AGRICULTURE

Growth in the agricultural sector is projected to remain subdued during 2024 as a result of the worsening drought conditions. The Bank of Namibia (BoN) projects growth of 3.6% in the livestock subsector and negative growth of 13% for the crop farming and forestry subsector.

LIVESTOCK

Livestock farming dominates the agricultural sector and accounts for more than half of the total agricultural output. The sector’s growth is projected to decrease from 9.1% in 2023 to 3.6% following below-average rains during the 2023/24 rainy season and poor rangeland conditions, forcing farmers to reduce their herds.

A total of 294,938 cattle were marketed in 2023, an increase of 17% from 250,751 in 2022. More than half (151,808) were exported on the hoof to mainly South Africa, while 104,649 were slaughtered at local A-class abattoirs and 38,581 at various B-class and C-class abattoirs countrywide.

Namibian export abattoirs exported an estimated 16.9 million beef products in 2023. The European Union accounted for 9 million kg (53%), followed by South Africa (3.1 million kg), the United Kingdom (1.9 million kg) and China (1.2 million kg).

The growth of 36.7% in the sheep sector during 2023, compared to 2022, was driven by live exports and slaughtering at A-class abattoirs. Live exports increased by 41.3% from 581,873 heads in 2022 to 795,145 heads in 2023. South Africa remained the main buyer of sheep with 99.7% of live export market share.

Mutton production increased from 395,016 kg in 2022 to 940,863 in 2023. South Africa was the main export destination (62%), followed by Norway (33.8%) and Botswana (3.8%).

South Africa introduced stringent new regulations for the importation of cattle, sheep and goats for direct slaughter and feedlot purposes in March 2024. The new rules prohibit the mixing of Namibian livestock in feedlots with South African animals to protect and preserve the genetic integrity of South Africa’s indigenous livestock and to prevent crossbreeding. The Livestock Producers’ Organisation (LPO) has criticised the new export conditions, saying it would bring more red tape and that it was introduced without consulting stakeholders in Namibia.

Although pork production has grown substantially since the implementation of the Pork Market Share Promotion Scheme (PMSPS) in 2012, Namibia continues to be a net importer of pork with the domestic market producing between 44% and 50% of local consumption. The shortfall is imported mainly from South Africa with Germany and Spain as alternative markets.

The Meat Board of Namibia, a statutory body, has officially been renamed as the Livestock and Livestock Products Board of Namibia (LLPBN) following the promulgation of the Livestock and Livestock Products Amendment Act (No. 15 of 2023) in August last year. Under the new act, poultry, eggs, dairy, hides and skins, which were not controlled products under the old act, are declared controlled products which can be regulated by restrictions on imports.

SAVANNA BEEF

Savanna Beef, a producer-initiated beef processing company, has secured a N$150 million loan for the construction of its export abattoir south of Okahandja. The company also secured N$80 million in equity capital from two separate private investor groups. Savanna Beef Processors, which was initiated by the Beef Value Chain Forum, initially raised N$193 million in equity capital through three private placements which came from over 660 Namibian cattle producers. The abattoir is expected to be completed by June 2025 and the company aims to slaughter between 22,000 and 24,000 cattle per month once it is fully operational.

MEATCO

Meatco, a commercial public enterprise, recorded a loss of N$118 million for the period from 1 February 2022 to 31 January 2023. The enterprise received yet another bailout of N$212 million for the settlement of contingent liabilities in the 2024/25 financial year following a N$66.7 million lifeline in the 2023/24 national budget. Despite its financial woes, Meatco sold its meat for N$4 billion less than its local competitors which exported meat to the same international markets between 2018 and 2023.

CEREAL PRODUCTION

Namibia remains a net importer of cereals. The country’s cereal production is projected to decline by 53% from 153,012 tonnes during the 2022/23 season to 72,150 tonnes during the 2023/24 season. Commercial areas are projected to produce only 49% of the national cereal harvest. This has been ascribed to a smaller number of farmers who planted white maize and wheat following the late and dispersed rainfall.

White maize production in the commercial area has provisionally been estimated at a mere 19,900 tonnes, a 77% decrease from the 2023/24 harvest of 88,200 tonnes. The production of pearl millet, a staple food in the north of the country, is expected to decrease by 22% – from 20,500 tonnes to 15,900 tonnes – because of poor rains.

Although the production of white maize and wheat at the Ministry of Agriculture, Water and Land Reform’s green schemes is projected to increase from 10,600 tonnes in 2023 to 13,100 tonnes in 2024, the schemes continue to be under-utilised.

An amount of N$65 million has been budgeted for the 2024/25 financial year towards green schemes administered by the ministry, including Phase II of the Neckartal Dam Irrigation Project. The ministry announced in 2022 that it would lease unproductive green schemes and yet-to-be-developed green schemes to local and international investors. To date only two schemes, the Uvhungu-Vhungu Dairy Farm in the Kavango East Region and the Orange River Irrigation Project have been leased to private operators.

AGRONOMY

Namibia has achieved 55% self-sufficiency in vegetable production since the introduction of the Horticulture Market Share Promotion (MSP) scheme in 2004. Importers of horticultural products are currently required to buy 47% of produce in Namibia before they are allowed to import any fruit or vegetable produce. The production of 20 specially controlled products is monitored by the Namibian Agronomic Board (NAB) and closed border periods for imports are imposed on specific products when sufficient local production is expected.

Despite the progress with vegetable production, the country imports 95% of fruits, mainly from South Africa, to meet the local demand. Apples, banana, citrus fruits, mango, avocado and paw-paw are the top six fruits on the import list. To address the imbalance, the NAB has initiated the Namibia Fruit Development Scheme (NFDS), which aims to stimulate local fruit production, processing and marketing.

Namibia exported 9.3 million cartons of table grapes with a value of N$1.7 billion during the 2023/24 season, an increase of 19% on the previous season. Other high-value fruit crops such as dates and citrus fruit, which are mainly grown along the Orange River in southern Namibia, as well as blueberries, which are grown in the Kavango East Region, are produced mainly for the export market.

POULTRY

The country’s largest producer of chicken meat, Namibia Poultry Industry (NPI), produces around two thirds of the annual local demand. The industry is set to become more self-sufficient following the opening of the second-largest broiler producer, Kadila Poultry Farming near Okahandja, in June 2024. The company plans to produce 400 tonnes of chicken meat per month at full production and will create more than 350 full-time and part-time jobs.

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