Namibia Agricultural Union Annual Report 2019-2020

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Christo Viljoen Viljoen MariusMarius Steenkamp SteenkampJacques JacquesCloete CloeteFrederico vanFrederico Wyk vanDwaine Wyk HenckertAndré MoutonCobus Swanepoel CobusWillem Swanepoel Zwiegers Head of of FNB FNB Agri Agri MarientalMariental WindhoekWindhoek Windhoek Windhoek Windhoek OtjiwarongoAranos AranosOtjiwarongo Tel: +264 61 61 299 299 8319 8319Tel: +264Tel: +26463 345 63 114 345 Tel:114 +264Tel: 81 129+264 5961 61 411Tel: +264218 81 Tel:144 +2642377 61Tel: 411 +264 215 81 299Tel: 7801 +264Tel: 67 +264 308 63 800 272 035Tel: +264Tel: +264 63 81 272 042 035 9194 Contents Cultivating relationships, Presidential Review 4 - 5 Overview of the commercial agricultural sector 6 - 9

Organisational Matters 11

Congress 2019 12 - 13

Executive Council/Management Committee 15 - 17 nurturing Liaison 18 Livestock Producers Organisation 19 - 26

Agricultural Employers Association 27 - 29

Agronomy Producers Association 30 - 32 growth. Dairy Producers Association 32 - 35 Poultry Producers Association 35

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Mr Pieter Gouws, NAU President

It is a special privilege for me to provide the With the election results confirmed and the public, our corporate partners as well as the cabinet reshuffle, which led to the fusion of members of the NAU with a brief overview the Ministry of Agriculture with the Minis- of the events and activities of the NAU over try of Land Reform with a new minister, we financial predicament of the agricultural pro- the past year. started thinking that 2020 would be a good ducers. We expected that since agriculture is year. However, our expectations were short- the bedrock of our economy, a speedy work- My position of Chairperson commenced on lived when the Covid-19 pandemic effective- able solution would be found. Unfortunate- the 9th of October 2019 at the peak of one ly brought all activities to a sudden halt. At ly, the global Covid-19 pandemic caused the the most devastating droughts our produc- the same time, the entire agricultural sector Bank of Namibia to change the regulations ers have ever endured to date. However, the had an opportunity to meet with the newly so that they could not attend to our propos- 2019 Congress theme “Re-building after the appointed Minister of Agriculture, Honour- als. I am concerned that it may be too late. drought” highlighted our persistence and able Calle Schlettwein, to share his vision, determination in ensuring the success of goals and objectives for the ministry. Minister Furthermore, the NAU and LPO took part in the the agricultural industry, as well as our faith Schlettwein’s vision is to grow the GDP with Meat Board of Namibia’s two-day dialogue to in the Almighty Father, whom we trust will more than 6% inter alia, and the NAU has re- promote the recovery of the livestock sector never forsake us. solved to support him accordingly. and generate growth in the sector. All participants agreed that increased production with- The rainy season started in late November While the lockdown of the Khomas and Eron- in the real value chain is of critical importance in the north-eastern and central northern go regions posed a number of challenges, a and confirmed that regulating any aspects in regions and the 2019-20 season concluded spirit of cooperation and problem solving the value chain of the livestock sector would with the greater part of the country saved prevailed between the MAWL and NAU in an be fatal. In addition, there is great concern re- from yet another devastating drought. Nev- effort to keep the agricultural value chain as garding land use patterns that have changed, ertheless, the entire Karas, greater part of Har- effective possible. This serves as a building which is marked by an increase in large tracts dap and the western parts of Khomas, Erongo block for future success in the industry. In ad- of unproductive hectares of commercial farm- and Kunene regions continue to experience dition, with the appointment of the Meatco ing land that limit production levels. critical drought conditions. Board of Directors, good rainfall and stable production prices were a good reason to re- Regenerative agriculture is the new hope In order to motivate our members and to en- main positive and motivated. This also gives of producers and an important piece of the courage hope and a positive vision as far as the agricultural industry the necessary ac- “tools” needed to equip farmers to enable humanly possible, the Executive Manager, knowledgement and recognition, as agri- them to repair fragile grazing areas and en- LPO chairperson, Ds Dries Burger and my- culture is at this stage the only industry that sure sustainable production. This is currently self, undertook a journey to the Karas and is set to bring about economic growth, food done under the capable leadership of Colin Keetmanshoop regions to visit the Karasburg security, self-sufficiency and significant em- Nott and is still in its early stages. I trust that RAU and Aroab Farmers Association. It was ployment creation. producers will engage seriously in this very an emotional experience to receive messag- important initiative. es at 4:00 am in the morning regarding the It is noteworthy to mention that government long awaited showers on our journey. How- will not be able to escape signing the Mapu- With regard to the other agricultural indus- ever, the rain nevertheless proved to be in- to Declaration. According to the agreement, tries, the Swakara, hunting, tourism and dairy sufficient to end the drought. 10% of the national budget must be awarded industries were disastrously affected by the to agriculture. Furthermore, growth in GDP Covid-19 pandemic. The negative impact on The agronomists in the GTO area reported can only take place if the government cre- agriculture was further compounded by the good rain and while they visualised record ates a conducive environment where pro- fact that numerous producers had invest- harvests, the Hardap dam reached its lowest ducers have sufficient confidence to focus on ed in hunting and tourism as an additional level ever recorded, with the harvest and sur- investing in the industry and increasing pro- source of income of diversification. The con- vival of the irrigation farmers subsequently af- duction, rather than being restricted by reg- tinued uncertainty regarding when normal- fected. This affected the dairy industry to such ulations. With the removal of numerous gov- isation would set in also plays a big role in in- an extent that Namibia Dairies had to get rid ernment regulations that will be omitted and vestment initiatives. of a large number of cows. Increased trans- become irrelevant, we will be in a better po- port costs also put pressure on the survival sition to regain pre-2000 production levels. Poultry (chicken and eggs) is in a growth phase, of the dairy producers. Yet darkness turned For me there is no doubt that over-regulat- with numerous new entries to the market- to light when the Hardap dam received con- ing the export sector will be the final death place, while accelerated turnover makes it a siderable inflow and irrigation could be ex- blow of such the industry. During 2019 the relatively fast cash generator. Pork production pected to continue with the available water NAU made a number of presentations to fi- indicators show a stable upward production until March 2021. nancial institutions to bargain for relief for the trend, while the charcoal industry’s contribu-

4 NAU Annual Report 2019-2020 tion to the export market has increased dras- Special acknowledgements to: • Honourable Minister of Works and Trans- tically and created thousands of employment • His Excellency, the President of the Repub- port, John Mutorwa opportunities in the sector. lic of Namibia, Dr Hage Geingob • Meat Board of Namibia • His Excellency, the Founding President of • Agronomic Board of Namibia The Dare-to-Care initiative has slowed down Namibia, Dr Sam Nujoma • Swakara Board of Namibia and the use of vouchers have ground to a halt. • Right Honourable Prime Minister, Saara Ku- • Meatco Producers either had sufficient rain, or the ugongelwa-Amadhila drought stricken producers’ cash flows were • Honourable Deputy Prime Minister and under such pressure that they could not buy Minister of International Relations & Coop- Sponsors: any vouchers. After negotiations with partici- eration, Netumbo Nandi-Ndaitwah • GiZ pating partners an increased subsidy was im- • Honourable Minister of the Presidency, Amb • First National Bank plemented, but was only applicable to specif- Martin Andjaba/Christine/Hoebes • Kaap Agri Namibia ic parts of the country. • Honourable Minister of the National Plan- • Agra ning Commission, Obeth Kandjoze • Namib Mills The NAU’s main focus is to help producers cre- • Honourable Minister of Land Reform, Uto- • Feedmaster ate opportunities to produce in an environment ni Nujoma/Calle Schlettwein • AgriBank where land security, personal safety, crime pre- • Honourable Minister of Agriculture, Wa- • AgriGro vention and stimulating economic growth is ter & Land Reform, Alpheus !Naruseb/Calle • Namibia Dairies guaranteed. When these critical aspects are in Schlettwein • Nutrifeeds place, agriculture will not only allow the rural • Honourable Minister of Justice, Sackeus • Bank Windhoek economy, but also the national economy to ex- Shangala/Yvonne Dausab perience growth – through employment gen- • Honourable Minister of Labour, Industri- Corporate members: eration, adding value and investing capital in al Relations & Employment Creation, Erk- • Agra the industry and the country. At the same time, ki Nghimtina/Utoni Nujoma • Kaap Agri Namibia I am aware of the challenges that the farming • Honourable Minister of Finance, Calle • Feedmaster community, which is getting older, is facing Schlettwein/Iipumbu Shiimi • FNB Namibia and I want to ensure readers that the Execu- • Honourable Minister of Environment and • Namib Mills tive Council intends to fulfil their responsibility Tourism, Pohamba Shifeta • AgriBank to realise the aforementioned aims and objec- • Honourable Minister of Industrialisation & • Namib Poultry Industry (NPI) tives. Where there is a lack of knowledge and Trade, Tjekero Tweya/Lucia Iipumbu • Namibia Charcoal Association (NCA) wisdom, external resources will be utilised. We • Honourable Minister of Home Affairs, Immi- • Bank Windhoek thank everybody who is willing to help, espe- gration, Safety & Security, Maj-Gnl Charles • Nutrifeeds cially all EC-members who spend much time Namoloh/Frans Kapofi and energy on organised agriculture. Thank • Honourable Minister of Urban & Rural Devel- you for your valuable input. opment, Dr Peya Mushelenga/Erastus Utoni Mr Pieter Gouws

At the same time, I would also like to thank the NECFU management for its excellent cooperation. The office faced very challenging times with lockdowns and had to be innovative to cope. Thank you for going the extra mile to serve our members. More specifically, the Ex- ecutive Manager, Mr Roelie Venter who handled both NAU and LPO under a watchful eye during these trying times, I thank you for your energy and enthusiasm. It is indeed both con- tagious, inspirational and motivating.

For our members who contributed directly or indirectly towards the development of the organisation and agriculture, I thank you sincerely. Our farmers and members are the foundation of the organisation’s success and existence and while not all producers are members, they also reap the benefits of the organisation. It is therefore my wish that in time all agricultural producers in Namibia will realise the value of organised agriculture and become members of our organisation.

To my wife, family and fellow workers who en- abled me to serve, thank you for taking the reins and holding the fort. Last but not least – to my Creator, I thank you for your everlasting strength, mercy and the abundant blessings you have bestowed upon us.

NAU Annual Report 2019-2020 5 OVERVIEW of the Namibian commercial agricultural sector

The drought started in 2013 and ended in Table 1: Estimated Namibian agricultural production values 2019, negatively affecting producer prices Increase/Decrease 2018 2019 and causing deterioration in rangeland con- (2018-2019) % ditions and water availability. These detrimen- Cattle 3,634,577,453 3,260,958,117 -10.3 tal drought conditions resulted in a drop in Sheep 874,125,973 720,958,702 -17.5 primary production and increased herd liq- Goats 147,241,813 135,853,328 -7.7 uidation to reduce financial losses, causing Agronomy 318,816,518 156,222,103 -51.0 a surge in the marketing of cows, which in- Dairy 131,017,621 122,219,978 -6.7 fluenced the production capacity of the live- Pigs 117,246,384 120,404,381 2.7 stock industry negatively. At the beginning Grapes 673,833,000 810,000,000 20.2 Poultry 908,641,667 1,054,426,589 16.0 of 2020, Namibia received good rains in the Fresh Produce (Veg and Fruit) 221,566,093 240,274,807 8.4 cattle producing areas, whereas the south Charcoal 306,720,000 342,847,080 11.8 continued to battle the drought and its ad- Swakara 30,720,027 22,925,616 -25.4 verse effects. The good rains received broke Total 7,364,506,548 6,987,090,701 the spell of drought and marked the begin- Source: NAU ning of a restocking phase in the livestock sub-sector. However, farmers entered the duction value dropped by more than 50% Market statistics restocking phase with negative cash flows, year-on-year (YOY) due to low production Comparing 2018 to 2019 (see Figure 1, be- because the income received from the sale volumes resulting from delayed rains, late low), the majority of cattle producers liqui- of livestock during the drought period had planting and production losses. The Swaka- dated their stock in 2019, leading to a 1.6% been reused to maintain remaining livestock ra sector’s estimated production value fell by increase in cattle marketed. Furthermore, on farms. In 2019 (June) the agricultural debt 25.4% YOY, in response to a decline in both among the liquidated stocks, a large number stood at N$7.1 billion compared to N$6.3 bil- prices and the quantity marketed. of cows were marketed, which compromised lion in June of 2018 (representing a 13.1% in- the reproduction capacity of the country as crease in overall debt levels). The sheep sector experienced a downswing well as post-drought rebuilding initiatives. in the producer price paid, as well as a drop in Overall, Namibia exported 318 880 live cat- Considering the extent of the debt incurred the total number of sheep marketed in 2019, tle in 2018 and 289 580 live head of cattle in by the farming industry, it is anticipated that causing the production value to decrease by 2019 (mainly to South Africa and Angola), the post-drought recovery will take 3 to 5 17.5% YOY. The cattle sector recorded a de- indicating a 9.2% decrease in live cattle ex- years and that it will be a challenging peri- crease in production value of about 4.2% YOY, ports. Export abattoirs received a through- od for farmers. This was furthermore com- which is attributable to a fall in the weaner put of 75 755 head of cattle in 2018, where- pounded by the fact that the post-drought price in 2019. The total milk produced in the as in 2019, export abattoirs procured 129 735 recovery challenge was negatively affected dairy sector in 2019 amounted to two million cattle, demonstrating a 71.3% increase in the by the Covid-19 pandemic, which caused un- litres less than that of 2018. This was com- number of animals slaughtered at export ab- certainties that influenced investment in the pounded by the fact that there was no raw milk attoirs. In addition, Meatco received 116 121 agriculture sector adversely. price increase over the past three years, trig- units of cattle in 2019, which was 76.1% more gering a production value drop of 6.7% YOY. than the 2018 slaughter figures. In 2018, the Production value of different B and C class abattoirs’ throughput was esti- The charcoal and poultry sectors continued mated to be around 80 000 and 56 663 cattle agricultural enterprises on a positive trend, signifying strong growth in 2019, indicating a major decrease of 29.2%. Table 1, contains production value estimates over the past two years. Likewise, the produc- of various agricultural enterprises defined as tion values of charcoal and poultry increased Since the suspension of the Small Stock Mar- the annual output from primary produce mar- by 11.8% and 16.0% YOY, respectively. Char- keting Scheme, it was envisaged that the live keted in the formal market at actual nominal coal played a significant role in helping farm- export of sheep would increase by a large mar- producer prices. The agriculture production ers survive the ongoing drought. The pork and gin. However, sheep exports grew by a negli- value in 2019 decreased by 5.1% compared grape sectors experienced negative produc- gible percentage of 0.2%, i.e. it increased from to the 2018 production value. This was driv- tion values in 2018, but both made a come- 455 510 head of sheep in 2018 to 456 255 head en by the poor performance in the agrono- back in 2019 displaying increases of around of sheep in 2019. South Africa obtained 456 my, Swakara, livestock and dairy sectors. The 2.7% and 20.2% YOY respectively. The rise in 004 live sheep in 2019 of which 61.3% were agronomy and Swakara sectors showed neg- pig production value resulted from a growth slaughter sheep, 26.3% too-lean-too small and ative trajectories in 2018, while 2019 did not in production, whereas that of grapes were 12.3% fat-tailed sheep. Further, sheep export look any better. The agronomy sector’s pro- the result of improved market prices. abattoirs acquired 154 038 sheep in 2019, sig-

6 NAU Annual Report 2019-2020 5

Agronomy 318,816,518 156,222,103 -51.0 Dairy 131,017,621 122,219,978 -6.7 Pigs 117,246,384 120,404,381 2.7 Grapes 673,833,000 810,000,000 20.2 Poultry 908,641,667 1,054,426,589 16.0 Fresh Produce (Veg and Fruit) 221,566,093 240,274,807 8.4 Charcoal 306,720,000 342,847,080 11.8 Swakara 30,720,027 22,925,616 -25.4

Total 7,364,506,548 6,987,090,701 Source: NAU

Market Statistics Comparing 2018 to 2019 (see Figure 1, below), the majority of cattle producers liquidated their stock in 2019, leading to a 1.6% increase in cattle marketed. Furthermore, among the liquidated stocks, a large number of cows were marketed, which compromised the reproduction capacity of the country as well as post-drought rebuilding initiatives. Overall, Namibia exported 318 880 live cattle in 2018 and 289 580 live head of cattle in 2019 (mainly to South Africa and Angola), indicating a 9.2% decrease in live cattle exports. Export abattoirs received a throughput of 75 755 head of cattle in 2018, whereas in 2019, export abattoirs procured 129 735 cattle, demonstrating a 71.3% increase in the number of animals slaughtered at export abattoirs. In addition, Meatco received 116 121 units of cattle in 2019, which was 76.1% more than the 2018 slaughter figures. In 2018, the B&C class abattoirs’ throughput was estimated to be around 80 000 and 56 663 cattle in 2019, indicating a major decrease of 29.2%.

Since the suspension of the Small Stock Marketing Scheme, it was envisaged that the live export of sheep would increase by a large margin. However, sheep exports grew by a negligible percentage of 0.2%, i.e. it increased from 455 510 head of sheep in 2018 to 456 255 head of sheep in 2019. South Africa obtained 456 004 live sheep in 2019 of which 61.3% were slaughter sheep, 26.3% too-lean-too small and 12.3% fat- tailed sheep. Further, sheep export abattoirs acquired 154 038 sheep in 2019, signifying a 19.4% drop in throughput, while in 2018 export abattoirs received 191 029 head of sheep. B&C class abattoirs secured 129 828 head of sheep in 2019, which is 25.5% less than that which was received in 2018. nifying a 19.4% drop in throughput, while in 570 000 6 1 270 000 2018 export abattoirs received 191 029 head of 520 000 6 1 070 000 sheep. B and C class abattoirs secured 129 828 A total470 of 000 approximately 310 483 cattle (excl. Nguni) were auctioned in 2018 and about 316 518 cattle (excl. Nguni) were auctioned off in 2019, indicating a 1.9% increase. The marketing of cattle at auctions head of sheep in 2019, which is 25.5% less than 420 000 870 000 that which was received in 2018 (see Figure 1). Aimproved total370 of 000 byapproximately 46.0%, i.e. producers 310 483 cattle auctioned (excl. off Nguni) 43 966 were head auctioned of in cattle in 2018 2018 and and about 64 185 316 in 5182019. cattle The drought and lack of grazing resulted in an undesirable effect on the body condition of animals that led (excl.320 Nguni) 000 were auctioned off in 2019, indicating a 1.9% increase. The marketing of cattle670 at 000 auctions improvedto large number by 46.0%,s of i.e.cattle producers being auctioned auctioned off off in 432019 966 that head were of inmedium cattle (36.5%)2018 and and 64 lean185 in(46.0%). 2019. TheIt is A total of approximately 310 483 cattle (excl. worth270 noting 000 is that producers auctioned off 14 030 lean cattle in 2018 and 29 537 in 2019, signifying a drought and lack of grazing resulted in an undesirable effect on the body condition of animals470 000 that led Nguni) were auctioned in 2018 and about 316 to110.5% large220 increase number 000 sin of the cattle marketing being auctioned of lean cattle off in, see20197 Figure that were 2 below medium. Furthermore, (36.5%) and Meatco lean (46.0%). slaughtered It is Number of Cattle Number of Sheep 518 cattle (excl. Nguni) were auctioned off in w68orth 765170 notingcattle 000 isin that201 andproducers 28 722 auctionedin 2018, displaying off 14 030 a 139.4%lean cattle increase in 2018 in the and cattle 29 537 slaughtered in 2019, signifying at Meatco. a The estimated figure of cattle slaughtered in 2019 was 80 015 (including fat cattle auctioned270 000 and 2019, indicating a 1.9% increase. The market- 110.5%120 increase 000 in the marketing of lean cattle, see Figure 2 below. Furthermore, Meatco slaughtered 68slaughtered 765 cattle at in Meatco), 201 and 28which 722 isin 98.9%2018, moredisplaying than athe 139.4% cattle increase slaughtered in the in cattle 2018. slaughtered at Meatco. 70 000 70 000 ing of cattle at auctions improved by 46.0%, The totalestimated weighted figure cattle of cattleprice, slaughteredwhich is the inweighted 2019 was average 80 015 of weaner(including and fat slaughter cattle auctionedprices, declined and 2011 2012 2013 2014 2015 2016 2017 2018 2019 i.e. producers auctioned off 43 966 head of in byslaughtered 1.7% Y-o -atY inMeatco), Q4-2019, which which is 98.9% was causemore dthan by athe drastic cattle dropslaughtered in the weanerin 2018. price in the first half of 2019. Comparing Q4-2018 to Q4-2019, the weaner price decreased by 6.8% Y-o-Y and the slaughter price cattle 2018 and 64 185 in 2019. The drought Cattle live export Cattle local slaughter Total Cattle Total Sheep by a negligible percentage point of about 0.1% Y-o-Y. The foot-and-mouth disease outbreak in South and lack of grazing resulted in an undesirable FigureAfricaFigure 1:at 1: theAnnual Annual beginning marketing marketing of 2019 volumesvolumes did not only depress the weaner price, but also affected sheep prices in effect on the body condition of animals that Q1-&-Q2-2019. However, sheep prices began to recover in Q3-&-Q4-2019 due to an increase in demand Source:Source:30 000 Meat Meat Board, Board, compiled compiled by by NAU NAU led to large numbers of cattle being auctioned for sheep. Nevertheless, the 2018 sheep prices remained slightly higher in comparison to 2019 as the 25 000 off in 2019 that were medium (36.5%) and lean 2019 prices decreased by 7.8% Y-o-Y. 3020 000 (46.0%). It is worth noting that producers auc- 2515 000 tioned off 14 030 lean cattle in 2018 and 29 537 Agri-inflation and price view for 2020 Livestock2010 000 prices improved considerably in the first quarter (first three months) of 2020, but began to in 2019, signifying a 110.5% increase in the mar- decreaseNumber of cows 155 000 in Q2-2020, whilst agri-inflation continued to increase. Looking at Q2-2019 to Q2-20202, the keting of lean cattle (see Figure 2). Furthermore, agri10-inflation 0000 rate increased by 2.0% (Y-o-Y). The escalation was caused by a 11.1% (Y-o-Y) increase in capital expenditure, a 17.8% (Y-o-Y), an increase in vehicle repairs, a 6.9% (Y-o-Y) increase in Meatco slaughtered 68 765 cattle in 2019 and Number of cows 5 000 2015 2016 2017 2018 2019 28 722 in 2018, displaying a 139.4% increase in maintenance and fixed improvements, as well as a surge in the exchange rate. On a year-to-year basis (i.e. from0 Q2-2019 to Q2-2020), cattle prices improved by 18.4%, which was driven by the weaner price 2015 2016 2017 2018 2019 the cattle slaughtered at Meatco. The estimat- increment of about 38.1% Y-o-Y that resulted from the effects of the foot-and-mouth disease outbreak ed figure of cattle slaughtered in 2019 was 80 in South Africa in 2019.Slaughter Nevertheless, heifers_ a 24Cows-month Fat_ (i.e. fromCows Q2Medium_-2018 to Q2-2020)Cows Lean_ period overview of 015 (including fat cattle auctioned and slaugh- cattle prices demonstrate that cattle prices increased by 4.6% - the weaner price dropped by a margin ofFigure 0.4% 2:and Cattle the slaughterauctioned price grew by 7.4% over the past 24 months. Sheep prices increased by more tered at Meatco), which is 98.9% more than the Figure 2: Cattle auctionedSlaughter heifers_ Cows Fat_ Cows Medium_ Cows Lean_ thanSource: 14.8% LABTA, Y-o- Ycompiled from Q2 by-2019 NAU to Q2-2020, because of increased demand in the marketplace. cattle slaughtered in 2018. Source: LABTA, compiled by NAU Figure 2: Cattle auctioned Source:Marketing120 LABTA, review compiled for 2020 by NAU Livestock producers have moved into a herd rebuilding phase. Consequently, the number of cattle, sheep 110 Marketing review for 2020 Marketingand goats marketedreview for in 2020 the first half of 2020 were reduced by 49.6%, 55.5% and 54.3% respectively in Livestock producers have moved into a herd Livestockcompar100 ison producers to the same have period moved in into 2019. a herd The rebuilding quantity ophase.f pigs slaughteredConsequently, also the decreased number of by cattle, 7.9% duringsheep andthe90 samegoats periodmarketed by comparison. in the first half of 2020 were reduced by 49.6%, 55.5% and 54.3% respectively in rebuilding phase. Consequently, the num- compar80 ison to the same period in 2019. The quantity of pigs slaughtered also decreased by 7.9% during ber of cattle, sheep and goats marketed in theDuring same the period first six by monthscomparison. of 2020, Namibia exported 75 301 live cattle and export abattoirs received a the first half of 2020 were reduced by 49.6%, throughput70 of 30 435 head of cattle whilst both live exports and slaughtering at export abattoirs 55.5% and 54.3% respectively in comparison Duringdecreased60 the byfirst a percentagesix months ofslightly 2020, aboveNamibia 50% exported in comparison 75 301 to live the cattle 2019 and(January export-June) abattoirs figure receiveds. In 2019 a (January-June), sheep export abattoirs secured approximately 119 022 head of sheep, but in 2020 to the same period in 2019. The quantity of throughput50 of 30 435 head of cattle whilst both live exports and slaughtering at export abattoirs decreased(January-June) by a percentagesheep export slightly abattoirs above acquired 50% in comparisona lower quantity to the of 2019 about (January 22 924-June) sheep, figure illustratings. In 2019 a pigs slaughtered also decreased by 7.9% dur- (Januarydrastic40 drop-June), of 80.7%. sheep The export live sheepabattoirs export secured component approximately of the sheep 119 market 022 head did notof performsheep, but any inbetter, 2020 ing the same period by comparison. (Januarybecause30 -whenJune) comparing sheep export the afirstbattoirs half ofacquired 2019 to a thatlower of quantity2020, live of sheepabout export22 924s decreasedsheep, illustrating by 52.0%, a drastici.e. the1 drop number2 3 4 of1 280.7%. of3 4 live1 2The 3sheep4 live1 2 3 exportedsheep4 1 2 3export4 1in2 20193 component4 1 (January2 3 4 1 2 of3-June) 4the1 2 sheep 3was4 1 2296 market3 4 1371 2 3didand4 1not in2 3 2020perform4 1 2 (January3 4 any1 2 3better,-4June)1 2 because142 067. whenSince comparingfarmers are the in firstthe processhalf of 2019of rebuilding to that of their 2020, stock lives, sheepit is anticipated exports decreased that there by will52.0%, be During the first six months of 2020, Namibia 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 i.e.less thelivestock number available of live fsheepor marketing exported in in2020. 2019 (January-June) was 296 137 and in 2020 (January-June) exported 75 301 live cattle and export abat- 142 067. Since farmers are in the process*Cattle of rebuilding*Sheep their stock*Totals ,Expenses it is anticipated that there will be Inflation of agricultural expenses vs prices toirs received a throughput of 30 435 head of less livestock available for marketing in 2020. cattle while both live exports and slaughtering Figure TheFigure agricultur 3: 3: Cattle/sheepal sector is incomeincome faced withand and on manyon-farm-farm challenges expenses expenses. and Source: rising production NAU costs is one of them. The production cost index recorded a 105.4 basis point in the 4th quarter (Q4) of 2018, which then increased at export abattoirs decreased by a percent- Source:Inflation NAU of agricultural expenses vs prices Theto 110.1 agricultur basis pointal sector in Q4 is- 2019faced (see with Figure many 3). challenges This means and the rising annual production agri-inflation costs rate is one improved of them. by 4.4%The age slightly above 50 in comparison to 2019 yeared a- on105.4-year basis (Y-o- pointY), which in the was 4th driven quarter by an (Q4)increase in feed costs (11.1% Y-o-Y) and medicinal expenses Producersproduction continue cost index to recorded pay more a for105.4 input basis in pointthe production in theAgri-inflation 4th ofquarter livestock (Q4) than of 2018, they and which receive price then on increasedthe view market (21.6%Y-o-Y). (January-June) figures. In 2019 (January-June), fortoof 110.1 2018,livestock basis which sold. point then As in a Q4 increasedresult,-2019 for (see theto Figure 110.1past 3).14 basis yearsThis means, producersfor the annual2020 had to agri improve-inflation productivity rate improved and efficiencyby 4.4% sheep export abattoirs secured approximate- byyearpoint 2.7%-on in -peryear Q4-2019 annum (Y-o-Y), for(see which cattle Figure was and driven 3). 0.6% This byper meansa nannum increase for in sheep feed coststo break (11.1% even Y-.o - Y) and medicinal expenses ly 119 022 head of sheep, but in 2020 (Janu- (21.6%Ythe annual-o-Y). agri-inflation rate improved by Livestock prices improved considerably in the ary-June) sheep export abattoirs acquired a Profitability4.4% year-on-year of different (YOY), production which was systems driven first quarter (first three months) of 2020, but Different cattle production systems raise different types of cattle for marketing. A cattle production lower quantity of about 22 924 sheep, illus- systemby an increaseentails producing in feed costs livestock (11.1% (e.g. YOY) slaughter and ing beganoxen, heifersto decrease and cows) in Q2-2020, ready forwhile slaughter agri-in -at trating a drastic drop of 80.7%. abattoirs.medicinal A expenses weaner pr (21.6%oduction YOY). system consists of breedingflation cowscontinued whose to sole increase purpose (see is toFigure produce 3). marketable weaner calves weaned at 7-8 months. InLooking a weaner at- oxQ2-2019 production to Q2-2020, system, the producers agri-infla buy- The live sheep export component of the sheep weanersThe total weighing weighted about cattle 220 price, kg at whichauctions, is the these weanerstion rate are increased then raised by 2% extensively (YOY). The u nderescalation natural market did not perform any better, because weighted average of weaner and slaughter was caused by a 11.1% (YOY) increase in capi- when comparing the first half of 2019 to that of prices, declined by 1.7% YOY in Q4-2019, which tal expenditure, a 17.8% (YOY), an increase in 2020, live sheep exports decreased by 52.0%, was caused by a drastic drop in the weaner vehicle repairs, a 6.9% (YOY) increase in main- i.e. the number of live sheep exported in 2019 price in the first half of 2019. Comparing Q4- tenance and fixed improvements, as well as a (January-June) was 296 137 and in 2020 (Jan- 2018 to Q4-2019, the weaner price decreased surge in the exchange rate. On a year-to-year uary-June) 142 067. Since farmers are in the by 6.8% YOY and the slaughter price by a basis (i.e. from Q2-2019 to Q2-2020), cattle pric- process of rebuilding their stocks, it is antic- negligible percentage point of about 0.1% es improved by 18.4%, which was driven by ipated that there will be less livestock avail- YOY. The foot-and-mouth disease outbreak the weaner price increment of about 38.1% able for marketing in 2020. in South Africa at the beginning of 2019 did YOY that resulted from the effects of the foot- not only depress the weaner price, but also and-mouth disease outbreak in South Africa Inflation of agricultural affected sheep prices in Q1-&-Q2-2019. How- in 2019. Nevertheless, a 24-month (i.e. from ever, sheep prices began to recover in Q3-&- Q2-2018 to Q2-2020) period overview of cat- expenses vs prices Q4-2019 due to an increase in demand for tle prices demonstrate that cattle prices in- The agricultural sector is faced with many sheep. Nevertheless, the 2018 sheep prices creased by 4.6%. The weaner price dropped challenges and rising production costs is one remained slightly higher in comparison to by a margin of 0.4% and the slaughter price of them. The production cost index record- 2019 as the 2019 prices decreased by 7.8% YOY. grew by 7.4% over the past 24 months. Sheep

NAU Annual Report 2019-2020 7 INSURANCE

+264 61 284 3111 [email protected] www.welwitschia.com.na Welwitschia Insurance Brokers welwitschia_insurance

DIAMOND ARROW AWARD 2011 | 2012 | 2014 | 2015 | 2017 | 2019 | 2020 8

grazing conditios until they are ready for slaughter at about 472 kg live weight - this system has no cow herd.

At the start of 2019, the outbreak of foot-and-mouth disease in South Africa suppressed the weaner price and the profitability of weaner production. On the other hand, Meatco maintained a higher and more stable slaughter price, which improved the profitability of oxen producers (see Figure 4). Throughout the years, the lamb production system had a more robust long-term price growth and a short cash flow cycle, meaning that profits are consistent. Note that the different production systems analysis was done using June 2019 producer price and farm level assumptions. Also, the net surplus per annum is calculated hereunder for an average cattle farm of 7 500 hectare (Ha) and a sheep farm of 11 000 Ha.

As circumstances and patterns in the agricultural sector change, so does profit. The cyclical variation in prices and other market determinants sometimes occur more rapidly and unexpectedly than it is possible to change the production system. Changing from one production system to another is time consuming and costly. As such, it is important to adopt a flexible farming approach, build-up capital reserves and diversify income streams to promote sustainable cash flows during challenging times. An additional analysis conducted in 2019 that compares a 5 000 Ha cattle farm to a 7 500 Ha cattle farm, demonstrated that producers involved in cow-ox and weaner production systems farming on a 5 000 Ha farm, experienced more financial pressure than those on 7 500 Ha farms. All cattle production systems on 7 500 Ha realized positive margins, while farms of 5 000 Ha with only ox production systems showed positive profitability. In the end, all producers strive to optimise production and income, but the hectares under production determine whether producers achieve acceptable profit margins or not.

Overview continued ... 330 000.00

230 000.00 prices increased by more than 14.8% YOY from 130 000.00 Q2-2019 to Q2-2020, because of increased demand in the marketplace. 30 000.00

Cow-ox Weaner Ox Lamb Producers continue to pay more for input in the (70 000.00)

production of livestock than they receive on the in surplus/year NAD Nett (170 000.00) market for livestock sold. As a result, for the past 14 years, producers had to improve productiv- (270 000.00) ity and efficiency by 2.7% per annum for cattle 2013 2014 2015 2016 2017 2018 2019 and 0.6% per annum for sheep to break even. Figure 4: ProfitabilityProfitability ofof different productionproduction systemsystem –– 7 7 500 500 Ha/11ha/11 000000 Haha Source: NAU Profitability of different Post-drought recovery ducers involved in cow-ox and weaner production systems farming on production systems Farmers are in dire needa of5 000financial ha farm, support experienced as they rebuil mored theirfinancial herds pressurepost-drought. than thoseAt the onstart 7 of 2020, farmers started farming operations with approximately 50% of own herd. According to the cash Different cattle production systems raise different types of cattle for 500 ha farms. All cattle production systems on 7 500 ha realised posi- INSURANCE flow models developed by the NAU that considered a 5 000 Ha cattle farm and a 7 300 Ha sheep farm, marketing. A cattle production system entails producingfarming livestock with half (e.g. the remainingtive margins, herds withoutwhile farms fully ofutilising 5 000 theha withwhole only farm ox and production identifying systems alternative slaughtering oxen, heifers and cows) ready for slaughterincome at streams abattoirs. such A asshowed charcoal positive production, profitability. tourism, Inetc., the foreseeend, all that producers producers strive can to expect opti- to weaner production system consists of breeding cowsexperience whose soleserious pur cash- mise flow production problems and and possibleincome, financialbut the hectaresruin (see under Figure production 5A). Furthermore, de- pose is to produce marketable weaner calves weaneddiversification at 7 to 8 months. can only gotermine so far whetheras to cover producers operationa achievel costs, acceptable as some diversification profit margins options or not. require taking on additional loans, leaving producers in debt. Farmers are currently in dire need of sustainable In a weaner-ox production system, producers buyand weaners well-structured weighing financial assistance and/or refinancing options to enable them to rebuild their herds about 220 kg at auctions. They are then raised extensivelyand to supply under raw nat material- to the rest of the value chain. ural grazing conditions until they are ready for slaughter at about 472 Post-drought recovery kg live weight. This system has no cow herd. Farmers are in dire need of financial support as they rebuild their herds post-drought. At the start of 2020, farmers started farming operations At the start of 2019, the outbreak of foot-and-mouth disease in South with approximately 50% of own herd. According to the cash flow mod- Africa suppressed the weaner price and the profitability of weaner pro- els developed by the NAU that considered a 5 000 ha cattle farm and a duction. On the other hand, Meatco maintained a higher and more sta- 7 300 ha sheep farm, farming with half the remaining herds without ful- ble slaughter price, which improved the profitability of oxen producers ly utilising the whole farm and identifying alternative income streams (see Figure 4). Throughout the years, the lamb production system had a such as charcoal production, tourism, etc., foresee that producers can more robust long-term price growth and a short cash flow cycle, mean- expect to experience serious cash flow problems and possible financial ing that profits are consistent. (Note that the different production sys- ruin (see Figure 5A). Furthermore, diversification can only go so far as to tems analysis was done using June 2019 producer price and farm level cover operational costs, as some diversification options require taking assumptions. Also, the net surplus per annum is calculated hereunder on additional loans, leaving producers in debt. Farmers are currently in for an average cattle farm of 7 500 ha and a sheep farm of 11 000 ha). dire need of sustainable and well-structured financial assistance and/ or refinancing options to enable them to rebuild their herds and to sup- As circumstances and patterns in the agricultural sector change, so ply raw material to the rest of the value chain. does profit. The cyclical variation in prices and other market determinants sometimes occur more rapidly and unexpectedly than it is pos- The re-financing options that were investigated include payment holi- sible to change the production system. Changing from one production day for three years, as well as the consolidation of short- and long-term system to another is time consuming and costly. As such, it is important loans at reduced rates. A payment holiday loan is easier to execute (see to adopt a flexible farming approach, build-up capital reserves and di- Figure 5B) as it allows producers to re-build their herds and recover cash versify income streams to promote sustainable cash flows during chal- flow. It also enables producers to meet financial commitments earlier. lenging times. An additional analysis conducted in 2019 that compares The consolidation of short- and long-term loans at a rate of 4% with an a 5 000 ha cattle farm to a 7 500 ha cattle farm, demonstrated that pro- extension of five years to the loan term, could also be a viable option.

A: Bank balance: B: Bank balance: Farming with own herd, no diversification Farming with own herd, buying-in (light weaners), producing charcoal, plus refinancing loan options

+264 61 284 3111 [email protected] www.welwitschia.com.na Welwitschia Insurance Brokers welwitschia_insurance Figure 5: Cash flow model outcome Source: NAU

DIAMOND ARROW AWARD 2011 | 2012 | 2014 | 2015 | 2017 | 2019 | 2020 NAU Annual Report 2019-2020 9

ORGANISATIONAL MATTERS Affiliations Management Council: On 30 June 2020, 67 Farmers Associations were affiliated at the NAU The Management Council mainly handles personnel matters and other matters referred by the Executive Council. Management: Management Council members are as follows: Executive Council Mr PS Gouws - President Mr AM Pretorius - Livestock Producers Association Mr GH Eggert - Agronomic Producers Association Mr K Adriaanse - Dairy Producers Association Mr HHT Förtsch - Agricultural Employers Association Mr R Werner - Poultry Producers Association Ms J Meyer - Swakara Forum Ms T Dahl - NAPHA Mr PS Gouws (President) Mr AM Pretorius Mr S Pienaar - Kaap Agri Namibia Mr E Erni - South Western region Mr K van der Merwe - Karasburg region Mr J van Rooyen - Keetmanshoop region Mr P J van Wyk - Mariental region Mr K-E von Kühne - Gobabis region Mr E Hoff - Windhoek region Mr M Hilbert - Okahandja region Mr G Kahl - Otjiwarongo region Mr A van Niekerk - Outjo region Mr HHT Förtsch Mr M Hilbert Mr P Stoman - Grootfontein/Tsumeb/Otavi region

NAU Annual Report 2019-2020 11 CONGRESS 2019

The 73rd NAU congress was held on 9 Octo- ber 2019 with the theme “Re-build after the drought”. No points of discussion were presented at the congress.

During the Agricultural Outlook Conference Awards of October 8, 2019 held with the theme “Re- The following awards were build after the drought” the following man- presented during the official opening: date was given to the congress: Community Project of the Year The main ideas for repair after the drought The trophy for the Community Project of are summarised as follows: the Year was presented to Marianne Seifart • Rangeland recovery of Dordabis FA and Henriette le Grange of • Re-stocking of herds Summerdown FA by Mr Christo du Plessis of • Financial recovery Feedmaster. AgriStar Mr Jan Visagie of Onder Nossob FA received These activities require coordinated coop- Agricultural Woman of the Year an AgriStar. The award was presented by the eration among role players, including (inter The trophy for Agricultural Woman of the president of the NAU, Mr Ryno van der Merwe. alia) the government, financial sector, trade Year was presented to Ms Sonia Eberhardt of and production. Grünau FA by Ms Ndapewa Neshila of Agra. Long Service awards • The implementation of a national range- A certificate of acknowledgement for long land policy and strategy is critical to the re- Media Personality of the Year service for serving on the Executive Council pair of rangeland after the drought The trophy for the Media House of the Year was presented to Mr JC de Klerk by the chair- • Diversification must be implemented to was presented to Channel 7 by Ms Ndapewa person of the Livestock Producers Organisa- speed up re-building Neshila of Agra. tion (LPO), Mr Piet Gouws. • Re-building of herds must be executed within the framework of the principles of the na- Jan Visagie honoured tional rangeland policy and strategy, and with highest award • The financial sector must recognise the fi- Veteran agricultural leader Jan Visagie (right) nancial pressure experienced by producers from Aranos receives the AgriStar, the highest by creating mechanisms to assist producers award of the Namibia Agricultural Union (NAU) with financial recovery after the drought in for extraordinary contributions to organised cooperation with all stakeholders. agriculture, from NAU president Ryno van der Merwe (middle). Left is Jan’s very supportive The establishment of the Chamber of Agri- wife, Ria. The awarding of this trophy is very culture as decided in 2018, could serve as ve- important and is very carefully considered by hicle to reach the above objectives and con- the NAU. It is thus not awarded every year. Jan gress resolved as follows: achieved the distinction of becoming the first master conservation farmer in the Mariental region at the young age of 29 years. He has also been involved in various agricultural areas over the past To promote the urgent establishment of the 46 years. In his younger days he served for eight years as deputy secretary of the Lower Nossob Chamber of Agriculture for the inclusive par- Farmers’ Union and for the same period as chairman and on the management of the Karakul Pro- ticipation of all role players in the agricultur- ducers’ Union. He further served on the general council and executive council of the South West al sector to develop joint agricultural policies Africa Agricultural Union (SWAAU), the NU’s predecessor. In his 22 years as a Land Bank assessor, he and strategies, as well as to foster a favoura- evaluated 141 farms. His thirty years’ service as a member of the Agra Board of Directors ended in ble policy environment to support produc- 2017. Finally, Jan also made valuable contributions as a committee member regarding the conten- ers in the post-drought recovery process. tious sheep scheme with its export restrictions.

Two winners rewarded for community work Two live wire women, Henriette le Grange (left) of Summerdown and Mari- anne Seifart (right) of Dordabis shared this year’s Feedmaster NAU award for the community project of the year that they are seen here accepting from Christo du Plessis, marketing manager of Feedmaster. Henriette was rewarded for the zeal with which she conducted the project, Namibia Farmer’s Drought Aid. By the beginning of October she had manager to collect N$2,6 million through various activities to provide aid to farmers and animals in need. To date 25 370 bales of lucerne and more than 7 600 bags of feed have been distributed among about 550 farmers throughout the country. Do visit the Facebook page under the project name for more information or to participate in auctions of products that are regularly donated. Simultaneous- ly, Marianne was honoured for community contributions since she chose in 2016 to serve on the Dordabis Development committee. This led to her col- lecting building material and money, amongst other things by organising a spring festival, to undertake renovations at the community hall. She further started a needlework group and a gardening project as part of her selfless work of uplifting the community. The Seifart’s personally paid for the repairs to pumping equipment on behalf of the community.

12 NAU Annual Report 2019-2020 South also produces agricultural Another certificate of acknowledgement for woman of the year long service was presented to Mrs Hulda Moo- Sonia Eberhard, go-to secretary of the tu for 40 years of loyal and dedicated service Grünau Farmers’ Union since 2016, was to the NAU by Mr Roelie Venter, Executive crowned as the Agra-NAU agricultural wom- Manager of the NAU. an of the year. Here she received her award from Carel Jordaan of Agra. Apart from her Corporate membership certificates close association with NAU-matters she is The NAU invited businesses who deal with also a Van Rooi stud breeder and looks after the agricultural sector to become corporate her own Boer goat herd. She has been a dele- members of the NAU. Besides strengthening gate on behalf of her Farmers’ Union to tack- the finances of the NAU, corporate member- le the countrywide issues of grazing man- ship strengthens organised agriculture by pro- agement and to provide input under the viding an extra voice from these businesses. auspices of the Joint Crime Prevention forum On the part of the NAU, the entity offers pub- regarding the inception of a rural security licity and other advantages to such business- plan. Sonia also handles the administration es. The president of the NAU presented a cor- of the Grünau neighbourhood watch and li- porate membership certificate to Nutri Feeds aises with the Keetmanshoop police. She is at her post in her community regarding out- reach activities for the elderly, organising annual independence celebrations and this year also the very successful winter school in the deep south for which the Grünau Farmers’ Un- ion was the host. Her farmers’ union chairman, Kobus van der Merwe was fulsome in his praise for her efficiency. Sonia is the wife of Hans, a farmers’ union member of many years standing and chairman until recently – a position he has also occupied in the past.

It is very seldom that an employee achieves The NAU nominated Kanaal 7 as the media house of the year for the extra effort they put in to 40 years’ service at the same place of employ- support the Dare to Care stock feed subsidy fund under the auspices of the NAU. Carel Jordaan, ment – an achievement for which stalwart Hul- general manager of stock auctions at Agra (sponsor of the prize) hands over the award to Ste- da Mootu was honoured at the recent NAU fan Saayman (left), general manager of Kanaal 7 and Ina van Tonder (right), agricultural journal- congress. She received her long service certifi- ist. Kanaal 7 provided incredible free advertising for the fund. They further donated an amount cate from Roelie Venter, executive manager of of N$150 000 – the income from a once-off telethon and money that sender committees in towns the NAU. Hulda started work at the NAU at the donated from their share of income from the Kanaal 7 radiothon. age of 23 and is still loyally at her post. Fifteenth corporative member introduced J C de Klerk from Koës received a Francois Jones (right) of Nutri Feeds re- certificate from ceived the NAU certificate for silver corpo- the NAU for his rative membership from Ryno van der Mer- service between we who recently stepped down as NAU 2015 and 2019 president. This brings the number of corpo- on the executive rative members to 15. The NAU recently in- council. He was troduced corporative membership to allow also the deputy it to fulfil its duties in organised agriculture chairman of the after the government suspended its subsi- APO and helped dy of N$5,7 million to agricultural unions. to further the In exchange for membership corporative sheep marketing issue up to the point where members receive free access to statistics a grace period of one year without export re- and information from the NAU as well as strictions was announced during the economic exposure on NAU media platforms. The op- conference held at the end of July last year. Jo- tions are N$80 000 (gold), N$50 000 (plati- han van Rooyen succeeded JC as the represent- num) and N$30 000 (silver) per annum. Pro- ative of the Keetmanshoop regional agricultur- spective members can contact the NAU for al union on the executive council of the NAU. more information.

NAU Annual Report 2019-2020 13

MATTERS HANDLED BY THE EXECUTIVE/MANAGEMENT COUNCIL

Vision of Honourable Creating synergy among interested parties hunting industry had 100% booking cancel- Minister of Agriculture within a supportive policy environment: lations overnight and by June 2020 it was ev- NAU members, fellow producers and the re- ident that there were no prospects for any In his motivation of the Ministry’s budget in maining agricultural value chain need to fos- improvement in the situation. The closure of June 2020, the honourable Minister of Agri- ter intense cooperation with government to the brewery and the accompanying shortage culture, Water and Land Reform said “Agricul- implement its vision for accelerated growth of brewer’s grain (a by-product of brewing), ture surely offers the best opportunities to re- in the agricultural industry. which is used as an important component cover the economy [and] create productivity in the rations of milk cows, also caused a de- [as well as] decent jobs and [furthermore en- Profitability at farm level: Growth in agricul- crease in production. Swakara pelts, which sures] food self-sufficiency.” ture starts on the farm, while profitability of were scheduled to be sold at the April 2020 primary agricultural production attracts in- auction in Copenhagen, Denmark, could not He further noted that “the Covid-19 pandem- vestment. This is a prerequisite for econom- be exported. The wood and charcoal industry ic and the erosion of multilateralism coupled ic growth. were not declared as essential and/or critical with populism have, however, brought about services. To this end, the NAU supported the a situation wherein we cannot any longer Natural resources: Repairing natural range- Namibia Charcoal Association with numerous rely on secure supplies of basic commodi- land, the implementation of the national efforts to get approval for the industry to re- ties from elsewhere. Export bans for essen- drought strategy as well as water management start its activities. However, all the converg- tial medicines and medical equipment, clo- is the foundation of competing production. ing events nevertheless put producers under sure of borders for food imports and other immediate and immense cash flow pressure. essential commodities are common cause. Action taken to mitigate the We have entered an era of ‘every country for During the lockdown, the Minister of Agricul- themselves’ and hence we must pursue a pol- impact of Covid-19 ture, Water and Land Reform was informed icy aimed towards self-sufficiency. [While] in On November 17 of 2019, the first corona vi- by the NAU and NECFU of the agricultural cri- the past we could utilise revenue from ex- rus case was diagnosed in China. This virus sis, with the main priority being that trade ported surplus to procure and compensate spread rapidly throughout the world. Conse- in essential agricultural products and input for production shortfalls, we must now uti- quently, from February 2020, the world was should continue with the least interference. lise those proceeds to boost local produc- brought to a standstill as governments an- Furthermore, it was requested that the BID 2 tion. Agriculture is our best chance, water nounced lockdowns, businesses closed down regulation of the Bank of Namibia be urgently and land [being] our advantage.” and people stayed at home. In Namibia the reviewed to enable commercial banks to im- first lockdown was announced by President plement payment holidays, while the Minis- The Namibia Agricultural Union supports the Geingob from March 28 until April 17, 2020, try of Finance was requested to provide sub- minister’s ambitious vision and will thus of- extended to May 5, 2020. However, govern- sidies for interest. fer its support on a practical level for these ment announced that the agricultural value aims and objectives with the following spe- chain formed part of essential services and Within days after the lockdown was an- cific goals in mind: that these critical services should therefore nounced, the Minister of Finance declared continue. During this time, the NAU had two an economic stimulus package whereby the • That the gross domestic product (GDP) of staff members at the office during the lock- government would provide guarantees to Ag- primary agriculture in Namibia should be down while the other staff members worked riBank to incur loans in the open market. The doubled in real terms by 2030 from their homes. These conditions caused Bank of Namibia also decreased the repo rate • Namibia becomes food self-sufficient by NAU member meetings to be postponed, as aggressively with more than 2.5 percentage 2030, and well as the cancellation of the AEA congress points, which caused an effective decrease in • Takes cognisance of the fact that while that was initially scheduled to take place in the interest rates of approximately 25%. This growth is important to the economy and June 2020. supported cash flow in the industry as well as sustainability, it should go hand-in-hand post-drought production recovery. with employment creation in the sector. The initial lockdown period also caused a number of logistical challenges regarding Impact of cross-border trade The NAU Executive Council the transportation of agricultural inputs and products. In this regard the NAU was in con- on agricultural products strategic plan stant daily contact with the Ministry of Ag- During May 2020, the Ministry of Health an- During November 2019 the Executive Coun- riculture and would thus like to express its nounced new regulations, which had the cil of the NAU held a planning session to de- sincere gratitude towards the Honourable potential to influence cross-border trade of termine its main priorities to be implement- Minister of Agriculture as well as the Executive agricultural products negatively. During an ed over the next three years. The mission of Director of the ministry and senior manage- investigation the NAU conducted with nu- the NAU was subsequently identified to sup- ment cadres who were continuously availa- merous stakeholders in the agricultural val- port and promote a policy friendly production ble – even over weekends – to assist with re- ue chain, it was found that approximately 920 environment for sustainable agriculture with solving logistical bottlenecks that occurred. trucks crossed the border on a monthly ba- concerted focus on the following main points: We thank you sincerely for your dedication sis for the import and export of agricultural and commitment. products. Effective cross-border movement Capacity building to inspire and motivate: for agricultural products thus have a critical This would include leadership development, The Covid-19 pandemic had an immediate effect on domestic food supply. life skills and technical development among negative effect on the trophy hunting and NAU members, farmworkers and the NAU agricultural tourism sectors, as well as the Industry stakeholders immediately put for- secretariat. Swakara and dairy industries. The trophy ward a proposal to the Minister of Agriculture

NAU Annual Report 2019-2020 15 EXECUTIVE/MANAGEMENT COUNCIL continued ... to inform him of the effects of the new regu- well as commercial banks and we have sub- due to the disastrous drought, which was duly lations on cross-border transportation of agri- sequently requested that payment holidays granted. The NAU was deeply grateful for cultural products and input. The government and/or decreased interest rates are urgently this concession, which was approved by the was encouraged to find a balance between considered. The availability of cheaper fund- Ministry of Finance for imports of raw feed- the necessity of preventing the spread of the ing for producers from abroad was also inves- ing products that are subsequently exempt virus, the preservation of economic activities tigated with regular information updates on from the VAT levy. The directive approved by and employment opportunities, as well as the the subject provided to members on a con- the Minister of Finance on July 22, 2019, came continuous supply of food by the agricultural tinuous basis. into force immediately and is applicable un- value chain to the Namibian population. The til the government declares that drought is export of livestock to neighbouring countries The NAU in dialogue with no longer a national disaster in the country. was also temporarily affected as truck driv- President Geingob ers were quarantined when returning from In November 2019 the NAU was invited by LAND REFORM neighbouring countries. The new challenge President Geingob to participate in a dia- Valuation rolls was subsequently communicated to differ- logue to promote and stimulate economic ent ministries and the implementation of a growth in the agricultural sector. One of the At the time of the finalisation of this Annual relief system at the borders was implement- issues discussed with President Geingob, was Report land tax for 2016-17, 2017-18, 2018-19 ed to resolve the problem. that everybody should be aware that the cur- and 2019-20 was still outstanding. In 2019 the rent drought was the most devastating in hu- NAU had already applied for exemption of pay- DROUGHT 2019 man memory. As such post-drought recovery ment of land tax for 2018-19 with the Minister Implementation of the 2019 was a huge challenge in the sector, which is of Land Reform due to the disastrous drought drought disaster action plan marked by ongoing cash flow shortages that conditions. Furthermore, the court ruled that are likely to extend into the future. Conse- the process of the compilation of the 2012- At the beginning of 2019 the NAU, its affiliat- quently, there is an urgent need to develop 2017 valuation roll is currently invalid and that ed commodity organisations and other ag- an inclusive plan that supports all producers the outstanding land tax assessments should ricultural unions compiled a drought disas- in re-building their herds, while managing be based on the 2007-2012 valuation roll. The ter action plan and resolved to continuously their cash flow effectively at the same time. next step would be that the Ministry of Land communicate the most critical issues affect- However, the cooperation of the entire sec- Reform should sent the outstanding land tax ing agriculture to the Minister of Agriculture, tor is necessary to identify and implement the assessments to all landowners. A period of Water and Forestry. The action plan included most effective solutions. To this end, the NAU plus minus three months would subsequent- the unlimited emergency marketing of live- believes that if all stakeholders plan, evalu- ly be provided for the payment of outstand- stock, as well as the implementation of mar- ate and consult each other when making de- ing land tax and to apply for land tax clearing keting incentives by the government, creating cisions, amicable and effective solutions can certificates. The next part of the process would price stability in the marketplace, promoting be found. The NAU is eager to participate in then be to advertise the 2017-2022 valuation the use of bush feed for drought survival and such planning initiatives and suggests that roll for land tax rates to be calculated in future. financial support mechanisms by the banks a high-level advisory committee, consisting for producers. of all industry stakeholders be constituted At least three years (if 2018-19 is exempt) out- to find sustainable solutions for all the issues standing land tax will have to be paid simulta- In August 2019 the Executive Council pro-ac- plaguing the agricultural sector. neously and as soon as the cabinet confirms tively identified priority activities needed to the rate, assessments will be posted. From promote post-drought recovery. These initia- Dare-to-Care Drought Fund the end of 2019 until March 2020, the Ministry tives included re-financing of debt arrears as The entire agricultural sector, including the of Land Reform visited farms that were sold well as the significance of monthly cash flow NAU and NECFU as well as the private sector, over the past five years to conduct surveys for forecasts by producers and timeous commu- has decided to join hands under the Dare-to- the determination of the new valuation roll. nication thereof to their banks. The main fo- Care umbrella to subsidise the purchase of cus was on positive alternative thinking and feed for all producers in the country. The aim Second National Land Conference effective management on farms, as well as the of the fund was to collect N$10 million, while The decisions of the National Land Conference importance of implementing a long-term Na- an independent auditor (SGA) was appoint- of 2018 are at the office of the Prime Minis- tional Drought Strategy for Namibia. ed to audit the fund after its conclusion. In ter who are responsible for their implemen- November 2019, the Dare-to-Care Fund real- tation. During the last meeting of the high- Cash flow models anticipating the ised its goal (N$10 million) and we would like level committee, which was held in March future to thank everyone who contributed towards 2019, feedback was provided regarding all To highlight the serious challenges of faced the fund for their invaluable support. This en- decisions. Although little progress has been by producers in recovering after drought, the abled the fund to subsidise the purchase of made, the office of the prime minister has NAU developed cash flow models for the next more than 170 000 bags feed for producers to referred all the valid points to various com- 10 years under specific circumstances. For ex- support drought survival. Parts of the coun- mittees and organisations to drive the pro- ample, it has become clear that a producer try received good rains in 2020 while other cess forward. with long-term debt will not be able to meet parts (especially the south, west and north- his or her cash flow responsibilities with only west of Namibia) again received insufficient Improving living conditions of 50% of the cattle herd remaining after the rain in 2020. The final phase of the subsidisa- farmworkers drought cycle if no effort is made to exploit tion was implemented from July 2020, main- This project was initiated following President alternative income sources. It is of utmost im- ly focusing on the aforementioned drought- Geingob’s request to landowners during the portance to use the available rangeland fully stricken parts of the country. Second National Land Conference in 2018 to after the rain in conjunction with generating overcome inequalities and poverty among a supplementary income from other sources Exemption of import VAT farmworkers. During the 2018 Congress, the such as charcoal, tourism, etc., to assist with On May 29, 2019 the NAU applied for VAT ex- NAU unanimously resolved to continue par- the overhead expenditure of the farm. This emption at the Ministry of Finance for the im- ticipating pro-actively in a successful and information was shared with AgriBank as port of animal feed, hay, lucerne, grass, etc., sustainable land reform process as well as

16 NAU Annual Report 2019-2020 to improve the socio-economic conditions products with the participation of producers, Various meetings were held with fellow ag- of farmworkers. processing companies, marketing boards, re- ricultural unions and everyone agreed that a search organisations and representatives of joint project under the leadership of the three In August 2019 the first report was compiled line ministries. This resulted in the formali- agricultural unions should be established. A and presented to the Ministry of Land Reform sation of the ATF as a registered non-profit draft plan was developed with the assistance to include in their execution of the resolutions company in 2003. The ATF is financed exclu- of Mr Nott. The focus is to restore balance of the Second National Land Conference. In sively through membership fees and annual between bush and grass on a national level. the meantime, minimum standards for work- contributions. The Ministry of Trade and In- ers’ housing was compiled and distributed dustry includes the ATF at trade agreement Implementation of Rural to members. In August 2019 the first report meetings. was compiled and submitted to the Minis- Safety Strategy try of Land Reform to be included in the res- In September 2019, the NAU attended a SADC On March 5, 2020, NamPol signed an agree- olutions of the Second National Land Con- (Southern African Development Community), ment with NECFU and the NAU regarding the ference. In the interim, minimum standards EPA (Economic Partnership Agreement) work- implementation of the rural safety plan on a for worker housing were compiled and dis- shop in Cape Town. Under the SADC EPA the regional level. The Inspector General of the tributed among the NAU membership. NAU EU provides 100% free market access and full Namibian Police, Lt-Gen Ndeitunga empha- members were furthermore requested to join or partial exemption from customs duties on sised that agriculture is one of the pillars of the project to improve the living conditions 98.7% of Southern African exports for Namib- the Namibian economy and that it is impor- of their workers over a three-year period. In ia, Lesotho, Botswana, Mozambique and eS- tant that the police protect the farmers and a survey conducted among members, the watini. According the agreement the EU will their property. The plan entails the support of membership undertook to implement vari- provide development support for sustaina- the Namibian Police through local Crime Pre- ous initiatives in this regard. This includes up- ble growth, development and poverty alle- vention Forums. Regional police commanders grading houses and ablution facilities as well viation to SADC EPA countries. are subsequently tasked to handle the imple- as the provision of warm water and electrici- mentation of the strategy on behalf of Nam- ty. Furthermore, members undertook to dis- However, a trade agreement does not include Pol. The president of the NAU, Mr Piet Gou- cuss retirement planning with their workers, market access, as the SADC EPA countries still ws, said during the signing of the strategy/ which includes opening savings accounts and need to work out access to EU markets. While plan that theft affects farming activities ad- assistance with the creation of retirement ac- the United Kingdom is part of the SADC EPA versely, as well as the entire economy by de- commodation facilities. agreement and provides a real basis for post- stroying employment opportunities among Brexit trade between the UK and the SADC others. This signing of the rural safety plan Commission of investigation into EPA group of countries, a new legal base for is considered an important milestone in the ancestral land claims preferential trade needs to be drafted. fight against crime in rural areas. The NAU representative on the commission, Mr Ryno van der Merwe, with the other com- National Rangeland Bodies where the NAU and commodity asso- mission members travelled for period of sev- ciations are represented en weeks throughout the length and breadth Management Policy and of the country to listen to the various com- Strategy (NRMPS) 1. Swakara Board plaints and ancestral land claims. NBC televi- 2. Land Reform Advisory Commission (LRAC) sion did recordings and translators were pre- The EU and MAWF (Ministry of Agriculture) 3. Lands Tribunal sent to facilitate the process. The definition funded project, which initiated the imple- 4. Namibia Employers Federation (NEF) of ancestral land claims is based on persons mentation of the national rangeland man- 5. Namibia Water Resources Management or communities who were forcibly removed agement policy, came to an end at the end of Review (NWRM) from their land from 1884 onwards. In Decem- December 2019 and was subsequently con- 6. National State of Environment Report ber 2019, the commission submitted a provi- cluded. A number of lessons was learnt from Task Force sional report to President Geingob. Correc- the project related to best practices and pro- 7. Social Security Commission (SSC) tions had to be made, but there is no plan yet posals from producers, which were subse- 8. Meat Board and all claims must be verified with compen- quently compiled in a booklet entitled “Re- 9. Namibia Agricultural Labour Forum (NALF) sation forming part of the claims. viving Namibia’s livestock industry”, available 10. Forestry Council free of charge at the NAU. It was a positive 11. Kunene/Karas/Erongo Regional Resettle- The Agricultural Trade Forum experience in that producers are now more ment Committees aware of the significance of reviving range- 12. Programme Advisory Committee on Child (ATF) land resources, especially after a disastrous Labour (PACC) The ATF represents various stakeholders in drought. As such, a concept plan was devel- 13. Agricultural Trade Forum (ATF) the Namibian agricultural sector, including oped with the assistance of Mr Colin Nott, 14. NUST Council producers and processors of the entire ag- who is a rangeland expert. The main focus 15. National Planning Commission (NPC) ricultural value chain, as well as marketing of the plan is to repair and create a balance 16. Namibia Training Authority (NTA) boards and agricultural unions. Partners in- between bush and grass on a national level 17. Namibia Rangeland Forum clude line ministries, manufacturers, research and funding is currently sought to implement 18. Namibia Qualification Authority (NQA) institutes and regional organisations. The NAU the project. In the meantime, the NAU con- 19. Upper Swakop Basin Management Com- is a member of the ATF. tracted Mr Colin Nott on a temporary basis mittee to make submissions to interested regional 20. CPP Council The ATF was established in 1999 by interest- agricultural unions on how rangeland must 21. Water Council ed parties in the private agricultural sector be managed after the good rains in various 22. High-level Committee for the implemen- seeking a platform to address certain trade regions, as well as the implementation of re- tation of Land Conference Resolutions matters. It became the mouthpiece for trade- generative agriculture in extensive cattle pro- 23. Ancestral Land Rights and Restitution related matters for whole value agricultural duction systems. 24. National Planning Commission

NAU Annual Report 2019-2020 17 The newsletter is also sent to all media and in- Various ministries had been visited and work- LIAISON terest groups who use it as a source for articles shops and meetings were attended. in newspapers. Liaison with members and role players is still Liaison by regional one of the NAU’s biggest priorities and is not only aimed at providing information, but also NAU website representatives at giving the NAU’s input at various forums in The NAU website (www.agrinamibia.com.na) As part of their duties, the regional represent- order to represent producers’ interests. Liaison has been re-designed and is therefore much atives fostered continuous contact with farm- is done by means of printed and electronic more interesting. It is very popular and is visit- ers associations, regional agricultural unions media, radio programmes, text messages to ed up to 151 195 times per month. and regional councils. cell phones, visits to and attendance at workshops and other opportunities. Liaison with the authority and The private sector organisations Meetings were held with corporate members AgriForum The president of the NAU, the Executive Manag- as from the beginning of 2019. Issues discussed AgriForum, the monthly magazine of the NAU, er and other executive members liaised on vari- were the drought, the Second National Land is published by AgriPublishers with Mrs Mari- ous occasions during the year with government Conference, growth in agriculture and more. etjie van Staden as editor. AgriForum is a very authorities, parastatals, NGOs and international popular publication covering a wide spectrum organisations. This liaison included: of agricultural themes. Each NAU member re- Non-governmental ceives a copy of AgriForum as part of the ben- • His Excellency, the President, Dr Hage Geingob organisations, parastatals efits of belonging to organised agriculture. In • Economic Advisors of President Geingob and other organisations the past AgriForum was sent to all members • The Ministry of Agriculture, Water and Forestry by mail, but because of numerous complaints • The Ministry of Land Reform Various meetings and workshops were attend- regarding late- or non-receipt of the publica- • The Ministry of Information and Communi- ed covering the following subjects: tion, AgriForum has now been made availa- cation Technology ble to members directly at all Agra and Kaap • The Ministry of Public Enterprises • Land reform Agri Namibia branches as well as some oth- • The Ministry of Health and Social Services • National Rangeland Policy and Strategy er outlets in small towns. • The Inspector-General of the Namibian Police • Five-year plan of the Road Fund Admin- • The Ombudsman istration • The European Union • International trade Radio programmes • AgriBank • Climate change The popular programme Landboumikrofoon • Namibia Statistics Agency • Rural development is broadcast on the Hartklop FM radio station • Commissioner of Inland Revenue • Power supply of the NBC every Saturday morning at 06:00 • GiZ (Germany Society of International Co- • Water act by Ms Hermien Coetzee. Re-broadcasts are operation) • Crime on Sunday afternoons at 13:15. • Various regional agricultural unions and farmers associations Channel 7 broadcasts two-weekly pro- Regional liaison grammes sponsored by First National Bank. SACAU (Southern African Confederation of One is broadcast on Wednesday afternoons Liaison by the secretariat Agricultural Unions): The Executive Coun- at 14:10 and the other on Saturday mornings The secretariat has visited various farmers as- cil of the NAU decided to terminate its mem- at 06:00 with a re-broadcast on Wednes- sociations on invitation, but in the light of sav- bership of SACAU. days at 20:00. ings, these visits need to be coordinated with the regional representatives and the president. AgriSA: Urgent matters of mutual interest In addition, the German Service of the NBC, were communicated with AgriSA. Funkhaus Namibia, broadcasts a short programme on Friday afternoons at 16:10, while Hitradio Namibia offers a programme for Ger- man farmers on Friday evenings at 19:10 with a re-broadcast on Saturday mornings at 06:50.

Kosmos Radio also broadcasts a short programme on Friday mornings at 06:00.

Electronic newsletter The weekly e-mail news is still very popular and provides NAU members with important information. This newsletter is also sent to all Agra offices so that those members who do not have e-mail facilities can collect a copy of the newsletter at their nearest Agra office.

18 NAU Annual Report 2019-2020 LIVESTOCK PRODUCERS ORGANISATION A word from the chairperson The Namibian livestock sector is under tremen- dous pressure. Regarding climate change, not much can be done, other than to adapt. The Chairperson: Thinus Pretorius year 2019 was a disaster, due to the countrywide drought. However, Namibian livestock ly in plain sight, with disastrous consequenc- producers illustrated their inventiveness dur- es, because of these decisions. ing this time by processing bush successful- Covid-19, will perhaps become our Rubicon ly into roughage. As such, the national large As such the SOE, Meatco, accumulated enor- with a completely new value system emerg- stock herd decreased by only 40% and the mous losses in spite of continuous deliveries ing. Food security, biosecurity and contin- core genetics were preserved. Nevertheless, by producers. These losses will eventually be uous production has suddenly gained new small stock areas of Namibia still experience absorbed by the industry, in other words, the international attention. The necessity of the average to under-average grazing levels, producer. Furthermore, we are increasingly producer – the manufacturer of food – has while some areas face their eighth year with- confronted with the human-wildlife conflict taken on new meaning and value. While we out any production. where the sympathies do not necessarily lie do not know where this will ultimately lead, with the livestock producer. Added to this we know that we will still be here tomorrow The Namibian livestock producers, however, are some other challenges of which crime is to do what needs to be done – supply food find themselves in a very unfavourable posi- the most prominent. The government’s ex- to sustain life. We know for sure that we will tion regarding the processing/marketing of pectations of the producer to make a bigger keep on bargaining for better market condi- products as well as lack of sustainable produc- social contribution, to ensure the country’s tions, fairer treatment and acknowledgement. tion environments. Producers are furthermore biosecurity, increase production and stay pos- confronted with unsustainable and unprac- itive are thus rendered unfeasible and com- As they say “bring it on” – we will persist. tical ideologies leading to decisions taken in pletely unrealistic under the circumstances. board rooms to the detriment of the industry. The small stock industry decreased drastical- The curve ball that hit us in 2020, namely Mr Thinus Pretorius

Marketing figures for small and large stock try continues to decline. This is evident from the total number of The seemingly endless drought caused high market pressure on cattle sheep marketed that declined by 55.48%. Likewise, goat market- production in 2019. Slaughtering turns at abattoirs were fully booked ing declined by 54.35%. and the auction figures were high. This can be seen in the increase of 45.26% in slaughter cattle figures. The total marketing in 2019 of sheep Table 2 figures, which already showed a sharp decrease in 2018 due to the 2019 2020 % Change drought and other factors, decreased further in 2019 with 10.30% com- Cattle slaughtered 90 700 50 774 -44.02 pared to 2018. At the same time the slaughtering percentage of goats Cattle exported 159 625 75 301 -52.83 experienced a significant decrease of 45.55%. Total marketing 250 325 126 075 -49.64 Sheep slaughtered 206 581 81 764 -60.42 Table 1 below indicates the numbers for marketing of large and small Sheep exported 296 137 142 067 -52.03 stock (goat and sheep) together with the percentage change between Total marketing 502 718 223 831 -55.48 2018 and 2019. Goat slaughtered 1 482 2 029 36.91 Goat exported 64 333 28 018 -56.45 Table 1 Total marketing 65 815 30 047 -54.35 2018 2019 % Change Source: Meat Board of Namibia Cattle slaughtered 119 143 173 066 45.26 Cattle exported 307 874 289 580 -5.94 Production cost index Total marketing 427 017 462 646 8.34 The production cost index (PCI) of the NAU, which uses 2006 as basis Sheep slaughtered 369 429 284 226 -23.06 year, determines the price that producers pay for a basket of inputs. Sheep exported 456 069 456 255 0.04 The PCI is calculated as the weighed average of relevant products Total marketing 825 498 740 481 -10.30 such as feed and minerals, fuel and oil, labour, electricity, mainte- Goat slaughtered 5 157 2 808 -45.55 nance of fixed infrastructure and vehicles, as well as animal health Goat exported 147 959 143 870 -2.76 and capital expenditure, which are all used in production. The ex- Total marketing 153 116 146 678 -4.20 pectation is that a decrease in the prices of input products, espe- Source: Meat Board of Namibia cially labour and fuel has considerable influence on the inflation of PCI on the farm, because of the high weighed average in the ex- The first half of 2020 indicates the following: penditure basket. The first quarter of 2020 shows a totally different picture in the marketing of cattle compared to the second quarter in 2020, indicating a The PCI recorded a basis point of 105.4 in the 4th quarter of 2018, sharp decrease of 49.64% in June 2020 in comparison to the same peri- which had increased to a 110.1 basis point by the 4th quarter in 2019. od in 2019. The drought and other factors in the sheep farming indus- This means that the annual inflation rate improved by 4.4% on an

NAU Annual Report 2019-2020 19

LIVESTOCK PRODUCERS ORGANISATION continued ... annual basis. The annual agricultural inflation quently, a list of priorities needing urgent at- riod of one year. This came after the LPO had of quarter 4 of 2019, indicates a decrease in tention were formulated for the cattle industry. made various submissions to the Econom- comparison to the 4th quarter of 2018 (5.4%). Stakeholders confirmed the principle that cat- ic Committee appointed by the President. This decrease can be attributed to fuel pric- tle must automatically be drawn into different During this period, the Minister of Agricul- es and electricity tariffs that decreased by value chains, mainly based on trust in the val- ture, Water and Land Reform (MAWLF) was 1.42% and 1.35% respectively compared to ue chain and the price paid by the value chain. ordered to review the scheme properly and the previous year. While export abattoirs have access to the best to find incentives to discourage the export of markets in the world, they nevertheless strug- live sheep. The MAWLF appointed a consult- Inflation on farm still increases and remains gle to compete in the marketplace. If the oper- ant to conduct an in-depth study. higher than the income received by produc- ational kg cost per carcass decreases, the value ers. The total weighed cattle price, which is chain will draw sufficient cattle to be sustain- The LPO liaised with various industry stake- the weighed average of weaner and slaugh- able. The second important priority is to fo- holders to explain the impact of the scheme tering prices, decreased by 1.7% in quarter 4 of cus government attention to promoting the on producers, what the ideal environment 2019, caused by a drastic decrease in weaner best interests of the country. As such, the ag- should be for production to take place and prices that occurred in the first half of 2019. If ricultural sector must receive a bigger share efforts to re-build the industry where pos- the total performance of weaner and slaugh- of the national budget – at least 10% as rec- sible. The LPO, producers and other stake- tering prices in 2018 is compared to 2019, ommended by the Maputo Declaration, which holders in the industry were consulted by the indications are that average weaner prices the Namibian government ratified in 2003. MAWLF consultant and had an opportunity to decreased by 19.1% during the year, while Thirdly the promotion of free trade, instead share the above issues with him. The MAWLF slaughtering prices increased by 8%. Com- of imposing regulations, has been confirmed ensured the LPO that as soon as the report paring 2018 to 2019, sheep prices decreased as a priority. Consensus was reached that the is completed, it would be shared with all in- by 5.3%. The outbreak of foot-and-mouth dis- following matters should receive attention: terested parties before any action is taken. ease in South Africa at the beginning of 2019 influenced both weaner and sheep prices. • Implementing the national rangeland strat- Producers’ integration into the egy published last year value chain If the total costs on the farm increase more • To promote small scale feedlots and not a The LPO management ordered Windhoek than the income received, as set out above, new national strategy Consulting Engineers (WCE) to conduct a fea- it influences the profit margins of farmers. • Strengthening local producer organisations sibility study regarding a large stock abattoir. During the past 13 years of price monitoring, • Supporting purposeful research and men- The main aim of the study was to create a sus- producers had to improve their productivity torship, and tainable cattle industry for the next 20 years and efficiency each year by 3.6% for cattle and • Promoting a healthy balance between lo- that should not be regarded as competition 0.8% for sheep respectively. This shows that cal slaughtering and weaner production. for existing entities. The study has been con- expenses on farms had a significant impact cluded and the LPO is currently busy shar- on the profit margins of cattle and sheep pro- In expectation of the results of independent ing the results with stakeholders. Produc- ducers and it is therefore incumbent on farm- studies conducted by the Ministry of Agricul- ers’ trust in export abattoirs, combined with ers to continuously increase their stocks and ture, Water and Land Reform, stakeholders the best prices in the marketplace and con- to promote sustainable herd productivity. looked at the growth strategy of the sheep trol by producers, are central to sustainable industry. The first and most important step future throughput. Recovery and growth of the to be taken is to ensure policy certainty for primary producers. Without such condition, Alternative marketing potentials livestock sector (colour) producers will not invest again in the indus- for red meat try, production will not increase, and new The implementation of the Economic Part- Re-building after the drought employment opportunities will not be avail- nership Agreement (EPA) between the Eu- The LPO conducted a survey among its mem- able. The priorities were subsequently iden- ropean Union (EU) and the Southern African bers to determine how herds decreased from tified as follows: Development Community (SADC EPA), which 2012 to 2019. Information was gathered from was signed and came into force in 2016 is pro- approximately 480 producers, indicating • Kick-starting sheep production by imple- gressing well. Tariff- and quota-free access to that sheep, goat and cattle herds decreased menting incentives and channelling sup- European markets are in place, although strict on average between 47, 46 and 49% respec- port to farmers as well as assurances of health measures and other non-tariff restric- tively. The averages varied from region to re- free trade. tions affect Namibia’s potential to utilise the gion and in some areas the decrease in herds • Contrary to cattle, a Namibian export ab- export opportunities fully. For example, Na- were as high as 90 and 100%. attoir for sheep is hardly viable if export- mibia can only export de-boned meat cuts ed only to South Africa. International mar- to the EU. This agreement will be reviewed Producers were forced to use the cash ob- kets that offer exchange rate advantages in 2021. In February 2020 the first talks be- tained from reducing herds to feed the re- are crucial to enabling abattoirs in an un- tween the two parties were held in Brussels maining herds, resulting in fewer opportunities regulated market to draw sheep into this to discuss the core principles of the review to save funds for drought recovery and herd lucrative value chain. of the EPA. It is expected that the review will building. The LPO subsequently investigated • Effective leadership in the industry to en- aim to unlock better trade opportunities for various cash flow scenarios and held numer- sure unity of purpose. both parties. Namibia, however, already has ous consultations with industry stakeholders • Finding solutions for the development of quota- and tariff-free access to the EU market and development organisations to determine underutilised agricultural to increase pro- and it therefore not clear what the advantag- what can be expected and what is necessary duction. es of such a review can hold for the country. for long-term recovery after the disastrous • Identifying strategies to increase prepar- Namibia’s negotiators will thus have to focus drought that lasted for seven years and more. edness for future droughts. on mostly non-tariff questions and try to gain better and easier trade opportunities as well Growth strategies Sheep Marketing Scheme as focused development aid. During this period a growth strategy for the Following the recommendation of a high-level livestock sector was reflected upon under lead- panel, the cabinet postponed the Small Stock A big uncertainty was removed in 2019 when ership of the Meat Board of Namibia. Subse- Marketing Scheme on 1 August 2019 for a pe- the SACU negotiators were able to conclude a

NAU Annual Report 2019-2020 21

LIVESTOCK PRODUCERS ORGANISATION continued ... trade agreement with Britain. Brexit brought under pressure to sell their products. Norway To monitor compliance with the required about various long-term economic trade therefore requested Namibia to “balance” its standards, FANMeat trained and appoint- uncertainties and Namibia would inter alia export basket to prevent the market from de- ed a FANMeat audit team. The team visits lose quota- and tariff-free trade with Britain clining. This request will be discussed again farms and inter alia verifies record-keeping, if there is no agreement in place when Brit- at the next round of negotiations, which will which is very important for the integrity of ain withdraws from the EU. Namibia’s parlia- most probably take place at the end of 2020 the scheme. Producers are subsequently re- ment still needs to ratify the agreement with or in early 2021. quested to comply with FANMeat standards Britain. The cut-off date for this exercise was and cooperate during inspections. in December 2020. Should Namibia ratify the Regarding the African markets negotiations agreement between SACU/Mozambique and of the African Continental Free Trade Agree- Britain by December 2020, trade will contin- ment (AfCFTA) progressed well in 2019-2020 NamLITS traceability ue with Britain under terms similar to exist- until all negotiations came to a halt due to the The NamLITS system was developed to en- ing EPA terms (quota- and tariff-free). Never- Covid-19 outbreak. If everything is in place, sure traceability and is applied whenever theless, negotiations between EU and Britain trade under AfCFTA should come into force animals are marketed. NamLITS is especially has not resulted in any significant progress. on June 1, 2020. Unfortunately, tariff and reg- effective regarding to disease management ulations of origin occurred. Some circles an- and control. The NamLITS system is a soft- Two alternative markets, which became ac- ticipate that these delays can set back the ware-based programme with its functional- cessible to Namibia are China and the USA. implementation of the agreement to at least ity continuously improved to make it more Large shipments of meat were already shipped June 2021. Namibia negotiates in this agree- accessible and user friendly. Unfortunately, to China and the aim of meat exporters is to ment as part of SACU. the efficiency of the system depends on the strengthen these two markets to such an ex- human factor. The current “NamLITS online” tent that the traditional markets in the EU and The Quality Assurance is in the process of being expanded to pro- Norway form a smaller part of the export bas- vide better functionality to producers, but ket. There was also negative publicity in the System (FANMeat) there is a certain level of responsibility re- news regarding Namibia’s market access to the The FANMeat scheme is one of the most im- garding the accuracy of data on the nation- USA, but it was mostly limited to lobby groups portant pillars of the industry that ensures al traceability system. The Directorate of Vet- who wanted to protect their own markets. the maintenance of niche market access, es- erinary Services (DVS) developed an ear tag pecially in Europe and in countries such as quota system for cattle for the reporting pe- The big advantage of the Chinese market is Norway that pay the best prices. To date, the riod, which is implemented when producers the fact that it is not limited to the traditional FANMeat scheme only made provision for the purchase ear tags at the Meat Board. The aim cuts that are usually exported to Europe and assurance of “free-range” meat of which the of the new system is to improve the integrity Norway. This the main reason for the big vol- production was difficult to almost impossible of the NamLITS system. umes exported during this period by Meat- in the past years due to the drought. To make co to China. A request to the government is provision for drought conditions as well as to anticipated in the new year to again utilise create marketing opportunities, FANMeat de- the agreement with China and to add non- veloped a definition for “grain fed” to adapt traditional export cuts as well as “fifth-quar- to this standard. Producers can now market ter” products. their livestock as “grain fed”, which can still be exported under the FANMeat scheme. Live- An important agreement for Namibia is the stock still meets demands of animal welfare SACU-EFTA free trade agreement. Under this standards to be produced hormone free as agreement Namibia can export meat, espe- well as treatment withdrawal periods. FAN- cially to Norway. Currently there is a priority Meat feedlot standards are in the final stage quota (GSP) of 1 350 tonnes de-boned beef of including feedlots in the FANMeat chain. for Namibia as well as a further tariff-free quota of 250 tonnes (under the free trade agreement). The agreement has been under scruti- ny over the past few years under review and it is hoped that the priority quota is made part of the free trade agreement to ensure permanent market access. Negotiations for better access for meat exports to Switzerland were also attempted. The tariffs of these countries are, however, very high and Namibia cannot use the agreement to its full advantage at present. Unfortunately, the Covid-19 pandemic outbreak coupled with global restrictions has suppressed the negotiation process. As a result, little progress was made over the past year regarding the review of the agreement. During the last negotiations, Norway raised objections against the cuts Namibia exports traditionally under its quota to the Norwegian market. Namibia mainly exports high-value beef and fillet steak, putting the Norwegian market under pressure and distorting prices for local producers in Norway who are also

NAU Annual Report 2019-2020 23

LIVESTOCK PRODUCERS ORGANISATION continued ... Meatco place with the cooperation of Agra ProVision, which included an epide- Meatco is regulated by virtue of the Meat Corporation Act of Namibia miology survey, bait studies and proof of principle of oral rabies vac- (Act 1 of 2001) and is classified as a commercial public enterprise. The Act cinations. The experience gained and encouraging results caused the on the Management of Public Enterprises (Act no 1 of 2019) was prom- LPO to approve the third phase of the project. This phase will be con- ulgated on May 17, 2019 and came into force on December 16, 2019. Ac- ducted in cooperation with the Veterinary School of the University of cording to the act, Meatco now falls under the Ministry of Public Enter- Namibia (UNAM). Kudus will be kept in wildlife bomas that were erect- prises. The new legislation is part of government’s initiative ed early in 2020 at the Neudamm facilities of UNAM. The LPO to reform and restructure public enterprises to make approved funding for part of the building construction them more effective and to enable better monitor- of the bomas. ing. In effect this means that Meatco must make commercial sense. The aim of phase three is to determine an effective oral vaccine dose for kudus to stimu- In February 2020, Mr Mwilima Mushokabanji late the necessary immune response. Previ- was appointed as Chief Executive Manag- ous phases of the project showed that the er of Meatco. A new board was appointed oral vaccination is viable. However, infor- for the first time in a while according to mation regarding the degree of protec- the democratic will of Meatco members, tion against the rabies virus was uncon- with the board’s term commencing on vincing. Phase three will determine how May 1, 2020. The new board members are the dosage is to be adapted to ensure Johnnie Hamman (expert and chairman), sufficient protection levels. Moreover, Clara Bohitile (expert and vice chairman), with the oral vaccination studies regard- Kay-Dieter Rumpf (commercial representing the bait used to dispense the vaccina- ative), Usiel Seuakouje Kandjii (communal tion, needs more investigation to guaran- representative), Mesag Mulunga (represent- tee that it is consumed effectively in the veld. ative from the Ministry of Agriculture) and Clo- The first phase of the project provided a per- retha Garises (employee representative). fect recipe that was tested on kudus in their natural environment. However, protocols need to be de- Animal health and veterinary veloped for the practical application of oral vaccines on farms in future. This will be done in cooperation with the staff services (DVS) at the Otjikoto Game Reserve (B2 Gold). Although the third phase of the An Animal Health Committee, under the banner of the Meat Board, project was expected to commence in March 2020, the Covid pandem- meets on a quarterly basis to discuss subjects related to Namibia’s ani- ic caused a delay in importing vaccines. As soon as borders reopen and mal health status, international trade and how to manage the financial flights resume, the project will commence again. crisis of the DVS. However, the financial situation of the government has not changed, and budget shortages are still the order of the day, affect- Livestock Producer of the Year ing the DVS adversely. As Namibia is a net exporter of livestock and live- In 2019 Mr A P van Schalkwyk of the farm Samehaling in the Aroab vi- stock products, the Meat Board supports the DVS to provide necessary cinity received the Livestock Producer of the Year 2019 award. The run- guarantees to trade partners for producers to export livestock and live- ner-up was Mr Johnny Hanekom of Farm Sandrucken in the Maltahöhe stock products. This support includes the maintenance of border and area. The reward was presented to Mr van Schalkwyk during the annual veterinary fences, as well as upgrading and updating the NamLITS sys- steak braai of the LPO on October 9, 2019, at the Wanderers Sport Club, tem, completing animal health declaration forms and certifying them, Windhoek. Due to Covid the farmers day of Mr van Schalkwyk, which as well as certifying exports through the laboratories. The LPO contin- should have been held in 2020, was postponed. The LPO management ues to emphasise that agriculture is the most important sector in Na- decided not to proceed with the selection of a livestock producer of the mibia for economic recovery and as such the effective marketing of year for 2020. Activities will commence in 2021. livestock must continue. Exports of livestock to RSA At the end of 2018 the Namibian Directorate of Veterinary Services had already presented a docket to the Department of Agriculture (DAFF) in South Africa with a request to declare themselves free of bovine tuber- culosis (bTB). Bilateral teleconferences were held with the DAFF to discuss easing individual bTB testing requirements. Unfortunately, there is no positive outcome regarding any of these negotiation attempts to date. In the meantime, Namibia has sent an article about bTB in Namibia to the OIE, which was published on the scientific and technical website of the OIE on October 2, 2019. A draft document regarding the histor- ical freedom of bTB in Namibia was compiled and is in the final stages before it is presented to the OIE.

DVS is currently in the process of compiling and sorting data regarding the testing of Brucella melitensis since the implementation of the new RSA import requirements came into effect. It is anticipated that they will provide feedback by August 2020 as to whether data justifies further negotiation for exemption by the South African veterinary authorities. Kudu rabies project Bush feed project Due to the increase in kudu rabies outbreaks, the LPO Congress in 2010 The production of bush feed brought temporary relief to numerous found that extensive research was necessary to control the disease and farmers during the drought. However, it raised a lot of questions and recommended a project to test existing oral vaccines to gain insight into was fraught with challenges. Although there is great potential for bush the epidemiology of the disease. The first two phases of the project took feed in Namibia, meticulous and extensive research is necessary to un-

NAU Annual Report 2019-2020 25 LIVESTOCK PRODUCERS ORGANISATION continued ... lock its potential. Research should examine producers, while it is the responsibility of the for meat of small game, like springbok, to the how bush feed can be rendered economically relevant authorities to control the numbers European Union (EU). Farmers Meat Market is viable, what the optimal levels of various raw of such problem animals. the only abattoir that applied for export status. materials must be to achieve the desired re- However, due to the drought and current short- sults, the bush required to support various an- Game concerns age of small stock, no exports occur. imals, digestibility and feedlot testing of var- Game concerns are a permanent LPO man- ious bushes, as well as the various ratios and agement agenda item and are handled on a LPO Strategic Vision 2030 potential growth levels of bush feed. With the regional basis. This is done to address the in- The LPO’s Vision 2030 document that outlines aid of experts, the LPO drafted a project pro- terests of NAU members that are not repre- its vision, mission, goals, desired results and posal while a committee consisting of vari- sented by NAPHA or Wildlife Ranching Na- actions, serves as a guideline to achieve ob- ous experts in the field is currently busy es- mibia. jectives of the organisation through strategic tablishing the project. However, the project decision-making processes. During the LPO’s needs to raise additional funding to ensure The Ministry of Industrialisation, Trade and annual November planning session, the pre- successful completion. SME Development identified different growth vious year’s action plan is re-evaluated. The strategies. A steering committee was subse- most important operational aspects are then Waterberg buffaloes quently established to deal with matters re- identified and included in the following year’s During 2019, the large-scale capture of buf- lated to the game sector. This includes in- activities. Progress is monitored and discussed faloes started at the Waterberg Plateau Park. vestigating restrictions and opportunities during LPO management meetings. The ac- The first group of 200 buffaloes were sold/ex- regarding input provision, production tech- tion plan is considered a dynamic document changed with the Zambian government and nology, marketing and trade, as well as ser- that is adapted to needs and changes in the will be followed by a second group of 200, vice provision and prevailing environmental meat industry. also destined for Zambia. However, it is not conditions. It represents specific interven- enough to ease pressure on grazing in this tions and projects to strengthen the industry. park that were worse off than the bordering The LPO is a member of the said committee. Management commercial areas. This increases the possi- PS Gouws NAU President (ex officio) bility of disease outbreaks and restricts ani- The committee launched various activities in AM Pretorius Chairperson mal movement in the Otjozondjupa region. 2019 and 2020 to promote game products lo- E Erni South Western Currently there is a joint attempt between cally and internationally. These activities in- K van der Merwe Karasburg the LPO and stakeholders to find alternative cluded practical guides developed for both JC de Klerk Keetmanshoop habitats for the buffaloes without affecting abattoirs and game producers that provide J van Wyk Mariental the health of livestock south of the VCF. If the venison for export to the EU, as well as pres- H-E von Kühne Gobabis plan is successful, the LPO will resettle half of entations at seminars to introduce the po- E Hoff Windhoek the Waterberg buffaloes, which will restore tential of Namibian game products to over- M Hilbert Okahandja the natural wildlife balance at Waterberg, re- seas buyers. The Covid-19 pandemic again G Kahl Otjiwarongo lieving pressure on environment. delayed some of these activities. In Novem- P Stoman Grootfontein/Tsumeb/Otavi ber 2019, Namibia regained its export status A van Niekerk Outjo Human-wildlife conflict Predators and other problem animals contributed to the already critical situation of producers during 2019 and 2020. The LPO is Liaison with the government and other organisations represented on LCMAN, an organisation for During the reporting period contact was made with the following organisations and predator conservation and aims to stay up- persons: dated on significant issues, improve relationships and ensure better insight into human- • Ministry of Agriculture, Water & Land • Media wildlife conflict situations. The aim of the LPO Reform • Friedrich Loeffler Institute is to collect statistics regarding the damage • Ministry of Industrialisation, Trade and • NAPHA SME Development caused by predators and other problem ani- • CANAM mals. Although farmers associations provide • Ministry of Public Enterprises regular information updates, it is insufficient • Office of the Ombudsman • Ministry of Environment, Tourism and and inaccurate at present. • Agricultural Trade Forum Forestry • Namib Mills Group The LPO therefore met with key organisations • Governors • Pupkewitz Group and individuals with the purpose of finding • Meat Board possible solutions for the human-wildlife • Swart Grant & Angula (SGA) • Namibian abattoirs and agents conflict. An inter-ministerial committee un- • Windhoek Consulting Engineers (WCE) • Northern Cape abattoirs der the leadership of the Ministry of Environ- • Local private veterinarians ment, Tourism and Forestry (METF) was con- • Namibian Auction Houses • LCMAN stituted where various stakeholders will be • Local butcheries invited to find solutions to the problem. Like- • Red Meat Producers Organisation of wise, the METF is currently busy with the de- • AGRA SA (RPO) velopment of a national elephant manage- • Kaap Agri Namibia • SA Feedlot Association ment plan that can be used as a guideline to • Nakara • UNAM Veterinary School control elephant populations in future. The LPO is of the opinion that elephants and oth- • Meatco Tannery • Producer Study Groups er problem animals are irreconcilable with • UNAM School for Veterinary • First National Bank farming activities. Currently the problems • Namibian Chamber of Environment • Feedmaster with elephants and other problem species erode the production capacity of livestock

26 NAU Annual Report 2019-2020 AGRICULTURAL EMPLOYERS ASSOCIATION OF NAMIBIA NAU farmworkers project Minimum wage During the Second National Land Confer- The Ministry of Labour hosted a tripartite Chairperson: Hellmut Förtsch ence in 2018, President Geingob requested discussion on October 16, 2019, where a na- landowners to address the living conditions tional minimum wage for Namibians was dis- Management of farmworkers to assist them in overcoming cussed. A draft report from a study conduct- inequalities and poverty. In August 2019, the ed by the ILO was shared with stakeholders. Chairperson Mr HHT Förtsch first feed-back report was drafted and sub- The AEA provided input and requested that Vice-chairperson Mrs C Stoman mitted to the Ministry of Land Reform to be farmworkers be excluded from this as they Central Mr C Knye included in the execution of the resolutions had an officially recognised minimum wage North Mrs C Hellinghausen of the Second National Land Conference. In for farmworkers. The AEA will not initiate an South Mr W Kruger the meantime, guidelines for the minimum increase of the minimum wage this year, due standards for workers’ housing were com- to the devastating effects of the drought and Financial position piled and made available to NAU members. the fact that the current inflation rate is rel- The management handled the funds of the atively low. Agricultural Employers Association (AEA) AEA liaison with discipline due diligence and the 2019- Internal: Management committee members Child labour 2020 financial year ended with a surplus of attended meetings of the regional agricul- Child labour only occurs sporadically and N$27 582.00 tural unions and farmers associations. The is partly attributed to the poor education principal officer visited farmers associations standards in Namibia. This situation will be Labour documents upon invitation. Regular contact was main- addressed at farmers associations level in The AEA’s helpful documents concerning la- tained with members through weekly elec- collaboration with regional council mem- bour matters remain as popular as ever, indi- tronic newsletters and radio talk shows, as well bers while the AEA will address it at minis- cating that employers go to great lengths to as the monthly AgriForum magazine and the terial level. The political and economic offi- implement correct administrative systems. NAU’s webpage www.agrinamibia.com.na. cial of the US embassy visited the AEA office These documents are sold to members and and discussed human rights and child labour non-members alike. Although some docu- External: In June 2019, Mr Danie van Vuuren in the agricultural sector. They will release a ment prices need to be adjusted from time attended a meeting regarding the creation human rights report in 2020, which will in- to time, the AEA management strives to keep of a Labour Consultation Forum at the Min- clude Namibia. prices as low as possible for its members. istry of Labour. Representation of management members on various bodies Namibia Charcoal NAU Executive Council Mr H Förtsch Association (NCA) Namibia Labour Forum (NALF) Mr H Förtsch and Mrs C Stoman The charcoal and biomass exhibition host- Namibia Employers Federation (NEF) Mr D van Vuuren ed in 2020 by the Charcoal Association (NCA) ILO’s Project Advisory Committee for Child Labour Mr D van Vuuren and the Namibia Biomass Industry Group (N- HIV-Aids Management Committee of the Big) was a big success. It was held on August Ministry of Agriculture Mr D van Vuuren 9, 2019, at the Otjiwa Lodge near Otjiwaron- Namibia Charcoal Association (NCA) Mr D van Vuuren go where 120 participants attended to exhib- it charcoal, bush feed and wood products, as well as various technologies and machines. Ex- hibitors from South Africa, Germany, Austria, Denmark, United Kingdom and USA were in attendance. More than 1 580 visitors were recorded. The day started with the annual general meeting of the NCA, followed by various speakers addressing relevant issues. The NCA introduced its new best practices booklet for charcoal producers, which contains guidelines for harvesting wood and after care, as well as health- and safety measures to be applied. Together with the production of bush feed, which many farmers started this year, charcoal and bush feed production on commercial farms create thousands of new job opportunities. AEA secretariat The AEA provides an advisory service concerning best labour practices while the application of the Labour Act is aimed at promoting fair practices to ensure that labour in the

NAU Annual Report 2019-2020 27

AEA continued ... commercial sector remains healthy. Liaison with members on labour matters was managed daily via telephone calls, e-mails and personal visits to the AEA office. The AEA strives to help members resolve labour disputes as quickly and amicably as possible. Training Employees: Dassies Farmworkers Training is a new initiative to train farmworkers on Farm Dassiesfontein. The training was scheduled to commence between April and June, but Social Security hoek. Mr Ryno van der Merwe, president of due to the outbreak of the corona virus and Commission (SSC) the NAU, opened the congress and said that government’s subsequent announcement up to now we had never experienced such se- of a state of emergency, it was postponed MSD Fund: The AEA management discussed vere drought conditions, reiterating that he ad- to a later stage. information regarding the new draft SSC Act mires farmers who remain positive under the and decided to approach the commission on current adverse conditions. Mr Van der Mer- Employers: A successful personnel manage- whether they could offer training on farmers we gave his presentation and feedback re- ment course on “labour management” (a FSP association level through the new electron- garding the farmworkers project of the NAU. project document compiled by the Legal Assis- ic ITAS tax system, but no feedback was re- He mentioned that we can make a difference tance Centre) was offered by Mr Roland Zirzow ceived to date. with our workers, because they are the heart- in four regions to 81 agricultural employers. beat of our business. There are 68 labour rep- National Pension Fund: The SSC approached resentatives who run the project, with seven Early childhood development the ILO consultants to assist with finalising the regional coordinators under the direction of National Pension Fund as a fixed benefit fund. the AEA. The farmworkers project will be pre- for farmworkers’ children To date no progress was made. The draft pro- sented to the Executive Council of the NAU as The Amos Meerkat schools are successful in the posal is still pending at the Ministry of Labour. the AEA believes we can foster a positive im- country, but still need to be promoted among age of the agricultural industry by mitigating NAU members to encourage participation. Namibia Employers poverty among farmworkers. Federation (NEF) NTA (National Training Mr Craig Deall of Foundations for Farming of Mr Danie van Vuuren was re-elected to the Zimbabwe, who is a third generation Zimba- Authority) NEF Board and exco for the next year. He was bwean and knows how the farmers suffer in The management committee of the agricul- also elected as vice-chairperson of the board. times of drought, addressed the congress. He tural sector of the NTA held its first meeting As from January 2020 Mr Daan Strauss was mentioned that some parts of Zimbabwe suf- of the year, which was attended by the AEA appointed as secretary-general of the NEF fered from drought, but that in eastern Zim- representative, Mr Hendrik Botha. They raised to replace Mr Tim Parkhouse who retired at babwe they had floods that wiped out entire concerns regarding the fact that while there the end of 2019. communities. He said that while farming is is a large increase in bush feed manufactur- difficult, farmers are the backbone of nations ing, the required safety aspects when using Labour Advisory and that as such, farmers should not under- equipment and machinery, do not always re- estimate their importance, that Africa should ceive proper attention. The NTA advertised its Council (LAC) feed the world and not otherwise. apprenticeship courses and is looking for ag- At a meeting with the LAC where the res- ricultural entrepreneurs to take on apprentic- olutions of the land conference regarding Mr Deall mentioned that in times of crises one es for practical training. farmworkers were discussed, the LAC was has to see how to help and empower the poor impressed with the NAU project and decid- and recommended that we should do this in 2020 AEA wage survey ed to share details to the Ministry of Labour. Namibia. The Foundation for Farming teaches Questionnaires for the 2020 AEA wage survey The LAC task team completed its assignment poor people at grassroots level by providing were distributed to members with the March regarding amendments to the Labour Act. easy guidelines on how to feed their families 2020 copy of AgriForum and was made avail- This will be discussed further and forwarded from their land. There are three steps to be fol- able electronically. New questions were add- to the Minister of Labour. If it meets his ap- lowed – always be on time, do things accord- ed because of the NAU farmworkers project. proval, it will be forwarded to government ing to high standards and don’t waste anything legislators for drafting and then to cabinet (neither time, energy nor anything else). If you Health in the commercial for final approval. follow these three steps, the Lord provides the fourth step, which is happiness. People should agricultural sector Namibia Labour thus work for happiness and not for money. This issue was discussed at meetings and it was noted that there is a decline in the ser- Forum (NALF) Mr Roland Zirzow gave feedback about his vices and availability of medication in rural No development took place during the year personnel management courses. This involves areas, which is a big concern. A health re- under review. the management of workers, disciplinary pro- port of the WHO was discussed, outlining the cedures and dispute resolution. He cautions shocking living conditions of some Namibi- AEA Congress 2019 that workers from the streets should not be ans. Compared to this, farmworkers on com- The 2019 AEA Congress was held on 11 June appointed without a proper interview and mercial farms were deemed to be better off. 2019 at the Arebbusch Travel Lodge in Wind- relevant reference checks.

NAU Annual Report 2019-2020 29 AGRONOMY PRODUCERS ASSOCIATION

General overview of in six production areas namely, Zambezi, Ka- agronomic sector vango, North-Central, Karst (maize triangle), Central and South (Hardap). It relies on both Chairperson: Gernot Eggert Namibian agronomy poses great challeng- rain and irrigation and is mainly cultivated es to producers due to sporadic rainfall pat- seasonally from October to December and terns that have had a severe impact on dry- harvested from April to October. land production and the Hardap Irrigation Scheme. During 2019-2020 the pattern started Table 1: Statistics on planted hectares and harvested (April 2019 to December 2020) Planted hectares (ha) Harvested (tonnes) off similar to the previous year with little to no White maize rain, but it took a massive turn for the better Dryland Irrigation Dryland (3%) Irrigation (97%) Total and although late, good rains were received Zambezi 3 000 * 76 * 76 throughout the various production areas. Kavango * 1 890 * 11 427 11 427 North-Central * 296 * 1 552 1 552 Karst (maize triangle & vicinity) 7 332 1 895 717 9 822 10 539 The sector also faces other challenges, such as Central 1 089 419 94 3 422 3 516 high temperatures, late rains and both strong South (Hardap & vicinity) * 204 * 1 679 1 679 and light rain showers, which are becoming Total 11 421 4 704 887 27 902 28 789 more and more prevalent. Producers around Source: Namibia Agronomic Board the world, including Namibia, are forced to * equivalent to 0 learn to adapt to climate change. The most Table 2: Statistics on planted hectares and important and biggest challenge for agro- Table 1 indicates that the biggest area of harvested (2019-2020) nomic producers, dryland and irrigation, is to white maize cultivated under rainfed condi- Planted Harvested Wheat continue to nurture the soil through drought tions was planted in the Karst area (7 332 ha), (hectares) (tonnes) and dry years. The greatest lesson to be learnt followed by Zambezi (3 000 ha) and Central Zambezi * * from conservation agriculture or minimum (1 089 ha). Irrigation in the Karst (1 895 ha) is Kavango 583 2 025 tillage is the importance of maintaining soil the biggest, followed by Kavango (1 890 ha), North-Central * * cover and organic matter in the soil. On the Central (419 ha) North Central (296 ha) and Karst (maize triangle 123 206 other hand, the sector presents an opportu- South (Hardap 204 ha). & vicinity) nity for producers to diversify into planting Central 10 * South (Hardap & vi- other varieties of crops. Thorough discus- The 2019-2020 marketing season officially be- 295 2 235 sions and investment in research in these are- gan in May and ended September 2019, how- cinity) Total 1 011 4 466 as have commenced to determine feasibility. ever local maize delivery ended December 2019. The projected white maize harvest for Source: Namibia Agronomic Board The industry must continue to ensure that a 2019-2020 was 30 899 tonnes, however only * Equivalent to 0 stable and sustainable price is passed on to 28 789 tonnes were marketed with a short- the producer timeously as stipulated in the fall of 2 110 tonnes during the period of April comparison between white maize and wheat, marketing agreement. At the same time the to December 2019 (see Table 1 above). The imports and the tonnage for 2019-2020. marketing environment for millers must be marketed tonnes increased slightly to 28 887 acceptable, equal and fair. The current pro- (see figure 1 on the next page) with the in- White maize and wheat 2020-2021: tection for both producers and millers is the take of local maize in the months of January Planted hectares, projection and only support tool to safeguard primary pro- to March during 2020. marketed tonnage (April - June duction, as well as to ensure that our millers 2020) maintain a competitive advantage with maize Wheat The year 2020-2021 started off with low rain- meal finished products. It is therefore essen- Wheat is a cereal grain crop and only pro- fall patterns, but good rains were received tial to note that the current relationship be- duced under irrigation in Namibia. The total over the large dryland production areas lat- tween the different stakeholders in the value domestic demand for wheat stands at 188 824 er in the year. However, for the south, low chain is sustained to safeguard the agronom- tonnes per annum, which is equivalent to an rainfall impacted the water levels of the Har- ic industry. To this end, APA expresses its grat- average domestic demand of 9 902 tonnes per dap Dam negatively, which resulted in non- itude to the Namibia Agronomic Board (NAB), month. Wheat is planted during winter time plantation of white maize, hence only wheat Ministry of Agriculture Water and Land Reform (May to end July) and harvested from Octo- is expected from the south for the 2020-2021 (MAWLR) as well as the government in general ber to December each year. It is produced in marketing season. for their coordinated and constructive efforts six production areas namely Zambezi, Ka- to render the agronomic industry sustainable. vango, North-Central, Karst (maize triangle), The total planted hectares for white maize is Central and South (Hardap). The official mar- 15 095 ha for dryland and 3 241 ha for irriga- Performance: keting season of wheat starts from Novem- tion, with a projected total harvest of 64 039 ber to January each year. For the financial tonnes. From April to June 2020, a total of 30 April 2019 to March 2020 year 2019-2020, local wheat was harvested 217 tonnes amounting to 47% was market- White maize and marketed during the period April 2019 ed, leaving only 33 822 tonnes which is 53% White maize is one of Namibia’s staple food to March 2020. yet to be marketed for the rest of the year as crops for human consumption. The total do- seen in figure 2. mestic demand for currently stands at 150 000 For the 2019-2020 marketing season the total tonnes per annum, which is equivalent to an hectares planted were 1 011 with a projected A total of 12 251 tonnes of wheat is projected average domestic demand of 12 500 tonnes harvest of 4 849 tonnes. Only 4 466 tonnes to be harvested from 2 068 ha planted in the per month. White maize is currently produced were marketed to millers. Figure 1 depicts a four production areas as indicated in Table 3.

30 NAU Annual Report 2019-2020 35

Total Imports vs local purchase tonnage April 2019 - March 2020

250 000 14% 200 000 28 887 150 000 96% 86% 4 466 100 000 171 031 35 4 % 50 000 114 363

0 total production in the country, producers Total ImportsWhite Maize vs local purchase tonnageWheat April frequently find themselves in an unfortunate 2019Imports - (ton)MarchLocal 2020 (ton) financial position and are unable to replant at full capacity after disastrous droughts, hence Source:250 000 Namibia Agronomic Board the policy is a government tool geared to- 14% wards supporting surplus rainfed grain pro- 200 000 White Maize and Wheat 2020/2021:28 887 Planted Hectares, Projection and Marketed Tonnage April – Juneducers after a drought year. 2020 150 000 96% Research, information The year 2020/2021 started off with86% low rainfall patterns, but good rains4 were466 received over the large 100 000 The NAB has extensively engaged with UNAM, dry land production areas later 171in the031 year. However, for the south, low4 %rainfall impacted the water levels of the Hardap Dam negatively, which resulted in non-plantation of white maize, hence only wheatwhich led to a memorandum of agreement 50 000 114 363 is expected from the south for the 2020/2021 marketing season. signed to embark on agronomic research, aimed at improving the industry. 0 The total planted hectares for whiteWhite Maize maize is 15 095 ha for dry land productionWheat and 3241 ha for irrigation, with a projected total harvest of 64 039 tons. From April 2020 – June 2020, a total of 30 217 tonsResearch will focus on different types of seeds, amounting to 47% was marketed, leaving Importsonly 33 (ton) 822 tonsLocal which (ton) is 53% yet to be marketed for the restbreeding and production. of the year as seen in figure 2 below. Figure 1: White maize and wheat monthly import vs local tonnage (April 2019 - March 2020) Source: Namibia Agronomic Board The NAB is keen to engage seed suppliers. FigureSource: 2: Namibia White MaizeAgronomic projected Board vs marketed tonnage April 2020– March 2020 White Maize and Wheat 2020/2021: Planted Hectares, Projection and Marketed Tonnage April – June 2020 White Maize: projected vs marketed tonnage April - Management The year 2020/2021 started off with low rainfallJune patterns, 2020 but good rains were received over the largeGH Eggert Chairperson (Otavi, Rietfontein, Kombat) dry land40000 production areas later in the year. However,33 585 for the south, low rainfall impacted the water levels of the Hardap Dam negatively, which resulted in non-plantation of white maize, hence only wheatD de Klerk Vice-chairperson (Hardap) is expected30000 from the south for the 2020/2021 marketing22 season. 629 JJ Blaauw East

20000 13 139 D Kok Maroelaboom The total planted hectares for11 557 white maize is 15 095 ha for dry land production and 3241 ha for irrigation, 5272 JN Malan, Mr GP Engelbrecht with a 10000projected5000 total harvest of 64 039 tons. From April 2020 – June 2020, a total of 30 217 tons 1623 596 758 97 0 0 Grootfontein amounting 0to 47% was marketed, leaving only 33 822 tons which is 53% yet to be marketed for the restG Sievers Tsumeb, Abenab of the year as seenZambezi in figure Kavango2 below. North Central Karst/Maize Central South triangle Figure 2: White Maize projected vs marketed tonnage April 2020– March 2020 Projected Marketed Financial position White Maize: projected vs marketed tonnage April - The APA financial position for 2019-2020 closed Source:Figure 2:Namibia White Maize Agronomic projected Board vs marketed tonnage April 2020– March 2020 with a surplus of N$349 486. Source: Namibia Agronomic Board June 2020 A total of 12 251 tonnes of wheat is projected to be harvested from the 2 068 ha planted in the fourProject funding by the Namibia 40000 33 585 production areas as indicated in table 3 below. Table 3: Statistics on planted hectares and Agronomic Board (NAB) 30000 projected harvested (2020-2021) Strategic22 629 planning Project funding by the NAB to organisations, 20000 Planted Projected har- The following13 139 key functions were identified financially supported by the government, is Wheat 11 557 10000 5000 (hectares) vest (tonnes) as critical focus5272 tools to drive the sustainabil- based on applications for projects in the ag- Zambezi 1623 596* 758 97 * ity in the agronomic sector.0 0 These points are riculture sector that benefit the broader ag- Kavango0 758 4 366 included as agenda points for the APA to at- ricultural community and more specifically, North-CentralZambezi Kavango* North Central* Karst/Maizetend to onCentral a continuousSouth basis. The following the agronomic industry. The APA applies an- triangle Karst (maize trian- are developments under each key point dur- nually to the Namibian Agronomic Board for gle & vicinity) 80 535 Projected ingMarketed the period under review: funding for various projects. This funding is Central 30 150 utilised for research, study tours and infor- South (Hardap & Source: Namibia Agronomic1 200 Board Marketing environment vicinity) 7 200 mation sessions among many other relevant

Total 2 068 12 251 The NAB resolved to terminate the Agro-Mar- activities that are mainly geared towards cre- A total of 12 251 tonnes of wheat is projected to be harvested from the 2 068 ha planted in the four Source: Namibia Agronomic Board keting and Trade Agency (AMTA) appointment ating sustainability and growth in the agro- production areas as indicated in table 3 below. as one of its agents in 2019. The board final- nomic sector. The remaining funds from the * Equivalent to 0 ised the termination with cabinet approval 2017-2018 project funding will be utilised to and the process was completed by April 2020. fund the GMO project with the approval of Groundnuts the NAB. With regards to the 2018-2019 pro- Over the past nine years, groundnut plant- The functions carried out by AMTA have been ject funding, APA is investigating the possibil- ing commenced, with a stable market and returned to the NAB. ity of funding trials for alternative crops. The predetermined price before marketing sea- 2019-2020 project funding application is still son. The 2019-2020 planting had to be care- AMTA will continue to operate as a commer- pending approval by the MAWLR. fully planned taking into consideration the cial entity as classified by the Public Enterpris- drought. The year was characterised by low es Governance Act, Act 1 of 2019. Genetically modified maize (GMO) rainfall figures, which had a negative impact Geo Pollution Technologies, on behalf of mem- on pricing. Regardless of circumstances, pro- The NAB remains non-commercial and will bers of the Agronomic Producers Association ducers were keen and took the risk to plant, continue to report to the line Ministry of Ag- (APA), applied for an environmental clearance fortunately normal to above normal crops riculture, Water and Land Reform (MAWLR). certificate (ECC) from the Ministry of Environ- with good gradings were harvested. About ment, Forestry and Tourism (MEFT) for the en- 450 ha were planted and approximately 500 Affecting policy environment vironmental release of genetically modified tonnes of groundnuts were harvested. With The NAB is currently drafting a national maize (GM maize) in Namibia. To apply for the an expectation of better years ahead, ground- drought support programme for surplus rain- certificate, MEFT requested that a strategic en- nut producers are confident that more hec- fed grain production. Although, surplus rain- vironmental assessment (SEA) and strategic tares will be planted. fed grain producers contribute 50% of the environmental management plan (SEMP) be

NAU Annual Report 2019-2020 31 AGRONOMY PRODUCERS ORGANISATION continued ... prepared and submitted to the Department and administered by the MEFT under the Envi- tify challenges facing the industry and how of Environmental Affairs. SEAs are strategic ronmental Management Act 7 of 2007. In turn, the NAB can best service the industry. A key level, systematic decision supporting pro- the mandate to permit the release of geneti- aspect that emanated from the meetings cesses, aimed at ensuring that environmen- cally modified organisms (i.e. cultivation of GM is the establishment of a technical working tal and possibly other sustainability aspects maize) is currently with the Bio-Safety Council group (TWG) to look into the development are considered effectively in policy, planning and is administered under the Bio-Safety Act 6 of the national drought support programme and programme development initiatives. This of 2006. The custodian of the act is the Nation- for surplus rainfed grain production. enables decision makers and stakeholders al Commission of Research Science & Technol- to make informed decisions regarding poli- ogy (NCRST) at the Ministry of Higher Educa- The TWG acknowledged that surplus rainfed cies, plans and programmes by providing a tion, Training and Innovation. producers contribute 50% of total production strategic framework for the future planning in the country, therefore it is important to de- and implementation of such initiatives. The As from June 2020, the application for environ- velop a policy geared to support these pro- accompanying SEMP provides a framework mental clearance has been under review at the ducers after disastrous years. The producers for improvement to promote the positive im- MEFT and no decision has been reached by the always find themselves in an unfortunate fi- pact of such policies, plans and programmes, ministry as yet. Once an ECC is issued, an appli- nancial position and are unable to replant at while simultaneously providing preventative cation will be lodged with the Bio-Safety Coun- full capacity after a drought year. The policy or mitigating action for any potentially neg- cil for the necessary permits to allow the culti- is currently being drafted by the Namibia Ag- ative effects they may have. As part of the vation of selected GM maize strains in Namibia. ronomic Board (NAB). We are positive that if SEA process, a public participation process the plan is realised, self-sufficiency in Namib- was conducted by Geo Pollution Technolo- Stakeholder engagements ia with respect to white maize and mahangu gies, which included a public meeting held can be achieved within a few years. on the 3rd of December 2019 in Grootfontein. National Agronomy Advisory Public participation was a compulsory step Committee (NAAC) Namibia Agronomic Board in the SEA process required to receive input The APA is serving as a member of the com- The Ministry of Agriculture Water and Land and/or objections from those who will po- bined advisory committee consisting of the Na- Reform through the minister’s office, extend- tentially be affected, if in this case, GM maize tional White Maize and Wheat Advisory Com- ed the term of office of the current NAB board cultivation is permitted. mittee (NMWAC) and the National Mahangu members from June 2020. The current board Advisory Committee (NMAC), now known as members whose three-year tenure came to an The completed SEA and SEMP reports were the National Agronomy Advisory Committee end on July 3, 2020, was extended retrospec- reviewed by APA in February of 2020. The re- (NAAC), which is administered by the Namibia tively for the period of three months, ending port was circulated to all parties registered for Agronomic Board (NAB). September 3, 2020, or until such a time as the the SEA process, including the NAB, among minister appoints a new board. The appoint- many others, before submission to the Depart- Since the amalgamation four meetings have ment of new board members will be done in ment of Environmental Affairs. Environmen- taken place, two each in February and July accordance with section 8 of the PEGA (Pub- tal clearance for certain projects is required 2020. Various discussions took place to iden- lic Enterprises Governance Act), no. 1 of 2019. DAIRY PRODUCERS ASSOCIATION (DPA)

The Namibian dairy industry is of strategic in such a weak financial position that the pro- importance to food security, nutrition and ducer price could not be significantly adjust- local agro-processing. Apart from the poten- ed in line with drastic fodder price hikes. As tial benefits of food and nutrition, it provides such producers only received a 10c increase supplementary income and productive em- per litre in the period under review. ployment to numerous families. The period under review has not been one of Over the years the dairy industry has been the easiest. The diary industry found limping. However, through the collective and itself in the middle of a severe cri- collaborative efforts of stakeholders, the sec- sis caused by external factors such tor nevertheless strives to remain relevant and as competition with cheaper im- to push for survival. On a positive note, there ports, increasing fodder costs, re- has been good progress regarding the con- Chairperson: BF Adriaanse curring droughts, low water lev- trol of dairy imports and exports through the els at the Hardap Dam caused by Dairy Product Substitutes Bill, 2020. This leg- poor rainfall, as well as accompa- islation was passed by the National Assembly nying poor economic conditions. in March 2020 and thereafter by the National Council with amendments made in June. The The crisis is beyond control of DPA is confident that it will be finalised soon. the local industry and as a result, dairy farmers are exiting the indus- Performance try at an alarming rate. As a result, milk production has decreased and low (July 2019 - June 2020) supply to the processor has reached crit- The Hardap Irrigation Scheme currently pro- ical levels. Moreover, unfair import compe- duces approximately 80% of Namibia’s formal tition places the processor, Namibia Dairies, milk production. With some rain received at

32 NAU Annual Report 2019-2020 39

DAIRY PRODUCERS ASSOCIATION (DPA)

The Namibian dairy industry is of strategic importance to food security, nutrition and for local agro- processing. Apart from the potential benefits of food and nutrition, it provides supplementary income and productive employment to countless families. The period under review has not been one of the easiest. During this period the Diary Industry found itself in the middle of a severe crisis caused by external factors such as competition with cheaper imports, increasing fodder costs, recurring droughts, low water levels at Hardap Dam caused by poor rainfall, as well as the accompanying poor economic conditions.

The crisis is beyond the control of the local industry and as a result dairy farmers are exiting the industry at an alarming rate. As a result, milk production has decreased and the low supply of milk to the processor has reached critical levels. As a result of unfair import competition amongst many others, the processor Namibia Dairies (ND) is not in a financial position to effect a significant price increase, even though fodder prices have increased drastically. As such the producers only received a 10 cent increase per litre over the period under review.

Over the years the dairy Industry has been limping. However, through the collective and collaborative efforts of industry stakeholders, the sector nevertheless strives to remain relevant and to push for survival. On a positive note, there has been good progress regarding the control of dairy imports and exports through the Dairy Product Substitutes Bill, 2020. This legislation was passed by National Assembly in March 2020 and thereafter by the National Council with amendments made in June. The DPA is confident that it will be finalized soon.

Performance by the sector July 2019 – June 2020

The Hardap Irrigation scheme currently produces approximately 80% of Namibia’s formal milk production. With some rain received at the beginning of 2020 to date and the Hardap dam filled to a minimum capacity of 40%. Fodder planting only took place in April with the harvest expected in October. Subsequently, Hardap producers need to import more fodder for the remaining part of 2020. The dairy sector is cost intensive with 71% of the production costs going to feed, which is significant. Comparing the 2018 4th quarter to the 2019 4th quarter, feed costs increased by approximately 13%. Overall, the total expenses increased by 8.6% Y-o-Y, while the farm gate price of raw milk only improved by 3.7% Y- o-Y In this scenario, the total expenses remain higher than the income accrued. As a result of these different aspects, it is inevitable that raw milk volumes decreased, see figure 1 below.

Figure 1: Annual Milk Production July 2019 – May 2020 Figure 1: Annual Milk Production July 2019 – June 2020 Milk price According to the processor, its financial position did not allow a significant price increase, hence producers only received a 10c per litre increase over the period under review.

Milk quota The internal DPA milk quota functioned well, and producers were timeously informed of their individual quotas by Namibia Dairies. The current agreement of one million litres with the national processor will be reviewed in July 2020.

Stakeholder engagements An industry engagement meeting took place th on the 13 of February 2020, at Xain Quaz in Gobabis. The meeting was attended by pro- the beginning of 2020 the Hardap Dam filled to the Covid-19 pandemic that prohibited ducers and Namibia Dairies. The objective to a minimum capacity of 40%. Fodder plant- the sale of alcohol, brewer’s grain has been was to look at possibilities for reviving the ing only took place in April with the harvest scarce and at times unavailable. This contrib- industry, the regulatory environment and expected in October. Subsequently, Hardap uted to the high feed costs and reduced milk the vision of Namibia Diaries. The meeting producers need to import more fodder for production, forcing farmers to change dairy resolved that an audience be sought with the remaining part of 2020. The dairy sec- rations. The overall impact is evident from the the Honourable Minister of Agriculture, Wa- tor is cost intensive with 71% of the produc- 20% decline in milk production. When com- ter and Forestry, now Ministry of Agriculture, tion costs going to feed, which is significant. paring April 2020 to April 2019, milk produc- Water and Land Reform. The dairy industry Comparing the 2018 4th quarter to the 2019 tion decreased from 1 750 883 to 1 394 739 thus took the initiative and arranged a meet- 4th quarter, feed costs increased by approxi- litres.40 Further evidence of the decline in dairy ing with the minister to discuss the dire situ- mately 13%. Overall, total expenses increased production can be seen by comparing May ation the industry currently faces. The meet- by 8.6% YOY, while the farm gate price of raw 2019 to May 2020, indicating a 23% producing took place on the 20th of February 2020 milk only improved by 3.7% YOY. In this sce- tion decrease illustrated in Figure 2. and subsequent dialogue covered the fol- Direct Impactnario, of theCovid total- expenses19 pandemic remain higher than lowing agenda items: the income accrued. As a result of these dif- • The DPA and Namibia Dairies informed the ferent aspects, it is inevitable that raw milk Management minister about the dire situation of the dairy Numerous challengesvolumes decreased have caused(see Figure milk 1) productionMr toBF Adriaansedecline overMariental the (chairperson)past year as indicatedindustry duein figure to the severe 1 drought, the de- above, although the drastic decline depicted in Mrthe DJJ monthvan Wyk ofEast April (vice-chairperson) can be attributedpletion directly of the toHardap the Dam, high feeding impact of COVIDDirect-19. impact Most dairyof Covid-19 farmers have beenMr CW using Strydom spent East grain, which is a by-costsproduct and declining of beer raw milk production. Mr B Britz Mariental • The production costs in the RSA compared brewing sourcedpandemic from Namibia Breweries to reduce and control feed costs. However, as a result of the State of Emergency Declaration with the COVID-19 pandemic that prohibited the sale ofto Namibia.alcohol, spent Numerous challenges have caused milk pro- According to our constitution, the current man- • The import of cheap milk. grain has beenduction scarce to decline and at over times the past unavailable year as in- . Thisagement cont stillributed has one to more the year high to lead feed and costs • andThe usereduced of hormones milk in milking cows in production, forcingdicated in farmersFigure 1, although to change the drastic dairy de- rationsconfirmed to mitigate their availability, the dearthhence an electionof spent grain.other countries The overall and non-labelling of such impact is evidentcline depicted from thein the 20% month decl of Apriline incan milk be productionfor new management. When willcomparing not be necessary. April 2020 informationto April 2019 on packaging the of such import- milk productionattributed decreased directly to from the impact 1 750 of Covid-19. 883 litres to 1 394 739 litres. Further evidence edof products.the decline in dairy productionMost dairycan farmers be seen have by been comparing using brewer’s May 2019 to May 2020, indicating a 23% pro• ductionMilk production decrease from by-products (whey) grain, which is a by-product of beer brewing Financial position such as Clover Numel. illustrated insourced figure from 2 below. Namibia Breweries to reduce The DPA financial position for financial year • Subsidies on dairy products in Namibia vis- and control feed costs. However, as a result 2019-2020 closed with a surplus of N$42 a-vis other countries. of the state of emergency declaration due 145.00. • The industry expressed the possible con- Figure 2: Comparing 2019 and 2020 monthly (January - May) Milk Productionsequences, which could lead to possible Figure 2: Comparing raw milk production (January 2019 - May 2020) cuts in the labour force and closing UHT Comparing Raw Milk Production production if the situation persists. The dairy industry further submitted the fol- January - May 2019-2020 lowing proposals to the ministry as possible government interventions to save the total 2 500 000 collapse of the industry: 2 000 000 The need for government subsidies (short- 1 500 000 term intervention): N$2 per litre of raw milk 1 000 000 subsidies to registered milk producers is necessary to cover increased fodder costs. The 500 000 country’s major challenge is the high cost of 0 fodder, which affects the competitiveness of January February March April May final products negatively. Feeding costs vary between 70% and 80% of production costs, 2019 2020 which is significant. Subsidies will help producers to keep on producing.

NAU Annual Report 2019-2020 33

Management

Mr. B.F. Adriaanse Mariental (Chairperson) Mr. D.J.J. van Wyk East (Deputy Chairperson) Mr. C.W. Strydom East Mr. B. Britz Mariental

According to our Constitution, the current management still has one more year to lead and confirmed their availability, hence an election for new management will not be necessary.

Financial position

The DPA financial position for financial year 2019/2020 closed with a surplus of N$42 145.00.

Milk price

According to the processor, its financial position did not allow a significant price increase, hence producers only received a 10 cent per litre increase over the period under review.

Passing and implementation of the bill to control imported and exported dairy products and approval of the regulations thereof (long-term intervention): A dire need persists to fast-track passing the Control of the Importation and Exportation of Dairy Products and Dairy Product Substitutes Bill, 2020, as well as to formulate regulations to restore trust among industry stakeholders.

In conclusion, the minister expressed his sen- timents regarding the crisis, indicating that there is indeed a need for urgent action. He Namibia’s extensive dairy farmer of the year, Christo Lottering (second from left) and his wife, further indicated that the acute water situa- Monica. With them are the NAU’s Harald Marggraff and the head of Namibia Dairies, Gunther tion is a government priority among many Ling during the award ceremony to hand over the winner’s cheque and trophy. Christo told Ag- others and that the cabinet committee on riforum that the honour was due to his dedicated workers and “grace from above.” He admitted water supply is hard at work to find worka- that he personally kept a strict eye on hygiene and health standards. The dairy makes up about ble remedies. The minister indicated that the one third of the activities on his farm Volstruiswerf about 140 km north east of Gobabis. A Beef- dairy industry appeal to request emergen- master herd takes up the rest. cy intervention from the government is well Christo Strydom (second from left) is Namib- received. He will internalise the appeal after ia’s intensive dairy farmer of the year. He is which it will be tabled with the relevant au- the only surviving intensive dairy producer in thorities. The minister further stressed that eastern Namibia. With him is his wife, Gadi, to- the bill is essential and must be approved. gether with Harald Marggraff (far right) of the The ministry will furthermore initiate a stake- NAU and Gunther Ling of Namibia Dairies. This holder workshop to discuss the bill’s accom- was the second consecutive year that Chris- panying regulations. to won this award. According to him the key to his success is dedication to rising early eve- During the period under review, the DPA ry day and spending long hours in the milking engaged with Feedmaster, the Agricultural stalls. His farm Volmoed Noord is about 90 km Trade Forum (ATF), the Namibian Competi- north east of Gobabis. He has been milking tion Commission (NaCC) and Namibia Trade since he was eleven years old. Forum (NTF). Dirk van Wyk and his daughter René with the Japie Engelbrecht trophy for Dairy Producer of the Year the best milk quality. Japie (second The awards took place during a gala dinner from right), retired producer and for- hosted by the chairperson at Kachas Farm mer DPU chairman, initiated the tro- in Mariental on July 16, 2019. The winners phy. This was the fourth year that it was were as follows: awarded. On the far right is Hellmut Kries, DeLaval representative in Namib- Intensive Dairy ia, who sponsored products to the val- Producer of the Year: ue of $7 500 as part of the prize. On First Mr DW Strydom, second Mr CJ Aggen- the far left is the Namibia Agricultural bach, third Mr P Menne Union’s manager of industries, Harald The Extensive Dairy Marggraff. Dirk also won the award for Producer of the Year: the lowest bacteria count and second prize for extensive dairy farming. He First Mr BC Lottering, second Mr DJJ van Wyk, said the key to his success is “dedica- third Mr HC van Niekerk tion to management”. “You need to fol- Lowest bacterial count: low a certain path to give your best”, he told Agriforum. The farming activities on his farm Mom- bolo, 80 km north east of Gobabis consist of one third each between dairy production, charcoal Mr DJJ van Wyk production and the sale of weaners. Japie Engelbrecht Floating Trophy for the best quality milk: Mr DJJ van Wyk

The sponsors who made the event possible were Feedmaster, Namibia Dairies, Polyoak Packaging, DeLaval and Kaap Agri Namib- ia. We extend our sincere gratitude for their continued support to the DPA over the years.

Unfortunately, due to Covid-19 and resulting uncertainty, the DPA management meeting of May 13, 2020, took a decision to not host its awards event in 2020. There were various reasons for the decision, one being to relieve Pieter van Wyk (middle) shows off the framed certificate for best volume estimation on behalf of sponsors from their usual loyal support, be Namibia Dairies’ |Aimab super farm. On the right is his senior colleague, Gunther Ling, with the win- it in kind or financially, during such a chal- ner’s cheque. The NAU’s manager of industries, Harald Marggraff officiated at the presentation. lenging year. Our sponsors were notified of

34 NAU Annual Report 2019-2020 the above-mentioned decision and the DPA on the 30th April 2020. As from June 2, 2020, interim. It was decided to identify organisa- expressed its sincere gratitude to the vari- the NTF indicated that “the NaCC received fi- tions in need, in and around the Windhoek ous institutions for their continued support nal reply to the Government Gazette notice area, and to donate 0.5 litres per 1 000 litres to the DPA over the years. Despite the chal- of March 16, 2020. The commission is current- of milk produced to such organisations. Na- lenges, the DPA remains positive and looks ly assessing all information received and will mibia Dairies provided a great deal of sup- forward to conducting business as usual in soon revert to the NTF and other relevant port to the project by processing the milk at 2021 when the pandemic storm has calmed. stakeholders with respect to any additional their cost and making it available in one litre information that may be required because UHT packaging units. Donations kicked off of public submissions that were received.” in September 2018 and a total of 14 081.87 li- Application for the dairy tres of UHT milk was provided to beneficiar- voluntary local sourcing ies over a 23-month period. The project was Goodwill project scheme interrupted in December 2019 after Namibia At a DPA members meeting in July 2016, pro- Dairies experienced a serious break in its UHT The dairy industry has applied to the NaCC for ducers committed themselves to supporting machines, which resulted in a UHT milk short- approval of the dairy voluntary local sourc- the government’s food bank initiative. How- age for a while. The UHT problem, the ongoing ing scheme, which the NTF spearheaded. The ever, due to the government project taking drought, poor economic conditions and the NaCC gazette a notice to call for objections or too long to get off the ground, producers de- crisis in the dairy industry, forced management input on the March 16, 2020, which was due cided to start their own charity project in the to halt the project until conditions improve.

POULTRY PRODUCERS ASSOCIATION

Chairperson’s report The Poultry Producers Association (PPA) would like to thank all stakeholders in the industry for their cooperation in achieving high levels of local production and growth in the in- Chairperson: R Werner dustry, regardless of the predicaments the industry faces. Challenges are not only experienced on an international level, but also lo- garding vaccinations and medicine need to Estimated statistics for the poultry cally. The PPA is still battling with the dumping be strengthened in the wake of outbreaks of industry (2019) of chicken meat from international chicken infectious laryngotracheitis (ILT) that is new Eggs Total production giants such as Brazil, Europe and to Namibia. This caused severe damage to a Average producing chicken (com- 300 000 the USA. However, progress was made during significant number of commercial farmers mercial) - lay hens 2019 through collaboration with the Ministry and continues to be a problem. Day-old chicken imported - included 260 000 of Trade and Industrialisation and other stake- commercial and SMEs holders to increase import levies. The egg industry experienced a good start Point-of-lay chicken imported from 5 000 in 2019 after recovery from the South African SA (commercial) We do however need to keep up the good bird flu pandemic when business reverted to Eggs produced 109 million work by promoting biosecurity, which is ex- what could be termed as normal. However, Meat Total tremely critical for the poultry industry. It is local feed prices remain a challenge as South- Total live weight produced 27 412.31 tonnes furthermore important to note that effective ern Africa had under-average rainfall, which communication between stakeholders re- caused prices to increase on the stock market. Day-old chicken sold 548 575

NAU Annual Report 2019-2020 35 Agra, over the past 40 years has been rooted in agriculture and will forever strive to understand the needs of the evolving industry by providing exceptional, quality products and personal service to our clients. Agra has well over 20 retail stores countrywide, with some 3 850 shareholders and more than 800 employees. We have established ourselves as a significant, diverse and proudly Namibian company, ultimately creating a better life for all Namibians.