outcome of this study big relief. The small stock industry on the oth- and decisions to be taken about a future abat- During 2017 producers with a total land size er hand has shown a more stable trend dur- toir, processing plant and marketing channel of 520 000 ha participated. Of these 356 000 ing the past 12 years with income increasing which will be owned by producers. ha were for cattle, 124 000 ha for small stock at nearly the same speed as the expenditure. and 40 000 ha for game respectively. Waterberg buffalo Measured from the basis year of 2006 (1st Unfortunately buffalo again escaped from Production cost index quarter 2006 = 100), the large stock income WE LOVE the Waterberg Plato Park (WPP) this year and The events of the past 12 months again led increased to 272.72 basis points in the first farms were put under quarantine for long pe- to big fluctuations in agricultural inflation as quarter of 2018 (only 198.82 in the first quar- riods. This is due to an over-population of buf- well as the producers’ prices for sheep and ter of 2017), while the total expenditure in- falo and this problem will continue until the cattle. These events include the fluctuations creased to 268.02 basis points in the same numbers are decreased. The LPO proposed in the exchange rate which were caused by period. Sheep income increased with 173.96 OUR MEAT various actions in order to find a solution for political instability in South Africa. As Na- basis points in the past 12 years, while beef the buffalo problem. mibia imports a lot of its agricultural inputs income has risen by 172.72% in the same pe- Premium quality Namibian meat controlled and from South Africa who again import prod- riod. The increase in beef income comprises Unfortunately, the proposals came to nought. ucts from overseas, the exchange rate plays a weighed increase of 160.14% in the aver- guaranteed by the Meat Board across the value chain The problem lies with Government who see an important role in the price of various agri- age slaughtering price as well as a 176.24% according to highest quality and safety standards. buffalo as a high value asset and thus would cultural inputs, which also influences the ag- increase in the weaner price. Measured year not dispose of buffalo cheaply. Despite vari- ricultural inflation. It is known that South Af- on year, the beef income has risen ous attempts to make an appointment with rica has one of the most unstable monetary with an impressing 37.17%, with the Minister of Environment and Tourism units in the world, which leads to great un- sheep income a lower 5.84%. Ex- (MET), the LPO was unable to meet with him. certainties and which again weakened with penditure however increased by Meat Board Tel. 061 275 830 • [email protected] • www.nammic.com.na of Namibia NAU Annual Report 2017-2018 21 LIVESTOCK PRODUCERS ORGANISATION

only 1.54% per annum due to the decrease in matter on the LPO agenda for discussion at K von Kühne Gobabis lick and feed prices of 4,08%. The high devi- regional level. Meanwhile the Ministry of In- T le Roux Windhoek ation between input and output costs in the dustrialisation, Trade and SME Development M Hilbert Okahandja large stock industry in the past 12 years, led (MITSMED) identified different growth strat- T Pretorius Otjiwarongo to an average annual cost increase of 5,33% egies of which game is one of the sectors. D Mouton Grootfontein/Tsumeb/ from the first quarter of 2006 to the first quar- From this the Wildlife Products Steering Com- Otavi ter of 2018. The sheep industry on the other mittee was established. This committee is in- A van Niekerk Outjo hand has shown a more manageable 1.34% volved with all aspects of the game industry. in the same period. The limitations and opportunities regarding input provision, production technology, Liaison with Government Rate of VAT levies by abattoirs marketing and trade, employment creation and other organisations The Abattoir Association of Namibia (AAN) and framework conditions are being investi- convinced the Commissioner of Inland Rev- gated. They also propose specific interven- During the report period contact was made enue (CIR) to issue a directive confirming that tions and projects to strengthen the indus- with the following organisations and persons: when an abattoir purchases live animals, these try. Various actions were launched such as to purchases must be subject to zero-rated VAT. promote venison locally (Eat Wild Festival, • Ministry of Agriculture, Water and Forestry This was unacceptable to the LPO, as the pri- Tourism Expo, Inspiration Tables), training in -- Minister mary producers who are VAT registered will the harvesting of game (especially hygienic -- Directorate of Veterinary Services continuously be in a net VAT claim position standards), publication of best practices and -- Directorate of Planning and Business as producers are obliged to pay input VAT on research (UNAM). Development all production inputs, while no output VAT is • Ministry of Industrialisation, Trade and SME received on any livestock sales to abattoirs. Vision of the meat industry Development This will have serious cash flow implications Regrettably, the joint vision of the meat in- • Ministry of Environment and Tourism for primary producers. Furthermore, the LPO dustry has come to a halt due to various rea- is convinced that price fixing is taking place sons. No further meetings were held. Even • Meat Board on carcasses and according to VAT legisla- though this vision was drafted and signed • Namibian abattoirs and agents tion, VAT is definitely payable. by the total industry (producers, agents, ab- • AGRA attoirs and processors as well as the MAWF • Kaap-Agri The LPO/NAU was intensely involved in nego- under leadership of the Meat Board), specif- • Swavet tiations and correspondence with the Com- ically the Agriculture Ministry shows no in- • Nakara missioner of Inland Revenue, tax advisors terest in attending meetings even though • Meatco Tannery plus the Meat Board and abattoirs to prove attempts were made to combine the joint • Feedmaster that the AAN misinterpreted the directive vision with the national development plans • First National Bank and that VAT on carcasses must be levied at of the Ministry. • Agri SA a rate of 15%. The Commissioner of Inland • AMTA Revenue ordered the Meat Board to obtain Liaison with the industry • Namibian Chamber of Environment a tax expert’s interpretation and final recom- During LPO management meetings open ses- • Media mendation. Some smaller abattoirs (B and C sions are scheduled where role players in the • Friedrich Loeffler Institute grade) had merely continued with the pay- meat industry are invited to individually con- • NAPHA ment of 15% VAT. In the meantime Meatco, sult with the LPO management. This brings • CANAM after talks with the Commissioner of Inland about a dialogue which is more confidential. • Office of the Ombudsman Revenue about the interpretation of the di- Talks are mostly positive and further nego- • Agricultural Trade Forum rective, decided to recommence paying 15% tiations and possible solutions for problems • North Cape abattoirs VAT to producers. originate from these meetings. • Local abattoirs • Namib Mills group Game matters Management • Swart Grant & Angula Some NAU members, who utilize game as a R van der Merwe NAU President (ex • Local private veterinarians diversification option such as biltong hunt- officio) • LCMAN ing or game breeding and whose interests P Gouws Chairman • SA Department of Veterinary Services are not attended to by either NAPHA or Game E Erni Southwestern • Red Meat Producers Organisation of SA Ranching Namibia, expressed a need to have K van der Merwe Karasburg (RPO) their interests represented somehow. Hence JC de Klerk Keetmanshoop • SA Red Meat Industry Forum (RMIF) the LPO management decided to place this J van Wyk Mariental • SA Feedlot Association

22 NAU Annual Report 2017-2018 AGRICULTURAL EMPLOYERS’ ASSOCIATION

Management putes regardless regardless whether their dis- Chairperson Mrs C Stoman missal was justified and legal or not. Mr Kassen Vice-chairperson Mr H Förtsch reiterated that the current labour act unfortu- Central Mrs S Heimstädt nately does not allow early verification of com- North Mrs C Hellinghausen plaints. This can only be determined during a South Mr J Wasserfall conciliation/arbitration hearing and unfortunately an employer needs to travel to town for Financial position the hearing. Ms Sihlahla offered to do presen- The management handled the funds of the tations or training on labour relations at farm- association with discipline which resulted in ers days. Farmers’ associations are welcome to the 2017-2018 financial year ending with a invite her if there is a need. surplus of N$ 141 525. Minimum wage Successful wage negotiations were concluded Labour documents Chairperson: C Stoman The AEA’s helpful documents concerning la- on 9 October 2017 between the AEA, NNFU, bour matters remain as popular as ever, in- NECFU and NaFWU. This meant that the out- dicating that employers go to great lengths dated farmworkers’ minimum wage of 2014 NCA (Namibia Charcoal to implement the correct administrative sys- was increased by 25% as follows: The cash Association) tems. These documents are sold to members wage was increased to N$4,62 per hour or and non-members. Although some document N$900 per month for a worker who works 45 As Director of the NCA, Mr Van Vuuren man- prices need to be adjusted annually, the AEA hours per week. For those employers who do aged the affairs as well as the finances of the management strives to keep such prices as not supply free rations, the ration allowance association during the past year. These tasks low as possible for its members. was increased to N$500 per month. The total will however be referred to another director in the next year. As requested by the GIZ, Mr Van Vuuren will still manage the finances of the GIZ charcoal projects. Representation of management members on various bodies AEA secretariat The AEA was represented on numerous bodies, boards and forums: The AEA’s advisory service concerning best NAU Executive Council: Mr H Förtsch labour practices and labour disputes re- Namibia Labour Forum (NALF): Mr H Förtsch and Mrs C Stoman mains popular, with increasing numbers of Namibia Employers Federation (NEF): Mr D van Vuuren telephone calls, emails and personal visits Namibia Agricultural Retirement Fund (NARF) Principal Officer: to the AEA office. Mr D van Vuuren Project Advisory Committee for Child Labour: Mr D van Vuuren Training of farmworkers HIV/Aids Management Committee of the Ministry of Agriculture: The AEA strove to launch a trial project for Mr D van Vuuren the training of farm workers at Summerdown Namibia Charcoal Association (NCA): Mr D van Vuuren with the view to extending the initiative to other regions, but the project stalled due to the lack of interest by knowledgeable farmers to act as trainers. AEA LIAISON minimum basic wage for a farmworker thus Internal liaison amounts to N$1 400 per month. The AEA ap- Management committee members paid vis- plied on behalf of the parties to the Ministry Preschool training for farm its to regional agricultural unions and farm- of Labour for publication of the agreement children ers associations during the year. The Princi- in the Government Gazette, thereby ensuring pal Officer also attended farmers association its expansion to the national agricultural sec- The TeRRIFiC curriculum of Character Trans- meetings. Matters of importance were com- tor. The Ministry, however, did not grant this formation Namibia which teaches children municated to members via the weekly elec- request because the Namibia Farmworkers’ values, is an important resource. Preschool tronic newsletter, the AgriForum magazine, ra- Union (NaFWU) does not represent the ma- children should not only be exposed to dio programmes as well as the NAU website. jority of farmworkers in the industry. school-readiness classes, but also to the en- trenched values that society relies on. External liaison Child labour Ministry of Labour and Social According to the 2016 Namibia Statistics Agen- Thankfully, preschool training has also been Welfare cy (NSA) report, the unemployment figure included in Government’s NDP5 and one A courtesy call was paid to the Labour Com- amongst the youth is 51 725 or 21% of non- of the projects of First Lady Geingos’ “One missioner, Mr Henri Kassen and his second in school-going children between the ages of Economy Foundation” is Early Childhood command, Ms Sihlahla on 20 September 2017. 15 to 19 years, with the result that child labour Development. Discussions centred on the role and function still occurs in Namibia. Street children who of the Labour Commissioner’s office as well as beg at certain street corners are viewed as The management of the Amos Meer- the AEA’s role in promoting labour relations on serious cases of child labour. The AEA raised cat Schools contacted the AEA with commercial farms. The frustrations of numerous its concern about the poor position of educa- the request to get more farmers in- farmers with respect to labour disputes were tion especially in rural areas to the NEF who volved in this initiative. Cur- brought to their attention. Dismissed employ- in turn published an open letter to the Min- rently there are only nine ees have come into the habit of registering dis- istry of Education in the media. active farm schools with

NAU Annual Report 2017-2018 23 AGRICULTURAL EMPLOYERS’ ASSOCIATION Social Security Commission (SSC) As recommended by the consultants, the SSC Board accepted the draft policy for the approximately 100 farm children. The Amos Health in the commercial planned National Pension Fund. However, Meercat School has also included the TeRRIF- agricultural sector progress has halted as the Ministry of Labour iC character development in their curriculum. Following a survey done by the AEA, feed- has declined to approve the draft. back was received from 30 farmers associations regarding health services in rural are- Following complaints from some of our mem- as, indicating that these services are not up bers that they no longer receive their ECF NTA (National Training to standard. statements and assessments in the mail, the Authority) AEA reported this to the SSC. Feedback with The Government’s NDP5 Development Plan contact details of the SSC were given to mem- During an NTA stakeholders’ forum the need increased targets for health services, but at bers via the NAU newsletter. for funding of training of illiterate youth in ru- the same time reductions were made in the ral areas was expressed. The NAU nominated health budget which have had the opposite Namibia Employers Federation (NEF) Mr Hendrik Botha to serve on the agricultur- effect. The chairman wrote a letter to the Min- Mr Van Vuuren was elected for a further term al management committee of the NTA to re- ister of Health in which the AEA expressed as board and executive member of the NEF place Mr Helmuth Stehn who resigned two its concern about this matter and request- during their AGM. He represents the AEA on years ago. ed that health services for rural farm work- this forum and gives important input on be- ers be prioritised. half of commercial agriculture. Mr Elias Shi- kongo was endorsed as new president of the Surveys in the Namibia Agricultural Retirement NEF after the resignation of Advocate Rukoro. agricultural sector Fund Namfisa approved the liquidation of the fund 2018 AEA wage survey and the dissolution of the fund was advertised Labour Advisory Council (LAC) After reflecting on the 2018 wage survey, the in the Government Gazette, as procedures de- The Minister of Labour elected a new LAC AEA decided to determine the monetary value mand. Although some members received their Board for another term and one of the four of electricity, firewood and water which farm pension pay-outs, problems arose, and oth- seats of the NEF was given to one of the small- workers use daily and which form part of the er members are still awaiting their payments. er employers’ organisations, the NEA. A Code total remuneration package. Power and wa- The Principal Officer of the fund, Mr van Vu- of Conduct for Conciliators and Arbitrators, ter comprise a large part of the expenses of uren, lodged an official complaint against Al- on which the AEA also gave input, will be dis- workers in other industries. exander Forbes in this regard. cussed and finalised by the LAC.

24 NAU Annual Report 2017-2018 Namibia Labour Forum creasing productivity. Mr Paul van der Merwe South: Mr Jan Wasserfall (NALF) focused on the influence of productivity on production while Mr Hellmut Förtsch dem- Central: Mrs Sigi Heimstädt Two meetings were held in 2017 during which onstrated productivity in practice and used mainly the minimum wage for farmworkers his own farm as an example. North: Mrs Charlotte was discussed. On the initiative of the AEA, Hellinghausen the Namibia Emerging Commercial Farmers’ In conclusion, Congress requested the AEA Union (NECFU) is also now involved in this fo- management to pay attention to these tasks: Management mandates from Congress rum as an employers’ association. • Management is requested to draft a guide- • Labour productivity on farms: User manual 2017 AEA congress line document about labour productivity on A draft user manual about labour produc- The 2017 AEA Congress was held on 13 June farms and publish same on the AEA website. tivity on farms is in an advanced stage and 2017 with the theme “Labour productivity on should be finalised next year. It will then farms”. The Executive Manager of the NAU, • With the new mandate from Congress, be released electronically as well as on the Mr Sakkie Coetzee, was the keynote speaker management is requested to further ne- website of the NAU. and said that the AEA is the cornerstone of gotiate concerning the adoption of the the NAU. He pointed out that there had been minimum wage. • Minimum wage few media reports about labour problems on Concluded. See par 7.2 commercial farms, thanks to the proactive in- • The AEA is requested to find out why work- put of the AEA. ers leave farms to work in town or why they • Turnover of farmworkers seek employment on another farm. Research was done by comparing trends The chairperson of the AEA, Ms Christine Sto- from previous wage surveys. It is evident man, mentioned in her address that those • The AEA should promote the re-instate- that the average period of service per em- government services which do not function ment of technical curricula at school level. ployer increased from 4 years in 2002 to efficiently have a negative effect on farm pro- 6.5 years over the past 10 years. Further- ductivity. She presented long service cer- The following members were unanimously more, there was a decrease in resignations tificates to Messrs Hellmut Förtsch and Jan elected to the AEA management committee: namely from 15% participating workers in Wasserfall. 2010 to 12% in 2016. It thus seems that the Chairperson: Mr Hellmut Förtsch request from Congress to investigate the Mr Sigi Lange of Capacity Trust explained high turnover of farmworkers is not reflec- how individuals could manage and control Vice-chairperson: Mrs Christine Stoman tive of a general trend on farms. their own thoughts and actions, thereby in- • Promote technical subjects in schools It was noted that complete curriculums already exist for technical subjects which include metalwork and welding; woodwork; bricklaying and plastering; electricity and electronics; motor mechanics; plumbing; hospitality; health and welfare as well as hairdressing. Schools can decide which subject they want to offer. A consultant, who assisted the Ministry to draft the new curriculums, suggested that members could promote these subjects in schools by liais- ing with the regional directors. General The past year was characterised by stability and peace regarding labour on commercial farms with few labour disputes. The AEA en- joyed constant good co-operation from members, with interactive participation at all levels.

NAU Annual Report 2017-2018 25 AGRONOMIC PRODUCERS ASSOCIATION

General overview • Alternative crops will for most crop farm- After a good rainy season in 2016/2017 the ers be part of planting in order to man- agronomic situation is again not favourable, age the risk with regard to the improved especially for dryland agronomists. The 2017 management of diseases, weeds, insects harvest was, despite being under pressure of and drought. fall army worm damage, still the biggest national maize harvest. Rain was ideal for maxi- • Latest technology regarding crops, culti- mum production in most areas and the dam- vars and planting methods must be iden- age of the fall army worm was in most areas tified by our producers, tested and imple- not too extensive. With the forecast of aver- mented where relevant. age to above average rainfall it was expected that the fall army worm would be a great • Producers will have to apply financial threat to harvests but unfortunately the low- discipline and planning so that years of er than average rainfall for the biggest part of drought can be bridged without the sup- Chairperson: G Eggert the season was a bigger challenge. The fol- port of Government. lowing core thoughts which should be tak- Grootfontein K Malan en from this year are: • Producers will have to support each oth- Tsumeb/Abenab G Sievers er further in all aspects. • marketing mechanisms for wheat and es- Financial matters pecially maize ensure that our national har- Agronomy remains a challenge and Namib- In spite of the phasing out of the levy income vests are marketed at prices which are ac- ian crop farmers are grateful to accept this from Government, the finances of the APA ceptable and known beforehand in terms challenge. are positive. The APA closed the 2017/2018 fi- of minimum values. These regulations are of nancial year with a surplus of N$359 871. This cardinal importance. Dryland and also irriga- positive result was brought about through tion agronomy will not be able to survive in Management a voluntary grain marketing fee of agrono- our country without this stabilising support. Chairman (Otavi/Rietfontein/Kombat) mists which was paid over by the millers and G Eggert which only partially covers the APA’s expens- • Weather forecasts long term and even short Vice-chairman (Hardap) D de Klerk es. Additionally, the APA receives funds from term cannot be used by dryland agronomy as East J Blaauw the Agronomic Board for special agronomy basis for crop planning and risk management. Maroelaboom D Kok projects such as information days.

26 NAU Annual Report 2017-2018 Representation on the Agronomic Board Chairperson of the Agronomic Board: Mr Michael Iyambo Commercial sector: Currently has no representation

Master Agronomist Mr Ebbi Fischer of Farm Okawatuta in the Hochfeld district was elected the Master Agronomist for 2017. The award was presented to him on 6 April 2017 during the Master Agronomist Day.

Crops Statistics from AMTA show the following for 2017:

Planted Harvested White maize (hectares) (tons) No accurate Zambezi 6 000 information Omusati and vicinity 118 300 Maize Triangle and vicinity 9 085 43 350 Central and East 1 973 5 408 Hardap and vicinity 647 5 923 Total 14 300 66 563

2017/2018 Planted Expected Wheat (hectares) harvest (tons) Hardap 463 3643 Maize triangle 89 602 Kavango projects 983 1 914 Omusati projects 60 210 Total 1 595 6 369

The floating trophy for the best agronomist has for the first time found a home in the Hochfeld area. Here the 2016 winner, Georg Sievers (left) from Abenab, hands the trophy to 2017 Master Agronomist of the Year, Ebbi Fischer from Hochfeld. To his right is Ebbie’s wife, Heide, and Chris tof Brock, manager of the Agronomic Board.

NAU Annual Report 2017-2018 27 DAIRY PRODUCERS ASSOCIATION

Introduction Dairy Provider of the Year The past year was characterised by producers dinner having to decrease milk prices three times. The slow economy has affected all agricultural The awards to producers were presented dur- sectors, with the drought playing a big role. ing a gala dinner at Xain Quaz near Gobabis This situation is evident in the poor spend- on 18 July 2017. The winners were – ing power of the public. The biggest factor at this stage is the large amounts of UHT milk Intensive Dairy Provider of the Year which is being imported from the RSA. The Winner: !Aimab Superfarm competition amongst processors in South Af- Second: KH Aggenbach rica is huge as they compete to put their prod- Third: K Adriaanse (Kachas Farming) uct on Namibian shelves at the lowest price possible. This is vastly detrimental to the Na- Extensive Dairy Provider of the Year mibian industry which cannot compete with Winner: HC van Niekerk their cheap milk. Various meetings have been Second: BC Lottering Chairperson: BF Adriaanse held with the Ministry of Agriculture, Water Third: DJJ van Wyk and Forestry (MAWF) concerning the amend- in Windhoek where all role players in the in- ment of legislation on the control of import Most accurate forecast dustry were involved and afterwards smaller and export of dairy products. This is a slow !Aimab Superfarm working groups finalised the document with process. At this stage there is some progress the assistance of a legal advisor. The docu- at the Ministry, but dairy producers will have Lowest bacteria count ment is currently at the Ministry of Agricul- to wait and see what happens, despite over- DJJ van Wyk ture, Water and Forestry and must be sub- whelming input costs. Animal feeds, diesel mitted to Cabinet for approval before it can and electricity have all increased. With grow- The Japie Engelbrecht floating be submitted to Parliament. The draft regu- ing expenditure and decreasing milk prices, trophy for the best quality milk lations in support of the legislation have also matters look bleak for dairy producers. There delivered been completed but still need to be finalised might be light in the tunnel if Government !Aimab Superfarm by the Ministry of Agriculture. addresses this situation by way of the necessary legislation. Namibia Dairies have ensured The sponsors who enabled this event were Goodwill project producers that the milk price decreases will Namibia Dairies, !Aimab Superfarm, Feed- The DPA and Namibia Dairies goodwill pro- immediately be reversed as soon as the leg- master, Polyoak Packaging Namibia, Komnik ject which was approved during a members’ islation is implemented. & Franck CC and DeLaval, Bank Windhoek and meeting on 19 July 2017, started in October Namibia Breweries. 2017. The project is for a period of 12 months. To all producers – keep good faith. We know DPA members donate 0,5 litre for every 1 000 the agricultural industry. Look at costs on the Members’ meeting 2017 litres produced. Namibia Dairies processes and farm and manage them. Our vision is still to The 2017 members’ meeting was held on 19 packs the milk in 1 litre UHT boxes and pro- supply Namibia with milk and thus contrib- July 2017 at Xain Quaz Rest Camp, Gobabis, vide it to the NAU office monthly from where ute to the economy of the country and em- with the theme “Bio-security as standard for it is distributed to the following organisations: ployment for the needy. good quality in the dairy industry”. Mr Anton Faul of the Agricultural Trade Forum (ATF) House Maerua, Dagbreek School, Side-by- Management gave an overview of the dairy industry in a Side, Moreson School, Dordabis pre-primary Mr BF Adriaanse Mariental (Chairman) global context and Mr Jompie Burger of Dairy school and hostel, Kiddies Kingdom and El- Standards SA gave a presentation about bio- Landri Trust. During December 2017 the said Mr DJJ van Wyk East (Vice-chairman) security and milk quality on farms. Feedmas- organisations were closed and one-time do- ter was the sponsor of the members’ meeting. nations during the festive season were made Mr CW Strydom East to the Katutura Old Age Home, Oude Rust old Quota determination age home, Hope Village, Helping Hands (NG Mr P Strydom East The quota agreement with Namibia Dair- Church Suiderhof) and Meals on Wheels. By ies has been renewed for 2018 – it stays un- 31 May 2018 a total of 8 982 litres milk had Financial position changed on one million litres per month. Even been donated. The financial position of the DPA is stable though there is still space for members with- and the financial year ended with a surplus in this framework to build quota, each mem- Municipal services of N$72 583. ber is requested to stay closely to the inter- Namibia Dairies continues to assist DPA mem- nal DPA quota. bers with their annual stable registrations. No Milk price further progress was made to accredit Namib- During this reporting period producers had ia Dairies’ annual audits at the Municipality. three price decreases of 10 cent each in sup- Control over the import and port of Namibia Dairies. These price decreas- export of milk and dairy Liaison es came into force in respectively July 2017, Liaison took place with the following organ- April 2018 and July 2018. products isations during the past year: Various actions took place during the reporting period to finalise the draft legislation Agricultural Trade Forum (ATF), Feedmaster, which regulates the import and export of Ministry of Agriculture, Water and Forestry, milk and dairy products so that it can be for- Municipality of Windhoek, Namibia Dairies, warded to Parliament. A workshop was held MPO of SA, Dairy Standard SA.

28 NAU Annual Report 2017-2018 Dairy champions

The Namibia Dairies’ !Aimab Superfarm at the Hardap irrigation project walked away with the winning prize for the intensive dairy producer of the year, the N$20 000 reward and a trophy from the Dairy Producers Association (DPA). !Aimab clinched another two awards – the Japie Engelbrecht floating trophy for the best quality milk delivered during 2017 and the prize for the most accurate monthly estimate of monthly milk production. Günther Ling (left), managing director of Namibia Dairies, and Borney Britz (middle), director of agri- affairs at Namibia Dairies, received the prize from DPA chairman, Japie Engelbrecht. It is the second year that the Japie Engelbrecht floating trophy has been awarded – a contribution of this pioneer dairy producer in the pursuit of quality. The trophy originated with Japie’s comparison and measurement of Namibia’s milk quality against that of other third world countries over a good many years. “Namibia was far ahead and comparable to the best in the first world,” he reckons. The judging criteria he set is that the winner be an DPA member, who attended count of 40% each. More requirements the previous AGM, a buttermilk content should be 20% are that the milk be free of E. coli, (average is 3,5%), and a bacterial count and somatic cell antibiotics and water. The runners up

As a regular winner of the extensive division for milk producers, the Van Niekerks of Gobabis again won this award. Here Madelain and Hennie (left) receive their prize of N$20 000 from Günther Ling (third from left), managing director of Namibia Dairies, and the trophy of the Dairy Producers Association from Japie Engelbrecht (regs), outgoing chairman Dirk van Wyk (left) and Christo Lottering, of the association. who clinched the third and second places on the extensive producers ranking respectively.

Dairy producers appoints new management

Among the intensive milk producers two Hardap farmers, Willie Aggenbach and Kokkie Adriaanse, won the second and The new management of the Dairy Producers Association is Christo Strydom, Kokkie Adriaanse third places respectively. (chairman), Dirk van Wyk and Pieter Strydom (newly appointed to the management). Pieter and Christo are brothers.

NAU Annual Report 2017-2018 29 POULTRY PRODUCERS ASSOCIATION

During 2017, various remarkable changes South Africa and were thus forced to establish took place in the poultry industry in Namib- a “raising” department at their laying farms in ia. Despite the year starting off positively order to raise one-day old chicks from Europe. with decreased feeding prices which brought Namibia Poultry Industry (NPI) had to get a new production costs for eggs and meat onto a supplier for older products from Zambia and negotiable level, there were still challenges change the breed from Cobb to Ross. These which had to be faced. changes were necessary to prevent extensive egg and meat shortages in Namibia. There are The Newcastle sickness outbreak in the four “O- still cases of AI amongst sea birds in the West- regions” north of the veterinary cordon fence ern Cape, but no other provinces have report- put great pressure on producers. Movement ed any new outbreaks since October 2017. restrictions were put into place by the Direc- torate of Veterinary Services, meaning that Despite these challenges, the producers no products could be sold south of the VCF. stayed calm and worked hard to increase bio- Even though the outbreak seems to be under security at their industries and to train small- control, restrictions are still in place and infor- er emerging producers. Chairperson: J Roux mation remains scarce. No reports of Newcas- tle sickness in other regions were received. Small producers are very vulnerable and need assistance and mentorship by established agri old chickens and technical backup. Current- The biggest challenge for the Namibian poul- businesses. It is in the interest of poultry pro- ly Namibia Poultry Industry hatch and supply try industry was when the first outbreak of avi- ducers to work together to recreate the in- about 30 000 day-old chickens per month, an influenza (AI) was confirmed in South Afri- dustry and at the same time provide the na- which they intend increasing to 100 000 per ca. According to international laws no poultry tion with animal protein which is affordable. month within the next years. products, thus table eggs, meat, broilers, point- of-laying or parent stock may be exported dur- Feedmaster have been running a success- All in all it was a challenging year, but the as- ing an avian Influenza outbreak. Most egg pro- ful campaign in developing the SME poultry sociation is looking forward to a bright future ducers obtain their point-of-laying hens from market. They help with the supply of day- for the Namibian poultry sector.

30 NAU Annual Report 2017-2018

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