Sheep farmers agree to wait

19 March 2010, New Era
URL: http://www.newera.com.na/article.php?articleid=10024&sid=3573e7fae7bf61f6377548f3e3e91cef

Windhoek:  Small stock farmers have agreed to wait for Government to pronounce itself on the proposal to amend the levy on export of live small stock to South Africa.

At a meeting for livestock producers here on Tuesday, farmers distanced themselves from calls for a demonstration to State House, saying the best option is to give the Ministry of Agriculture, Water and Forestry more time.

“We decided to be no part to any demonstration but to stick to negotiations and wait anxiously for the decision by Government,” farmers say.

The new proposals to which farmers, abattoirs, and Government agreed suggests a levy of N$40 per small stock exported, and also ask Government through the ministries of agriculture and trade and industry to have an effective border control system on the number of small stock exported.

The current levy regime, which Government introduced not so long ago, imposes an export ratio of six to one small livestock. This compels producers to first slaughter six small stock inside the country before they can export one on the hoof.

The levy is meant to protect and uplift the local small stock industry, through increased throughput at abattoirs and eventually creates other value addition industry from such spin offs.

Farmers say they “are in favour of protecting value addition in the local small stock industry, but this should not be at our detriment”. The producers are suggesting that Government re-look the levy and introduce incentives that benefit producers through competitive prices.

In its present format, says farmers, the protectionism levy presents abattoirs with the opportunity to feed off the open loopholes within the system.

Supply exceeds demand during high seasons and prices at abattoirs are almost similar, with no single abattoir giving a higher price to attract throughput more than another.

Further, local prices are not as attractive as the prices at South African abattoirs.

“There would be no peace as long as this scheme is in place, and we need some more freedom,” say the farmers.

Discussions had taken place between farmers and the Ministry of Agriculture, Water and Forestry but the ministry is yet to implement the action agreed on.

Patience is now wearing thin among small stock farmers with unions and farmers associations calling on Government to implement the proposals.

Agitating farmers more is the fact that after numerous discussions and agreements, the high peak season has again dawned for small stock farmers – a period where they could otherwise reap high yields from the sale of their sheep only if the proposed amendments to the levy were in place.

Some farmers have proposed a demonstration to petition President Hifikepunye Pohamba for a speedy implementation, a proposal that was blasted by both the Namibia Agriculture Union (NAU) and the Namibia National Farmers Union (NNFU).

Meat Board of Namibia, which had unfortunately found itself at the receiving end from farmers and abattoirs, has hinted the fear of possible reimbursement suits from the ongoing impasse and has suggested a final settlement to the issue this year.

The Meat Board has received flack from farmers who point at differences in prices, between Namibia and South Africa, to which the board also agree. Abattoirs, however, say the Meat Board has little control at borders.

Meat Board of Namibia is certain that a solution for all parties is possible and says this solution could be similar to the system used in the slaughter of oxen.