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The Agri Handbook 2015






Chapter 1: Agriculture and Economic Climate •

Farming and Agriculture in Africa



Agricultural Union perspective ............................................................................


Chapter 2: Planning and Financing •

National Planning Commission on Agriculture overview



Investments by State ...........................................................................................


Agriculture and Namibia’s Fourth Development Programme



The Agricultural Bank of Namibia



First National Bank of Namibia ............................................................................


Standard Bank of Namibia



Chapter 3: Farming ..............................................................




History of Namibia’s Farming System

Agronomic Board

NBL invests in local barley growth



Social Security Commission’s Development Fund ...............................................





Kassandara .........................................................................................................


Chapter 4: Horticulture •




Horticulture: How Iyambo got it right at Oshikoto ................................................


Omru Greens






Erongo Mountain Winery

2015 top horticulture producers honoured



Cando Farming: Potato And Onion



Solar Grapes Aussenkehr: Sustainable Desert Agriculture .................................


Remodelling grape farming for value addition: Cape Orchard Company



SONOP FARM cements productivity



Kristal Kellerei Winery ..........................................................................................




Chapter 5: Poultry •


Turning local chicken breed into money makers ...............................................

The Agri Handbook 2015


P 86

P 68

P 126

Chapter 6: Aquaculture •

Otjiwarongo: Farming and the Crocodile Industry ...............................................


Chapter 7: Diary ...................




UVhungu Vhungu: Driving towards self-sufficient milk production

Super Farm: Namibia’s biggest dairy farm

Chapter 8: Veterinary Services and Animal Husbandry •

Veterinary Services In Namibia ............................................................................


Strategies for dry season feeding of animals



The role of livestock agriculture in the Namibian economy .................................


FNMD factory



Haloli Piggery: A country’s first ............................................................................


Chapter 9: Water •

Water in Namibia



Directorate Of Water Supply And Sanitation Coordination ................................


Chapter 10: Forestry •

Diversified Agriculture: Ombanje Farm ..............................................................


Debushing .........................................................................................................


Chapter 11: Engineering and Extension Service •

Choosing an irrigation method ............................................................................


Boosting Agriculture with solar energy ..............................................................


Chapter 12: Policy ............................................................................


Directorate Of Agricultural Research And Training ...............................................


Polytechnic of Namibia



Namibia`S Agriculture Policy

Chapter 13: Training

Chapter 14: Stakeholders •




Namibia`s labour regulations ............................................................................





The Agri Handbook 2015



Confidence Musariri Editor-in-Chief

Wesley Urassa Production Editor

Kenneth Karamata Project Coordinator

Marizaan Bock General Manager

Printing: John Meinert Printing The Agri HandBook Namibia is a product of Omake Media Holdings in association with the AgriBank of Namibia and Ministry of Agriculture, Water and Forestry. Copyright Š 2015 Omake Media Holdings, all rights reserved. It is strictly prohibited to store or reproduce material in this publication without permission. 70 John Meinert street, Windhoek, Namibia P.O. Box 25182 Windhoek Namibia Tel: +264 61 254 005 Cell: +264 81 122 6850 Email: 4

The Agri Handbook 2015


THE CREAM OF THE CROP TRUSTS US WITH THEIR INSURANCE NEEDS. At Santam we have absolute respect for the importance of agriculture to Namibia’s economy. It’s why we invest time to understand the unique risks our farmers face. It’s also why we create lasting relationships so we can offer good advice when it’s needed most. So, ask yourself, can you afford not to be with the largest short-term insurer in Namibia? Santam. Insurance good and proper. Speak to your broker or visit

The Agri Handbook 2015




t is a well-known fact that agriculture is one of the most important sectors in the Namibian economy. Its importance is particularly highlighted by the fact that almost 70 percent of our country’s population, especially those living in rural areas, depend on agriculture for their livelihoods. In addition, this sector is not only one of the biggest employers in Namibia, but it is also a source of foreign exchange, which is, derived from the export of livestock, meat products, table grapes and dates. Acknowledging the crucial role that the agriculture sector plays in the lives of our population, Namibia has a constitution that calls upon the Government to promote the welfare of the people of Namibia by adopting policies aimed at raising and maintaining an acceptable level of nutrition, food security and standard of living of the population. It is therefore encouraging to note that this publication looks to provide information on the broader picture of Namibia’s agriculture both from a private and public perspective. All Namibian people have the right to expect that the food available on the domestic markets is safe and of the expected acceptable quality. Diseases affecting crops and livestock can have a devastating impact on agricultural productivity and production, on agro-trade and marketing, on human health and, consequently, on the overall process of economic development. That alone, cannot be achieved without a holistic approach within the food value chain. I call upon all governmental authorities, local industry and other relevant stakeholders to ensure that they grab a copy of this book to understand Namibia’s Agriculture industry. Namibia has continued to create a favourable environment for the Agricultural Sector to continue to thrive. Among others, the Agro Marketing and Trade Agency (AMTA) and the Agricultural Business Development Agency (AGRIBUSDEV) were gazetted as agencies of the Agronomic Board. The main functions of these agencies are to coordinate and promote the production, handling, processing and trading of the agronomic produce in Namibia. Fresh Produce Business Hubs were commissioned in Ongwediva and Rundu. In addition, Bulk Earthworks for Wanaheda Fresh Produce Hub were commenced. Furthermore, the construction of logistic centre, staff and medium scale farmers’ accommodation, expansion of irrigation area, the pump station and an access road commenced at Etunda Irrigation Project. The storage capacity of Silos has been increased by an additional 2000 tons for grains. Milling shed to house a Wheat Milling Plant was also completed at Etunda Irrigation Project.

Hon John Mutorwa Minister Of Agriculture, Water & Forestry


The Agri Handbook 2015

National Strategic Food Reserves Facilities were increased by an additional 3500 metric tons as well as housing and office facilities at Omuthiya were completed. In line with the decentralization policy, two (2) Agricultural Development Centres (ADCs) have been constructed at Bukalo in the Zambezi Region and Edundja, in the Ohangwena Region.

Namibia has also completed and inaugurated the construction of the Agricultural Technology Centre (ATC) in Rundu and commenced with the construction of another ATC in Ongwediva. The reconstruction of the damaged Grass-Süd weir in the Fish River has been completed. The Tses Monitoring Station in the Fish River catchment upstream of Neckartal dam has been upgraded to a real time transmission Hydrological Cycle Observing System Data Collection Platform (HYCOS DCP). Five (5) hydrometric stations at Nkurenkuru, Lianshulu, Nunda Lodge, Camp Kwando and Namushasha Lodge in the Kavango West and Zambezi Regions were resurveyed to obtain accurate water level measurements. Installations of 31 manual rain gauges and training of Extension Officers in the Zambezi and Otjozondjupa Regions were completed. Three (3) injection boreholes were drilled for the Windhoek Aquifer artificial recharge site located south of Windhoek. A total of 220 boreholes were drilled for the drought relief program and 77 boreholes installed. The construction of Neckartal Dam is underway including the construction of the temporary access road, establishment of the quarry and excavation of the dam wall foundation and erection of plant. Eleven (11) earth dams were completed and over 5000 communal water points were rehabilitated. In addition, 583 sanitation facilities were constructed in all regions expect Khomas Region. A total of 1 082 032 out of 1 446 712 cattle were vaccinated against lung sickness in northern communal areas Six (6) veterinary clinics, offices and accommodation were constructed and inaugurated in 2014/15 season. The upgrading and extension of the Central Veterinary Laboratory (CVL) was also completed. In addition, the construction of the Eenhana abattoir was completed as part of the beef value chain project. Maintenance of veterinary infrastructure such as; crush pens, quarantine farms, veterinary cordon fences was carried out. The activities above have ensured that Namibia continues to maintain access to lucrative export markets as well as securing new markets. Namibia produced 168 tons of certified seeds of improved varieties at Research Stations and Green Scheme Projects. However, low rainfall during the last cultivation season resulted in low quantity and quality of harvested seed. The country has also produced 35 tons of foundation seed at Crop Research Stations; 18 research projects were conducted at the five (5) Crop Research Stations on crop improvement, soil fertility improvement, crop diversification and variety evaluation. Phase 2 of the bush encroachment mapping project in southwestern Namibia and surveys to determine browse capacities for Northern Communal grazing lands commenced. The Grazing Capacity map based on prediction of plant biomass in a regression model and the data collection on Urban and Peri-Urban Agriculture in Windhoek were completed. This

allowed surveys to be determined for browsing capacties in Omusati Oshana, Kavango East and Kavango West Regions. Performance Testing Scheme (Phase D) has been implemented at all Livestock Research Stations as a reuslt 215 young bulls were tested. At least five testing units of the Phase C facilities at Omatjenne Research Station have been installed and they are currently being tested and adjusted for commissioning. Feasibility studies for the construction of tissue culture laboratory at the Mannheim research station and the expansion of the NBRI have been completed. Upgrading of the infrastructure viz. Hostels, classroom, offices, slaughter house and staff accommodation at TAZAC completed. Construction works of warehouses with storing facilities at Omahenene and Okashana Research Stations and 2 x 2-bedroom houses at the Alex Muranda Livestock Development Centre have been completed;

• Challenges Drought conditions continue to threaten the country as a result of poor rainfall distribution. Henceforth, prospect for agricultural production has been negatively impacted in terms of crop harvest, rangelands and water. u

Programme 01: Agriculture Major diseases outbreaks such as FMD, Anthrax, Lung-sickness and Rabies were some of the challenges faced by the Ministry. Constructions works delayed due to SMES’ inability to provide guarantees on time.


Programme 02: Water Shortage of technical expertise (engineers, technicians and hydrologists) due to high turnover caused by uncompetitive remuneration packages.


Programme 03: Forestry Illegal harvesting and transporting of forest products is still a challenge. Suitable land for orchard establishment is still limited. Other factors like unauthorized settling in protected communal areas and state forests and forest fires in many parts of the country.


Programme 04: Supervision and Support Services Lack of Communication infrastructure such as Internet Coverage in most remote areas of Namibia causes delays from service providers to install the networking infrastructure on time.

The Agri Handbook 2015


Farming is one of the most difficult jobs, especially in Namibia. With ever growing stresses on getting the job done, the last thing you need to think about is paying your staff. Yet every week, you go to the bank, withdraw cash and pay them. Although cash-in-hand suits most people, it comes with risk, and more importantly, it comes without control. Many an employee will spend their money in the first weekend, leaving them and their families in debt for the remainder of the month. Benefits to You. OMCARD is a revolutionary Card that offers you, and your workers, security and convenience with affordable and many free benefits. As an employer, you can pay your workers directly to their OMCARDs, via your cellphone – wherever you are! The cash is instantly available, and it reduces you having to hold large amounts of cash on hand. You can chose when and how to pay, without any fees to yourself giving you peace of mind that your workers and their families are well looked after during the month.


The Agri Handbook 2015

The OMCARD also comes with a fully functional bank account with our partner, Bank Windhoek. A bank account for which many of your staff previously did not qualify. The OMCARD gives you, the employer, and your employees the chance to access a full range of Old Mutual products, including life cover, funeral policies and savings tools. Benefits to Your Employees. Your workers can buy airtime on any Namibian network with their OMCARDs without having to go to a shop, making them always “contactable”. Should they run out of funds, anyone can send them instant emergency money. With money on their OMCARDs, your workers can send funds to their families – from their own cellphones, wherever they are located – instantly and safely, again free of charge. OMCARD - reducing your financial stress whilst empowering your workforce.

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I can get Pre-Paid Electricity without having to visit a shop using my OMCARD.



Chapter 1 | Agriculture and Economic Climate

Feeding Africa and the World


ur continent has enormous potential, not only to feed itself and eliminate hunger and food insecurity, but also to be a major player in global food markets. This potential lies in its land, water and oceans, in its men and women, in its knowledge and huge mar- kets. Recognizing this opportunity, the African Union chose 10 years ago to make agriculture one of the pillars of the New Part- nership for African Development. Agriculture forms a significant portion of the economies of all African countries, as a sector it can therefore contribute towards major continental priorities, such as eradicating poverty and hun- ger, boosting intra-Africa trade and investments, rapid industri- alization and economic diversification, sustainable resource and environmental management, and creating jobs, human security and shared prosperity. We have come a long way since 2003. We committed to a pro- cess across the continent that mobilizes all member states, stake- holders in the agrifood sector, and primarily, agricultural produc- ers’ organizations, regional institutions and technical institutions. This process recognizes that African women constitutes close to seventy percent of the agricultural workforce and are major con- tributors to food production and security. Mainstreaming their participation and empowerment in Africa’s agricultural revolution is therefore critical. Agriculture and agribusinesses can also pro- vide opportunities to millions of our young people entering Africa’s labour markets every year. The Comprehensive African Agricultural Development Programme (CAADP) seeks to drive our continental agricultural rev- olution, by increasing investment in agriculture, fostering entre- preneurship and investment in agribusinesses and agrifood value

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chains, improving national and regional agricultural markets, fos- tering Africa’s collective food security and improving the manage- ment of natural resources. Over the last decade, where countries have increased invest- ments in agriculture as per CAADP targets (or have exceeded), they have seen reductions in hunger and poverty, and increas- es in productivity. This includes countries such as Ghana, Togo, Zambia, Burundi, Burkina Faso, Mali, Niger, Congo, Senegal, Ethiopia and Malawi. In an effort to boost investments and pro- ductivity, intra-African trade and regional agrifood value chains, ECOWAS, SADC, ECCAS and EAC have put in place regional ag- ricultural policies. 2014 will be the Year of Agriculture in Africa. We will use this as an opportunity to accelerate our drive for food security, to become a net exporter of food, to add value to our agricultural products and for regional integration. Our engagements during this year in global trade negotiations, including on the Economic Partnership Agreements with the European Union, will therefore continue to focus on these African priorities. This document provides us with a clear diagnosis of the oppor- tunities and challenges we face, and presents our vision and pri- orities. As we move towards finalizing our continental vision for the next fifty years — Agenda 2063 — it is an important guide on this critical African sector. Africa will have a population of two billion people by 2050, the majority women and youth. This prediction alone summarise the scale of our agricultural challenges: to feed Africans and to cre- ate wealth for them, and to conserve resources for future gen- erations. By Dr. Nkosazana Dlamini Zuma, Chairperson of the African Union Commission

Chapter 1 | Agriculture and Economic Climate

Agriculture as a driver of economic transformation in Africa The Comprehensive Africa Agriculture Development Programme (CAADP) is now in its tenth year. It has brought the importance of agriculture to the continent’s economic transformation back to the forefront. It also attests to a new approach to the way in which Africa is shaping its future, with development and invest- ment choices made by Africans providing the framework for con- tributions from our partners and investment decisions. This AU-NEPAD agriculture programme has provided many benefits, one of which was that it strengthened democratic pro- cesses by making the participation of all stakeholders, including farmers, a guiding principle. Agriculture is everyone’s business: national independence depends on its development because it enables us to escape the scourge of food insecurity that under- mines our sovereignty and fosters sedition; it is a driver of growth whose leverage is now acknowledged by economists and poli- ticians; it is the sector offering the greatest potential for poverty and inequality reduction, as it provides sources of productivity from which the most disadvantaged people working in the sec-

The history of our continent is punctuated with greed for our soil and subsoil. This should encourage us to consider the op- portunities provided by our diversified ecosystems, the relative- ly low population density of our land, rising global food demand and the positive trends for new sources of development funding. Our role as decision-makers is to provide the impetus needed to ensure that our farmers make their profession an economic activity that generates well-being in rural areas, and meets em- ployment challenges and the expectations of our citizens, name- ly those relating to security, well-being and independence. This is why we were inspired to publish this document, a white paper, which, based on the fortunes and misfortunes of the agricultur- al sector over several decades, traces the path of an agricultural project based on the momentum generated by the CAADP.

tor should benefit. Finally, farmers are the primary guardians of our natural heritage and environmental assets, and they should be granted opportunities to preserve and build on those assets.

The Agri Handbook 2015


Chapter 1 | Agriculture and Economic Climate

Food Security African agricultural development paths over the last 30 years Contrary to popular belief, agricultural production in Africa has increased steadily: its value has almost tripled (+160%), and is al- most identical to that of South America, and below but compa- rable to growth in Asia. However, there has been very little im- provement in production factors (labour and land). Agricultural growth in Africa is generally achieved by cultivating more land and by mobilising a larger agricultural labour force, which produc- es very little improvement in yields. On average, cereal yields are less than half those obtained in Asia. This agricultural growth occurred in an unprecedented demographic context. In the last 30 years, Africa’s population has doubled overall and tripled in urban areas. The most direct con- sequence of this exponential population growth is that the con- tinent now has more mouths to feed. Yet cereal production has been unable to keep pace with population growth, since it has only increased by a factor of 1.8. This gap is even wider for pro- cessed products and meat, which are increasingly called for by a larger and larger urban population. From being self-sufficient in the 1960’s, Africa has become a net importer of cereals. Afri- ca imports products that compete with its own: meat, dairy prod- ucts, cereals and oils. Imports account for 1.7 times the value of exports. As a result, African agricultural exports have fallen by half since the mid-1990s. Despite rapid urbanisation, the population in rural areas has also continued to increase in absolute terms. A special feature of African agriculture in comparison to the rest of the world is that the sector has continued to absorb a large proportion of the working population, and will have to continue doing so, since a very large number of young people will be entering the labour market: by 2025, it is estimated that 330 million young Africans will have entered the labour market, with limited opportunities for finding jobs in cities. In most cases, the increase in available labour leads to additional land being put to use, albeit land that may not always be wholly suited to agriculture, or may be used at the expense of forests and classified areas. As a general trend, land is being de- graded and natural capital eroded.

Farming systems mainly rely on family resources More so than in other continents, Africa is dominated by family farming, which relies mainly on family labour. Africa has 33 mil- lion farms of less than 2 hectares, accounting for 80% of all farms. While the agricultural labour force is comprised mostly of women, rules governing ownership and transfer of land rights are less favourable to women than in Asia and Latin America. Over the last 10 years, large-scale investment contracts in Africa have covered 20 million hectares, which represents more than the arable area of South Africa and Zimbabwe combined. Indeed, Africa’s natural potential is under threat. Many farming systems are struggling to replenish soil fertility due to the lack of invest- ment capacity and secure land tenure. Won over by the idea of in- dustrial farming, decision-makers are sometimes inclined to make it easy for overseas groups to acquire land, not always with the greatest transparency. Yet family farming is best placed to opti- mise labour use and to enable greater land use, while reducing the risk of breaching local rules governing resources. Moreover, it has the greatest potential for increasing broad-based growth and sustainable wealth creation.


The Agri Handbook 2015

Our perspective on certain concepts The adoption of innovation required to increase productivity cannot be simply decreed. Innovations must meet the needs of producers and, for health and environment, must concern the entire national communities. More important- ly, innovation implies risks that farmers would consider as minimal in a more predictable en- vironment with more secure predicted incomes that justify the adoption of new technology pack- ages. Such an environment entails securing land access and tenure, more stable and predictable prices, and insurance and safety nets for farm- ers, among others. Contrary to the current wide- spread reluctance of our cooperating partners to encourage subsidy schemes in African agriculture, it should be recalled that developed and emerging countries have also used subsidies for inputs or outputs as a means of reducing this risk, both in the past and today. Africa sees risk reduction as one of the key drivers of the adop- tion of innovation in agriculture, and hence of productivity growth.

Agriculture and food security: a complex link in a changing context One in four undernourished people in the world live in Africa: Africa is the only continent where the absolute number of under- nourished people has increased over the last 30 years. Food in- security remains an essentially rural phenomenon. It affects the rural world more than cities because the people producing food often do not make enough to feed their families due to the lack of adequate access to means of production (land, manure, tools), and rural communities are poorer and struggle to buy food. Per- manent economic access to food has become the decisive factor in food insecurity. Food insecurity is first and foremost about poverty and inequalities. Consequently, achieving agricultural devel- opment is a necessary condition for reducing food insecurity, but is not sufficient by itself.

Policies, institutions and stakeholders The Comprehensive Africa Agriculture Development Programme (CAADP) has been a catalyst for African initiatives, such as defining national priorities, as well as for the process of Afri- cans’ regaining control of the dialogue with technical and finan- cial partners. Indeed, CAADP has established itself as the ex- pression of reclaimed ownership of agricultural policy by African States and citizens of the continent. It is therefore a means of breaking away from the conditions and restrictions imposed by 20 years of structural adjustment. Nevertheless, public commit- ment to boosting agriculture has been limited and has failed to match the targets set. In 2010, out of the 44 countries for which data is available, only 9 have reached or exceeded the target of allocating 10% of public expenditure to agriculture. Concomitantly, the rise of regional integration and sectorbased policies has served to speed up the structuring of Farmer Organ- isations (FO) at the sub-regional level; nevertheless, FOs remain fragile and cannot replace public

Economic institutions are lacking in Africa compared to other parts of the world, especially in the financial and insurance sec- tors. This hampers farmers’ ability to take more risks and to in- crease investment.

What is at stake for agriculture and food security? Economic challenges: reducing poverty by promoting inclu- sive growth. More than half of all people living in Africa depend on agriculture for all or part of their livelihood. Based on this premise, fostering sustainable agricultural growth means working to boost income and to generally improve the living conditions of one in two Africans, the majority of whom are poor. Promot- ing agricultural growth also spurs economic development in up- stream and downstream subsectors. There is also considerable job-creation potential. However, there are varying labour require- ments for the different forms of agriculture. Industrial agriculture, besides the issues it raises in terms of efficiency in the use of re- sources, clearly creates fewer jobs than modern family farming. In Africa, both models need to be integrated and balanced.

Chapter 1 | Agriculture and Economic Climate

services supporting agriculture. Even though their networks were increasingly recognised as key partners and integrated into various engagement processes by the public authorities at the national, sub-regional and continen- tal levels, the FOs moved a step further to form the Pan African Farmers’ Organization (PAFO) in 2010.

Family farming is defined in opposition to farms where the production process is based primarily on salaried workers who serve as an adjustment variable to maximise income from as- sets, while the aim of family farms is to maximise the use of labour in the family. The latter are of- ten small in Africa, but may be large and mod- ern in other parts of the world. Support to family farming in Africa is justified by the fact that these farms are in the majority and, for the same lev- el of investment, offer margins of progress that are much higher than those of large mechanised farms. In other words, the return on investment in family farms in the African context will be high- er and job creation maximised per unit area, pro- vided that they access proper financing. We also recognise that some small farms will be unable to generate income for all active members of the family assets and will be forced to exit the ag- ricultural industry which require accompanying measures.

The Agri Handbook 2015


Chapter 1 | Agriculture and Economic Climate

Human challenges: reducing food and nutrition insecurity. Although agricultural development alone is unable to eliminate hunger and malnutrition, it is an obligatory, essential and priority element. Protecting rural activity systems is a determining factor. This will occur either by securing land access — in particular for women and young people; by controlling and minimising agricul- tural risks; by diversifying agricultural activity systems and sourc- es of income (encouraging rural “multiactivity”); or by improving the structuring and regulation of markets. Environmental challenges: promoting sustainable management of natural resources The challenge in coming years is to accelerate growth in production and productivity, by controlling its impact on the environment and natural resources such as land, water and energy, and to foster the adaptability of farming sys- tems to climate change. Political challenges: reaffirming sovereignty, and contributing to stability, security and Africa’s international standing Within the context of structural tensions in global food markets, Africa, with its considerable and underexploited agricultural potential, has a strong case to put forward on the international geopolitical stage. The continent as a whole can at least satisfy most of its demand if it manages to exploit its internal complementarities. Harnessing the potential: The economic situation of African States is now conducive to proactive policies. National income has more than tripled in less than 10 years. State income accounted for 85% of Africa’s sources of financing by the end of the 2000s. Nevertheless, the public authorities have become accus- tomed to seeking external assistance at the expense of making more significant national budget contributions to finance the ag- ricultural sector.

Goals and orientations for agricultural policies Feeding 1.5 billion people by 2030 and 2 billion by 2050 is the daunting challenge that Africa intends to meet. The objective for the coming decades is to “ensure food security for a population that is increasing and becoming more urbanised, helping to cre- ate wealth and jobs, in rural areas in particular, while reducing inequalities and vulnerability and protecting environmental and human capital”. Fostering investment in agriculture means attaching greater im- portance to the economic environment in order to reassure agri- cultural producers and other agents in the agrifood value chains. This could be achieved by focusing on five priority areas: Increasing production more sustainably, while absorbing a growing labour force: by promoting the controlled use of inputs and agro-environmental techniques to manage soil fertility levels; increasing labour use, which prioritises an agricultural develop- ment model based on modernising family farms; reducing risks to agricultural production and revenue, which implies first providing agricultural producers and farmers with appropriate financial ser- vices and, second, ensuring better functioning markets; and secur- ing access to land. The training of future generations of farmers is a major work in progress. Finally, the most sensitive challenge ahead is undoubtedly that of adapting to climate change. Promoting diversification based on high quality processed products by offering more standardised products in terms of taste, shelf-life and, increasingly compliance with health and en- vironmental standards. Promoting efficient and more equitable value chain development by encouraging intra-branch approaches. Producers need to organise themselves collectively to ensure support to the sub- sector has a greater impact and to defend their interests when competing with other operators.


The Agri Handbook 2015

Private sector investment should be broadly understood. The principal African investors are farmers themselves. They invest around $100 billion every year in their farms, despite the almost total lack of credit facilities for the vast majority of them. However, foreign investments can be useful upstream (inputs) and downstream (processing) of agriculture to overcome the weaknesses of African industries, as well as in infrastructure to complement public funding. Experience shows that large-scale land-based investment can be justified from an economic efficiency point of view only in a few situations, where land is truly available, which means it is not used, and is ac- quired in all transparency.

Making farms and agricultural systems more resilient to a changing environment: by building operational links between agricultural policy and social protection policy. Developing regional markets and controlling international in- tegration: The regionalisation of markets, along with their smooth integration, is one of the most effective means of stabilising pric- es and securing domestic market supply. It is also a key driver for deploying protection mechanisms and tools to manage price instability and rapid response mechanisms for unfair trade prac- tices in international markets.

Actions The public sector must demonstrate the political will to devel- op ambitious policies structured around three main intervention areas: (i) the production of public goods; (ii) the use of economic policy instruments; and (iii) regulations. Countries and stakeholders must now be steered towards effectively honouring the commitments made. As such, NEPAD ac- tion should go in three main directions to: – capitalise on results obtained so far and foster the creation of an economic environment conducive to sustainable agricultural intensification; – reaffirm African leadership and facilitate its expression through improved engagement with organisations across the continent; building better partnerships with farmers, farmers’ organisa- tions and the private sector, and through greater mobilisation of national resources; – coordinate talks on the future of the agricultural sector, clarify scenarios, predict trends and promote a vision for the sector and its role in solving the general problem of underdevelop- ment in Africa. Strong principles for action. To contribute more decisively to sustainable change in the African agricultural sector, the CAADP must draw on several fundamental principles and guidelines. We need to: 1. Give much more emphasis to farming as a business, as a profi- table venture, and raise the profile of the farming profession; 2. Promote change and transformation in agriculture according to Africa’s vision, starting from within the continent. This requires the mobilisation of the continent’s

The management of natural resources is key to protecting na- tional interests. It entails prioritising land tenure systems that sus- tain value-added on the continent. The relevance of methods of natural resource use must be ensured by peer assessment, in line with the preferences of the local communities.

3. Foster transsectoral dialogue and encourage partnerships to ensure appropriation of and alignment with the agricultural de- velopment strategy;

The African Union has come a long way since 2003. CAADP has laid the foundations for a robust agricultural project that could be continuously enhanced, according to results and lessons learned, and supplemented by new guidelines, as the chal- lenges change and new opportunities emerge. Africa now has the means to achieve its goals.

4. Anchor economic change and transformation in a political eco- nomy approach; 5. Affirm Africa’s interests in international negotiations and in- fluence standards and rules of the game by supporting the new international balance of power; 6. Encourage subsidiarity and adapt it to the political maturity of CAADP constituencies at the various levels of its implementa- tion; 7. Promote the systematic preference for sustainable agricultural systems from a socio-economic perspective (use of labour) and also from an environmental perspective (limited use of high-car- bon inputs, the promotion of agroecology and agroforestry).

Five priority intervention areas: Increasing agricultural production can only be achieved through sustainable agricultural intensification. This means fostering ac- cess to inputs — including the use of ”smart” subsidy policies, en- couraging the adoption of innovations and securing access to re- sources for women and young people in particular, possibly by law. Support will be offered as a matter of priority to family farms that make optimal use of land and labour on small surface areas.

Multisectorality: effective agricultural policy must be comprehensive and based on actions in different areas such as infrastructure investment, and economic policy measures, for instance on trade, taxation, social sectors, regulations, train- ing and the effectiveness of institutions. The Min- istry of Agriculture cannot address all these com- ponents alone. Agricultural policy must therefore be defined as an overall priority, and allocated to various administrations and stakeholders accord- ing to responsibilities, and to constituencies at different geographical levels according to their competencies under the principle of subsidiarity.

Improving the structure and functioning of markets is based on eliminating market failures (monopoly situations, absence of services such as credit, insurance, etc.), the production of public goods (transport infrastructure, access to energy and water, infor- mation on prices, etc.) and market regulations addressing in par- ticular distortions caused by international markets and price vola- tility. Integrating global markets depends on a gradual approach based on an “infant industry” strategy for Africa’s agricultural sec- tor. It will also entail being better organised collectively to ensure that Africa’s interests are defended in international negotiations to improve access to developed and emerging countries. Further- more, it involves improving the African food security strategy so that it becomes a food sovereignty and regional preference strat- egy. This means more flexibility in regional tariff policy, concentrat- ing research efforts on local products, regulations on the use and protection of genetic resources on the one hand and the defence of the interests of agricultural producers on the other. Promoting investment assumes improved income forecasting and, therefore, specific actions to reduce risks, as well as better access to credit. It is also vital to secure the rights to land, wa- ter and rangeland, whether those acquired within the customary framework or those formalised by modern law. It also entails facili- tating contractual relationships between firms and within firms, and between employers and agricultural workers. Even though invest- ment in development corridors is an important and now popular tool, it should not penalise territorial balances. Public investment remains a must. Commitments made in terms of public expendi- ture for agriculture, R&D and infrastructure need to be honoured. Fostering access to food and good nutrition will be the result of better living conditions among producers, the management of risks (economic and productive) and the establishment of social safety nets. Social policies will be especially sensitive to very small farmers who have no prospects of becoming integrated into the market due to a lack of resources. The Agri Handbook 2015


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resources, including its men and women, as well as a particular focus on small farms, which make up the majority of Africa’s productive units and have the greatest development potential. There is also a need for in- creased financial resources, institutions and technical capacity for agriculture;

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Equatorial Guinea




















South Africa






Burkina Faso

597 594
































Central African Republic

















350 325



Sierra Leone

São Tomé and Príncipe








Côte d’Ivoire


Democratic Republic of the Congo







Egypt Sudan


African economies are largely undiversified and highly heterogeneous The national economies within which agriculture in Africa is changing are extremely heterogeneous. While agriculture still holds a dominant position, especially in terms of employment creation, urbanisation is rarely accompanied by economic diver- sification. Certain disparities in the structure of African economies are evident. A single country, South Africa, whose economy is diver- sified and integrated into the global market, generates 30% of the continent’s GDP, although it is home to barely 5% of its pop- ulation. North Africa, which has dynamic secondary and tertia- ry sectors and is strongly geared towards the European market, also stands out, with 35% of GDP and 20% of the African popula- tion. Apart from these two countries, which have succeeded in becoming industrialised, what distinguishes African economies is how important extractive industries are in each country. For 15 of these countries, the


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impact of extractive industries on GDP is equal to or greater than that of agriculture, while for the remaining 30 countries, the agricultural sector is still dominant.

Few countries have begun a real economic transition Agriculture creates most of the jobs in Africa. Aside from the North and Southern African countries, some oil-producing coun- tries in the Gulf of Guinea, and notable exceptions such as Nige- ria, Cote d’Ivoire and Cameroon, agriculture accounts for half or more of the working population. The agricultural population in Africa stands at 530 million peo- ple, and is expected to exceed 580 million by 2020. The popu- lation relying on agriculture accounts for 48% of the total African population (almost 70% in East Africa). A special feature of African agriculture in comparison to the rest of the world over the last 30 years is that the sector has continued to absorb a large propor- tion of the working population; half of all new entrants to Africa’s working population have turned to agriculture, whereas in Asia, this statistic is only 30%. In the developed world, the number of farmers is declining. African economies have undergone tremendous change over the last 20 years. After the 1990s, which were generally characterised by low growth rates, African economies in the 2000s ex- perienced strong, regular growth, with an average annual growth rate of 5.2%. However, the transition to more diversified econo- mies is difficult to initiate. A significant proportion of growth oc- curring in the 2000s is linked to the rise in food prices and the volumes of mining and oil products exported by a few African countries, whose profits are not

1. The agricultural sector remains a major sector in most African economies

Rare success stories in very different contexts

2. Agriculture is the main creator of jobs, while industry is very weak

It is now largely accepted that growth in the agricultural sector, which contributes to poverty reduction and makes internal demand more dynamic, has been a precondition for transforming econo- mies that are now industrialised or undergoing industrialisation. There are very few African countries that have initiated such a vir- tuous process without relying on a considerable extractive sector. Global economic competition, soaring population growth and the impact of climate change are challenges that must be overcome in order to begin the sustainable process of economic transition. However, some countries with very different historical and geo- graphic realities seem to be setting out on such a path: Ghana since the 1990s, and more recently Ethiopia and Rwanda, have all experienced periods of economic development accompanied by poverty reduction. In these three cases, agriculture plays a central role. But it requires a promising economic environment and clearly articulated sectoral policies to foster development.

Chapter 1 | Agriculture and Economic Climate

always equally and sustainably reinvested in economic diversification. However, the vision of an Africa whose growth depends on natural resources must be further discussed. Final consumption accounts for 45% of GDP growth, compared to just a third for extractive resources in the 2000s, owing to the emergence of a middle class ($4-$20/day), which now makes up 34% of the population. In addition, rapid ur- banisation is rarely accompanied by the development of signifi- cant manufacturing sectors. The majority of jobs in the city, which are often informal, have been created in the construction and ser- vice sectors, including trade.

3. Extractive industries spur growth but have little impact on employment and revenue


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Africa’s agricultural sector performance and development paths Contrary to popular belief, agricultural production in Africa has increased steadily over the last 30 years: its value has almost tripled (+160%), showing an increase that clearly exceeds the growth rate for global agricultural production over the same pe- riod (+100%), almost identical to that of South America (+174%), and below but comparable to growth in Asia (+212%).

Production is increasing, but productivity is stagnating Nonetheless, above and beyond this overall performance, the African model of agricultural growth differs significantly from the dynamics seen in Asia or South America. Agricultural growth in Asia over the last 30 years was due in large part to intensive ag- riculture (improved varieties, greater use of inputs and irrigation), while in South America it was due to a significant increase in la- bour productivity caused by the gradual mechanisation of ag- riculture. This has not been the


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1. Cereal production has increased by 125%, yields by 32%, and cultivated land by 70% in 30 years 2. In the last 30 years, productivity per agricultural worker has increased by a factor of 1.6 in Africa, and by a factor of 2.5 in Asia 3. Agricultural production in Africa has not kept pace with population growth

Climate variations determine the performance of the agricultural sector Despite available water resources, a very small proportion of land is under irrigation. The variability of precipitation in time and space in all areas receiving less than 1 200 mm of rain annually leads to high yield variability. With no water management (only 6% of cultivated land is irrigated, most of which is in five countries: South Africa, Egypt, Madagascar, Morocco and Sudan), yields are determined by climatic conditions. This uncertainty influences the strategies adopted by farmers, who are reluctant to invest in in- tensive agriculture.

Changes in the various subsectors

The performances of African agriculture vary among the different subsectors. They are determined by different government incen- tives, a range of technical constraints, the dynamics of heteroge- neous markets and the level of organisation of each subsector, which varies from one product to another. Of course, an in-depth analysis of the main agricultural subsectors across the continent is outside the scope of this document. Nonetheless, in order to analyse the main dynamics working across the continent, it is useful to


with a combination of increased labour productivity, higher yields and an expansion of the land area under cultivation. Finally, the performance of the agricultural sectors in East and Central Africa has been particularly disappointing, stymied by conflict, political instability and recurring poor climatic conditions.

This variability across the continent does not change the gen- eral trend: despite growth, agricultural production has been un- able to meet the higher and more diversified food requirements of the population. In fact, in many countries and regional blocs, population growth has exceeded growth in agricultural produc- tion. Thus, food deficits have increased in countries that have tra- ditionally been importers of food (North Africa and countries that export mining products), while countries that have traditionally been self-sufficient have struggled to maintain this status. From being self-sufficient for cereals in the 1960’s, Africa has become a net importer.

Chapter 1 | Agriculture and Economic Climate

case in Africa, where there has been very little improvement in production factors (labour and land), except in North Africa and, to a lesser extent, in West Afri- ca. Agricultural growth in Africa is generally achieved by cultivat- ing more land and by mobilising a larger agricultural labour force, but there has been very little improvement in yields and barely any change in production techniques. These general dynamics vary considerably from one region to another, both across the continent and within the different regions, according to several factors. North Africa, for example, stands out with a model that is similar to the one seen in Asia: very little land is still available, but sustained agricultural growth is fostered by intensive agri- culture. West Africa, on the other hand, experienced a period of sustained growth that surpassed that of many Asian countries,


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make a distinction between certain main product cate- gories: cereals and other food crops (roots, tubers and plantains, in particular), which form the basis of the food systems in the dif- ferent regions; animal products; fishery products; and the main export subsectors.

Local markets drive production Benefiting from the vibrancy of local, national and regional mar- kets, food crop sectors are among the most dynamic. Several factors boost the appeal of food crop production. First, improve- ments in transport and market infrastructure facilitate the supply of crops to urban areas, whose growth is rapid, ongoing and pre- dictable over the long term. Despite frequent imports of certain groups of products, especially into coastal countries, the vast majority of the food consumed by urban populations in Africa is provided by local agriculture. Urban population growth and the diversification of city diets create high potential demand for fu- ture agricultural subsectors in Africa. But purchasing food from markets is not just for those living in urban areas. Recent surveys reveal that people living in rural areas, who still account for most of the continent’s population, are increasingly turning to markets to meet their food requirements. Even small farms use markets to sell their products and to purchase food. Despite this market dynamism, food crop sectors are general- ly poorly organised. The agricultural producers of the continent are attempting to organise themselves in order to pool their pro- duce and to improve the quality of products on the market. But these market dynamics, which are more longstanding where ex- port products are concerned, are often new to local markets and are, to a large extent, caused by the rising food prices seen in re- cent years. The food crop sectors that have benefited from tech- nological or institutional innovations, even minor ones, have of- ten experienced remarkable growth. This occurred with cassava in West Africa, which benefited from research into new variet- ies and the distribution of effective and affordable mechanisms for local change. The same occurred with wheat selection meth- ods in Egypt. Maize, which responds well to inputs, experienced spectacular development, benefiting from high performance crop systems in both the cotton-producing Sudanese areas and in the south of the continent.

Difficulties adapting traditional livestock systems and the rise in popularity of shortcycle breeding Animal products also benefit from growing markets due to ris- ing urban demand. Rapid urbanisation is combined with higher consumption of animal protein associated with rising incomes, and explains this dynamism. However, with rare exceptions, local production has not always been able to meet this demand. Recur- ring drought in both the Sahel and in East Africa has affected pas- toral systems, and paved the way in the 1980s for imports from outside of Africa, at a time when the European Union was heavily subsidising surplus exports. Livestock rearing is also more con- strained by restrictive health standards. In addition, the develop- ment of processing agro-industries downstream from livestock subsectors is still very limited. The rearing of ruminants is largely dependent on pastoral systems, which are the only systems that add value to semi-arid areas. These pastoral and agro-pastoral systems are vital to North Africa, West Africa, East Africa and Central Africa. Moving livestock according to seasonal chang- es and the availability of fodder is the main method of securing feed for large herds. Transhumance over long distances is part- ly transboundary, and leads to economic and trade integration. These livestock rearing systems supply traditional slaughter sub- sectors. Despite their profitability, they are often deemed incapa- ble of meeting market requirements. Along with the challenges of mobility in a context of ever-increasing cultivated areas and reduced rangeland, these problems pose a major threat to pas- toralism. Poor government policy leads many countries to prior- itise sedentarisation.


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Modern supply sectors depend increasingly on short-cycle species, and the poultry industry in particular has been expand- ing on the outskirts of cities. Finally, animal subsectors are, at times, subject to fierce international competition, especially poul- try and milk product sectors, which are heavily industrialised in exporting countries (Brazil, Europe, etc.). Fishery subsectors must often confront major resource management challenges, which are exacerbated by failures in negotiations on fishing rights and fierce competition between African fleets and foreign ships, of- ten large trawlers. Hopes are now pinned on the introduction of aquaculture production techniques, but this transition is only in its embryonic stages.

Traditional exports are in crisis, but new products are positioning themselves Finally, traditional export subsectors (coffee, cocoa, peanut, cotton, palm oil, etc.) are rapidly losing ground. Three main reasons explain the loss of interest in these industries. First, high price variations in export markets discourage investment and have, at times, destabilised these sectors in some countries. Sec- ond, these export subsectors have historically absorbed a sig- nificant portion of the tax burden of exporting countries, which tends to reduce their competitiveness on international markets and their local attractiveness. Third, with the boom in mining and oil products, many African countries now have options that can more quickly and easily generate foreign income. For these dif- ferent reasons, therefore, the fact that many countries specialise in agricultural product exports often stems from them having no alternatives, rather than it being a strategic choice for the future. It should be noted that new subsectors have emerged, such as cut flowers or targeted production in niche markets (products with high value-added, such as processed fruits, some vegeta- bles, sesame, etc., or biological product subsectors and origin labelling). These subsectors provide major opportunities for di- versification and increasing revenues, but often involve a smaller number of agricultural producers. Without dismissing their impor- tance to the farmers, economic agents and areas concerned, they seem unable to stimulate any major change in local agriculture.

4. Short cycle animal husbandry is better able to meet urban demand 5. Only 13 countries have developed export specialization 6. Traditional cash crops subsectors are losing ground although new niche markets are opening up



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Chapter 1 | Agriculture and Economic Climate

Chapter 1 | Agriculture and Economic Climate

Diversity of farming systems In such a vast continent, with a highly varied biogeography and myriad paths through history, diversified agriculture is to be ex- pected. This agricultural diversity is reflected in the unique re- gional, national and local production and consumption patterns. North Africans consume a diet based on wheat, Central Africans and those living in the Gulf of Guinea consume more roots, tubers and plantains, and those in Southern Africa prefer maize. This di- versity also exists within countries like Ethiopia or Nigeria. In ad- dition, the dynamic nature and diversity of agriculture in Africa is seen in the many different structures, organisation methods and farming systems.

Small family farms dominate farming systems More so than in other continents, Africa is dominated by family agriculture with farms dependent mainly on family farm labour. Statistics on family agriculture are difficult to acquire, but the fact that the vast majority of small farms are family-run gives an idea of the importance of this phenomenon. With few exceptions, land resources are distributed in a relatively equitable manner. Land concentration is far more visible in Asia and Latin America, but in Africa, access to land is significant- ly less equitable between men and women. While the agricultural labour force is comprised mostly of women, rules governing prop- erty and the transfer of land are less favourable to women than in Asia and Latin America. In addition, in many countries, land tenure insecurity is prevalent, highlighting the clash between custom- ary laws and “modern� land law, and is heightened by increasing pressure for land. Despite higher levels of urbanisation, the agricultural and rural population is also growing. Small farms are tending to shrink with every generation. Small farms that are dependent on fami- ly labour, with very little machinery and several activities, reflect the dominant type of agriculture in Africa. Subsistence farming remains important. However, a significant portion of that produc- tion is sold through informal channels capable of accommodating non-standardised products delivered in small quantities. Non-ag- ricultural revenue generated locally, in cities or abroad, provides a significant and growing share of income for most families working in the agricultural sector.

Poor and unequal access to production factors hampers intensive agriculture Nonetheless, family farms are not homogenous. Some are mod- ernising – the largest, those with better soil and especially those close to city markets or involved in a more lucrative subsector. These farms can gain access to credit, thereby facilitating access to equipment, land development, improved inputs and advisory services. Many of them are attempting to collectively control the process of bringing their products to market. Other forms of family agriculture are still absent from political concerns, such as pastoral livestock systems and agroforestry systems, which are neverthe- less important subsectors in several countries. Finally, commercial agriculture plays a significant role, but is limit- ed to certain countries and subsectors. In Southern and East Africa, a higher concentration of land has been inherited from the colonial period. These agricultural models have been heavily funded and are accompanied by a gradual loss of control of production options for commercial farmers, while investment funds and banks benefit. The same has occurred in export subsectors. Respect for interna- tional


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standards has often fostered commercial farming methods or the vertical integration of subsectors in the framework of con- tract work (green beans in Kenya to supply the European market). Finally, changes in the distribution sector, with the establishment of supermarkets, mini-markets and fast food restaurant chains (es- pecially on the initiative of South African and Nigerian groups), re- structure supply methods and standardise production. Debates on the balance that must be found between providing support for subsistence farming, linking family agriculture to mar- kets and commercial agriculture have been revived because of agricultural price hikes and renewed government investment in the sector. The facts and lessons are however quite clear: family farming is best placed to create employment and to enable great- er land use, while reducing the risk of breaching local rules gov- erning resources.

1. Africa has 33 million family farms of less than 2 hectares, accounting for 80% of farms 2. Only 3% of farms have more than 10 hectares 3. Large-scale farming was developed on the basis of specialised production for export purposes and in southern Africa

Along with Latin America, Africa is the continent that has the larg- est surface area of uncultivated arable land. According to FAO, cultivable lands (excluding forest areas) in Africa are three times larger than the land currently cultivated. Sudanian areas in par- ticular, to the north and south of the Congo basin, benefit from conditions that are often highly suitable for farming, but are not yet densely populated. Paradoxically, SubSaharan Africa’s other asset is the extensive nature of most of its farming systems. This means that there is significant room for improvement in terms of farmland productivity. Outside the Nile basin and the Mediterra- nean agrosystems, the limited use of water potential is one of the most striking illustrations of this underexploited potential. To draw a comparison, 6% of African farmland is irrigated in contrast to 40% in Asia. Furthermore, optimising the use of water resources would lead to productivity gains in systems that are already irrigated – a fact that does not only apply to Africa.

Access to and mechanisms for developing available land: fiercely debated issues Africa has great natural potential, but this potential is highly coveted. Investors have been quick to identify the potential: since the food price hikes of 2007-2008, foreign investment in farmland has been the subject of much media coverage. This phenome- non, often described as land grabbing and with a question mark over how far it will reach and how long it will last, has become a controversial issue. It underlines the inadequacy of legal mech- anisms protecting access to land previously cultivated by indig- enous peoples. Won over by the idea of industrial farming, deci- sion-makers are sometimes inclined to make it easy for overseas groups to acquire land, not always with the greatest transparen- cy. But the risks of local people being dispossessed are equally raised by land acquisitions and takeovers by African individuals and institutional investors, such as banks and agrifood industries. Over the last 10 years, large-scale investment contracts in Africa have covered 20 million hectares, representing more than the arable area of South Africa and Zimbabwe combined. Natural wealth is unevenly distributed. Around 60% of cultivable land still available is concentrated in seven countries in East and Central Africa, while the central African region contains al- most 50% of the continent’s water resources and less than 20% of its population. Major political problems may be raised by the man- agement of transboundary natural resources as well as by the in- equitable distribution of these land resources. There are numer- ous examples: the management of the Nile waters, the conflict in eastern DRC, conflicts between pastoralists and farmers in the Sahel, the management of Lake Chad’s waters and land reforms in Southern Africa.

the most fragile. Examples include the savannah areas of the Sahelian strip exploited by agro-pastoral systems, and coastal regions that are exposed to tropical storms. It should also be noted that the practices adopt- ed by smallholder farmers are fostering the emergence of effec- tive solutions for improving fertility and adapting agrosystems to climate change. Over the last 30 years, for example, southern Niger has undergone a farming revolution with the planting and maintenance of a covering of Acacia albida that enriches the soil by adding nitrogen. The links between agriculture and livestock rearing in the Sudanian areas of Mali and Burkina Faso have promoted the use of organic fertilisers.

1. The management of transboundary resources, particularly water resources, represents a major challenge for the economy, environment and peace 2. The continent has substantial arable lands, 60% of which are concentrated in seven countries 3. Climate change has widespread impacts and causes major shocks

Protecting resources, climate change and farming practices Africa’s natural potential is under threat. Many farming systems are struggling to replenish soil fertility due to the lack of investment capacity and secure land tenure, which would en- able changes to farming practices (slash and burn, the use of an- imal manure). The difficulty of obtaining seasonal credit to buy fertilisers and an occasional lack of accessible information on soil fertility management techniques are further factors. The ef- fects of climate change pose a major risk to the future of Af- rican agro-ecosystems, particularly The Agri Handbook 2015


Chapter 1 | Agriculture and Economic Climate

Highly sought-after land and water potential

Chapter 1 | Agriculture and Economic Climate

Hunger, a persistent problem across the continent Despite significant progress in farming and the fact that food in- security has become less frequent over the last 20 years, Africa is, according to the FAO, the only continent where the absolute number of undernourished people has increased over the same period. In 1990, less than one undernourished person in five was living in Africa, while today’s figure has risen to over one in four. Along with South Asia, Africa is the continent most seriously af- fected by food insecurity. However, the situation varies in different areas. In North Africa, despite a strong and growing dependency on imported food, food insecurity remains a marginal problem, mainly due to sub- stantial state subsidies covering basic foods. Southern Africa is also affected to a lesser degree, although the poorest commu- nities often suffer from insecure food situations. East Africa is the most severely affected region. Five countries (Ethiopia, DRC, Tanzania, Sudan and Kenya), only one of which lies outside this region, are home to over half the undernourished people living in Sub-Saharan Africa, but to less than a third of its overall pop- ulation. A number of countries have seen marked progress in recent years (Ghana, Angola, Cameroon and Malawi), with both agricultural and economic growth. The situation has deteriorated in a smaller number of countries, mainly due to conflicts and the AIDS pandemic (Zambia, DRC, Burundi, etc.).

The effects of hunger are felt unequally within each country Food insecurity remains an essentially rural phenomenon. Most rural households buy at least some of their food supplies from the market, particularly during years when the harvest is poor and prices are thus higher. Rural incomes are low and irregular, and this factor combines with the instability of food markets, partic- ularly in areas with shortages, to increase the concentration of food insecurity in rural areas. Food insecurity also varies according to the season. In rural areas, the longer the period since harvest time, the more people’s food stocks diminish and prices rise. The instability of prices throughout the year is exacerbated by the contained nature of local markets and the fact that national markets are restrict- ed and relatively isolated from regional markets. This seasonali- ty has a particularly strong impact on households that are high- ly dependent on the market for their food, such as pastoralists in the Sahel region or East Africa and temporary workers in East and Southern Africa. Food insecurity has a particularly strong impact on young chil- dren and their mothers; within families where the best food is sometimes kept for the men, young children along with pregnant and breastfeeding women are more liable to suffer from nutrition- al deficiencies. Child malnutrition can have a long-lasting effect on children’s intellectual and physical capacities and can jeop- ardise the future of entire swathes of the population. Between 7 and 16% of cases where schoolchildren repeat a year are linked to malnutrition.

Hunger is also affecting the urban poor Food insecurity is a problem that affects the rural world more than cities because the people producing food often do not make enough to feed their families due to the lack of adequate access to means of production (land, manure, tools), and rural commu- nities are poorer and struggle to buy the food they are missing. Food availability has certainly increased, but the per


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capita pro- duction of cereal grains is lower than it was in the 1960s and has been stagnant for 30 years. The people who are most dependent on this production are poor communities, whereas the more afflu- ent sections of society have benefited from the increased avail- ability of more diverse foodstuffs. However, the food insecurity profile is changing. Although atrisk communities are still concentrated in the countryside, their numbers are increasing in the cities. This is the knock-on effect of the growing number of urban dwellers, most of them having fled rural poverty. It is also linked to the instability of living and work- ing conditions as well as family and neighbourhood ties that are weaker in the urban environment.

1. One in four undernourished people in the world live in Africa 2. Rural communities are linked to food markets and significantly hindered by price instability 3. Malnutrition mainly affects children and their development potential

1. Poverty and inequalities are at the heart of undernourishment and malnutrition 2. Agricultural development is a necessary condition in the fight against food insecurity, but is not sufficient by itself 3. The fight against malnutrition requires a combination of social, economic and health initiatives Increased agricultural production and economic growth have pushed up theoretical per capita food availability by around 10 % over the last 20 years. Only a handful of countries in East and Southern Africa as well as countries destabilised by conflicts have seen this figure drop. So why has food insecurity risen? Simply because food availability is only one of the factors in hun- ger and malnutrition. The link to agricultural production is even more complex.

Poverty, conflicts and food insecurity Economic access to food has become the decisive factor in food insecurity. For the poorest communities, whether rural or ur- ban, food is their main expenditure item. This applies to all coun- tries regardless of their level of economic and agricultural devel- opment. Food insecurity is first and foremost about poverty and inequalities. While household food security is usually threatened by isolat- ed events, such as loss of employment or the death of a family member, certain climatic, political and economic problems affect entire regions. Political crises can gradually plunge countries into structural food insecurity, while recurring droughts in some re- gions, such as the Sahel and the Horn of Africa, have contributed greatly to exacerbating food situations that were already fragile. Most coastal countries, and their cities in particular, were hard hit by the food price hikes in 2007-2008 and 2011-2012.

A combination of economic, social and health causes Food quality and diversity, the health and safety conditions gov- erning food preparation and consumption, and the distribution of food within the family unit are all elements that are just as import- ant as the quantity of calories available per person. Consequently, family economic conditions are important, but social factors, par- ticularly equality between women and men, are decisive. Access to education and health as well as women’s integration in local governance institutions are the key to making major progress.

To an even greater degree than food insecurity, malnutrition has multiples causes. Access to mother and child health services, food diversity for very young children and the burden of work on preg- nant and breastfeeding women are all factors underpinning child malnutrition. At-risk areas are not always those with shortages of cereal grains.

The case of West Africa illustrates the multiplicity and complexity of the factors leading to food and nutritional security. Over the last 30 years, per capita food production has climbed at the same rate as in Asia, including in several landlocked Sahel countries. None- theless, the area has an alarming rate of child malnutrition and has been experiencing a succession of crises since 2000. They all result from a combination of factors, such as drought and floods, which reduce the local production, the instability of international and regional markets, political instability and demographic booms. These successive shocks have eroded households’ living systems, making them yet more vulnerable to further shocks.

The relationship between agriculture and food security Agricultural development is a necessary condition for reducing food insecurity, but is not sufficient by itself. Essentially, agriculture is an indirect factor underpinning food security. Since it represents the poorest communities’ main economic activity, its development provides resources that enable rural inhabitants to reduce varia- tions in the quantities produced, to ensure surplus food that can cover households’ occasional shortages and, most importantly, generate income so that they can buy diversified foods and oth- er basic goods. A combination of policies is therefore needed in the fight against hunger and malnutrition: policies that aim to develop agriculture (including land reforms) and non-agricultural activities, to strength- en household resilience and to reduce inequalities in health and trade, among others.

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Chapter 1 | Agriculture and Economic Climate

Hunger, an issue for agriculture and beyond

Chapter 1 | Agriculture and Economic Climate



Public funding for agriculture “We, Heads of State and Government of the African Union (...) declare our commitment to breathe new life into the agricultural sector, including livestock rearing, forest resources and fisher- ies, by introducing specific policies and strategies to assist tra- ditional small farms in rural areas (...). To this end, we agree to adopting sound agricultural and rural policies and to allocating at least 10% of our national budgets to implementing these poli- cies within five years (...)�. Based on IFPRI models, the 10% threshold agreed to by the con- tinent is in line with the average level of investment to be made in order to attain the Millennium Development Goals (MDGs). This spending does not include measures required to improve rural infrastructure (roads, schools, etc), but does encompass agricul- tural research.

Fewer than 20% of AU member states are meeting the 10% target What is the situation 10 years after the Maputo Declaration? In 2010, of the 44 countries for which information is available, only 9 had reached or exceeded the target. A total of 22 countries al- lotted at least 5% of their national budgets to spending on agricul- ture. From 1980-2010, Africa experienced three phases: the first in the 1980s, when agricultural expenditure exceeded 6%. This was also the time when the agricultural sector was quite heavily taxed. Structural adjustments led to


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a significant drop in spending in the 1990s, with an average of between 2% and 3%. In the last 10 years, a modest increase has been observed. Average regional spending on agriculture is approximately 4%. The 2008 food crisis was a turning point for national authorities, but the renewed inter- est in agriculture has not yet been matched by financial injection into the sector. Two trends have been observed over this period. Countries that allotted less than 5% of their budget to agriculture in 2003 have often reduced their spending in the sector. On the other hand, most countries that allocated more than 5% did just the opposite and increased their efforts. In addition to the level of spending, the way in which funds are spent is an important factor to consider. Generally, operation- al expenditure accounts for a significant proportion of resourc- es. The percentage of net flows to production subsectors varies considerably. Production areas with the greatest growth poten- tial often receive government support. Livestock rearing is largely ignored in trade-offs.

Agricultural ODA is increasing slightly Official development assistance (ODA) earmarked for agriculture has declined significantly in the last 30 years: from 16% of total ODA in 1980 to 3% in 2006. Similar to government budget analysis, there is a complete disconnect between the economic and social importance of the agricultural sector and resource al- location. Agricultural ODA exceeds 10% of

1. Agriculture is still neglected in government budgets in the vast majority of countries and this falls short of the Maputo commitment

Chapter 1 | Agriculture and Economic Climate

total country ODA in only eight African countries. It is below 5% in 29 countries. Since the 2008 food crisis, donors have been attaching increasing im- portance to the impact of agriculture on food security. However, donor coordination and the alignment of international support with government policy to improve aid legitimacy and efficiency are slow in implementing aid reform. Very often, donors “shop around� within NAIPs and RAIPs, and very few are ready to com- mit to pooling resources and supporting local structures. Weak local institutions are hampering the real exercise of local political leadership and the capacity to manage aid resources. The GAF- SP (Global Agriculture and Food Security Program) is, however, an effort by donors to channel and coordinate support for agri- culture and food security. This multi-donor fund brings togeth- er donors, beneficiaries and agricultural producer organisations. Some 10 African countries have already benefited from funding agreements for their NAIP totalling $430 billion.

2. Aid is deployed outside the scope of local institutions, which further weakens them


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Chapter 1 | Agriculture and Economic Climate

The rise of agriculture producer organisations The smallholder farmer movement in Africa has not one but many histories. The contemporary context for these organisations is indissociable from Africa’s colonial history and from the ensuing actions taken by independent African states. It covers multiple forms of organisations that differ in the way they are structured, their missions, the nature of their members, their size, etc. They often have a pyramid structure, starting at the village level, which performs economic and social functions, and going up to national federations and umbrella organisations.

From the emergence of grassroots farmer organisations... The colonial powers organised the rural world so they could control it. In the areas selected for producing export crops such as groundnut, coffee, cocoa and sugar, the organisation of plant- ers was a driver for introducing crops, arranging oversight and harvesting products. In the post-independence period, states took over and began to structure the rural world, often adopting interventionist approaches. This period saw the rise of cooperatives overseen by the state in countries as varied as Tanzania, Egypt, Benin, Ni- ger and Cameroon, but also in most other countries led by gov- ernments with authoritarian leanings, Marxist-Leninist regimes or governments fighting colonial aggressions. These regimes as- sumed strict economic and social control over the farming pop- ulation and continued to specialise in export crops, negotiating favourable trade agreements with Europe along the same lines as the colonial trade paths (from the Yaoundé Conventions to the Cotonou Agreement in 2000). Marketing boards ensured that prices for producers were low enough to use levies to finance the modernisation of economies and infrastructure. In the food-pro- ducing sector, public trade monopolies aimed to guarantee mod- erate prices for urban populations. Cooperative organisations were an essential link in the chain. In the 1990s, structural adjustments marked a new era for agriculture, underpinned by the political liberalisation of several re- gimes.

The drop in prices for tropical products and lack of efficiency displayed by public bodies at a time when states were massive- ly in debt led to drastic revisions imposed by international finan- cial institutions. By withdrawing extensively and suddenly from the agricultural sector, states contributed to the emergence of a more autonomous farmer movement. Producers had to organ- ise themselves in order to take over the roles states had formerly played, with a greater or lesser degree of success. These roles included the supply of inputs, support and advice, the grouping of supply, storage and marketing. Other organisations positioned themselves in the trade union sphere. With very few exceptions, producer organisations have a limited economic impact and are highly dependent on external funding. A number of cash crop sectors such as cotton and coffee or a powerful trade sector (Zimbabwe, South Africa) have also formed the basis of agricultural organisations that influence economic strategies and political life. They are universally recognised by the public authorities as stakeholders in negotiating agricultural policies and programmes. organised networks in different subregions at the continental level The rise of regional integration and sector-based policies served to speed up the structuring of producer organisations at the subregional level in the early 2000s. These regional net- works met in 2010 to create the Panafrican Farmers’ Organization (PAFO). It brings together two types of regional networks: (i) those made up of national platforms of smallholder organisations (ROP- PA in West Africa and PROPAC in Central Africa) and (ii) those that are direct members of producer organisations in the coun- tries concerned (SACAU in Southern Africa, EAFF in East Africa and UMAGRI in North Africa). They have become active partners of Regional Economic Communities (RECs), the African Union and NEPAD. However, these networks remain fragile due to their members’ vulnerability, their difficulties in becoming more profes- sional and, sometimes, their insufficiently representative nature.

1. Producer organisations play an increasingly important role in structuring value chains 2. But they remain fragile and cannot replace public services supporting agriculture 3. Their networks are now recognised as key partners to the public authorities at the national, subregional and continental levels


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Since the Maputo Declaration of 2003, the position of agriculture on national and regional political agendas has been reassessed. The volatility of agricultural product prices on the international market due to pressure caused by the structural increase in glob- al demand and deregulated supply-side policies changed the dy- namic. In addition, most analysts (World Bank, OECD, FAO, etc.) expect the price of agricultural products to remain high due to several structural factors: competition for food and energy use, population growth, and rising incomes in emerging and poor countries, etc. Pursuing agricultural disinvestment would involve major risks for African countries. The reappropriation of food and agricultur- al challenges by states and regional economic communities, en- couraged by the CAADP process, has now begun, although this is still not reflected in agricultural budgets. It meets four major stra- tegic challenges faced by most of the countries of the continent.

Economic challenges: reducing poverty by promoting inclusive growth More than half of all people living in Africa depend on agriculture for all or part of their livelihood. Based on this premise, fos- tering agricultural growth means working to boost income and to generally improve the living conditions of one in two Africans, the majority of whom are poor. Boosting the income and consumption of those working in the agricultural sector is also the most effective method of encour- aging the use of local products or services, thereby generating growth in the rest of the economy. Promoting agricultural growth also spurs economic development in upstream and downstream subsectors and, particularly, in those related to the storage, mar- keting and processing of agricultural products and the distribu- tion of food. There is also considerable job creation potential. Finally, developing the agricultural sector meets macroeconom- ic challenges. Despite its significant potential, Africa is a net im- porter of agricultural products today. Although not all countries can expect to meet all of their needs with national production, most can nevertheless aim for a positive agri-food trade balance. The region as a whole can at least satisfy most of its demand if it manages to exploit its internal complementarities, perhaps even positioning itself as a net agro-exporter. Countries with extractive resources may be tempted to abandon their agricultural sectors as long-term profits may seem too low. Except in rare cases, this would be the wrong choice Ex- tractive resources are often exhaustible. The mining of these re- sources creates very few jobs and most countries are and will be faced with mass underemployment. Agriculture, on the other hand, can create jobs that are properly remunerated. However, there are varying labour needs for the different forms of agricul- ture. Industrial agriculture, besides the issues it raises in terms of performance in the use of resources, clearly creates fewer jobs than modernised family farming. Once again, the model of agri- cultural development is at stake, but agriculture is a powerful tool for bringing balance to regions and societies.

Human challenges: reducing food and nutritional insecurity

Although agricultural development alone is incapable of eliminating hunger and malnutrition, it is an obligatory, essential and priority element of this process. First, higher agricultural produc- tivity and more efficient markets for agricultural products reduce food prices, thereby enabling access to food for the poorest rural and urban dwellers. Improving diets depends on an increase in income among the poor and the diversification of local produc- tion: in particular, the development of livestock rearing and mar- ket gardening subsectors; but also, at times, the development of enriched or fortified products (infant cereals, for example). Secur- ing rural activity systems is a determining factor. Depending on the areas and the factors of vulnerability, this will occur either by securing land (through land reform perhaps), by controlling ag- ricultural risks (for example, the use of irrigation to reduce yield variability related to risks associated with rainfall), by diversifying agricultural activity systems and sources of income (encouraging rural multiactivity), by improving market regulation, etc., or, very often, through a combination of different incentives.

Environmental challenges: the sustainable management of natural resources Agriculture uses but also manages land, water and energy re- sources. Agricultural development and the sustainable develop- ment of natural resources are inextricably linked. Over the last 20 years, the development of Africa’s agricultural sector has mobilised more and more cultivable land. At the same time, the sustainability of some agrarian systems has been threat- ened by several factors: the effects of climate change, and popu- lation increase, which puts pressure on land resources and com- promises the capacity of traditional production systems to renew soil fertility. At times, the unbridled use of some agricultural inputs, for example in very intensive suburban market gardening systems (water pollution by pesticides or nitrate residue), poses a threat to the environment and to consumer health. The challenge in coming years is to accelerate growth in produc- tion while controlling its impact on the environment and natural re- sources such as land, water and energy, which are the foundations for the development potential of future generations. Addressing these issues requires a systemic and lasting boost in the productiv- ity of natural factors, but also the formulation and implementation of rules to protect the long-term interests of people living in these areas. Finally, protecting forestry and fishery resources is a major challenge for Africa and the rest of the world in terms of biodiver- sity conservation. With regard to forests, the challenge also lies in carbon capture and, consequently, its impact on climate change. African forests are a global public good and their protection re- quires agricultural development models that prioritise increasing land productivity rather than expanding the amount of land under cultivation.

Political challenges: affirming sovereignty, and contributing to stability, security and Africa’s international standing The development of Africa’s agricultural sector is linked to crucial political challenges. The 2007-2008 food riots were a harsh reminder that within the context of more rapid information distri- bution, securing a supply of food is not only critical from a human development perspective, but it is in fact becoming The Agri Handbook 2015


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Challenges for agriculture and food security

Chapter 1 | Agriculture and Economic Climate

a prerequisite for the continent’s political stability. Supplying urban populations with food was perceived in the past as the most sensitive issue, but greater market penetration in rural areas and an increase in access to information and education will only heighten political sensitivity regarding food and agricultural issues. Properly managing access to natural resources and their use is a key issue for peace, security and effective land management. An increase in the number of clashes between farmers and livestock farmers and conflicts caused by the expropriation of populations after land has been purchased or as a result of colonial heritage carry the risk of destabilisation and even of crises between neigh- bouring countries. The extreme inequality of access to land and capital pave the way for sedition movements and social uprisings. In a context of structural tensions in global food markets, Afri- ca, with its considerable and underexploited agricultural potential, has a strong case to put forward on the international geopolitical stage. Yielding a profit from this dormant political asset would re- quire sustainable productivity growth in order to enhance the val- ue of Africa’s agricultural export potential and, above all, control of the production and marketing of agricultural products by African farmers and entrepreneurs. This raises questions concerning the position that the continent will take in international trade negotia- tions, to become a key player in defining fairer rules for the game.


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1. Agricultural development is at the crossroads of major strategic challenges for the continent 2. Africa can develop its agriculture while creating jobs, protecting natural resources and ensuring high productivity 3. Agricultural value chains can absorb a large number of young people entering the labour market

The agricultural sector in Africa is operating in an entirely new context fostered by the unprecedented combination of a more fa- vourable international environment and major structural changes on the African continent itself.

Underused cultivable land, sometimes available in abundance Apart from a few exceptions in North Africa, some parts of Southern Africa, regions with considerable pressure on land in West Africa and on the outskirts of cities, agriculture in Africa is based on an extensive model. On average, cereal yields are less than half those obtained in Asia. In the last 30 years, these yields have increased less rapidly in Africa than anywhere else in the world, and the use of fertilisers, pesticides and better seed vari- eties remains limited. This low level of intensification for African agriculture is often given as evidence that the continent is lag- ging behind. But it is also and above all a considerable advan- tage. First, Africa has a higher and more rapid growth potential than other continents. Next, while the majority of the countries of the world attempt to redirect their agricultural sectors towards models that are less harmful to the environment, Africa can pur- sue this objective of sustainable development by increasing its agricultural productivity. Low yields in Africa are the result of many obstacles, namely the challenges associated with funding agricultural intensification. However, the availability of land, enabling the regular ex- pansion of land under cultivation, has contributed to the imple- mentation of this extensive agricultural growth model. To improve agricultural production in a context characterised by high avail- ability of family labour, it is often simpler to seek to increase land under cultivation than to invest in intensive agriculture. Land re- sources, in terms of availability, have been exhausted in the more densely populated areas. They are largely concentrated in a small number of countries around the Congo Basin. However, land that is truly available, and not being used in extensive agriculture, for- estry or hunting and gathering, is very limited and should not obscure the reality. To overcome the challenges faced by Africa’s agricultural sector, intensification processes underway must be accelerated and more widely implemented.

Water resources are often underexploited Contrary to popular belief, Africa has abundant water resources that are very unevenly distributed and underutilised. It is estimat- ed that barely a third of the irrigation potential provided by the continent’s main rivers is harnessed. Apart from the Nile, Niger and Southern Africa basins, only a small amount of water is used for agriculture. In addition to this, there is considerable surface irrigation potential at the local level. The limited use of water re- sources for agricultural purposes is often explained by reduced cost-effectiveness in the recent socio-economic context. An enhanced and more effective use of water resources will require major investment in infrastructure and, in particular, the implementation of appropriate governance methods. In fact, im- proved use of water resources implies both risks and opportu- nities. Necessary trade-offs between tax increases for different types of uses, risks caused by climate change and its effects on water resources and, finally, regional governance issues related to the management of transboundary resources, are just some of the risks of conflicting uses that are, at times, of major concern and international in scope.

Available technological methods to rapidly boost productivity Sustainable intensive agriculture must ensure the conservative use of traditional inputs, fertilisers, pesticides, better varieties of seeds, and veterinary products, etc., as well as incentives to implement intensive practices based on sustainable techniques (conservation practices, companion planting, animal manure and organic amendments, biological pest control), and investment in equipment to increase productivity. Of course, research is needed and must be stepped up to en- hance certain varieties, to improve local practices and to adapt certain equipment to specific contexts. The distribution and implementation of technologies now available as well as the use of local knowledge and know-how enables major progress in land and labour productivity to be envisaged in the short term. Effectively encouraging the distribution of technologies across the continent depends on the renewal of agricultural advice mechanisms and the development of networks linking research institutes, development institutes and agricultural producer or- ganisations at the regional and subregional levels.

Promising markets, especially regional markets However, the major opportunity for transforming Africa’s agricultural sector lies, without a doubt, in the dynamism of food markets. The World Bank estimates that Africa’s market for food could be valued at more than $1,000 billion by 2030, compared to $313 billion today. Since the mid-2000s, international markets for agricultural products have entered a new phase. After 30 years of a downward trend in agricultural prices, the pattern has now changed. The increase in global demand is linked to population growth, to agricultural products being used for new purposes (especially energy) and, above all, to changes in diet, particularly in Asia (higher consumption of animal protein linked to rising incomes, putting pressure on the prices of cereals and oilseed and protein crops). Structural growth in demand, combined with possible lim- its on agricultural productivity (particularly in Asia), but also the very uncertain impact of climate change on global agricultural production, leads most analysts to think that global food prices will remain high but more volatile. However, there is no doubt that the greatest opportunities, and those that can be controlled the most directly, are in regional mar- kets. Prospects for the continent’s population growth and urban- isation will continue to alter demand for food on local, national and regional markets. The African middle class (whose per capita income is between $4 and $20 per day) accounts for almost 34% of the continent’s population, and is calling for more diversified products (more vegetables, fruits, dairy products, meat and fish), and increasing amounts of processed and standardised prod- ucts. The current and future changes in demand for food open up market possibilities with higher value-added. This dynamic can accelerate the development of food subsectors through the pro- motion of a modern artisanal agri-food sector and/or of a verita- ble industrial sector. This possibility is one way of attracting new entrants to the labour market.

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Chapter 1 | Agriculture and Economic Climate

Harnessing opportunities and potential

Chapter 1 | Agriculture and Economic Climate

An improved macroeconomic framework The economic situation of African States is now conducive to proactive policies. Economic capital is increasing, as Africa is ranked as the second region in the world in terms of economic growth. Its financial resources bear no resemblance to what they were 10 years ago, and many countries have sound public financ- es, with their debt under control, standing far below that of many countries in the West. Indeed, the financial landscape in Africa has changed. Foreign direct investment has certainly increased, as have national resources. National income has more than tri- pled in less than 10 years. State income accounted for 85% of Af- rica’s sources of financing by the end of the 2000s. Nevertheless, public authorities have become accustomed to seeking external assistance at the expense of making more sig- nificant national budget contributions to finance the agricultural sector. Now the economic and financial crisis affecting countries in the North has led to considerable uncertainty surrounding as- sistance. In addition, there is a major disconnect between ODA resources and capabilities on the one hand, and the scope of fi- nancing needed for an agricultural revolution on the other. This compels African countries and regional communities to promote greater solidarity among sectors and among countries and to implement fiscal policies to reduce economic and social inequalities. Africa now has the means to achieve its goals.


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1. Available knowledge already enables productivity growth and the protection of natural resources 2. Land and water resources exist in large quantities, but are fragile and exhaustible 3. Africa can increase inputs without harming the environment 4. The food market in Africa will triple by 2030, when it is expected to represent more than $1,000 billion

Agriculture in Africa must accelerate growth by exploiting its po- tential to achieve food security, reducing its dependence on the international market and contributing to global economic growth and regional integration. It must do this by helping to create jobs for young people, integrating women and reducing social inequal- ities, while preserving natural resources and the environment.

Producing more, in a more sustainable manner, while absorbing a growing labour force Guidelines for achieving this goal are emerging: promoting the controlled use of inputs (fertilisers, pesticide products, improved seeds) and agro-environmental techniques to manage soil fertility levels and to enhance productivity (organic manuring, techniques to combat erosion by rain and wind, etc.). The latter requires in- creased labour, which prioritises an agricultural development model based on modernising family farms. Finally, it is important to promote agricultural practices and financial instruments to mit- igate climate and market risks. However, there are numerous challenges to meet in achieving the above. The first is undoubtedly reducing risks to agricultural production and revenue, which implies first providing agricultural producers and farmers with appropriate financial services (credit and insurance) to enable family farms, including small farms, to invest in modernising and intensifying their practices, and sec- ond, to improve the way in which markets operate, inter alia by combating price volatility. Securing access to land and land transfers is also a shared challenge with numerous implications for encouraging investment and intensification strategies. Many conflict prevention and resolution initiatives involving local communities and differ- ent categories of users of natural resources are being implement- ed and should be encouraged. However, these local procedures must be sustained by more comprehensive responses in terms of government policies. The training of future generations of farmers is a major work in progress. Current training is too often focused on the widespread use of one technique or on a specific technical package. With the ever increasing number of multi-active young people in rural areas, training must be more comprehensive, combining sound basic training with a wide range of vocational technical training courses. These should not focus only on the farming profession, but also on all professions relating to the different links in the agriculture, livestock rearing, fishing and forestry value chains. Finally, the most sensitive challenge ahead is undoubtedly that of adapting to climate change. While promoting the sharing of cli- mate resilient practices makes sense, the extent of climate change and its impact on agriculture in Africa remain difficult to assess, and anticipating the practice changes required is therefore prob- lematic. The sector will need to manage increasing uncertainty.

Promoting diversification based on high quality processed products The markets opened up by the emergence of an African middle class, in urban areas in particular, are unprecedented. In real- ity, demand is highly segmented according to income

Chapter 1 | Agriculture and Economic Climate

Challenges and courses of action

1. Developing agriculture while protecting the continent’s natural resources depends on sustainable intensification 2. To be fully effective and sustainable, intensification efforts must be geared to family farmers 3. Local markets are the main and most dynamic destination for agricultural producers

level, area (rural, secondary towns, capital cities, workingclass neighbour- hoods, etc.) and lifestyle and age (rise in popularity of fast food restaurants and supermarkets). This segmentation is reflected in the need for diverse products depending on the degree of prod- uct processing and packaging, etc. Nonetheless, these lucrative markets are likely to be highly competitive and African farmers are not always in the best position to supply them. In order to exploit such opportunities, agriculture in Africa must often meet several major challenges. Producing for markets with higher value-added means offering more standardised products, in terms of taste, shelf-life and, in- creasingly, compliance with health and environmental standards. Meeting this challenge means investing in training, regulation and monitoring. Urban consumers need and will continue to need products that are faster and easier to use, often requiring at least one processing stage between the field and the shopping basket. Developing a network of traditional and industrial processing businesses, which source their supplies locally, also requires support for investment. Understanding agriculture as a link in the value chain, including support for links other than production, could be more complicat- ed for agricultural institutions and administrations whose role is to provide support for agricultural development. However, cohesive interventions and support for different links in the value chain will enable production process support to be fully enhanced.

Promoting efficient and more equitable value chains Responding to the diversification, the increase and the segmen- tation of demand requires efficient value chains. For some product groups (for example, poultry, milk, processed dairy products, etc.), African farmers find it difficult to compete with imported products because of the high prices or low quality of inputs (for example, young chickens), or the lack The Agri Handbook 2015


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assets to weather the storm, af-

Understanding agriculture as a link in the value chain, including ter which find themselves support for links otherthey than production, could be more complicateven more vulnerable to other ed for agricultural institutions and administrations whose role is to provide support forIncreasing agricultural development. However, cohesive shocks. occurrences interventions and supportor forunusual different links in the value chain will of abnormal weather enable production process support to be fully enhanced.





effects ofand climate change, Promoting efficient more equitable value chains along with market instability,

Responding to the diversification, the increase and the segmenexacerbate risks for populations. tation of demand requires bility efficientisvalue Forof some product This vulnerathechains. cause groups (for example, poultry, milk, processed dairy products, etc.), the serious food and nutritional African farmers find it difficult to compete with imported products crises affecting because of the high prices or low the qualityHorn of inputsof(for example, and the Sahelsubsector strip.organisation. young Africa chickens), or the lack of adequate Improving subsector efficiency and reducing Developing resilience to trans-action these costs will limit consumer This is in therefore also a challenge crises prices. is critical the short term in terms of access to food, especially for the poorest. Supporting, somein order to reduce their impact times protecting and constantly structuring these subsectors to in the is crucial. enableon themfood to meet security the challengeand, of competitiveness medium to longapproaches term, toinvolving en- able Promoting interprofessional various subsector stakeholders in order to better respond to market demand and agricultural and rural households to the to specificities of its different (quality, degree and secure their segments production type of processing, supply frequency, packaging, marketing, etc.) systems, to increase productivity is a promising avenue. Several experiments already exist, with varandof institutions to safeguard theirtosources ious types all responding domestic, regional and of income. Discussions arestakeholders, international markets. Promoting contracts between labelling, and protected geographical indications, developing on the links to etc., be are all strategies that provide security for value chain agricultural probuiltcanbetween agricultural policy ducers and agents, and encourage them to target and boost their and social protection policy production in order to better respond to demand, in terms of both to achieve this. Input subsidy volume and quality, and to improve the distribution of value-addcouponsproducers for small producers ed. Nonetheless, need to organise themselves collecorgaincash tively to influence transfers in the subsectorfacilitating and to defend their interests when competing with other, often better structured accumulation processes and operators. This is enabling one of the keyshouseholds to ensuring that the of contracts will tosigning cover not harm agricultural producers if they remain fragmented.

of adequate subsector organisation. Improving subsector efficiency and reducing trans-action costs will limit consumer prices. This is therefore also a challenge in terms of access to food, especially for the poorest. Supporting, some- times protecting and constantly structuring these subsectors to enable them to meet the challenge of competitiveness is crucial. Promoting interprofessional approaches involving various subsec- tor stakeholders in order to better respond to market demand and to the specificities of its different segments (quality, degree and type of processing, supply frequency, packaging, marketing, etc.) is a promising avenue. Several experiments already exist, with var- ious types of institutions all responding to domestic, regional and international markets. Promoting contracts between stakeholders, labelling, and protected geographical indications, etc., are all strat- egies that can provide security for value chain agricultural producers and agents, and encourage them to target and boost their production in order to better respond to demand, in terms of both volume and quality, and to improve the distribution of value-add- ed. Nonetheless, producers need to organise themselves collec- tively to gain influence in the subsector and to defend their inter- ests when competing with other, often better structured operators. This is one of the keys to ensuring that the signing of contracts will not harm agricultural producers if they remain fragmented. Making farms and agricultural systems more resilient

Making farms and agricultural systems more resilient This challenge encompasses several agricultural, food and social factors. The unstable livelihoods of the poorest producers ex- pose them to risks that are either individual (family “accidents�) or collective (drought, flooding, falling agricultural prices or rising food prices, pests, infectious diseases among livestock, etc). The most exposed rural populations include pastoralists, smallhold- er farmers and female farm owners. People are more exposed in arid and semi-arid areas. When there is a crisis, they are of- ten forced to decapitalise their


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their education, health and nutritional requirements are included in these approaches. More generally, they entail target- ing specific tools towards vulnerable households as a matter of priority: social insurance, and tools to reduce and manage risks (natural disasters, prices, etc.). Promoting food security reserves, from the local level to that of the Regional economic communities, is another tool that can be used to meet this challenge.

4. The combination of agricultural policies and targeted social safety nets enhances the resilience of poor producers 5. But production must be driven by value chains organised to meet increasingly diversified food demand 6. Market regulation, the natural driving force of regional integration, is a key challenge for the future

Chapter 1 | Agriculture and Economic Climate

Developing regional markets and controlling international integration Africa’s economies and individual agricultural sectors are var- ied and complementary, and the way in which regional markets are integrated is evidence of this. Greater regional integration would enable African agricultural sectors to fully exploit opportu- nities in regional markets by mobilising the complementarities of agro-environmental zones and types of specialisation based on comparative advantages. The regionalisation of markets, along with their smooth integration, is one of the most effective means of stabilising prices and securing domestic market supply. It is therefore also a key way of ensuring protection against interna- tional competition and price volatility in international markets. However, the path to more integrated regional markets has its obstacles. There are many challenges to overcome. National governments have often been weakened by the struc- tural adjustment period and local governments are not always strong enough. National agricultural policies still too often pri- oritise national challenges and the search for ways of achieving national self-sufficiency, at the expense of regional integration. In addition, the interests of countries within regional economic communities are sometimes at odds with one another (the size of the national economy and market, LDC or-LDC, landlocked or non-landlocked, with or without extractive resources, etc.). The fact that some countries are members of several regional groups complicates the issue when establishing a common border poli- cy between RECs and the rest of the world. Funding regional policies is a sensitive issue as REC resources are often limited. A low level of inter-state solidarity limits the im- plementation of regional tax policies, and customs duties rarely help to fund REC institutions (except in West Africa). Although they have become stronger since the early 2000s, regional institutions remain fragile. Most of them lack the capac- ity to carry out assignments entrusted to them and to respond to political expectations. This issue is linked to funding, but also to the willingness of states to provide the best trained professionals to work at the regional level.

7. States and RECs must exercise true leadership of agricultural development policies and processes 8. The international community must avoid rolling out multiple initiatives that disrupt local agendas 9. The CAADP has provided a coordination framework that returns African governments to the heart of development policies

tional t defend issues ulation region anisms anisms must a its food velopm

Admittedly, these regional institutions generally benefit from a transfer of sovereignty on trade issues, but they do not have a WTO trade negotiation mandate. This is an important aspect in moving towards more coherent trade policies at borders so that the voices of African countries may be more audible in international trade negotiations and so that their interests can be better defended. For a successful revival of agriculture in Africa, certain issues need to be better addressed within international trade reg- ulations, such as the right to food sovereignty in countries and regions, as well as the possibility of deploying protection mech- anisms and tools to manage instability and rapid response mech- anisms for unfair trade practices in international markets. Africa must also defend its support for agriculture, especially to protect its food security, the livelihoods of rural populations, and the de- velopment of government interventions in markets, etc.

Design instru

Altho rary ac 2008 f tor in A over tim icies, w must b tempo place o The of the a one sin es. Add in num ment, s ernme Foste portan for agr chains bility, t in inpu Desp agricul

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Designing and implementing structural policies and instruments Although short-term results can be obtained through temporary action, as demonstrated by national response plans to the 2008 food crisis, structural transformation of the agricultural sec- tor in Africa will be the result of interventions that are structured over time and veritable national and regional policies. These pol- icies, which are developed in the final section of the document, must be based on clear choices and guidelines. The addition of temporary, geographic and segmented projects cannot take the place of policies. The revival of the agricultural sector calls for the mobilisation of the authorities at the highest level, as it cannot be the result of one single agricultural policy. The same applies to food challeng- es. Addressing agricultural and food challenges requires policies in numerous areas – agriculture, trade, infrastructure, environ- ment, social protection, etc. –, which must be driven by the gov- ernment as a whole, with a high degree of coherence. Fostering investment in agriculture means attaching greater im- portance to the economic environment that will provide security for agricultural producers and other agents in the agrifood value chains. This encompasses credit policies, the issue of price sta- bility, the legal context of relations within the value chain, trade in inputs, and standards, etc. Despite the political will demonstrated, resources allocated to agriculture remain well below what is needed to ensure a true green revolution. It is not development assistance that will be able to supplement insufficient investment from states and re- gional economic communities. The stabilisation of public finances and the increase in public financial resources


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generated by ex- ploiting extractive resources should help to refocus discussions on the importance of agricultural spending in government bud- gets, given the challenges relating to social integration, inclusive growth and social cohesion. Not all countries are in the same sit- uation, but the interdependences between countries must drive those that are better equipped to reflect on the efforts of solidar- ity needed for regions to live in peace and security and to control internal migration flows. Major challenges exist for governance at multiple levels: in terms of the agricultural sector itself; in terms of intersectoral governance and trade-offs; and in terms of the articulation between national and regional policies. Reforming development aid aimed at facilitating the structural reform process Aid agencies are fully aware of their responsibilities but are still struggling to change their practices. African states and RECs must enhance their leadership and position themselves at the centre of the coordination of external support. Coordination among donors may help to improve aid management by bene- ficiaries, but it can never replace the responsibilities of regional and national institutions. This requires efforts at two levels. First, at the level of states and RECs to develop effective coordination practices for locally selected policies (alignment). These will op- erate with greater legitimacy if they are transparent and involve socioprofessional stakeholders very closely in the decision-mak- ing process. The second level entails efforts by donors to respect the decisions and priorities defined by countries and subregions and to gradually align aid practices with these. More specifically, the challenge is to rebuild efficient and sustainable institutions and to implement long-lasting tools.

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Chapter 1 | Agriculture and Economic Climate


t is once again my distinct honour to be allowed to present this Presidential Report on behalf of the Namibia Agricultural Union.

We have been faced with many challenges, where the resilience of our Namibia Farmers has been tested over and over. Despite this, I am pleased to be able to report that our Members have faced up to their problems with a positive and constructive solution seeking resolution. I would wish to highlight some of these challenges, as it has been recorded that the 2014/2015 rainfall season has resulted in drought conditions that are considered as the worst in some 40 years. The negative impact on our agricultural sector has been widespread, from crop failure in the Maize Triangle, the failure of the mahango crop in the Northern Communal Area, plus the absence of sufficient grazing in our livestock producer areas! Not a good scenario in terms of financial and social stability for our Namibia Nation! This financial stress on the agricultural sector could have a devastating effect on the stated Government Policy of supporting ‘Food and Nutritional Security’ for the Namibia Nation, and we, the commercial agricultural sector, have, and continue to meet with representatives of Government in order to seek solutions to address this major challenge! Whilst dealing with this problem, another major crisis that hit the Agricultural Sector was the outbreak of the Foot and Mouth Virus in the furthermost north of Namibia. Once this became known, the immediate concern from our commercial producers was the state of repair of the Veterinary Cordon Fence.


The Agri Handbook 2015

Agricultural Union perspective Immediate reconnaissance of the fence resulted in reports of breaks in the fence brought about primarily by large game that had broken through, as well as by some areas where certain farmers had, as the result of the drought conditions being experienced, opened gaps for their livestock to access better grazing. The impact on the entire economy, should this F&M outbreak not be contained, would have been devastating, resulting in our members in the Outjo; GTO; Gobabis and Otjiwarongo Regions coming together in order to co-ordinate, with Veterinary Services, and send out teams to repair the fence. Those Regions who were not involved in the repair exercise were encouraged to make contributions to the NAU Contingency Fund, against which claims could be made to cover Labour expenses, material, fuel etc. The Commercial Business Sector as well as the Meat Board and the Ministry of Agriculture also made provision for monetary and material support to this initiative. Thanks to this co-ordinated exercise, the FMD outbreak appears to be contained, the Veterinary Cordon Fence has been rehabilitated, and is now been regularly monitored by our Members!

This from a country, where I was informed during a meeting of the Livestock Producers Forum in South Africa, that the only permit and control required to move any animal from one corner in the north-east of South Africa to, for example, an abattoir in Upington, was to make certain that the vehicle transporting the animals had a valid licence! This action by Veterinary Services in South Africa, which is supported by the Red Meat Producers Association of South Africa, appears to be more of a Trade Embargo to “protect the interests of their Livestock Producers”, despite the fact that South Africa does not produce sufficient protein themselves to feed their population, and has to import processed meat products from countries like Argentina and Brazil! As it so happened, whilst our producers were factoring this challenge into their future planning, an announcement was made by Honourable Mutorwa, Minister of Agriculture, Water and Forestry on 12 August 2015, that the Namibia Government had concluded negotiation with the People’s Republic of China. This Protocol allows Namibia to export bone-in beef to China, and will certainly allow the Namibia Producers to send bigger volumes of beef at an expected much lower processing cost into this massive Chinese market, resulting in, hopefully, a higher price per kilogram for our producers! As one door closes, it is as if, through Divine Intervention, another door opens! You will note that I have moved directly away from the negative news, as there is also much that we can be grateful about! In a recent report published by the Mail & Guardian Africa, after they had researched data compiled by the World Bank and the Food and Agricultural Organisation (FAO), reported on the Countries that produced the most “nutrient rich food”, where the World Bank’s food production index includes only crops that are considered edible and contain nutrients, meaning there is no space for the likes of coffee and tea, which has no nutritional value, and found that in 2013, when the data was last available, Namibia was rated as the #1 Nutritional Value Producer on the African Continent! Our livestock producers have an internationally respected reputation for excellence in terms of their livestock health status, one that we need to protect, and one that Government should recognise and communicate with Organised Agriculture when determining policy in order to obtain input on the needs of the producers. At the same time, Government need to examine the reasons for the fact that the contribution of agriculture to the Gross Domestic Product of Namibia has reduced from 7,4% of the GDP in 1980 to only 3,2% in 2013? So, stand proud you, our Members, as you have contributed to this international reputation of excellence, despite the fact that we do not always receive the deserved recognition from our Political Leadership?

Another area where we can be proud of is the initiation and compilation of a document entitled the “Namibia Rangeland Forum”. We are faced with major problems of bush encroachment in Namibia, and a well-researched document produced by our Livestock Producers Organisation, is a policy document on Rangeland Management in the Country. The fact that the Ministry of Agriculture has accepted this report as being an accepted Policy Document that addresses detailed “Action Plans” for addressing an overall strategy for improving the Rangeland Management in Namibia, is a compliment to the contribution that we, as Organised Agriculture, have made to the success of agriculture in Namibia! I could continue to detail additional areas where Organised Agriculture has played a leading role in improving the important link in the Agricultural Value Chain to the benefit of our producers. For example, the introduction by the Johannesburg Stock Exchange of a financial instrument that is entitled “Namibia Beef and Weaner Derivatives”, that will be listed on the SAFEX Exchange in South Africa, and tradable through local financial institutions. This will provide our Livestock Producers with an additional tool to hedge against possible negative market movements in the prices received from Abattoir/Weaner Auctions! The fact that a Namibian, Dr Raphael Karuiahe, is the Manager of this Dept. of the Johannesburg Stock Exchange is a bonus for our Producers. Against this background, I can only applaud Government, under the capable Leadership of His Excellency, Right Honourable Hage Geingob, that our Political Leadership has based their Policy on the theme of Stability; Peace and Progress. We, as the Commercial Agricultural Sector, will always be prepared to act as a reliable partner of Government in their objective of achieving this mission. I have noted that His Excellency has used the example of Namibia being a “House for all its Citizens”, and that we must all work peacefully together in this “House”. I would like to extend that example, by saying that this “House of Namibia” too has a garden surrounding that “House”, a “Garden” that provides food and nutritional security for the nation, and it too needs maintenance and loving care, which Government needs to be aware of. We are reliable partners, who will assist Government, we only wish that Government will recognise our contribution, and consult with us whenever policy is being considered, especially policy that impacts on our continued success! In support of this observation, I would like to refer to an address by Dr John Steytler at an Agra Pro-Vision function. He stated that Agriculture is the first link in the Value Chain that supports Governments Policy of “Growth at Home”, and is therefore an important component of the Governments Development Programmes. He also said that the Agricultural Sector employs some 33,33% of the Labour Force, whilst also contributing to a positive Trade Balance through the Foreign Exchange earned on our Meat Exports! Thank you all!

This is even more pronounced when one recognises the contribution being made by certain of our members that have excelled on the international stage. In this regard I, for example, mention Mecki Schneider, who is the chairman of the International Brahman Genetic Improvement Forum – besides being the vice president of the Namibia Brahman Producers Organisation! The knowledge that he, for example, brings to all our producers, both communal and commercial, cannot be measured, but it should be treasured!

*Derek Wright is the president of the Namibia Agricultural Union The Agri Handbook 2015


Chapter 1 | Agriculture and Economic Climate

Another challenge that unexpectedly arose was the unilateral bureaucratic decision making by our major trading partner, South Africa, who wished to introduce new animal health requirements for live animals, for them to be allowed to enter South Africa!

Chapter 2 | Planning & Financing

National Planning Commission on Agriculture overview


he Agricultural sector in any country plays a vital role in food security while it plays a major role in the labour market.

Despite increased investment in the sector, with about 56.4% of the Ministry of Agriculture, Water and Forestry’s budget in the 2013/14 financial year being allocated to capital development, Namibia still imports more than 50% of its cereal and horticultural products. The sector’s contribution to GDP remains low, averaging 4.7% over the last seven years. Notwithstanding this low GDP contribution, the sector remains an important source of livelihood supporting more than half the population. Agricultural sector’s contribution to GDP in every second year of National Development Plans (NDPs), with the second year (2013) of NDP4 registering the lowest contribution of 3.2% to GDP, while the first year of NDP4 recorded 5.1%. The low share of agriculture as a percentage of GDP could be explained by climatic and soil conditions which are less suitable for agricultural production. In 2013 the agricultural sector contracted significantly by 26.9% owing to the severe drought experienced in the country which affected both livestock and crop farming, contracting by 39.2% and 8.6%, respectively. This is against the targeted sector growth of 3.9% and 3.8% for livestock and crop farming respectively. In 2012 the sector registered a robust growth of 8.8% compared to the target of 4.2%. The sector continues to be the main employer accounting for 31.4% of total employment an additional 42781 employed persons to the number of people employed in 2012. For the past years, the meat price has been favourable on local and international markets which in turn made the producers’ price attractive as well. The increased quota allocation to the European market contributed to the upward trend until 2012.


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The horticulture products had recorded an actual value of 39% for net import during 2013. This confirms the trend of lower local produce which is far surpassed by imports. The year 2013 saw more animals sold than the preceding year because of the drought situation, but less in value terms due to the fact that the beef producer’s average price for 2012 was higher at N$25.96/kg, while that of 2013 was reduced to about N$23.37/kg.

Livestock farming The year 2013 saw a devastating drought that forced the Government of the Republic of Namibia to declare an emergency to help the needy in terms of household food security. For this reason, no human death was recorded due to the results of 2013’s devastating drought, though large and

According to the Namibian Agronomic Board it is possible to produce staple food grains such as pearl millet (Mahangu), white maize and wheat, although Namibia is one of the driest countries in Sub-Saharan Africa.

The subsector livestock contracted by 39.2% in 2013. This makes the projected growth in NDP4 worrisome, hence the government put some initiatives, such as the use of drought resistant livestock, the increase of the land’s carrying capacity for livestock through de-bushing and improving access to markets through marketing regulations.

Namibia also has a steadily growing horticultural sector that produces crops that include potatoes, onions, tomatoes and carrots. Most of these crops are cultivated under rain-fed conditions resulting in fluctuating yield and profitability for producers.

Namibia’s total cattle herds amount to approximately two million, of which more than four hundred thousand are marketed every year. The year 2013 saw 433 627 heads of cattle being marketed for export abattoirs to South Africa and Europe (UK, Finland, Denmark and Norway), for butchers locally and those sold on hooves to neighbouring countries of South Africa and Angola. The Northern Veterinary Cordon Fence (NVCF) which is mainly communal areas, seldom markets a lot due to diseases, coupled with lack of proper genetic breeding methodologies (livestock production on a commercial scale). The NVCF has quite good number of cattle herds but mainly for subsistence such as oxen used for ploughing since the majority cannot afford tractors, cows for milk which is sold to generate income. The NVCF is rural dominated, therefore the majority of households depend on subsistence activities for their day to day lives.

Crop farming The government, through the Ministry of Agriculture, Water and Forestry, is making sure that resources are available for safekeeping of harvested grain, thus silos are being built around the country. In 2013, an innovative and ground breaking Public Private Partnership initiative was introduced by the Namibia Agronomic Board to put aside N$6 million from the reserve fund. This amount is earmarked for subsidies to registered millers who can get a loan and build silos within the maize triangle of Otavi, Tsumeb and Grootfontein. It will serve as an encouragement to farmers to have their planted hectares expanded as there will be ample storage facilities within the area. Some of the initiatives earmarked by the government are to continue promoting green schemes around the country for food security, establish agriculture fresh produce markets and have enough research stations to carry out research on drought-resistant crops.

Figure 21, below, shows the grains consumption of controlled crops of which local production can’t meet the demand, hence it is supplemented by imports. For all the three crops, Pearl millet depicts insignifi cant import. This crop is drought resistant therefore should be encouraged to farmers to produce it on larger scale, and its flour consumption be encouraged as it is beneficial for diabetics, people with high cholesterol and high blood pressure. Wheat and white maize are favorite crops for flour milling. These are Namibia’s staple foods, and it can be observed that local production hasn’t been meeting the demand for a long time. This is where much improvement is needed to cut down on imports as this can be produced locally. A few years back, the government scrapped the value added tax on end products emanating from these crops to relieve consumers of the burden of skyrocketing prices. Horticulture is one area of agriculture where much of the products are imported. Figure 10 below shows how much of the gardening products are locally produced and those imported. Namibia is blessed with perennial rivers which can supply water for irrigation purposes to produce gardening products throughout the year. Figure 10 further shows that monthly horticultural products are imported with an overall net import of 51%, which implies that Namibia has less or completely no horticultural export for foreign exchange. The horticulture products had recorded an actual value of 39% for net import during 2013. This confirms the trend of lower local produce which is far surpassed by imports. Producers are protected by the policy that compels retailers to procure not less than 33% of their fresh produce locally. The rule forced retailers to look at getting direct supply from local producers, where many large retailers previously got all their stock (fruit and vegetables) from South Africa. The policy further urges producers to diversify their produce and give retailers what they need as well as those that can compete on the international market , such as grapes, to increase export value. Furthermore, fresh produce hubs are being constructed country wide to allow farmers to offload their produce for easy marketing or pick up by retailers.

The Agri Handbook 2015


Chapter 2 | Planning & Financing

small stock animals were significantly affected to the extent that farmers were compelled to sell large numbers of livestock at a very low price for fear of loss triggered by drought as there were no proper grazing areas or water.

Chapter 2 | Planning & Financing



amibia’s Directorate of Planning (DOP) carries out policy analysis, co-ordinates the strategic planning processes, monitor and evaluate development programmes for the Ministry of Agriculture, Water and Forestry (MAWF). The directorate has been reviewing the National Agricultural Policy (1995). It administers rebate facilities for wheat and dairy products through issuing import permits for such products. The rebate facility allows limited quantities of dairy products and wheat to be imported into Namibia from outside SACU duty free. The quotas allocated to Namibia are from time to time by determined according the national demand of the commodities imported under the rebate facility. One of the conditions is that all rebated commodities should not be re-exported into the SACU member countries. SACU has allocated to Namibia a quota of 80 000 tonnes (t) (wheat), 400 tonnes (butter), 300 tonnes (cheese), 700 tonnes (skimmed milk powder) as well as 400 tonnes (whole milk powder). Utilisation of this quota by the Grain and Utilisation of this quota by the Grain and Dairy Industries has been satisfactory. Namibia has participated in various national and SACU consultation meetings in preparation for the tripartite meetings and has also taken part in the substantive SADCEAC-COMESA meetings with regard to drafting of the relevant articles and annexes such as that of sanitary and phytosanitary measures and technical barriers to trade, rules of origin, among others, to the main TFTA agreement. The sequencing of technical meetings means that the Tripartite Trade Negotiating Forum meets quarterly to peruse the work of the technical committees and to provide direction and advice. The SADC-EPA Group and the European Union (EU) focused on agricultural market access, rules of origin, and services and investment. With the exemption of the cheese lines, the EU was not satisfied with the offer, stating that South Africa’s market access offer is less than its current imports into the Southern Africa Customs Union, especially on wheat, pork and ice cream lines. The two parties reached a consensus on the provisions in the agreement regarding public procurement, competition as well as services and investment.


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SACU member states, in recognising the importance of balanced industrial development of the Common Customers Area, as an important objective for economic development and pursuant to this, agreed that common policies and strategies with respect to industrial development be developed. SACU has started work on the development of common industrial and agricultural policies. Member states have emphasised the urgent need for an industrial and agricultural policy for SACU as it is an essential step towards the effective operation of the national bodies and the tariff boards. It will also be an important component in formulating tariff and trade policy, which has a bearing on revenue sharing arrangements. The member states have exchanged their existing policies in order to start a dialogue on the meaning and scope of a SACU industrial policy framework and begin to identify its possible components. A SACU Task Team has been formed composing of the member states contact person to oversee the development of the industrial policy framework. The Secretariat has undertaken a study policy audit review of the documentation submitted and is in the process of developing a discussion document taking all the industrial policy-related documentation into account. The discussion document will take into consideration the status and scope of industrial policy development in SACU member states and also to identify gaps and possible approaches to a ‘common understanding of industrial policy’. The directorate continued to promote bilateral and multilateral co-operations in the field of agriculture water and forestry. During the period under review, the Ministry concluded the following agreement: • Memorandum of Understanding between Namibia and Vietnam on co-operation in the field of agriculture. • Memorandum of Understanding between Namibia and China on foot and Mouth disease Control. • Memorandum of Understanding on South-South Cooperation between Namibia and China. • Memorandum of Agreement between Namibia and Angola on the control, prevention and eradication of tans-

• Memorandum of Understanding between Namibia and Argentina on co-operation in the field of Agriculture. The implementation of these agreements is expected to contribute the growth of the Namibian economy in general, but in particular to development of the agricultural sector. The MAWF implements the Agricultural Management Information System (AMIS). The AMIS Central Data Warehouse currently contains data at national level on agricultural production, prices and agro-trade. During the period under review, the Directorate together with Namibia Statistic Agency (NSA) prepared and set up tools and equipment for conducting the communal sector Agricultural Census. The report of both sectors will be published together during the next financial year.

• Mariental Reeds Co-operative Ltd; • Gam Multi-purpose Co-operative Ltd; • Erongo Livestock Marketing Co-operative;

Chapter 2 | Planning & Financing

boundary animal Disease (CBPP) contagious bovine pleuropneunomia.

• Okondjatu Multi-purpose Co-operative Ltd; • Luhamoho Co-operative Ltd; • Otjetjekua Small Scale Farmers’ Co-operative Ltd; • Otjovahonga Co-operative Ltd; • Okangoho Multi-purpose Co-operative Ltd; • Ada Huigu Farmers’ Co-operative Ltd; • /Hu-Danab Crop & Livestock Co-operative Ltd; • Ada Ma’basen Farmers’ Co-operative Ltd;

Government together with its co-operating partners, monitors the crop and food security situation as well as the availability of agricultural inputs at household level.

• Masokotwane Farmers’ Co-operative ( MAFACO) Ltd;

Three agro-assessments in six crop growing regions were conducted during the period under review. The main crop assessment was done in May/ June 2013. The assessment concluded that poor cereal harvest is expected in the north east and part of the north central communal crop growing regions due to poor rainfall performance experienced during the session. Household food security conditions in the north eastern regions were expected to tighten up by October 2013.

• Tunga Nagarik Savings and Credit Co-operative Ltd;

The Agricultural Inputs and Household Food Security Assessment was carried out in November 2013 to determine the agricultural inputs availability at household and regional levels and find out the preparedness of farmers for the 2013/14 cropping season. The 2013/14 cropping season noted a slight delay in the onset of the rainfall season. The Crop Prospects and Household Food Security Assessment were conducted in February/ March 2014. This assessment was aimed at providing an overview and estimate of production and planted area. Harvest prospects for 2013/2014 cropping season indicate extremely below average production as drought conditions intensified.

• Ohangwena Livestock Marketing Co-operative (OLMC) Ltd;

The Dop through Division of Co-operative Development (DCD) continued to administer the Co-operatives Act 1996, (Act 23 of 1996) and created an enabling environment for co-operative development in Namibia. The division is responsible for facilitating the development of co-operative and co-operative activities in all the economic sectors in Namibia. In Namibia co-operative businesses are involved in economic activities such as livestock marketing, crop production, sewing and tailoring, saving and credit, small mining marketing of semi-precious stones, arts and crafts, karakul carpet weaving, mahangu marketing, seed multiplication and certification, provision of agricultural inputs such as seeds, fertilisers and ploughing services, first level oil processing from indigenous plants such as Marula, Kalahari melon and Ximenia. The vital role played by co-operatives in improving the livelihoods of many people within the Namibian economy, especially the rural people cannot be over-emphasised. Cooperative businesses, wherever they exist have managed to bring marketing and supply services closer to their members as well as non-members in various communities. They are also the catalysts for the provision of access to savings and credit facilities to their members, farming input and implements in many rural communities, as well as employment and income generating opportunities to many households. New co-operatives recently registered are: • Puika Mo Farmers’ Co-operative Ltd; • Waterberg Farmers’ Co-operative Ltd; • Uis Multi-purpose Co-operative Ltd;

• Lihuguvara Multi-purpose Co-operative Ltd; • Homateni Co-operative Ltd; • Kavango Livestock Marketing Co-operative Ltd; • Oshikoto Livestock Marketing Co-operative Ltd; • Oshana Regional Livestock Marketing Co-operative Ltd;

• Omusati Regional Livestock Marketing Co-operative (ORLMC) Ltd; • Outjiro Multi-purose Co-operative Ltd; • Amarika Farmers’ Co-operative Ltd; • Erongo Small- scale Miniers Co-operative (ESMC) Ltd; • Ada //Gubasen Tourism Co-operative Ltd; • Kalkfeld Co-operative Ltd. The Co-operative College, which is a set of course offered by the DCD is established to provide education and training to co-operative members, employees and stakeholders in cooperative development. The main objective of the member education course is to enhance co-operative members’ understanding on the concept and principles of co-operatives, as outlined in the Co-operatives Statement of Identity of the International Cooperative Alliance (ICA). The understanding of the concept and principles of co-operatives empowers members to take ownership of their co-operative business and commit to cooperative activities. It also enables them to understand their rights as members and their obligations towards their cooperatives. In addition to member education courses, four (4) Foundation Bookkeeping courses one (1) Business Planning course, and (1) Extensionists course for Agricultural Extension technicians on co-operatives were also conducted. The directorate continued to provide accounting and audit services to registered co-operatives as “auditor of last resort’’ during the year under review. These services are provided to co-operatives that are not in a position to afford the highly priced accounting and audit services of professional audit firms. Completion of books and audit sessions were conducted in Khomas, Omaheke and the North Central regions, and a total number of eleven (11) co-operatives were assisted. Government provides support to Savings and Credit Associations (SCA) operating under co-operatives in the north central regions. Fifty-one (51) SCAs received support in the form of accounting and audit services in 2015.

The Agri Handbook 2015


Chapter 2 | Planning & Financing

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your benefit.

Dairy = 2.86 jobs / 100 tons

Tomatoes = 3.5 jobs / ha

Flowers = 13 jobs / ha

Carrots = 3 jobs / ha

Pecan nuts = 1.3 jobs / ha

Regarding policy options, he cites the options allowed under Southern African Customs Union (SACU), the Southern African Development Community (SADC) and the World Trade Organisation (WTO), cost and benefits of policy options, and Namibia's political economy as well as quantitative import restrictions linked to local procurement rules. He further cites import tariffs, the development of levy on imports; State investment in infrastructure such as irrigation schemes; incentives (subsidies, tax exemption, adjusted fees for energy and fuel, etc.);various other support mechanisms such as surge in imports (volume trigger), or fall of the import price below a specified reference price (price trigger) as other factors influencing agricultural produces. Prof Kirsten says Special Differential Treatment (SDT), can be argued on the basis of: a right to maintain trade barriers to deal with balance of payments problems, protecting "infant" domestic industries, right to offer governmental support to their domestic industries using various industrial and trade policy measures. He adds that Namibia is still on the WTO's list of net-food importers, and as such experiences negative effects in terms of the availability of adequate supplies of basic foodstuffs from external sources on reasonable terms and conditions, and short-term difficulties in financing normal levels of commercial imports of basic foodstuffs. Kirsten notes subsidies for agriculture is allowed under Green box, using arguments of: Safety-nets, Protection of environment, plant or animal welfare, Income insurance, Food security Article 3 of SADC (Trade in goods) allows member states to apply for the re-introduction of tariffs and other protection measures. Article 9 has general exceptions, almost similar to those covered in the WTO, that is, protection of human beings, food safety, animal and plant health, and prevention of critical shortages of foodstuffs. Article 20 deals with safeguard measures in the same way as the WTO does.


he availability of state resources is critical and Namibia needs to ensure that investment of government resources will generate a socio-economic return for the country, Professor Johann Kirsten, the Head of the Agricultural Economics, Extension and Rural Development Department of the University of Pretoria says. He cites three approaches to ensuring growth in the sector as: Large export industries with high labour requirements, high volume imports that can be substituted with locally produced goods and growing small industries with high labour requirements. Other points of value in the situation is Namibia's negative trade balance with South Africa, the "Growth at Home" campaign to stimulate economic growth but stresses that Namibia needs to create jobs in agriculture that could provide socio-economic benefits. Prof Kirsten says the question is often asked why focus on intensive commodities like dairy, broilers, eggs, pork, vegetables and fruits? "The answer is that output of these commodities per unit are higher and they are more employment intensive: •

Poultry = 2.2 jobs / 100 tons

Eggs = 4 jobs / 100 tons

Article 26 deals with protection of Infant Industry. Namibia is already allowed to use a temporary levy up to eight years under this provision. Article 18 of SACU (on free movement of goods in the customs territory) paragraph two gives member states the right to impose restrictions on imports for: Health reasons (humans, animals and plants), environment and intellectual property. Other reasons that Namibia can consider are covered under industrial policy (Article 38), agricultural and competition policies (Articles 39 and 40, respectively). "Quantitative restrictions / import tariffs increase domestic price and producers benefit but consumers loose. Other support measures (incentives, tax breaks, subsidies) produce lower marginal costs that could increase supply and benefits producers as well as consumers but potentially at the expense of the fiscus. Quantitative restrictions (quotas) usually considered more distortive than subsidies or tariffs," he notes. "But will this bring socio-economic benefits? What is the evidence? Any policy option will always have winners and losers and it is important to understand the different interest groups / stakeholders like consumers, farmers, agribusiness firms and political parties / bureaucrats," he concludes. The Agri Handbook 2015


Chapter 2 | Planning & Financing

Namibia: Investments by the State critical for agriculture

Chapter 2 | Planning & Financing

Agriculture and Namibia’s Fourth Development Programme


ccording to NDP4, Agriculture is one of the four economic priority areas, with focus of the sector being to:

continue the expansion of the Green Scheme Programme;

continue the implementation of the De-Bushing Programme;

cash transfer and subsidies to subsistence farmers to enhance food security (thus with linkages to the Reducing Extreme Poverty strategic area); and

promote conservation agriculture.

Green Schemes The expansion of the Green Scheme Programme according to the blue print aimed to put a target area of approximately 27,000ha, under irrigation over a period of 15 years from the inception of the Programme in 2008. The sector planned to develop additional 1,000ha of land under irrigation from October 2014 to March 2015 however, actual achievement was 600ha of land under irrigation at Omashare, Musese and Etunda.


The Agri Handbook 2015

Although this is an ongoing process, the sector only achieved 60% towards their set target for this period. With regards to the construction of fresh produce business hubs, the sector completed 30% of the construction of Windhoek Fresh, 40% towards the construction of Phase 2 of the fresh produce business hub in Rundu, while the progress towards the construction of Phase 2 of the fresh produce business hub in Ongwediva is also recorded at 40%. Therefore, the sector made good progress in this regard by achieving 100% of the set targets towards the completion of the construction of the 3 fresh produce business hubs, during the period under review. Furthermore, although the sector did not plan to construct additional grain storage capacity (silos) during the period under review, it managed to secure additional funds to construct additional 500 tons of grain storage capacity in addition to the 3,000 tons of grain storage capacity achieved in the previous reporting period. Currently the grain storage capacity stands at 25,500 tons countrywide; these include the 5 National Strategic Food Reserves (NSFR) silos in:

Rundu (4,000 tons);

Overall strategic area assessment: Agriculture

Katima Mulilo (7,400 tons);

Okongo (500 tons);

Tsandi (3000 tons); and

Omuthiya (500 tons).

The sector has submitted ASEP for 2014/2015 against which progress being reported. It has been observed that some of the information submitted in the progress report does not correspond with the ASEP and some projects planned for in the ASEP have not been reported on.

Other silos in existence are under the irrigation projects in Shadikongoro (2,000 tons) and Etunda (3,000 tons). The sector also reported on the construction of silos in Sikondo, Mashare and Ndonga Linena (total 5,500 tons) which is underway. However, because the supply was low due to the off-season, the agricultural sector did not make good progress in procuring the set target of 2,000 tons of grain as it only managed to procure and store 122 tons of grain; hence, only 6% of the set target was achieved. In addition, in enhancing food security for the country, the agriculture sector planned on producing 6 tons of fruit but surpassed the set target by producing 15.3 tons.

Cash transfer and subsidies Under the cash transfer and subsidies to subsistence farmers, the sector targeted 4,000 subsistence farmers to have access to credit, but no progress was reported in the period under review. This is amongst the projects that the sector has failed to include in their report even though it was planned for. Although it did not have targets, it made good progress towards the distribution of 120 breeding stock to the San community. In terms of financing of agricultural projects, the Agricultural Bank of Namibia (AgriBank) extended loans totaling N$173 million to 320 farmers across the country. The main recipient programmes were: •

farm land getting (N$63. 6 million or 37% of total loans approved);

livestock (N$42. 7 million or 25% of total loans approved);

debt cancellation (N$46.5 million or 27%); and

other (N$20.2 million or 11%).

De-bushing programme Under the de-bushing programme the sector targeted to debush a total of 700,000ha; however, it made poor progress by de-bushing only 2,650ha of land, meaning only 0.4% of the set target was achieved during the period under review. The target could reportedly not be met due to the high administrative costs related to the agreement between MAWF and National Youth Service (NYS) that took much of the budget. Nonetheless, the sector contracted 45 SMEs and 1,026 people were employed under the de-bushing programme.

Conservation agriculture In order to promote conservation agriculture the sector planned to protect 3 million hectares of land from being destroyed by wildfire. Good progress was made as 4.3 million hectares of land were not destroyed by wildfire during the period under review. The sector also planned to plant 100ha of land with fruit trees; however, only 32.7ha of land were reported to have been planted with fruit trees, translating to an achievement of only 32.7% of the set target during the reporting period.

The expansion of the Green Scheme Programme aims to put approximately 27,000ha under irrigation over a period of 15 years from the inception of the Programme in 2008. However, the baseline of 8,600ha in 2008 compared to the 12,100ha of land under irrigation as of 2014/2015 indicates that the sector only developed additional 3,500ha during the past 6 years. This indicates that on average 583ha are put under irrigation every year. If this is the pace at which the sector will continue moving, only additional 8 745ha of land will be under irrigation by 2023. This means that by 2023, the country will have a total of 17,345ha put under irrigation compared to the target of 27,000ha. In order to accelerate the promotion of increased food production through irrigation, i.e. the Green Scheme Programme, it is recommended that the sector accelerate the expansion of the Programme as this will ensure that they reach the targeted 27,000ha over the period of 15 years. In addition, not only will this expansion increase agricultural production and sector contribution to GDP, but it will also increase food security at national and household levels. Furthermore, it was observed during the project site visits that there are challenges experienced by the sector such as lack of market for local fresh produce due to imports of goods by retailers. To mitigate these challenges, it is recommended that the sector put in place the appropriate marketing mechanisms as well as reviewing and strengthening the infant protection policy. Despite the sector not having planned to construct additional grain storage capacity (silos) during the period under review, it managed to secure additional funds to construct additional 500 tons of grain storage capacity. Currently, the grain storage capacity stands at 25,500 tons countrywide. Food security is a condition related to the supply of food, and individuals’ access to it. However, food security indicators and measures are derived from country level household income and expenditure surveys to estimate per capita caloric availability. Therefore, in the absence of the latest Namibia Household Income and Expenditure Survey (NHIES), the level of food security cannot be determined at this point in time. According to NDP4, the agriculture and forestry sector is projected to grow by 3.7% in 2014/2015. However, the real value added of the agriculture sector is estimated to have recorded a strong growth of 6.5% in 2014 (compared to a decline of 26.7% recorded in 2013); therefore, the sector surpassed the set target for the year. The positive performance in the sector can be attributed to sub-sectors of livestock and crop farming that recorded growths of 8.0% and 4.8%, respectively, compared to declines of 37.6% and 9.6% witnessed in the preceding year. The positive performance in the livestock farming sub-sector is as a result of restocking after one of the worst droughts in Namibia and the strict requirements on livestock imports imposed by South Africa veterinary services during 2014 (which, with the restriction’s effective date being known in advance, may have prompted a spike in sales off-take as farmers tried to beat the cut-off date). The improved performance of the crop farming sub-sector resulted from good rain received in some parts of the country during 2014 (despite drought elsewhere), which culminated in bumper harvest for major crops.

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Chapter 2 | Planning & Financing


The Agri Handbook 2015

Chapter 2 | Planning & Financing

The Agri Handbook 2015


Chapter 2 | Planning & Financing

Appropriate finance for your farming enterprise Agri Overdraft (up to 12 months) The Agri Overdraft facility is aimed at individual farmers or farming businesses operating as proprietors, partnerships, close corporations, trusts and co-operatives. It provides working capital for day-to-day expenses.

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farm productively with our financial assistance.

Agri Short-Term Loan (1 to 5 years) An Agri Short-Term Loan can be used for purchases of production inputs or the establishment of production capacity, such as the purchasing of livestock (poultry or small stock) or other projects that take less than 5 years to generate an income. Agri Medium-Term or Project Loan (up to 10 years) An Agri Medium-Term Loan can be used for the establishment of production capacity, such as the purchase of livestock, establishing orchards and farm buildings, and other projects that take time to generate an income. FNB Agri is proud to introduce the first de-bushing loan in Namibia. This 10-year loan gives you a capital payment holiday for 3 years where after you start paying back the interest and capital over the remaining 7- year term. Agri Long-Term Loan This is a mortgage loan used to finance the purchase of farmland and capital improvements (e.g. buildings, dams and fencing). FNB Business Credit Card An FNB Consumer or Business Credit Card offers you low-cost and flexible access to credit, while providing you with an easy way of managing your expenses. Asset Finance Vehicles, machinery and plant assets can be financed through WesBank, a division of FNB.

Why choose FNB? At FNB we make it our business to find innovative ways to help you grow your business. Therefore, we’ve developed solutions to meet your specific personal and farming needs.

FNB FNB269 Agri Flyer DL Flyer NEW CI.indd 1

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We’ve also designed products to help you manage the production, marketing and incidental risks associated with a farming business. We understand that you are your farm That’s why a dedicated Branch or Relationship Manager acts as your single point-of-contact for both your personal and farming enterprise needs. Your Branch or Relationship Manager is supported by an Agri Specialist who in turn will provide you with the right support and guidance from the start, to help you plan for every eventuality.

Investment Solutions We provide a selection of Investment Solutions to help make the most of your surplus cash. FNB FNB269 Agri Flyer DL Flyer NEW CI.indd 3

Insurance We can help you take the risk out of owning a farming business by giving you various shortterm insurance options. You can choose from our experienced product partner, based on your need to use a broker or go direct. FNB Insurance; Business Outsurance.

We understand that your farm is unique That’s why we provide specialised products for all your financial needs, to help you with every aspect of your farming enterprise. We understand that your time is precious When trying to build a successful farm, there’s no time to stand in queues or wait for statements to arrive by post. Now you can choose how you’d like to interact with us – either face-to-face, through the Internet or on your cellphone – whatever makes your life easier. We believe that your success is our success That’s why we offer the right banking and service solutions to meet your farming needs. We’re committed to helping your farming enterprise grow and your Branch or Relationship Manager together with the Agri Specialists can provide you with appropriate and innovative solutions.


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If you’re a farmer or you intend to farm and you would like to find out what we can do to help you and your business: Visit your nearest FNB branch or arrange to see your Relationship Manager, Branch Manger or Agri Specialist in the area. Contact us: Mariental (063) 345 101 Otjiwarongo (067) 308 500 Windhoek (061) 411 200

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Chapter 2 | Planning & Financing

farm productively with our financial assistance.

We recognize the important role, responsibilities and challenges that you as a farmer have to face daily. That is why we provide all the financial solutions and advice required to ensure that your agricultural business can grow successfully and ensure your financial sustainability over the long term. Contact your nearest FNB branch or FNB Business - Agri division at (061) 411 219 for more information. Kom ons gesels.

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Chapter 2 | Planning & Financing

Focus on improving your farm productivity N

amibian farmers need to strengthen their focus on improving productivity of their farm operations.

This should of course be supported by adequate investments in technology, infrastructure and production. In reaffirming the commitment of his Foundation to Agriculture, Bill Gates, once said that spending on Agriculture is a wise investment is it continues long after you have contributed. Farming in Namibia continues to be challenging to many farmers more especially the part-time group and this is attributed by inter alia inadequate investments in their operations. Ad hoc investment does not sustainably improve farming production. Studies have shown that the severance of drought is much felt by small-scale farmers and those not investing enough in their farm production. Namibia drought occurrence has become more frequent in the last decade and one needs to be prepared at all times to minimise the impact. This is the motivation with which Standard Bank Namibia’s Head of Agriculture Gerhard Mukuahima is encouraging farmers on agricultural investments in the country. “As a country, I believe, we have the capacity to produce our own food and ultimately alleviate poverty and improve nutrition however stakeholder’s involvement is very critical. Bulks of the Namibian farmers are making use of their monthly salaries to subsidise their farming operations and as a result the entire sector is impacted. A salary alone cannot get you to where you want to go as far as farming is concerned. I therefore advise farmers to focus on the bigger picture when running their farming businesses in order to enjoy a fruitful outcome of their farming operations.” Re-assess or define what you want to achieve with your farming business, where do you see yourself moving forward and how much risk are you prepared to take to succeed. Think about of the bigger picture and have a bank as partner in reaching your goals. Nowadays, the general perception is that people want to farm to satisfy themselves domestically, however the main aim should be on feeding the nation as a whole. It is only in this way that Namibia can address food insecurity; alleviate poverty and achieving Government’s goal of Vision 2030. Very few farmers have separate operational accounts for their farm businesses and as a result everything is passed through the same account. Such a move is ultimately not viable in the long run. The question however is how does such an operation model contributes to reaching your farming objectives. We need to evolve as a nation and move to the next level.


The Agri Handbook 2015

Standard Bank Namibia has a number of Agricultural Relationship Managers spread all over the country from which aspirant and experienced farmers alike can tap advice on aspects of the viability and sustainability of growing their farming business. With seven years of Agricultural Business Banking experience, Mukuahima is optimistic that his dynamic team will ensure that agricultural clients receive efficient and holistic superior service offerings. He concludes that time has come to seriously look at ways of expanding farming operations to achieve greater sustainable and productive growth.

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Giving you the tools to

nurture your business. Our extensive footprint across Africa and emerging markets globally uniquely positions us to facilitate solutions for agribusiness within and between continents. We offer an innovative range of finance, investment and risk management solutions as well as a range of agribusiness products, commodities and services all tailor made to suit your specific needs. Call us on 0819286 for more information and how we can move your business forward.

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Chapter 3 | Farming

Diversity of production was replaced by monoculture. The vibrant dairy industry was replaced with by beef production. Most importantly, Namibian farmers could not compete with cheaper imports from South Africa because of the huge growth of production by South African agriculture. Other than beef and mutton, Namibian had little to sell in South Africa, and access to markets elsewhere in the world was limited. The third period is that of sovereign Namibia, from 1990 onwards. Much has been done to rekindle the self-sufficiency encouraged by the Germans, and to protect Namibian farmers and associated industries from competition. Namibian export produce has been promoted, particularly to markets beyond South Africa. There has been a resurgence in the production of a variety of crops and major efforts have been made to bring new commodities of indigenous plants and animals into production.

WHAT IS A FARMING SYSTEM? The Food and Agriculture Organization (FAO) suggests the Following: A farming system is defined as a population of individual farms that have broadly similar resource bases, enterprise patterns, household livelihoods and constraints, and for which similar development strategies and interventions would be appropriate.�

History of Namibia’s Farming System

The definition seems applicable, both to conditions in Namibia and the aims of the book, which are to describe the diversity of farming and be able to target measures that improve agriculture. The idea of a system implies two conditions. First, that activities are inter-connected to form an enterprise of integrated components. The system becomes greater than the sum of its parts. A second condition is that people, farms and their practices fit clearly into distinct categories; in other words, into one farming system or another.

Most farms produced enough vegetables, fruit, butter, milk and meat to meet their own needs. In short, farming practices aimed to produce a variety of products, as did the country as a whole. Butter was exported on a large scale; an average of over 4,000 tons was exported each year between 1935 and 1958.

There are slight problems with both conditions. Namibiais both a developing and rather arid country, which creates a substantial degree of vitality and diversity. Most people living on farms have a variety of incomes and relatively few farmers or farms focus on one commodity. Only some incomes are derived from agriculture, and farmers frequently add new economic activities to their income base. All this makes it hard to see how different activities are integrated. It also makes it harder to fit people and farms into the pigeonholes required of the farming system approach. But there are obvious differences in how people farm, and many activities are indeed integrated. The concept of systems also gives us useful labels. Four major farming systems have been recognized here. Other people might have distinguished more. However, differences between the four are likely to remain fairly constant, whereas differences between what might be called sub-systems are more fluid. Most of the so-called sub-systems are related to land tenure and the consequences of segregation and discrimination, particularly between communal and freehold farms. Those old divides are fast being bridged or changed in complexion. The systems on which the book focuses are more associated with commodities and ecological factors than the socioeconomic criteria often used to distinguish farming systems.

South African influences from 1920 to 1990 changed the complexion of Namibian agriculture. The country became something of a fifth province, its agricultural policies often tailored to the needs of South Africa. Farmland was used for the resettlement of landless whites from South Africa.

However, social and economic conditions are extremely variable, even within one local group of farmers, and circumstances change. The book is also aimed at more general readers than people who analyze farming systems in detail.

The recent history of Namibian agriculture can be sketched in three periods, starting with the phase of German administration from 1892 to 1915. Policy and practice focused on attracting and establishing German settlers who would be productive and develop the country into being as self-sufficient for its food needs as possible. Much effort was placed on the production of diverse foods, on experimentation, and support for farmers.


The Agri Handbook 2015


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Figure 1. The distribution of far systems in Namibia.

Figure 1. The distribution of farming systems in Namibia.


Farming system

Main commodities

Land area

Use of production

THE FOUR MAJOR FARMING SYSTEMS ARESmall AS exclusive FOLLOWS: Domestic consumption Small-scale cereals and Mahangu, sorghum, maize, farms and open supplementing incomes livestock (Chapter 4) goats and cattle grazing in communal land in the Farming system Main commodities Land area Use of production non-farming activities northern regions Small-scale cereals and livestock Mahangu, sorghum, maize, Small exclusive farms and Domestic consumption Beef, mainly for comme Cattle ranching (Chapter 5) Cattle Large freehold farms, exclusive goats and cattle open grazing in communal supplementing incomes land infarms the northern regionsland, from non-farming activities sale to South Africa, Eu in communal and in open grazing Namibian consume Cattle ranching Cattle Large freehold farms,in northern Kunene Beef, mainly forand commercial exclusive farms in communal sale to South Africa, land, and in open grazing in and Europe Mutton and goats for co Small stock (Chapter 6) Sheep and goats Large freehold farms open and Namibian northern Kunene sale to South Africa and grazing in communal landconsumers in the Small stock Sheep and goats Large freehold and openregions Mutton and goats for southernfarms and western consumers grazing in communal land commercial sale to South and western Africa and Namibian Small farms, mostly irrigated, Intensive agriculture Maize, wheat, grapes, ostriches,in the southern Commercial sale to exp regions (Chapter 7) olives, dates, pigs, dairy products, throughout the country consumers markets and Namibian c Intensive agriculture Maize, wheat, grapes, Small farms, mostly irrigated, Commercial sale to export vegetables and fruit ostriches, olives, dates, throughout the country markets and Namibian pigs, dairy products, consumers Commercial sale to Nam Natural resource production Indigenous fauna and flora, Mainly in conservancies, game vegetables and fruit consumers and for expo (Chapter 8) and landscapes farms, community forests, parks Natural resource production Indigenous fauna and flora, Mainly and in conservancies, game Commercial salethrough to tourism reserves. and landscapes farms, community forests, Namibian consumers and parks and reserves. for export through tourism

7KH ÂżIWK LV QRW IDUPLQJ EXW PDLQO\ D SURGXFWLRQ V\VWHP of farmland is now being used for game and trop ItsNatural inclusion in production a book on agriculture be surprising. tourism. The resources also increasingly m and the firstand steps are being taken towards are selection and a resource amounts to a way may of obtaining measure of domestication of some indigenous plants and economic benefits using methods that have many similarities However, Natural resource production amounts to a wayanimals. of KDUYHVWHGDQGWKHÂżUVWVWHSVDUHEHLQJWDNHQWRZDUG to farming. morover, these new incomes often complement or exceed those from farming, and a good deal of farmland REWDLQLQJ HFRQRPLF EHQHÂżWV XVLQJ PHWKRGV WKDW KDYH PDQ\ and a measure of domestication of some indigen is now being used for game and trophy hunting and tourism. The resources also increasingly managed harvested, similarities toare farming. Moreover, theseandnew incomes often and animals. complement or exceed those from farming, and a good deal The Agri Handbook 2015


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RELAX at our Lodge in most comfortable bungalows under huge shady trees in the “Green Heart” of Namibia, 15km East of Omaruru - and enjoy the tranquil atmosphere of our unique Establishment that was build with Architectural perfection and craftsmanship to make it easy to find your way around the African style thatched roof and luxury bungalows in the lush green garden. For your leisure we offer a cristal clear swimming pool nestled between palm trees with sun beds. Enjoy the meals in our air conditioned restaurant with a view on the well visited water hole for animals. We offer game drives in our own game reserve. In the evening you can relax with Namibian brewed beer or enjoy one of the best South African wines we can offer at our breathtaking bar. EXPLORE and experience Elephants, Rhino, Hippo’s, Giraffe, Leopard, Cheetah, Bat-eared Fox, Serval Cats, Warthog, Porcupine, Honey Badger, Ant-bear, Striped Mongoose, Rock Hyrax, Black Backed Jackals, Chacma Baboon, Springhare and Ground Squirrel.


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The Namibian Agronomic Board - Creating a conducive environment for the growing and processing of crops in Namibia… THE CORE FUNCTIONS OF THE NAMIBIAN AGRONOMIC BOARD • •

Managing the marketing mechanisms of the agronomic sector Policy formulation, policy recommendation and formulating regulations to the Ministry of Agriculture, Water and Forestry by working closely with and facilitating grassroots structures and the respective commodity National Advisory Committees up to Board level Organising Annual National Awards and consultation events such as: • • •


he Namibian Agronomic Board (NAB) came into existence as a statutory body on 1 April 1985 in terms of the Agronomic Industry Proclamation AG 11 and AG 12 of 1985. In 1992, these Proclamations were replaced by the Agronomic Industry Act, Act 20 of 1992, defining the Board’s powers and obligations. In terms of section 9 of the Agronomic Industry Act, the objectives of the Namibian Agronomic Board are to promote the agronomic industry and to facilitate the production, marketing and processing of controlled products, which assists with: • • • •

Increasing food self-sufficiency Increasing food security Implementing food import substitution Increasing agronomic production by stimulating the economy in general and by contributing to employment creation

Master Agronomist Zambezi Dryland Maize Award The National Horticulture Day, where the best producers of horticulture fresh produce are awarded for their high yield and contribution toward food import substitution and where traders are recognised for purchasing the highest percentage of their fresh fruit and vegetable needs from local producers • The National Mahangu Festival/ Oshipe linked to the National Mahangu Consultative Forum where the best mahangu producers across the 7 mahangu producing regions are awarded for their high crop yield and marketing of surplus grains into the formal mahangu marketing system. The event also recognises the best Emerging Mahangu Miller In addition to the outsourced services to agents, verifying that the appointed agents are implementing tasks they have been assigned in a professional manner and to a high standard

The Agri Handbook 2015


Awards are given to producers of:

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• • •

Maize Mahangu Horticulture

The Core functions of the AgroMarketing and Trade Agency and Agribusdev as agents of the NAB

Policy formulation and implementation The Board represents the interests of a very broad agronomic industry. To ensure that decisions that are implemented by the Board are well considered and well informed, a number of internal National Advisory Committees were formed to make recommendations to the Overall Advisory Committee. The Overall Advisory Committee comprises the National Horticulture Committee (NHAC), the National Mahangu Advisory Committee (NMAC) and the National Maize and Wheat Advisory Committee (NMWAC).

AMTA and Agribusdev are agents created by the Ministry of Agriculture, Water and Forestry to perform certain core functions to the agronomic industry. In addition, these agents were also appointed by the NAB to assist the Board in implementing certain tasks and functions related to gazetted grains and horticulture fresh produce in Namibia. AMTA’s core mandate is to manage the Fresh Produce Business Hubs and National Strategic Food Reserve infrastructure (silos). In addition to this core function, AMTA is also responsible for the practical implementation of all provisions dealing with marketing, processing, handling and trade of agronomic product s as contained in the Act and according to decisions taken by the Board. Responsibilities include issuing import and export permits for controlled crops, border control and maintaining production and grain processing data.

The Overall Advisory Committee and the Financial Management Advisory Committee are the overarching bodies of each individual National Advisory Committee and comprises experts within each specific sector who consider and deliberate on relevant issues for recommendations to be made to the Board. The pre-deliberation and resulting recommendations effectively assist the Board in making optimum industry decisions.

NAB Awards Every year, the NAB organises Awards Ceremonies in recognition of producers who have excelled in the production of their crops. The aim of the awards is to encourage producers to implement improved farming practices in order to maximise the yield of the crops they cultivate. Each producer is nominated by a farmers’ union, farmers’ association or farming business in their producing regions and all nominees are judged against set criteria which includes aspects such as modernised farming methods, soil management, financial management and fair labour practices.

The core function of Agribusdev is to manage the Green Scheme Projects. In addition to this, Agribusdev is in the process of finalising its service offering to the Board in terms of how it will assist the Board and their exact functions and activities. Agribusdev will also assist the Board to implement certain defined projects dealing with agronomic production as contained in the Act. The NAB also commissions studies and implements development projects from time to time with its own funds and reserves with permission from the Minister of Agriculture, Water and Forestry as well as projects for other development partners as and when requested. Through its activities, the NAB fulfils its mandate to create an environment that is conducive to the growing and processing of crops in Namibia through the prudent management of the trading environment by closing borders once local crops are ready for marketing and by implementing regulations to ensure that registered producers and processors are not exposed to unfair trade practices. By engaging in and promoting activities that support domestically produced agronomic crops, the NAB fosters and improves the market for all declared crops from producers to consumers in the Republic of Namibia.


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“Creating a marketing environment that is conducive to growing and processing crops in Namibia...�

Contact Details: Agricultural Boards Building 30 David Hosea Meroro Road Windhoek | Namibia P. O. Box 5096 | Ausspannplatz | Windhoek | Namibia Tel: + 264 61 379 500 | Fax: + 264 61 225 371 |

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NBL invests in local barley growth

(L to R): Petrus Uugwanga (MD: AgriBusDev), Abraham Nehemia (Acting PS of MAWF) and Hendrick (Wessie) van der Westhuizen (MD of NBL)


he country`s biggest brewer, Namibia Breweries Limited (NBL) – a subsidiary of the Ohlthaver & List (O&L) Group,is set to start growing barley locally as from next year at the Green schemes following extensive trials to explore the establishment of a local barley industry. The development is part of a smart partnership between the company, the Ministry of Agriculture, Water and Forestry (MAWF) and AgriBusDev. The crop will be grown on 500 hectares of land availed by Government following the signing of a memorandum of understanding with NBL. The brewer has invested more than N$ 5 million in the project on trial planning, execution, seeds, laboratory and brewing trials, as well as shipments / logistics since commencement of the barley trials almost five years ago. “Inspired by the O&L Group’s purpose of ‘Creating a future, enhancing life’ for all Namibians, NBL initiated barley trials in 2010 with the intent of establishing a local barley industry that would create jobs, develop the much needed agricultural sector and support local business. We believe that a Namibian Dollar spent in Namibia rather than elsewhere is a dollar spent towards bettering the lives of Namibians. It is one of our strategic focus areas to achieve a certain percentage of local procurement by 2019 and we remain relentless in exploring further opportunities at home. I sincerely want to thank Government for supporting us in bringing this dream to life. The establishment of Namibia’s own barley industry will create jobs and support our local agricultural sector and economy which is something we are just as passionate about as brewing good beer,” NBL’s Managing Director Wessie van der Westhuizen notes.

Results of trials according to NBL, have shown that the locally grown barley was of excellent quality and matches the high standards of the barley that Namibia Breweries imports from its international suppliers. “Following extensive trials in at least four regions of the country, we have proven that barley can be grown on Namibian soil for commercial purposes, and we are now ready to develop a large scale barley industry that will further complement government’s Vision 2030 and ‘Growth at Home’ Strategy. This initiative and partnership which is aimed at adding value to Namibia in support of the ‘Growth at Home’ strategy in particular will create a local barley supply chain in Namibia that benefits each member of the chain, as well as the government and the community as a whole,” Van der Westhuizen says.

(L to R): Petrus Uugwanga (MD: AgriBusDev), Abraham Nehemia (Acting PS of MAWF) and Hendrick (Wessie) van der Westhuizen (MD of NBL) The brewing company has also gone the extra mile by developing a new beer brand, King Lager which uses the locally produced barley as a key ingredient. “This new beer brand contains some imported malt barley as well as unmalted barley grown in Namibia by our people” the NBL managing director notes. Currently NBL imports 40,000 tons of malted barley per annum from mainly Europe but aims to source all its annual barley requirement in ten years.

O&L Group’s Gideon Shilongo and Prince Eliakim Shiimi a Director of both O&L Group and Epia Investment Holding


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The imported malted barley according to the company is a key ingredient for its current beer brands as Namibia currently does not have a malting plant and the viability of establishing such a malting plant has not yet been established, considering malting is a water intensive industry.

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ENERGY SAVING TIPS: AGRICULTURAL SECTOR As a farmer, you are just as concerned about keeping operational costs under control as you are about your fields, crops and livestock. You also know that energy costs are rising and adding significantly to operating costs. Controlling these costs means becoming more aware of efficient energy use without compromising your farm’s productivity. You can make a start on effective power saving by looking at your operation and assessing the equipment you use and the tasks you use it for. Electric motors Electric motors consume vast amounts of power. The older your motors are, the higher the chances are that they use more electricity than they should. Irrigation Match the pipe and nozzle sizes. Pipes with a small diameter operate at higher friction levels which means more electricity is therefore needed to increase the rate of water delivery and overcome the friction. Check and maintain your irrigation equipment regularly. By so doing, you benefit from reduced power costs and water savings. Dairy parlours Saving power in the dairy parlour means rinsing the milking machines with cold water directly after milking. A complete washing cycle should take place outside peak hours. Ice bank cool tanks can be used to build the ice bank during offpeak hours to pre-cool and cool milk during peak hours. Insulation of greenhouses When you build greenhouses, use a double-insulated plastic cover which retains more heat and warmth in greenhouses, which means that less energy has to be used to create warmth in the greenhouse environment.

Reducing the energy needs of animal housing Proper roof insulation for animal housing ensures a cool environment throughout the year and means that less money has to be spent on additional energy to regulate temperatures. Painting a roof silver will also reflect more heat off the structure. Cold Rooms Cold rooms are major users of electricity. You save electricity by keeping the doors to cold rooms properly sealed. Opening doors only when required cuts down on cold air being “leaked” into neighbouring areas. Do not overfill your cold room as this means that it will take longer to cool down your produce and that more electricity is needed to reach the storage temperature. Farming using alternative energy sources • As a farmer you can take steps to utilise the waste generated through normal farming operations to create energy.

Solar panels can be used to supply electricity for pumping, charging batteries for lights and any other low wattage use.

Effective water heating can be provided through a network of black polythene and copper piping through which water is pumped. This can be installed on a roof and used to heat water for the house and/or swimming pool.

Wind energy can be used to charge batteries that can supply power to low wattage equipment in households. Where water flows constantly from a high point, the water flow can be used to generate electricity.

If you wish to generate emergency power for short periods, consider purchasing a standby generator. Running off petrol or diesel, these generators are custom-made for various outputs.

• Where considerable amounts of animal waste are present, you could investigate the possibility of using biogas installations to generate heat and electricity.

Let’s work together and use electricity sparingly

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reamland Gardening Project is an agricultural project situated in the small town of Arandis.

The garden, situated in an abandoned soccer field, was identified by elderly women in the town who saw it as an opportunity to put the area into productive use. The vegetables grown include tomatoes, onions, beetroot, green pepper, parsley, lettuce, spinach, cabbage, spring onion, chili, beans and carrots. The products are sold to local supermarkets in Arandis and surrounding towns of Swakopmund and Karibib in shops such as U-Save Shopright, Food Lovers Market and other small shops. The garden was, however, faced with viability challenges in 2006, to an extent that it had to close down after failing to service its water bill. The Social Security Commission Development Fund (SSCDF) came to its rescue by providing funding to the tune of N$1.5 million this year. The project through funding from the SSC-DF, did not only settle its outstanding bills but ensured a recapitalization which saw the purchasing of new nets to cover plants from the wind, expand its greenhouse, acquisition of water tanks, insecticide and pesticides. Dreamland Gardening Project now employees 15 workers, all of whom are from disadvantaged backgrounds and were unemployed until this year. The re-opening of the agricultural project has provided a source of income, making it possible for them to fend for their families and dependents, thereby improving entrepreneurship.


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Chapter 3 | Farming



he Social Security Commission’s Development Fund (SSCDF) injected 1.3m to establish gardening project in the Oshikoto region. The Kumika Community Centre’s Tulongeni Project is a gardening venture situated in Oniipa Village, Oshikoto region. The project aims at producing nutritious vegetables for over 167 beneficiaries and other children with malnutrition. It also focuses on imparting micro gardening skills to the unemployed in the community, while providing food handouts to those living with HIV/AIDS. “We have the community at heart. We want to avoid cases where people take their medication on empty stomachs, hence the purpose of handing out some of our products to the nearby community,” Ndahafa Natanga, the Project Manager. Tulongeni project farms tomatoes which have vitamin A, cabbage which has Vitamin C and E, and spinach which has vitamin K. Besides providing supplementary feeding to malnourished children, the Tulongeni Project sells some vegetables to hospital staff, local teachers, and regional office staff members and also at the open-market in order to generate income.

The Agri Handbook 2015


Chapter 3 | Farming

Understanding Agra’s footprint in Namibia Have you any branches throughout the country?

We now, with the recent opening of Agra at our Agra Hyper centre, have 19 Agra retail branches, from Karasburg in the South to Opuwo and Oshivelo in the North, and early in 2016, also in Rundu.

What do you supply to fulltime and part-time farmers?

The list is long. All the inputs they need for animal production as well as agronomy and horticulture.

What is Agra and how long has it been in existence?

Agra was established in 1980 when we took over the interests of BKB which was an agricultural cooperative. Currently, Agra is a major role player in the agricultural industry as provider of products and services to farmers, but Agra is much more than just that. Agra consists of: • The retail division • Livestock division • ProVision is a large team of experts in the agricultural field who provide training, education and mentorship and • Arms, Ammunition and Outdoor division and • Auas Vet Med, our specialist animal health retailer

Who are the clients of Agra?

Our main clients are the farmers, but Agra has through the years expanded and diversified so that we currently serve a large spectrum of clients such as the house wife, nature lover, pet owner, gardener (the list can go on) There is still a perception that you will have to be a member or share holder of Agra, or you need to be in possession of an Agra number. That is not true. 64

The Agri Handbook 2015

Can the average consumer also benefit from Agra and its suppliers?

As I said, we offer a wide range of products and the average consumer definitely benefit from Agra and its suppliers through our product offering as well as the month-end specials, which many clients say, they only find at Agra. One of the main attractions of many listeners will be the regular auctions. Please explain how these are organized and how often they take place? Our livestock division serves the livestock producers through branches and agents throughout the country, with our support offices in our main centers. The agents do the liaising with the farmers and prospective buyers, and with the support offices, bring them together at the set dates at the auction points. Agra hosts more than 400 commercial livestock auctions per year and the majority of stud auctions. 1. How to the prices compare to those of other organisations? Are you talking about livestock prices or retail prices? Some of our farmers are engaged in Karakul (Swakara) production. Can you explain the term and what it entails?

September 11 – 531,08 April 12 – 648,51 April 13 – 696,97 Sept 13 – 646,88 April 14 – 566.87 April 15 – 461,23

Are the prices achieved at these auctions good or not so good?

Is Agra the only organization of its nature in Namibia?

There are many factors that affect the prices that Swakara achieves at the international pelt auctions. The economic situation in the countries who are big buyers, such as Greece and Russia; and the exchange rates are of the most important factors.

Chapter 3 | Farming

The main product of Swakara is the pelts of the day old lambs that are marketed annually at two auctions at Kopenhagen Fur in Copenhagen, Denmark. It is a very sought after pelt because of its uniqueness and the fact that the Swakara industry operates under strict codes of practice. The Karakul sheep as they are known is a hardy breed and a good mutton producer and farmers also harvest wool from the adult sheep.

Sept 15 – 428,58

Looking at the spectrum of services, yes, Agra is the only organization that can provide in the inputs for farming, marketing livestock, provide training and information sharing opportunities and the wide range of products we make available to the man on the street, the hunter, shottist, outdoor adventurist; gardener, pet owner and now also builder and ‘do-ityourselfer’!

Growing Namibia with passion AGRA LIMITED is a public-non listed multi-faceted company providing countrywide agricultural products and services and a diversified wholesale product range to retailers, owning various properties. AGRA is one of the pillars of the agricultural community of Namibia and is proud to be a full-fledged Namibian organization providing services as follows: A RETAIL division that serves the country through 19 branches, from Oshivelo and Opuwo in the north, to Karasburg in the south with a comprehensive product range from fencing material, animal medicine, feeds and licks to veterinary products, agronomy equipment, building materials,hardware,water equipment,fertilizer,seed,consumer goods and fuel. SAFARI DEN is Agra’s retail outlet for all hunting, camping and safari equipment, with a store in Windhoek and sales departments in all Agra branches countrywide. Safari Den also provides a full range of fire arms, ammunition and telescopes, backed by the expertise of a master gunsmith. AUAS VET MED provides veterinary pharmaceutical and animal health care products, scheduled veterinary medicine and comprehensive range of over the counter products from its store in Windhoek.

AUAS WHOLESALERS is Agra’s distributor of products to the retail sector of Namibia. This depot has sole distribution rights for a wide range of products, including water equipment, pesticides and fertilizers, animal health products and feeds, DIY and gardening supplies as well as saddler and equestrian accessories. Agra offers the only sorting Centre where swakara pelts are classified and sorted, for marketing at auctions in Copenhagen, Denmark. As the largest and most flexible LIVESTOCK marketing organization in the country, Agra provides an effective and professional service for producers, including full-time auctioneers and technical advisory services. Agra’s ProVision Division supports agricultural producers and users of natural resources with professional advice, consultations, planning, training and mentoring in the fields of production, reproduction, rangeland management, lick supplementation and marketing. Vision 2015-“AGRA: a source for growth,” serving its purpose in Namibia to create prosperity and improve quality of life. The Agri Handbook 2015


Chapter 3 | Farming

AGRA Limited is a public non-listed multifaceted company providing countrywide agricultural products and services and a diversified wholesale product range to retailers, owning various properties. Agra is one of the pillars of the agricultural community of Namibia and is proud to be a full-fledged Namibian organisation. From very humble beginnings in 1980 with less than 200 members and an annual turnover of N$80 million Agra has grown to an organization employing 576 people, with a turnover of N$1.8 billion, a shareholder base of 4,400 and a net profit after taxation of N$31 million for 2012.


The Agri Handbook 2015

Agra Limited’s vision 2015-“Agra: a source for growth,� contains the targets to create another 300 employment positions, to double its current turnover and to contribute a substantial amount to its corporate social involvement projects.

Chapter 3 | Farming The Agri Handbook 2015


Chapter 10 | Forestry

Kassandara: The rewarding experience of game farming


amibia is a diverse country in terms of its natural resources. Hunting, tourism and bioprospecting, where goods are created from new natural resources, contribute greatly to the gross domestic prospect of the country.

steenbuck, duiker, red hartebeest, waterbuck, giraffe, black or blue wildebeest and warthog.

Hunting and tourism encompasses these elements and are thus important to Namibia’s development.

Kassandara hunting areas have an abundance of game which offers a unique opportunity for bow hunters and the hunting is conducted from a strategically located and elevated blind made of natural materials, allowing the hunter close access to game for sound arrow placement.

Industries, business and organisations that benefit from the activity of hunting and tourism are taxidermy services, butcheries (meat products), hunting gear suppliers, hinting organisations, auctioneers, veterinary services, auctioneers trade shows and exhibitions just to name a few.

Other activities offered at Kassandara are walking trails, quad bike trails, shooting range, African wildlife photography, abundant birdlife, variety of flora and fauna, adventure hiking, target shooting, clay pigeon shooting and Namibia coastal fishing.

Kassandara Hunting and Safari Ranch is a 10 000 hectare privately owned farm in Namibia which offers ethical hunting and escape for outdoorsmen also contributes to these industries locally. The facility, owned by George le Roux is situated 20 kilometers from Omaruru, in the Erongo Region.

George le Roux acquired the farm following funding from Agribank.

It offers Trophy Hunting of exceptional examples of kudu, impala, eland, oryx, leopard, zebra, springbok, blesbuck,


The Agri Handbook 2015

He purchased it as a beat down cattle ranch with a bit of game and cleaned up the land changed it into a game farm with accommodation facilities, catering services, entertainment areas and all that is essential to have a functional hunting premises.

Chapter 10 | Forestry Challenges As with all businesses the business of hunting farms is one that comes with its challenges. As George puts it, “nothing comes easy.” Namibia’s dryness, climate change trends, history of droughts, and semi-arid climate classification makes the business a challenging venture to undertake. Water is life and thus the cost of harnessing it drains much from the business’ finances, coupled with the elements mentioned earlier poses as major obstacles for most players in this industry. The business of hunting and lodging is not an easy business as it is one that does not essentially produce a product but exists in a niche market for the wealthy. From the inception, the project was envisioned as a long term endeavour and so boreholes, water-lines, water reserves tanks, solar ponds and the construction of buildings was undertaken and continues steadily. George describes Kassandara as being in its early stages and is satisfied with the farm’s performance over the past three years when it has been growing into becoming a fully operational lodge. The business of hunting went down within the first years but this did not deter the steady growth and survival of Kassandara. The key to this success has been the excellence of services and consistency in business at Kassandara. Clients’ expectations were met and this contributed to the successes. George projects good turnover at the end of 2017 when the financial progress of Kassandara will be measured.

Only 5% of the world’s population have high interests in hunting, meaning that the client pool is relatively small to other business activities such as sightseeing. This makes it client definitive, demanding rigorous marketing and patience in the long- returning venture. Land is another challenge as it is expensive in comparison to the lengthy process of obtaining returns from investments, thus it is a venture which requires tenacious individuals. Furthermore great amounts of money are required in order to purchase various species for breeding and this takes from six to eight years. The perennial problem of poaching also sets back most hunting ranchers. Recently, one neighbouring farm lost a $750 000 exotic trophy animals to poaching. The perpetrator was only fined a meagre amount and let go. George calls for government intervention on poaching legislature in order to minimise the activity as stiffer penalties ward off perpetrators. In spite of the challenges and hard work associated with Kassandara, George le Roux is satisfied with the business and the lifestyle it offers his family. “It’s a wonderful lifestyle which is greatly rewarding if researched beforehand. Kassandara is a rewarding experience which Agribank facilitated.” Funded by

The Agri Handbook 2015


Chapter 4 | Horticulture


was established through a Cabinet Decision OUR CORE VALUES: 7th/10.05.11/015, as a specialised Agency of the • Integrity Ministry of Agriculture, Water and Forestry (MAWF), • Transparency to coordinate and manage the marketing and trading of • Accountability Agricultural Produce in Namibia. AMTA’s mandate is also • Partnership to manage the Fresh Produce Business Hubs (FPBHs) and • Service Excellence National Strategic Food Reserve (NSFR) infrastructure, MTA was established through Cabinet resolution OUR MISSION • Innovation towards the attainment of food safety and security. In 7th/10.05.11/015, asclosely a specialised Agency of the • To enhance food security and facilitate agricultural performing its role, AMTA works with AgriBusDev and the Namibian Agronomic Board (NAB). Fresh Produce Hubs (FPBHs) Ministry of Agriculture, Water andCabinet Forestry resolution (MAWF), marketing and trade in Business Namibia, MTA was established through OUR MISSION The development of theFresh FPBHs has its roots in the Vision 2030, to coordinate and manage the marketing and trading of • To efficiently manage Produce Business 7th/10.05.11/015, as a specialised Agency of the • To enhance food security and facilitate agricultural National Development Plans of the Ministry of Agriculture, Agricultural Produce in Namibia. AMTA’s mandate is also Hubs and the National Reserve, OUR VISION: Ministry of Agriculture, Water and Forestry (MAWF), marketing and trade(MAWF). inStrategic Namibia, Water and forestry It Food is part of the Government’s To be acoordinate centrethe of excellence in facilitating food and programmes aimed at Fresh contributing production, processing, to manage Fresh Produce Business Hubssecurity (FPBHs) andof ••To industrialisation, value addition and standards and manage the marketing and trading Topromote efficiently manage Produce Business agricultural marketing and trade marketing and distribution. National Strategic Food ReserveAMTA’s (NSFR)mandate infrastructure, of agricultural products in Namibia. Agricultural Produce in Namibia. is also compliance Hubs and the National Strategic Food Reserve, OUR MISSION The facilities are very important in that present towards the attainment of food safety and security. In to manage the Fresh Produce Business Hubs (FPBHs) and • To promote industrialisation, value additionthey and will standards • To enhance food security and facilitate agricultural a platform for farmers to market their produce as well as performing its and role,trade AMTA works closely with AgriBusDev OUR CORE VALUES: National Strategic FoodinReserve of agricultural in Namibia. marketing Namibia, (NSFR) infrastructure, compliance provide a common place products where local retailers can source and theefficiently Namibian Agronomic Board (NAB). Integrity • To manage Fresh Produce Business Hubs In • their produce for distribution in the domestic and international towards the attainment of food safety and security. and the National Strategic Food Reserve, markets. Furthermore, they will also potentially contribute •OUR Transparency its role,industrialisation, AMTA works closely AgriBusDev CORE VALUES: • performing To promote value with addition and to skills development and transfer to Namibians that will be OUR VISION: ••employed Accountability and standards the Namibian Agronomic (NAB). products in Integrity in the processing and value addition facilities. compliance of Board agricultural Namibia. To be a centre of excellence in facilitating food security ••Partnership Transparency and ••Service Excellence OURagricultural VISION: marketing and trade. Accountability


To be a centre of excellence in facilitating food security ••Innovation Partnership and agricultural marketing and trade.

• Service Excellence • Innovation




The Agri Handbook 2015

contributing foodTHESE security HUBS in the AND countryHOW both BIG at WHEREtoARE

AREand THEY? national household levels. •

Rundu and Ongwediva, 5000m² each • Windhoek’s

FPBHs willFresh create business opportunities for processing, Produce Business will have a

Laboratory to carrysuch out physical, biological and chemical tests. industrial activities as sorting, cleaning, grading, •

Satellite offices will be established

juicing,• packing, branding, drying, bottling and canning. The Hubs were built because Namibia’s horticulture industry had missing linkage of:from the FPBHs Other economic benefits expected •

Bulk cold storage facilities

Logistical facilities especially for small scale farmers

include, are not limited to the stimulation of the • but Marketing facilities

domestic economic activity, employment creation, • Processing facilities technology and skills transfer, quality assurance,


affordable access to nutrition, increase domestic market

AMTA Fresh Produce Business Hubs operate in Rundu and

Ongwediva. share of Namibian horticultural produce, increase

If you are a producer, AMTA is here to make your life easier.

foreign currency earnings from horticultural The following services are available at both hubs:exports, FRESH PRODUCE BUSINESS HUBS (FPBHS) It is common knowledge thatFPBHs the absence of these The development of the has its roots facilities in the

has resulted in a substantial tonnage of Namibian originating Vision 2030, fresh National Development Plans ofthrough the Ministry horticultural produce being marketed third parties/countries. As a result, Namibian consumers suffer of Agriculture, Water and forestry (MAWF). It is part of the most, as they have to pay the transportation and foreign handling charges, which are passed aimed on to them. It is logically the Government’s programmes at contributing expected that the new development should mitigate such production, marketingtrade and balance distribution. costs, while processing, improving Namibia’s for these commodities.


ots in the

he Ministry

t is part of



will present

ce as well ailers can domestic

y will also

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essing and


• • •

• •

Cold storage facilities to maintain the lifespan of your fresh produce, Ripening facilities, Trading floors with appointed agents occupying spaces for smooth trading of fresh produce from the farmers to respective clients e.g. retailers, consumers, catering companies, vendors etc. Trading system: this is a system designed to create trading transparency to protect the farmer, the consumer and the agents, Training to foster continuous knowledge improvement in terms of compliance, certification in line with international food safety and agricultural standards like *HACCP, GAP, ISO9001:2008 etc, Value addition facilities like packaging, sorting, grading, processing etc Informal trading facilities e.g. small scale traders, Fleet systems, transportation of fresh produce via collection points from the farmer to the Hubs and to the markets. AMTA has chiller trucks to enable freshness of the produce during transportation. Quality and standards, certifications, compliance norms, awareness, facilitation, coordination etc.

contributing to food security in the country both at The important in of thatFPBHs they will present The facilities rationale are for very the development is that the national and through household levels. Government MAWF is rendering services to crop aproducers platform forincrease farmersfood to market theirthereby produce as well • contributing FPBHs willtocreate businessproduction, opportunities for processing, to food security in the country both at national and household as provide a common place where local retailers can • marketing and value addition of fresh produce, through levels. • source their produce for distribution in the domestic industrial activities such as opportunities sorting, cleaning, grading, FPBHs will create business for processing, and international markets. Furthermore, they will also marketing and value addition of fresh produce, through juicing, packing, branding, drying, bottling and canning. industrial activities suchtoasskills sorting, cleaning, grading, juicing, potentially contribute development and transfer • Other benefits expected from the FPBHs packing,economic branding, drying, bottling and canning. to Namibians that will be employed in the processing and include, but are not limited to the stimulation of the Other addition economicfacilities. benefits expected from the FPBHs include, value but are not limited to the stimulation the domestic economic HOWARE DO FARMERS BENEFIT FROM THIS? domestic economic activity, of employment creation, THESE HUBS AND HOW BIG ARE activity, employment creation, technology and skills transfer, WHERE The Ministry of Agriculture, Water and Forestry has embarked technology and affordable skills transfer, quality assurance, quality assurance, access to nutrition, increase THEY? on a programme of training fresh produce farmers on Good Itdomestic is common knowledge that the horticultural absence of these market share of Namibian Agricultural Practices (GAP). affordable access to nutrition, increase domesticproduce, market increase has foreign currency from horticultural exports, • Rundu These international best practices aimed at ensuring that and Ongwediva, 5000m² are each facilities resulted in aearnings substantial tonnage of Namibian etc. share of Namibian horticultural produce, increase the farmers produce safe food for consumption. The training is originating horticultural fresh produce Produce Business Hub is under HOW CAN YOU WORK WITH US? being marketed • Windhoek’s opening the Fresh market opportunities for our fresh produce aimed primarily at small scale farmers both in green schemes foreign currency earnings from horticultural exports, and also in private/communal farmers. farmers beyond our borders. Adherence to food through AsHubs a result, Namibian AMTAthird Freshparties/countries. Produce Business operate in Rundu construction and it will be 10 000 m², the hub safety will etc. standards is important especially considering the need and Ongwediva. consumers suffer the most, as they have to pay the have a Laboratory to carry out physical, biological and If you are aand producer, is here to make your transportation foreignAMTA handling charges, which arelife chemical tests. easier. The following services are available at both hubs: passed on to them. It is logically expected that the new • Satellite offices will be established • Cold storage facilities to maintain the lifespan of your development should mitigate such costs, while improving The Hubs were built because Namibia’s horticulture fresh produce, Namibia’s trade balance for these commodities. • Ripening facilities, industry had missing linkage of: • Trading floors with appointed agents occupying spaces• Bulk cold storage facilities for smooth trading of fresh produce from the farmers to The rationale for the development of FPBHs is that the • Marketing facilities respective clients e.g. retailers, consumers, catering Government through MAWF is rendering services to • Logistical facilities especially for small scale farmers companies, vendors etc. crop producers to increase production, • Trading system: this is afood system designedthereby to create• Processing facilities trading transparency to protect the farmer, the consumer and the agents, 37 • Training to foster continuous knowledge improvement in terms of compliance, certification in line with international food safety and agricultural standards like for Namibia to replace imported fresh produce in local *HACCP, GAP, ISO9001:2008 etc, • Value addition facilities like packaging, sorting, grading, markets with local fresh produce of equal or higher 71 The Agri Handbook 2015 WHERE ARE THESE HUBS AND HOW BIG ARE standards. processing etc • Informal trading facilities e.g. small scale traders, THEY?

Chapter 4 | Horticulture

Hub is under construction andofitfresh will be 10 000 m², the hub marketing and value addition produce, through

Chapter 4 | Horticulture

g spaces armers to catering Commercial farmers can also be integrated into the programme. o create So far, the programme has trained over 200 farmers in the northern and southern parts of the country on GAPs. These mer, the farmers were chosen for their capacity to train other farmers in their groups on skills that they learnt. The programme ended ovement in October 2014, during which all fresh produce farmers in ine with the country would have been trained on practical production skills and international best practices on GAPs. The aim is dards like to ensure that fresh produce from Namibia are safe for any for Namibia to replace imported fresh producethe in region local consumer anywhere, and can be traded in Namibia, and across the world as they meet international standards . markets with local fresh produce of equal or higher grading, This way we will be opening the market opportunities for our standards. fresh produce farmers beyond our borders. Adherence to food safety standards is important especially considering the need ers, Namibia to replace imported fresh produce in local markets WHAT DOES NAMIBIA PRODUCE? duce via for with local fresh produce of equal or higher standards. nd to the Namibia produce a variety of fresh produce for the local reshness WHAT market like; DOES NAMIBIA PRODUCE? • Potatoes, Namibia produce a variety of fresh produce for the local like; mpliance market • Onions, • Potatoes, tc. • • Tomatoes, Onions, • • Cabbages, Tomatoes, • • Sweet Cabbages, potatoes, • Sweet potatoes, • Beetroots, stry has • Beetroots, Cucumbers, produce • • Cucumbers, • • Watermelons, Watermelons, • Sweet melons, melons, ensuring • • Sweet Dates • Dates tion. The • Pumpkins, Butter Nuts etc… s both in • • Pumpkins,


• Butter Nuts etc…

into the

armers in n GAPs. to train arnt. The h all fresh rained on practices uce from and can world as e will be

Namibia export mainly: • • •

Grapes Tomatoes, Watermelons etc.


The government has done its part in terms of creating a firm base upon which the private sector can build a strong value chain network and system to the benefit of the Namibian economy and people. The responsibility now for the industry is to take advantage of these business opportunities and take the development forward. The following areas are identified to have potential • Banking Facilities • Retail Outlets • Marketing agents • Fuel Station


The Agri Handbook 2015

take the development forward. The following areas are identified to have potential • Banking Facilities • Retail Outlets • Marketing agents • Parking • Fuel Station • Sanitary and hygiene services • Parking • Chemists • Sanitary and hygiene services • Health Centres • Chemists • Insurance and rentals • Health Centres • Food courts • Insurance and rentals • Food Preparations • Food courts • Packaging Supplies • Waste Management • Food Preparations • Training Services • Packaging Supplies • Waste Management • Training Services

The NSFR i entire nation point and tha in the event calamities or every 12 mo available to grain market by so doing,

At the mom 18 900 MT o MT, that is 12 months p underway fr national stor

Currently, th and Mahang future.

The role and mai reser produc depend to supp grow Nationa National Strategic Food Reserve (NSFR)

The StrategicSTRATEGIC Food Reserve is RESERVE a key component NATIONAL FOOD (NSFR) of any national food security that ensure food security at both The Strategic Food Reserve is a key component of any household and national level. Food security remains a national national food security that ensure food security at both priority as all SADC members contribute 10% of their national household and national level. Food security remains a budget towards food security goals. Therefore, the National national priority as all SADC members contribute of Strategic Food Reserve (NSFR) is a result of 200410% SADC Dar-Es-Salaam-Declaration for all member states their national budget towardsthat foodcalls security goals. Therefore, to Food Strategic Reserve Food with aim of maintaining thehave National Reserve (NSFR) isa anational result optimum of food reserves to address foodthat shortage of 2004 level SADC Dar-Es-Salaam-Declaration calls due for to continued threats to SADC food security. all member states to have Food Reserve with the aim of The Namibian Government is already underway in fulfilling maintaining a national level of food to its commitment in termsoptimum of the declaration by reserves constructing address food shortage due to continued threats to SADC grain storage facilities (that made up the NSFR) in some crop food security. producing regions. The role of government in establishing and maintaining national strategic food reserves in order in to increase The Namibian Government is already underway fulfilling local production and marketing to reduce dependency on imported products and to support job creation and economic growth is well highlighted in the National Development Plan 4 (NDP4). The storage facilities are in Zambezi (Katima Mulilo), Kavango East (Rundu), Ohangwena (Okongo), Oshikoto (Omuthiya) and Omusati (Tsandi) regions. The NSFR is ensuring that staple food is available to the entire nation for a period of twelve (12) months at any given point and that no Namibian citizen or resident dies of hunger in the event of natural calamities. In the absence of natural calamities or any emergency, the stored stock will be rotated every 12 months, and during this period, grain will be made available to interested buyers. NSFR also assist in making grain markets readily available to local grain producers and by so doing, stimulate local grain production. At the moment, the NSFR has a total storage capacity of 18 900 MT of the targeted total storage capacity of 68 000 MT, that is sufficient to feed the Namibian population for 12 months period. With the expansion of Okongo currently underway from 500MT to 4500MT, which will bring the national storage capacity to 22 900MT. Currently, the facilities store staple food such as Maize and Mahangu but will include beans and wheat in the near future.

nent of any rity at both remains a ute 10% of . Therefore, is a result at calls for the aim of reserves to ts to SADC

y in fulfilling

WHO ARE THE MAIN SUPPLIERS OF GRAIN? The main suppliers are the Green Scheme Projects (Kavango East & West), National Youth Services Farms (Berg Auks, Rientfontein & Omauni), subsistence farms (surplus) as well as resettlement farms, and any other producer willing to sell to NSFR.

Chapter 4 | Horticulture


to support job creation and economic growth is well highlighted in the National Development Plan 4 (NDP4).

STANDARDS AND TRADE DIVISION The Standards and Trade facilitates the implementation of market promotions and research of the agricultural products as well as manages all port of entry and exit in Namibia. This done according to the Market Share Promotion (MSP) rules which started in 2002 under the development of National Horticulture Development Who are the main suppliers of Grain? Initiative Initiative. The National Horticulture Development 39 The main suppliers are the Green Scheme Projects (Kavango been implemented through the Horticulture MSP East has & West), National Youth Services Farms (Berg Auks, Rientfontein Omauni), farms (surplus) as to well Scheme.& Under this subsistence scheme, importers are obliged as resettlement and any other producer to sell ensure that farms, a minimum percentage of their willing horticultural to NSFR. produce sales consists of Namibian grown products, prior to qualifying for an import permit in a given quarter or STANDARDS AND TRADE DIVISION their imports curtailed, pro rata, in the subsquentof The have Standards and Trade facilitates the implementation quarter. The initial was of 5%the in 2005, but has over market promotions and MSP research agricultural products as well manages all portincreasing of entry and exit inconsensus Namibia. the as years been steadily by mutual This done according to the Market Share Promotion (MSP) between producers and traders to its current 41.5%. rules which started in 2002 under the development of National Horticulture Development Initiative. The National In addition to the abovementioned functions, the Horticulture Development Initiative hasthe been implemented through the Horticulture MSP Under this scheme, Division also facilitates theScheme. inspections of Facilities and importers to ensure that a minimum percentage Farmsare forobliged compliance to standards of handling fresh of their horticultural produce sales consists of Namibian produce in the Namibia being itfor theanpack houses or in grown products, prior to qualifying import permit in the a Further to their that comes implementations of the food givenshops. quarter or have importsthe curtailed, pro rata, in subsquent Thewhich initial is MSP was 5% in 2005, has safety quarter. regulations to be developed and but enforced over country the years been steadily increasing by mutual consensus wide. In that regards the division is tasked between producers and traders to its current 41.5%. to provide services by taking samples of produce for laboratory analysis to determine contents of Division chemicals In addition to the abovementioned thethe functions, the also found facilitates inspections of of Facilities andResidual Farms Level for in thethe products in terms Maximum compliance to standards of handling fresh produce in the (MRL) rules. Namibia being it the pack houses or in the shops. Further to that comes the implementations of food safety regulations PROMOTION RESEARCH whichMARKET is to be developed andAND enforced country wide. In that regards the division is tasked to provide by taking The Market Promotion and Research services is a subunit under samples of produce for laboratory analysis to determine the umbrella of the Standards and Trade Division at of the contents of chemicals found in the products in terms AMTA.The key responsibilities of the subunit is to:(i) Maximum Residual Level (MRL) rules. Facilitate and promote marketing of all agricultural MARKET ANDagricultural RESEARCH products PROMOTION in Namibia, (ii) Promote value The addition, Market Promotion and Research is a Promotion subunit under and Manage the Market Share (MSP) the umbrella of the Standards and Trade Division at AMTA. scheme. At this time, we are only focusing on fresh fruits The key responsibilities of the subunit is to:(i) Facilitate and and marketing vegetables, as grains, and working hand (ii) in promote of as all well agricultural products in Namibia, handagricultural with the Fresh Business Hubs the (FPBH) and Promote valueProduce addition, and Manage Market Share Promotion (MSP) scheme. At this time, divisions we are only National Strategic Food Reserves (NSFR) and focusing on fresh fruits and vegetables, as well as grains, other subunits under the division of Standards and Trade and working hand in hand with the Fresh Produce Business implementing the mandate of Food AMTA. Hubsin(FPBH) and National Strategic Reserves (NSFR) divisions and other subunits under the division of Standards and Trade in implementing the mandate of AMTA.


Facilitate and promote marketing of agricultural products in Namibia. • Carry out market research on all agricultural products, 40 in target markets or consumers. either • Promote agricultural Value Addition (Branding, labbelling and Packaging of primary and secondary agricultural products). • Provide Market Intelligence Services (Prices, Markets,

SUMMARY OF OUR ACTIVITIES: Facilitate and promote marketing of agricultural products in Namibia. • Carry out market research on all agricultural products, and Products) to producers, traders and consumers. either in target markets consumers.Production forecast • Carry out and or disseminate

information of top 10 fresh fruits(Branding, and vegetables, on a • Promote agricultural Value Addition labelling monthly basis. The top 10secondary fresh fruitsagricultural and vegetables and Packaging of primary and includes potatoes, onions, carrots, tomatoes, Green products). Peppers, cabbage, lettuce,Butternuts, english cucumbers and sweet Services potatoes.(Prices, Markets, • Provide Market Intelligence • Products) Calculation of the MSPtraders rate/value all importers of and to producers, andfor consumers. fresh fruits and vegetables for each quater. • Carry out and disseminate • Monitors the issuanceProduction of all fresh forecast fruits and vegetable permits MSP purposes. information offor top 10 fresh fruits and vegetables, on a • Implementation potato marketing monthly basis. The topof10the fresh fruitsand and onion vegetables scheme, and future schemes to be introduced. includes potatoes, onions, carrots, tomatoes, Green • Draw Statistics on Import, Exports (Potato and Onion Peppers, English only)cabbage, and locallettuce,butternuts, purchases in values and Tonnage of cucumbers and sweet potatoes. all fresh fruits and vegetables from the Horticultural Production Database (HPD). • Calculation of the MSP rate/value for all importers of • Management of market data collected from producers, fresh fruits and vegetables forineach traders and consumers localquarter. and foreign market. • Monitors the issuance of all fresh and vegetable • Registration of all traders, fruits and producers of fresh fruits and vegetables for MSP purposes. permits for MSP purposes. • Receive all new traders applications for import / export • Implementation of the potato and onion marketing permit, and as well as ad-hoc amnesty applications scheme, andfresh future schemes to be introduced. for all fruits and vegetables. • Draw Statistics all on monthly Import, Exports and Onion • Receive returns (Potato of all fresh fruits and vegetables purchases all and registred traders. only) and local purchases infrom values Tonnage of Implementation of the from eyethe catching display of all• fresh fruits and vegetables Horticultural Namibian fresh fruits and vegetables in stores/ outlets. Production Database (HPD). • Management of market data collected from producers, 2.traders FACILITIES AND FARMS and consumers in local and foreign market. INSPECTORATE • Registration of all traders, and producers of fresh fruits Facilities and Farms Inspectorate Unit (FFI) is one of the and vegetables for MSP purposes. unit under the Department of Standards and Trade tasked to •undertake Receive inspections all new traders applications for import export of all Farms, Facilities and /Agronomic products the Namibian permit, as andstipulated as well asinad-hoc amnestyAgronomic applicationsIndustry for Act, No 20 of 1992 and the Namibia Food Safety Bill. FFI all fresh fruits and vegetables. is having 7 district offices country wide that are headed by •Agronomic Receive allStandards monthly returns of all fresh fruits and perform Inspectors. FFI inspectors vegetableson purchases all registred traders. produce inspections Farms, from Facilities and Agronomic their designated areas and conduct joint inspections •in Implementation of the eye catching display of Namibian when Inspection in is stores/ neededoutlets. for preliminary risk freshnecessary. fruits and vegetables assessment and risk management activities; to identify and describe food safety issues, develop risk profile and establish risk management. Since the beginning of February 2015 the FFI unit have conducted pre inspections on agronomic facilities and generate a registry for fresh produce retailer’s storage facilities, fresh produce warehouse, fresh produce pack-house, grain produce warehouse and milling facilities in Namibia.

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Chapter 4 | Horticulture

ne of Trade ilities ibian mibia wide . FFI and nduct eded ment sues, ment. have and orage packes in

• Border and destination depots or exit borders inspections enforcement with seal numbers. • Exports: regulating grain and other food security commodities through a permits systems

is to omic n the Pest order entry order cting xport, mibia ision enter/ cipal orted ce – ation ports

arket fresh





The main objective of the unit • To facilitate compliance of all agricultural inputs and products either produced in Namibia, exported or imported into Namibia, thereby promoting efficient production, consumer food safety and trade. • Render complete and costs effective quality assurance, product management and grading services that includes establishment and maintenance of efficient information systems, grading information programs and problem solving networks. • Ensure that all AMTAs operations are compliant to various statutory requirements and accredited to various national and international standards such as ISO 9001: (2015), (TQM).

FOOD SAFETY AND STANDARDS The main objective of the unit BORDER CONTROL INSPECTORATE Inspectorate Unit’s responsibilities is to •Border To Control facilitate compliance of all agricultural inputs and manage all port of entry and exit in Namibia for Agronomic products either produced in Namibia, Specific exportedObjectives: or products, Fertilizer and Pesticides as stipulated in the imported into Namibia, thereby promoting efficient • To ensure that chemical, microbiological and physical Namibian Agronomic Industry Act, No 20 of 1992; Pest Control in inputs and foods produced, exported or Act production, and the Namibiaconsumer Food Safety Bill. Border Inspectorate food safety and trade. hazards imported into Namibia are within internationally set limits have 9 offices all over the port of entry and exit in Namibia for consumer food safety, phyto-sanitary requirements, are headed by Senior Border Inspectors and Border •thatRender complete and costs effective quality assurance, and comply with Namibia regulations. Inspectors, who will be conducting inspections and documents productonmanagement and services • that To includes maintain laboratory accreditation in line with ISO verifications Export, import, and In grading transit Agronomic 17025, hence create national capacity for laboratory establishment and maintenance efficient information produce across Namibia when necessary. TheofAMTA and ensure recognition of Namibia official controls Border inspectorate division responsible for ensuring that all systems, grading information programs andtests problem on agricultural inputs and products internationally. agronomic products enter/leave Namibia meet international solving • To conduct routine national monitoring of inputs and standards. Thenetworks. principal objectives of this unit will inspect all food safety hazards in agricultural products such as imported and exported agronomic products for documentation •compliance Ensure– permit that consistencies, all AMTAs operations mycotoxins, to pesticides and veterinary drug residues, certification and officialare compliant microbial contaminations and phyto-sanitary (pest and declaration status of consignments. Regulating imports and various statutory requirements and accredited to various disease) controls. exports as follows: national and international standards such as ISO 9001: • To provide referral laboratory services for soil and other • Imports: Inspecting grain import permits and Market (2015), (TQM). sectors nationally. Share Promotion for fresh produce to facilitate local fresh •

produce production. This shall be achieved by: Issuing limited import permits to registered import agents


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Play a co-ordinating mechanism to address food safety and traceability at national level.

SPECIFIC OBJECTIVES: • To ensure that chemical, microbiological CONTACT and physicalUS: hazards in inputs and foods produced, exported or imported into Namibia are within internationally set limits for consumer food safety, phyto-sanitary requirements, and comply with Namibia regulations. AMTA HEAD OFFICE: FRESH PRODUCE HUB: •HEAD ToOFFICE: maintain laboratory accreditation in BUSINESS line with ISO FRESH PRODUCE BUSINESS HUB: 17025, hence create national capacity for laboratory ERF 209 Industrial Road, P. O. Box 2992, Rundu, Namibia P. O. Box 11513, Oshakati, Namibia Lafrenz Industrial tests and Area ensure recognitionTel:of+264 Namibia official controls Tel: +264 65 23 25 000 66 26 88 100 P. O. Box 350, Windhoek, Namibia Fax: +264 66 26 88 150 Fax: +264 65 23 25 049 inputs and products internationally. Tel:on +264agricultural 61 23 63 87 Cell: +264 81129 0887 Cell: +264 81 128 0361 +264 61 23 63 80 •Fax: To conduct routine national monitoring of inputs and E-mail: safety hazards in agricultural products such as Website: ONGWEDIVA Facebook: Agro-marketing and Trade mycotoxins, pesticides and veterinary drug residues, Agency microbial contaminations and phyto-sanitary (pest and RUNDU disease) controls. • To provide referral laboratory services for soil and other sectors nationally. • Play a co-ordinating mechanism to address food safety and traceability at national level.

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Chapter 4 | Horticulture

Horticulture: How Iyambo got it right at Oshikoto H orticulture has predominately remained an uncharted territory for many indigenous farmers in Namibia, with many opting for traditional sectors of animal husbandry and traditional crop farming. About 70 km North of Tsumeb, there is a story unravelling, the case of Oshikoto Fresh Fruit and Vegitables, an indigenous owned farming enterprise that has dared to venture into the much dreaded horticultural sector, for that matter successfully. Founded in 2005, the farming venture led by Michael Iyambo now boosts of over 110 hactares under various crops. Despite not having any formal agricultural training after having failed to secure funding to attend the University of Namibia as an Agriculture student and having worked for a leading banking concern for years, Iyambo backed by his farm up-bringing in near Grootfontein has transformed his farming venture into a model business that now employees over 22 full-time employees, 60 seasonal and 80 biseasonal farm hands. Although it took years for Iyambo to find a winning formula, having started with the cucurbits family, such as butternuts, pumpkin and jam squash on two hectares, today Oshikoto farms cash crops such as cabbages, sweet potatoes, water melon, green pepper, oranges and tomatoes to generate revenues to sustain the business. He notes cash crops continue to carry the day for the business because of their short growing span of three months, while high value crops such as potatoes, onions and maize, which are in their third season and take upto 5-6 months have allowed the business to service loans and create further capital to invest.


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Because of the nature of its farming activity, Iyambo notes the farm has managed to continuously acquired irrigation equipment such as pivots to water their growing crop variety, with more 15 hactare pivots targeted for sustainability of the project. The project is utilising three irrigation systems, the drip and micro jet, which are working well and the test results of the soil conducted by a soil expert from the Netherlands support the business’ viability. The farm which is situated in a sub-tropical climate, with very hot summers and mild winters, with an average

is the chairperson has allowed the industry through the Agronomic Board to thrive.


The grouping brings together producers and traders to iron-out industry specific issues with schemes like the market share promotion eg how much of fresh produce can be imported while allowing local farmers a viable market locally.

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rainfall of 555 mm per annum also has a seed nursery that has been recently expanded.

Advice for upcoming farmers • In this business it’s either you do the right thing or you don’t start it at all. • Do good research on your proposed farming venture , to access its needs and demands • Start with a basic crop such as maize before venturing in high value and risky crops • Make sure your farm is suitable for the type of farming Like any enterprise, Oshikoto has faced its fair share of challenges from funding to markets. With Namibia importing the bulk of its fresh produce from South Africa , Iyambo notes the farm struggled for over six years to secure markets for its produce.

• Know the climatic conditions of the area. • It is not easy, it has never been easy and will never be easy for anyone to venture into this type of business

The farm now supplies to towns like Windhoek, Rundu, Sawkopmund, Oshakati, Otjiwarongo, Grootfontein, Oshikongo and Ondangwa. Oshikoto has also entered into growing programs with retailers, such as Freshamark, Fruit & Veg, Pick n Pay and Stampriet Farmers Market, where it grows according to their volume and quality demands. The farm also exports to Angola through middleman, a lucrative cash market for the farming venture. Inorder to spur local demand and consumption of its produce, Iyambo notes the forming of growers associations such as the National Horticulture Task Team, where he

In conclusion, Iyambo thanked to his colleagues at OFFV,uncle Dr T C K Ihuhua, Bank Windhoek and Agribank for having shared the risk with him when finances were hard to come by. He paid tribute to Government through the Ministry of Industrialization, Trade and SME Development for capacitating him through equipment aid scheme and President Hage Geingob to have believed in him. The Agri Handbook 2015


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Omru Greens’ sustainable successful horticulture model O

maruru’s desert climate has an average rainfall range of 308 millimetres and average temperature of 20.2°C.

There is virtually little rainfall during the year and the climate is generally arid which means potential evaporation is higher than the precipitation, which again results in a very low humidity. Rainfall patterns in the town are unpredictable and are subject to great fluctuations. Like other semi-arid areas, the district is characterized with unreliable rainfall, repeated water shortage and periodic famine-factors which make horticulture or agricultural activities very challenging ventures. A visit to Paul Wildsmith’s 22-hectare small holding of horticulture in Omaruru reveals a thriving green spot, which tells the story of excellent adaptation to the hot conditions of Omaruru. A number of green houses and plant protection houses are on the premises and these house healthy plants of English cucumber, tomatoes, baby marrow, yellow and green peppers, iceberg lettuce and paprika. “It is important to learn extensively beforehand the climate of the area you will practise your farming and to make sure there is an abundance of water available. Knowledge of everything involved is prerequisite and imperative to the successes of your horticultural activities. I have learned about the 365 days of sunshine and available water source for my small holding,” says Paul Wildsmith. Wildsmith owes his success in producing $2 million rand worth of horticultural produce annually to his prior experience in farming for 30 years, a wealth of knowledge in horticulture he gathered during his stay in Cape Town, small wonder his accurate choice of crop type is highly insensitive to drought and heat stress and also the availability of water at his small holding. Eight permanent employees, an additional four during harvest season and his hardworking son who heads all operations, make up the small holding business. Omru Greens Farm uses four pumps and an irrigation system that is solar powered. By reinvesting an average of $50 000 per month into the business, Wildsmith


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The prior problem of incessant power cuts caused by power overload has been solved by the availability of solar energy and he can now continually power the pumps, summer fans and winter heaters of the greenhouses. Twelve fans in the tunnels which use 40 amps are currently run incessantly. Strip-irrigation waters all the plants which are separated with a standard 14 meters by 30 meters distance. Two pumps are used for drip irrigation. Wildsmith recommends modernizing irrigation infrastructure and instituting and harnessing alternative water sources such as tapping into the large body of underground water that has been discovered in the country. The soil of Omaruru is not very rich in nutrients and therefore Wildsmith adopted hydroponics in his greenhouses and uses 40 tonnes annually. Hydroponics is a subset of hydro culture and is a method of growing plants using mineral nutrient solutions, in water, without soil. The intervention of the Namibian Agronomic Board has had a hand in the successes of Omru Greens and many others like it. The Agronomic board initiated the ‘buy local’ initiative after realising that cheaper South African produce threatened to push local farmers out of trade. As a result Omru Greens Farm has benefited from the protection of local producers whose selling prices are always influenced by the South African prices and imports. Omru Greens is an example of the kind of sustainable models for horticultural business through harnessing locally available raw materials such as solar energy and water for irrigation. Having been a poultry farmer and knowing of the basics of creating a good business, Wildsmith knows that success depends on knowledge and adopting new trends to overcome the challenges of farming in environmentally harsh areas.

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acquired 78 solar panels that power 116 kilowatts of energy every day for the irrigation system.

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obtained from various sectors in the potato industry to ensure that we address the needs of our clients. Every year between 15 - 20 new varieties are trialled within our own area. Every variety is trialed for at least 2 years, after which culling takes place and the better varieties re-trialed for at least another two years. Only after these varieties have proved themselves in term of yield, scab, resistance, resistance to other diseases, taste, processing ability, growth period or whatever other characteristic is needed by our customers, will they be distributed to their respective areas and re-trailed to ensure that we only supply varieties that conform with the needs of our clients. Our Mondial cultivar but especially our new Sifra cultivar is doing extremely well. Savana is one of our newest upcoming cultivars on the market.

Market share 2014, delivered on fresh produce markets SA

WESGROW Company Profile: Five decades ago, back in 1964, a group of potato seed growers had the vision to combine skills and expertise and formed a company to be known as Western Free State Seed Growers. Over years the company has grown to its current status as the largest supplier of seed potatoes to the South African market. Delivered on Fresh produce markets South Africa

Company Overview: Wesgrow currently numbers fourteen shareholders growing over 4 000 hectares of seed under irrigation annually, thus making it the largest organization of its kind in Africa. Our region experiences extremely hot and dry summers with winter temperatures plummeting well below freezing point for several months a year. Adequate irrigation water and highly suitable soils allow us to propagate potato seed during the period historically proven to be virtually aphid free. No plantings are allowed to be done before 1 November, thus giving producers the opportunity to destroy any volunteer plants from the previous season. Approximately 45 000 tons of seed are produced annually and marketed throughout South Africa as well as exported to various countries. Seed for the early season is consigned from May onwards. The balance is retained in our cold storage facilities (12 500 tons) for distribution from November through to February the following year. The cold storage facilities, laboratory and head office complex are situated at the hub of our growing region in Christiana in the North West province of South Africa

Research and development The variety development program at WVAMK is one of the most critical components of our company. To ensure that we stay ahead of the field in terms of variety development, WVAMK makes a definite effort to supply the South African potato grower with the best varieties possible. Inputs are


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Bronne: ChipsMrt-April15 en Wesgrow Webblad.

Agent in Namibia : Cedar Marketing , Sel: 0811248665

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Chapter 4 | Horticulture



he history of Namibian wine production began with the colonisation of Namibia by Germany in 1884. The first vineyards in Namibia were planted by German Roman Catholic priests at the end of the 19th century in the mountain valleys of the suburb of Klein Windhoek but production was halted in the late 1960s. Several developments have taken place following Namibia’s independence in 1990. Plantations for table grapes took place along Orange River and small scale winemaking was pioneered in 1990 by Helmuth Kluge in Omaruru and a few others are still existent in mostly the southern and south eastern parts of the country.

Namibia is a producer of small quantities of wine by a few wineries and although the production of wine is expanding, the grapes grown in the country are mostly destined for use as table grapes for export to Europe rather than for wine. Most of the wine produced in Namibia is for the domestic restaurants and very little, if any is exported. The greatest challenge of viticulture in Namibia is that the country is dry and extensive irrigation is necessary. Unlike, South Africa which has the fourth largest wine industry in the world, Namibia is situated closer to the equator and thus unsuitable for wine production. However, inspired by the success of up-market wine centres in South Africa and the German heritage of vineyards in Namibia, and undeterred by the challenges dogging winemaking in the country, Wolfgang Koll has invested a large chunk of money into founding and building from scratch a winery, cellar, wine tasting patio and in due course, a lodge atop one prominent kopje on the premises, where wine tasters can retire after wine sessions. The Erongo Mountain Winery is situated in Omaruru, just in front of the Kransburg Mountains. Although there are three other wineries in the country, this is the first of its kind in terms of sheer magnitude, scale, production output and for the future, a tourist facility with lodging quarters. By having a five-star lodge at the premises in the future, the idea is to harness the full potential of the business and retain value rather than to just get into the hospitality business. Wineries are a tourist attraction and by having a lodge at his premises, the future in bright as visitors to Namibia can learn of its story. The massive investment is set to change the landscape of the Namibian wine industry which is virtually non-existent at the moment. The participation of Erongo Mountains Winery in Namibia will hopefully add to cultivating a culture of excellent wine service in Namibia’s restaurants.


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Koll’s vision is to offer tourists and locals alike a taste and story of winemaking in Namibia and furthermore educate the restaurateurs on the proper storage of wines and similar beverages. A wine’s brand is ultimately in the hands of the restaurateurs, as they are the market, thus it is imperative to set up a culture that hosts constructive dialogue between wineries and their clients and the end consumers. Marketing wines and building brands depends on this as well. “This is very definitely a first for Namibia, as our facility is set to give competition to established wineries in the Cape and in Stellenbosch. Realising returns of a winery may take up to 25 years as it is a long and daunting journey but we have set out to build a force in Namibia winemaking,” says Stiaan Cloete the Technical Director of Erongo Mountains Winery. Cloete is an experienced winemaker whose career was mostly established and spanned in Stellenbosch. His expertise in the field has given him the helm of the production processes of wine at this winery. Bottles and barrels are imported from Italy, France and Germany while the designers are highly experienced South Africans who produce top-notch artwork. Samuel ‘Etosha’ Kahimunu, a local of Omaruru, is the young man who works the distillation and destemming machines and he is a part of the 20 people employed permanently by the winery. Seasonally, 10 more are employed in order to contain the workload at the vineyard and in wine production. Erongo Mountains Winery is currently on 80% completion, which is set for early 2016 when the fermentation rooms, cellar and wine tasting area are fully constructed and furnished to meet their purposes.

This equates to 80 000 bottles of premium wine per annum as currently expected for the 2014/2015 season.

Wolfgang started this winery in 2010 with 10 hectares. Currently eight hectares of land is irrigated using a computerised drip irrigation method , with 40 000 vines planted 1 meter by 11/2 meters apart for an output of 80 tonnes or +/60 000 liters of wine per annum.

Plans are underway to increase the land capacity to 50 hectares of irrigated land by the next planting season. Erongo Mountain Winery is situated downstream the great Omaruru River, so production of grapes and wine utilises water in such a way that does not deplete water resources and threatening livelihoods upstream and in the town. Through water rights and drilled boreholes on the premises ensure that the abundance of water needed for the success of a project of its size is successful. Currently the fermentation room at Erongo Mountain Winery has produced 25 000 litres of wine while 45 000 to 60 000 litres is expected to be produced once all the apparatus of the winery is set up and functioning accordingly. There are three white grape varieties and nine red grape varieties presently. Planting many types of grapes on these premises is a strategy by which to learn the type exactly suited to the climatic conditions of the area. In time, suitable varieties will be chosen over the ones that thrive the least in the conditions of Omaruru. Wines will vary from old, modern, trendy, sweet, fruity or complex to suit the ‘learning’ wine tasters and also those that already have acquired tastes for wine. Chardonnay, Viognier and Chenin Blanc and Syrah are some of the wines produced at Erongo Mountains Winery. In time an offer will be personalised lists of wines available in the boutique and also brandy made from a collaboration of certain table grapes. Currently, there is the production of spirits from the distillation of fruits. Forty –five tonnes of the Maguni fruit has been collected from the Kavango Region, and are at the winery

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Chapter 4 | Horticulture where it is under suitable conditions for later use in the making of Maguni Sparkling Wine scheduled for release into the market in December 2015. Fifteen tonnes of the Eember fruit from the northern parts of Namibia has also been collected and are being stored also under suitable conditions, to be used in the making of a high-tech crème base liqueur. The aroma of the fruit will be extracted and used as a flavour in the crème-liqueur. It will be trademarked and its essence is that of an authentic Namibian drink that will substitute the imported crème-liqueurs that are available on the market. The bottles of this drink have been imported from Italy and will carry artwork inspired by a picture of an Oshiwambo woman holding up a basket of the fruits. Another product of Erongo Mountain Winery is the “Namibia Kiss”, a drink with a sweet aftertaste embedded in 40% alchohol.


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The “Essence of Namibia’’ is an herbal liqueur with the Devil’s Claw as the raw material of the drink. All fruits are sourced locally from the different parts of the country, and by this the Erongo Mountain Winery is participating in poverty eradication of the lives of those who supply the fruits. Numerous individuals and families have benefitted from trading with the winery. The winery’s vision is to see the support of various stakeholders and government in elevation the perception and understanding of the wine industry and the wine itself. “Locally there is a very big market for wine consumers owing to the 1.4 million tourists who visit Namibia annually and also the German, Spanish, Italian and American influence of Omaruru. There is a Namibia story that can be shared to the rest of the world through this wine that we are making and our vision is to see a new culture and lifestyle being ushered in by this initiative,” says Koll. Part of the Winery’s local commitment is to encourage visitors to explore Omaruru’s local products from the chocolatier, cheesemaker and numerous services that make up the Namibia story.

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OMARURU GAME LODGE The lodge offers a conference bungalow for 25-30 people fully equipped with presentation and communication tools For those who want to experience “a special night in the bush” the may stay a night in our bush house. The bush house is located in some distance from the lodge in the big game park and offers the real touch of Namibian wildlife.

OMARURU GAME LODGE P.O. Box 208 Omaruru | Namibia Tel. 00264 (0) 64 57 00 44 Fax 00264 (0) 64 57 01 34 The Agri Handbook 2015


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2015 top horticulture producers honoured

Mr Francois Wahl of Agra, Mr Christof Brock, CEO of the Namibian Agronomic Board Mr Shetuka Shetuka, winner of the Emerging Horticulture of the Year Award from Olusandja and Ms Sirkka Iileka, Chair of the Namibian Agronomic Board.


lbert van der Merwe of farm Sonop is the 2015 Horticulture Producer of the Year.

Van der Merwe whose farm is located at Noordoewer on the banks of the Orange River produces tomatoes, butternuts, green peppers for the Namibian and South African markets and table grapes for export. Tomatoes on the farm are cultivated on 50 hectares, with 10 hectares being under shade netting to extend the season of tomato availability and protection from the heat especially in November and December. Other fresh fruit and vegetables producers and traders were recognised at the National Horticulture Day event held farm Sonop.

Mr Jimmy O’Kennedy from Farm Patria Stampriet, winner of the Medium Scale Horticulture Producer of the Year and Mr Christof Brock, CEO of the Namibian Agronomic Board.

Traders were awarded in the small scale, medium, large, very large and mega categories for supporting local producers and for achieving or even exceeding the minimum percentage of fresh fruit and vegetables that must be purchased locally, according to the Market Share Promotion. In addition to trophies and certificates, each winner received N$18 000 to use to cover travel and accommodation costs when they visit any regional horticultural event. Nominees for the title of Producer of the Year across the three categories are evaluated by a selection committee comprising representatives of the National Horticulture Task Team (NHTT), AMTA, the Namibia Horticulture Producers (NAHOP) and Agribusdev. The selection committee travelled to horticulture producing areas across the country judging and evaluating the nominated farms.


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Mr Christof Brock, CEO of the Namibian Agronomic Board, the winner of the Large Scale Horticulture Producer of the Year Award, Mr Albert van der Merwe, of Farm Sonop in Noordoewer, and Ms Sirkka Iileka, Chair of the Namibian Agronomic Board


amibia`s agriculture and forestry recorded a positive growth of 6.5% in 2014 according to the National Planning Commission 2014/2015 annual report.

Growth in agriculture and forestry was driven by improved weather conditions which were favourable to crop harvests, horticulture as well as livestock farming, the NPC noted. Crop-farming showed positive growth in production with white maize marketed increasing from 39,027 tonnes in 2013 to 71,213 tonnes in 2014.


Another key issue in agricultural production is the marking of livestock, which the NPC notes needs to diversify and expand its international markets in addition to the current ones. Meat-consuming markets such as Russia, USA, China and others in Asia according to the planning body, have already been identified by market players and concerted effort is required from Government’s side to coordinate, facilitate and implement the trade initiative to reap maximum gains for the sector. Additionally, cohesive and transparent national strategies are required to increase production from the northern communal areas. Farmer’s training and capacity building in all aspects of farming, are required for the entire agriculture sector to increase productivity substantially from the current level.

Horticulture struggled especially since Namibia is a net importer of horticulture produce.

Other notable untapped opportunities in the agriculture sector lie in its crop sub-sectors horticulture in particular, the NPC notes.

During 2014, a deficit of 9,556 tonnes in the horticulture market was recorded, indicating that Namibia imports more horticulture products than it produces.

Increased production is possible through irrigation green schemes and new export markets for locally produced fruit and vegetables.

Agricultural production according to the NPC was adversely affected by unfavourable weather conditions towards the end of 2013, which negatively affected growth in the sector.

Promotional information should be made available to local retailers for easy access to local horticultural produce for consumption by the domestic market.

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Agriculture grows as horticulture suffers

Restrictions on new livestock imports and health regulations introduced by the South African government during the months of May to August in the period under review, had a profound effect on the performance of the meet industry resulting in substantially lower meet exports to South Africa and negative growth in the sector for three quarters in 2014.

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“I honour God because He gave me strength so that I can do ‘Cando Farming’,” says Klover. He started potato farming in 1993 with two hectares and began onion farming with one hectare in 1994. It is now 23 years engaged and the returns have been satisfactory. Cando Farming is the entity that owns three farms, Okamahapu 135 km northeast of Windhoek, Guinas Vlei Farm about 35km west of Tsumeb and Swartkroon Farm, which is 150km northeast of Windhoek Year by year Cando Farming has increased the agricultural hectarage and now boasts of 275 hectares of potatoes and 100 hectares of onions, where Guinas Vlei Farm is the cash cow which enables all year round crop production because of its provision of water.


ando Farming has evolved through different episodes and seasons over its 29 year old history.

Originally a cattle farming business, then an ostrich business, founder Ludie Kolver believes he now has found the right recipe in potatoes and onions. In 1993, Kolver had started potato and onion farming as a smaller project to his cattle farming and ostrich farming. In 1995, Cando Farming then became a full potato and onion producing farm as he abandoned animal husbandry and poultry farming. The name ‘Cando Farming’ is derived from a biblical scripture; Philippians 4:13; "I can do all things through Christ who strengthens me.”


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“Potato and onion production is a very high risk production because the input costs are extremely high for both crops per hectare. There is no insurance to take out to protect you from the risks of frost, heat waves and pests. Fungi and insects can affect returns. Also, there is a danger of overproduction during the peak season of marketing therefore it is very important to enter into six months advance agreements,” says Kolver.

In totality, the business employs six drivers, 150 workers and 100 seasonal workers who all reside at the farms. Cando farming provides for its transport for delivery of products. A total of 50x35 tonnes of seed potatoes and fertilizers are transported annually from South Africa while +/- 9000 tonnes of potatoes and onions annually are delivered to customers locally. Since its establishment, Cando Farming has managed to realise its vision which was to provide 12 months full-time work and to deliver potatoes and onions throughout the year to its customers. For successful potato and onion production he recommends that emerging farmers do proper research on the physical production of the two crops and also on the water and climate suitable for the two crops. He has learnt over the years that planning and marketing should be carried out six months before planting because potatoes and onions both high risk crops due to the high input costs. “We are well supported by the government's policy of Marked Share Promotion that regulates for 41.5% of the local purchase of products before the import of South African products. I also thank the Potato and Onion Association for establishing a mouthpiece for the farmers,” says Ludie Kolver, the first chairman of Potato and Onion Association in 2013. The continued success of Cando Farming is owed to the hard work of its skilled managers, Hansie Opperman, Danie Marais, Pieter Liebenberg, Stefan Swanepoel, John Khariseb, Cees Striybes and Elizma Kolver. Kolver started with the goedgoopste "drag line" irrigation system which was very labour intensive but three years later he adopted the irrigated hubs. Currently the farms have 20x12.5 ha pivots that irrigate the total area. Two of the farms have sorting plants whose facilities produce washed potatoes for the local market and brushed potatoes for export. Ninety percent of Cando Farming's potatoes are sold locally while ten per cent is exported. Eighty percent of the onions are exported to Angola and South Africa and 20% are consumed locally. Cando Farming has a depot in Windhoek that carries stock to clients from a central point, particularly those that require the products on regular basis.

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Chapter 4 | Horticulture

Cando Farming is the currently the only producer locally that continuously supplies potatoes or onion to wholesalers and markets, among them, Pick ‘n Pay, Go Fresh, Fruit & Veg, Citi Produce, Stampriet, Central Wholesale, Bay Fruit ad many others.

Chapter 4 | Horticulture



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hen the cost and unavailability of electricity threatened to affect a family’s potential in grape farming, they adopted a sustainable agriculture model- an ecosystem approach to production. Sustainable agriculture is the production of food using farming techniques that protect the environment without compromising future generations’ ability to do the same. One of Namibia’s most successful vineyards, Solar Grapes in the Aussenkehr grape farmland along the Orange River, next to the South African border is a family business that’s constantly reinventing itself as it grows. The Agribank of Namibia funded a portion of the start-up capital while the rest was from the family’s funds. It is run by Milo Vasiljevic, Vesna Vasiljevic and Wynand Saayman, the brains behind the ingenuity of using cost-effective power energy for sustainable desert agriculture. Solar Grapes is a 110 hectare farm which grows more than 10 varieties of table grapes and has been existence since 2012. The farm’s vineyards are expected to increase by 200 more hectares. “We decided to exploit solar energy during the first year of the farms existence when we were experiencing electricity shortages that negatively affected consistent irrigation of our crop. With 365 days of sunlight each year, we are guaranteed of a constant supply of electricity. We are also experimenting with newer grape varieties which

Investing in solar power is a long term project which will be fully complete in seven years. The initial operations of the farm started in 2012 with the planning, purchase of farm implements and photovoltaic solar panels for the irrigation system. The first solar panel installation included 300 panels which generate 75 kilowatts of electricity in full sunlight. In 2016, Solar Grapes is planning to expand their electricity generation to 140 kilowatts doubling the existing output. Plans are also underway to increase the pumps at the farm so as to cater for the additional 50 hectares that will be irrigated by solar power in 2016. A big electricity inverter was also designed for the purposes of managing the electricity generated by the solar panels and so far has worked well to the delight of the management of Solar Grapes. The power component and cost structure is manageable at the farm because the maintenance of the solar panels and generators is manageable. Furthermore, the cost of solar panels is coming down every year making investment into them cost effective. “We have also adopted new innovations in micro-irrigation that ultimately help us achieve the goal of sustainable desert agriculture and we are delighted to be a part of this movement,� says Vasiljevic.

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Chapter 4 | Horticulture

are less labour intensive and use less chemicals. This is because we envision Solar Grapes to be a model of desert farming that has a non-existent carbon footprint,� says Milo Vasiljevic, the General Manager of Solar Grapes.

Chapter 4 | Horticulture

Remodelling grape farming for value addition: Cape Orchard Company


alue-added processing and marketing of agricultural products is now a major force within Namibia’s agricultural economy, and an indicator of how the country’s agricultural industry shifts to meet global competition. Family owned Cape Orchard Company established in 1999, is a 512 hectare table grape farm in Aussenkehr which has managed to upgrade its business model into a value-added enterprise and contribute to Namibia’s Gross Domestic Product and provide employment for 2000 people. The term value addition describes the economic value of a commodity when it leaves the field and is transformed into a product ready for purchase by consumers. “We have heavily invested in a computerised packing system which packages the grapes in punnets of a fixed weight. Previously, we had a costly conventional packline that shipped loose product to the European Union and Asia. But with this new station pack-line system, value more than doubled because handling is no longer estimated and this allows for more accurate scaling,” says Arjan de Kock, General Manager of the Cape Orchard Company.


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Grape farmers can now enjoy a market regulated environment which cushions the farmers in case of bad crop. In the case of a good crop, farmers can be rewarded according to the grade of their grape. The company is the biggest exporter of grapes in Namibia and South Africa and currently exports N$6 million worth of grapes every season through a six months supply of grapes annually. It exports its table grapes to the United Kingdom, Europe, the Middle East and the Far East. It produces various varieties such as the flame seedless, Sugraone, Thompson Seedless, Earlysweet, Red Globe and Autumn Royal from a ratio of four workers per hectare. Table grapes are labour intensive and their production does not require skilled labour and so this has given many previously unemployed people in the area a chance to earn a living.

Cape Orchard Company is located in the Namib Desert and utilizes water from the Orange River via irrigation systems. It comprises three production divisions and a pack house which sorts the grapes into units for export and retail purposes. The station pack-line allows for better production as grapes can be processed continually and much higher output per unit of human labour as it allows through accurate scaling. This new system also has a direct bearing on the remuneration of the farm employees as output is measurable and therefore can allow employees to earn better wages as per their work input. The good economic performance that Cape Orchard Company is enjoying is largely owed to the Agro-Marketing and Trade

“Workers in the table grapes sector have the highest basic salaries in all divisions of agriculture in Namibia and this is the value we are happy to realise in our industry. The greater vision of our company is to share the successes within our enterprise with the employees so as to keep maintain our satisfying work,” says De Kock. Currently, Cape Orchard Company has put finances in place to help its employees build their own houses in Aussenkehr. Furthermore, Cape Orchard Company has taken part in the development of the town of Aussenkehr by heavily investing in a school, kindergarten, crèche and providing a chuck of the estimated 30 000 +/- inhabitants of the town with employment. “The successful farming of grapes in this part of the country has given us the benefits we see now and it is only right to give back to the community we exist in. Giving back is part of the fruits of the activities, no pun intended,” concludes Arjan de Kock.

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Chapter 4 | Horticulture

Agency’s intervention through its regulation of market prices and practices.

Chapter 4 | Horticulture

SONOP FARM cements productivity


any of the policies, regulations and management initiatives of the agriculture sector by the Namibian government has helped to develop favourable environments for farmers to operate and grow as a result. Sonop Farms in Aussenkehr is a successful enterprise of vegetables and grapes, which has taken advantage of Namibia’s sound agricultural industry to grow over the past 32 years. “The family farm was established in 1981 by my father with 12 hectares of tomatoes and has since expanded to include green pepper, butternuts, sweet melons, melons and grapes. It has been a great learning experience over the years to watch the business flourish and contribute immensely to food security in Namibia,” says Nico van der Merwe one of the individuals on the helm of the management of Sonop Farms. Four hundred and eighty employees currently make up the staff at the farm. One hundred and fifty of that number are employed on a permanent basis. In 1996, eight hectares of Thompson Seedless grapes was planted as the first block of grapes under Makalani Grapes currently headed by Nico van der Merwe.


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In 2003, 130 hectares of vegetables were produced while gradually grape production was increased from eight to 75 hectares. Albert van der Merwe joined the operations at Sonop Farms focusing on Sonop-Agri Products. Plans are underway to further expand the vegetable sector by having various vegetables available all year round. Currently, all produce of Sonop Farms are 10 000 tonnes of fresh produce, of which 35% of it is consumed by the Namibian market while the rest ends up in South Africa, England, Holland, Germany, China and Malaysia. Locally Shoprite and Checkers are among the clients of Sonop Farms and Sainsbury’s of England for the table grapes. The company currently boasts of a market share of 70% of Namibia’s fresh produce market while owning 90% of the total green pepper market. Annually the production figures are as follows: 5 500 tonnes of tomatoes , 500 tonnes of grapes, 700 tonnes of green peppers and 750 tonnes of green squash.

The Success of Sonop Farms Sonop Farms is a successful agricultural company, they having managed to be consistent in their activities despite numerous challenges. Despite being situated in the Namib Desert where annual rainfall is 10 millimetres, the van der Merwes explains how they adopted similar models from Israel, which contributed to the success of the farm.

Chapter 4 | Horticulture The learnt extensiveness of the desert farming techniques that has made Israel a leading global producer of fresh produce even under hostile desert conditions. Suitable cultivars of grape have been developed from all over the world and adopting these for crop usage guarantees that production will be satisfying. They have also managed to do a thorough market research as well as of the factors that determine their performance in the agriculture industry of Namibia and the world over. Being market jumpers has helped the company to continually grow and expand- that is undertaking farming and production of whatever is needed in the market that that particular time. When the farm was established, they specialised in tomato production but expanded to produce other vegetable varieties in order to satisfy the need of the market. Furthermore, the work ethic at Sonop Farms has also kept the company consistently growing. They commit to all activities in the company whether big or small because loyalty to the customers, suppliers and workers is key in ensuring the ongoing successes of the company. The mantra of, “Workers first, customers second and shareholders third,� ensures that the value of production is kept at its highest. If the producers are happy, then the clients will be happy and the shareholders as well. The quality of the products is responsible for the high sales and turnover of the company. Because it is very high, this has guaranteed that Sonop Farm has a market and significant markets shares in the agriculture industry of Namibia and globally. The Agri Handbook 2015


Furthermore, internal factors such as the competence of the workforce also determine the output and success of a company.

Chapter 4 | Horticulture

At Sonop Farms, seasonal workers are trained on the job and it is usually a very long process. Government intervention is needed particularly in providing specific colleges and tertiary institutions that train farm workers. Further recommendations are for government to ease immigration constraints on foreign farm workers who carry a great potential to help drive the agricultural sector in the right direction. Another challenge faced by this company is that of water and it is being addressed on many levels.

The workers at the farm are trained from the basic level until they are semi-skilled in their departments.

Currently there is an ongoing research and study of the Orange River being conducted in South Africa and the findings will go a long way in helping farmers that depend on the water from the body to learn more ways in which to exploit the resource.

Skills impartation and training is very important to the company and this has helped in retaining a competent workforce that works according to the demands of the work at hand. As agricultural practices evolve and become more techbased, Sonop Farms adopts new forms of technology and logistic programmes according to the newest prevailing trends. This has ensured that they keep ahead of farming trends in Namibia and thereby maximising profits.

Challenges No worthwhile business is without challenges and this goes too for Sonop Farms. Like all agricultural ventures, external factors such as climate and weather determine the outcome of these ventures. To curb the possibility of external factors determining the fate of the profits, the solution has been to adopt preventative mechanisms such as which may have happened in other part of the world.

Another recommendation to government is that they engage other countries through treaties and agreements in order to give the Namibian producers a chance to explore new markets and also to give them access to existing ones that may be otherwise restraining to the businesses.

Advice to Aspiring Farmers Sonop Farms is proud to be a successful player in the industry owing to its upholding of integrity, quality and excellence in its operations. “Stay in the good, focus on your strong and all things you can do for your country. Be consistent in your chosen field. Do not focus determine the price of the product but rather let the product determine its price. Also manage the cost chain and cost management effectively and always aim to expand and gain more market share,� concludes Nico van der Merwe.


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viticulturist and these include a very contrary environment with extreme temperatures in heat, frost and temperature variations throughout a day. Unskilled personnel are what make up the workforce at Kristall Kellerei. Although success has been experienced under this challenge, government intervention is being called for to address this problem. Government support is greatly needed to support the young viticulturist in establishing vineyards and allow skilled personnel to be eligible for work on these farms. However the, “never give up and always look for ways to contain costs and make production more efficient;” is the mantra that has kept things going at Kristall Kellerei.


he Kristall Kellerei is one of presently three wineries in Namibia.

Although the first vines were planted in 1990 by Family Kluge, the beginnings of wine making in Namibia lie much further back in the past. The winery is situated along the Omaruru River, 4km outside Omaruru and just below the Omaruru Kuppe. During the 1890’s some catholic brothers from Germany established a vineyard at the mission situated now in Klein Windhoek. The variety that they planted then was the Riesling, and although they made a very fine Brandy locally nicknamed “Katholischer”, their wines did not enjoy such a good reputation. The wine making and brandy distilling was stopped when the last cellar master, Brother Morgenschweiss passed away in 1978. In 2008 the family, Weder, acquired the wine farm and have since expanded and refined the making of wine. Winemaking and distilling entered a new phase-the plantings of the Colombard variety were extended and now we have about 2, 8 hectares under production. Michael and Katrin Weder personally  managed the Kristall Kellerei up to February 2014, when Olga Kausch was invited to lease the Weinstube. This includes the retail of products, tours and tasting and catering of the guests. The Naute Kristall Project, in the south of Namibia,  necessitates  the personal attention  of Michael and Katrin Weder, who subsequently relocated to that area. The varieties of grape currently at Kristall Kellerei are Colombard, Tinta Barocca, Shiraz, Pinotage and Cabernet Sauvignon. The winery has not grown much over the years although output is expected to increase during the 2017 when newly planted vines will be productive. Expansion of the vineyard is also in the pipeline with five hectares being begged for addition. Kristal Kellerei Winery is one of only three producing vineyards in Namibia and production is currently very limited and only a small number of customers can be supplied on a regular basis. This challenge of meeting market demand is further aggravated by the typical problems by the Namibian The Agri Handbook 2015


Chapter 4 | Horticulture


Chapter 5 | Poultry

Turning local chicken breed into money makers


ocal chicken have evolved in a way that allows them survive and reproduce with minimal management.

While cross breeding, one cock should mount not more than 10 hens.

However, local chickens do not increase so fast compared to the exotic ones perhaps the reason why many farmers do not benefit very much from keeping local chickens. Some farmers are discouraged by the diseases such as Newcastle that usually kill them in large amounts.

The new birds should be separated for at least two weeks. This is done to observe the birds’ traits. Gradually train them to feed with others and detect their feeding habits. In case you realise that some birds have vices such as fighting, feather plucking and cannibalism among others, be fast to address the cause.

It is against such stories and the unavailability of chicken in the eastern belt of the country that Martin Mwinga, a renowned Namibian economist, abandoned his corporate world to start up the Zambezi Poultry Farm. Mwinga has come with synchronised hatching purposely to addresses the problems that face the indigenous chickens. It all starts with procuring disease free birds from across the Zambezi in Zambia. This needs the buyer to be every observant while buying birds, for example they should not have falling feathers, running nose, red eyes, fallen comb, pale comb, and bloody comb. Such symptoms might be a pointer of Newcastle disease, fowl pox and coccidiosis. To improve the quality and output of poultry, usually a farmer is advised to cross breed her chicken.


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The vices could be caused by insufficient feeds and overcrowding among others things train the hens to lay.

Procedures of egg hatching Since 2004, this poultry farm has grown to accommodate up to 740 who hatch close to 750 eggs per day. After being affected the 2011 floods, the farm was relocated to the south western side of the town, where AgriBank also came to the financial rescue. After six months all birds are mature to start laying eggs and they stay up to 18 months. 100 birds will lay 2,000 eggs per cycle. Since the principle is that each hen can comfortably sit on 15 eggs, the the chicks will be 1500 plus the one hundred mature hens equalling to 1600birds and so forth.

Chapter 5 | Poultry Disease control ZPF maintains good management and hygiene standards through avoiding pouring water in the poultry house. There is use of well mixed and dry feeds, and the birds are fed at regular times including monitoring the birds’ health daily.

Chicken house ZPF presence an ideal housing structure with its two long side walls built up to 2.5feet to 3feet from the ground and the rest of the walls fixed with either chicken wire mesh or sticks for good ventilation. The floor is of concrete but, a well rammed soil floor is adequate for Mwinga. There are 2000 broilers who are sold at six weeks and usually sell out within the first five days. Zambezi Poultry Farm has up to 31 workers. “The challenge is our vision. We want to breed up to 10 000 broilers per month. At times we receive orders of up to 800 chickens per day.”

The walls are smooth to avoid parasites from hiding in the cracks. This is done by cement and sand or mixture of cow dung and sand to the low income people. “The roof should not be leaking to avoid dampness of the litter,” says farm manager, Chris Mwinga.

The 44 hectare farm also has ducks and geysers as part of the poultry production. But it is the hatching process of the Zambezi layers that are a cut above the rest. Collection of eggs is done thrice a day and the eggs are sold not only to residents of Katima Mulilo but also to lodges and business entities around the town.

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Are you looking for advice, products and services related to animal health, mechanisation, finance, storage and more; or are you a retail client looking for the best offers on quality outdoor, gardening and DIY tools and accessories? Then talk to the people who care as much about your business as you do. Kaap Agri has been serving the Namibian market since 2004 when the first Agrimark store opened its doors in Aussenkehr. Now there are 14 Agrimark stores plus 3 Expressmarks, 1 Pakmark and 1 depot operating in Namibia.


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Chapter 6 | Aquaculture

Otjiwarongo: Farming and the Crocodile Industry


rocodiles have always played a part in human culture. While being worshipped as holy creatures in some regions, crocodiles were hunted for their meat, skin elsewhere. Apart from food, products were also used for medical, religious or decorative purposes. The first records of commercial use of crocodilian skins are to be found in North America in the 1800s. Right after the Civil War (1861-65) the demand for footwear in particular, but also for belts, saddlebags, cases and similar items, was high. Thus, tens of thousands of American Alligators (Alligator mississippiensis) were hunted and processed in local tanneries. Since demand exceeded the wild alligator resource, the harvest was also directed to other species of crocodile further south (Mexico and Central America). Due to the presence of osteoderms (bone) in the belly skins of caimans, these species were not used. The effects of extensive, unregulated hunting were devastating for wild populations, with most populations being greatly depleted. After the Second World War and in Africa, Nile Crocodiles (Crocodylus niloticus) were hunted in high numbers. In South America, the commercial hunting of caimans began in the late 1950s, beginning with the Black Caiman (Melanosuchus niger), whose skin is regarded as the most valuable of the caimans. However, this extensive, worldwide exploitation during the 1950s, 1960s and 1970s resulted in the populations of most species being greatly reduced, and in some cases being extirpated from parts of their range.


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Modern crocodile farming With declining wild populations in the 1960s and 1970s, the concept of crocodile farming began to take momentum. It was also at this time that many countries enacted legislation to protect crocodilians, and CITES was enacted (1975) to regulate trade in wild species. Crocodile farming was seen not only as a way to reduce pressure on the wild populations, but also as a means through which commercial incentives for the conservation of crocodilians could be generated. By the late 1970s and 1980s many programs were being developed, based on the sustainable use of crocodilians to generate conservation benefits, including C. niloticus (Zimbabwe), C. porosus (Australia, Papua New Guinea, Indonesia), A. mississippiensis (USA), Caiman

The term “crocodile farm” is used to describe any facility that breeds and/or grows crocodilians for commercial purposes. Strictly speaking, a “crocodile ranch” is a facility that collects wild eggs, hatchlings and/or juveniles that have a low probability of surviving to adulthood, and growing them in captivity. The Otjiwarongo Crocodile Farm is one of the most intensive animal husbandry projects in Namibia, specialising in three production ranching, captive breeding and wild harvest. With four males and 38 females, and unlike conventional domesticated animals, that are raised for their meat and leather is a by-product, the main product from crocodilians is the skin, and meat is a by-product for the Asian market. For this reason, care is taken during rearing to minimize damage to the belly skin, either from the substrate surface or from social interactions with other crocodiles. With the oldest of the crocodiles assumed to be around 50 years old, the density at which crocodiles are maintained is reduced as they grow larger, to reduce interactions between individuals and to promote growth. Currently the farm has 24 employees and prospects of its growth are seen in the recent acquisition of a 27 hectare farm in Outjo for the same business, twenty times the current size of Otjiwarongo Crocodile Farm. Outjo farm will soon be doing the crocodile farming while the Otjiwarongo farm will continue breeding and be used for tourism purposes.

Processing of skins

Otjiwarongo crocodile is considered among best in the world, as there is no bone in the belly scales, but also because of the high number of belly scale rows in the belly. Large quantities are taken to Asia and Europe, as the market appreciate the fact that that the species grows large is also a positive characteristic.

Chapter 6 | Aquaculture

crocodilus (Venezuela) and C. novaeguineae (Papua New Guinea, Indonesia).

Following removal of the skin at the time of culling, it is cured with salt - this prevents the skin from rotting. At nearby tannery, the first step to converting the skin into leather is soaking, to restore the skin to its former state. Then the keratinous scales are removed, and a series of chemical processes are undertaken to convert the skin to leather, which can be dyed and made ready for manufacture into products.

International trade

However the farm nearly closed down in 2008 owing to poor management before Agribank chipped in with capitalisation on the new management. To, the relative value of the skin of the different crocodilian species depends on a number of factors. The skin of the

Andreas Alfeus Tjidigona has been working at the croc farm for 15 years. The farm’s current international trade involves over 45 000 crocodilian skins per year, exported legally to about 10 countries. Producing 1000 crocs per year, the farm now targets a production of 4000 per year. Boasting of close to 5000 crocs of the Nile variety, the Crocodile Farm in Otjiwarongo is the only facility of its kind in Namibia. Besides the royal view of crocs, many indulge in a taste of crocs meat while educating themselves on the life cycle of this monstrous meat-loving reptile, which fed a full chicken just but once a week, every Saturdays at 11. Funded by

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Chapter 7 | Diary

UVhungu Vhungu: Driving towards self-sufficient milk production he UVhungu Vhungu Dairy is a N$250 million dairy farm being constructed by the Ministry of Agriculture, Water and Forestry.


Additionally to this, the development of a cultured milk market will commence to serve the local community with good quality dairy products at competitive prices.

The state of the art facility on completion is planned as a world class vertically integrated intensive large scale dairy enterprise.

The business has the potential to create employment opportunities for 150 permanent employees.

The design allows for the production of maize silage, lucerne and maize meal on the farm, utilizing all available agricultural land on UVhungu Vhungu.

The dairy industry in Namibia has the potential to contribute more towards economic development than most other industries for three reasons; it is highly labor intensive, it requires a minimum of imported inputs and it generates employment in rural areas.

The farm location next to the Okavango River make it the most suitable place to construct a world class dairy facility as it allows irrigation potential to produce fodder, as well as good supporting infrastructure like road, electricity and communication. Dairy cows will be housed under specifically designed structures to reduce heat stress during the hot summer months, and protect them from mud stress in the rainy season. They will be fed twice a day with a Totally Mixed Ration, and milked three times a day using the latest technology in herd management. Replacement heifers will be raised under designed structures. A UHT processing plant is to be established on the UVhungu Vhungu farm which will pack 200ml units in a single line. The milk is sold by UVhungu Vhungu to a school milk project which will provide full cream milk to school children in the Northern regions of Namibia. Full cream milk powder will be sourced to increase the capacity of the processing facility, reducing operational cost per unit.


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In addition to generating adequate returns for its investors, one of the primary objectives is to make Namibia selfsufficient in milk production and, in so doing to be instrumental in helping the Government to achieve its Namibia Vision 2030. “To improve the quality of life of our people to the level of their counterparts in the developed world by the year 2030.” The biggest competitive advantage of this business is the ability to manage a complete value chain from producing fodder for the cows, to selling a long life 200ml full cream milk to a school milk feeding project. The project will lead to overall sustainable development in Agriculture: •

Generating food for school going children

Good fodder production for the animals

Does not harm the environment

Is humane to workers

Provides a fair return to shareholders

Supports and enhances rural communities

Maximum fodder production on site

The land, as well as the capital investment on the land, will remain the ownership of the Government of the Republic of Namibia. However due to the complexities of managing a vertically integrated ,intensive Agribusiness, it is proposed that the business is rented out to private service providers, with the rent determined by a percentage of the profit generated.

Due to the remote distance of UVhungu Vhungu from the main roughage supply areas, it is imperative that all the maize silage and lucerne is produced on site. A large part of the additional concentrates provided as feed to the cows consists of maize meal. The additional transport cost of maize meal, in addition to RSA SAFEX market price is estimated at N$2000 per ton, therefore potentially doubling the cost of maize delivered to UVhungu Vhungu. All the maize grain for the maize meal ration is planned to be produced on site under irrigation.

The first three years must be regarded as an implementation phase with no profits generated and negative cash flows. Government must budget for the provision of additional working capital during this period of implementation to ensure the long term success of the project.

Critical success factors School Milk feeding Project A school milk project as part of the milk distribution solution is proposed as the main market outlet during the implementation phase of 5 years. The school milk project is the most critical part of the feasibility of the project, and the project will not be viable if a school milk project is not implemented in conjunction with the operation. School milk programmes create a milk drinking habit that benefits both individuals and society as a whole. Many countries are in school milk programmes and the structures and financing of these programmes vary. The reasons for a government or donor to support or sponsor school milk could be one or several of the following: •

To improve the health status of school children,

To improve academic performance of school children,

To increase school enrolment and improve classroom attendance,

To support the development of the agricultural sector,

To support the development of the private sector,

Society as a whole benefits when costs for health care are reduced through the increased health and nutritional status of its population.

Utilization of world class technology Herd management of a 750 cows in milk herd, requires advanced herd management software, to be able to manage every cow individually. This is achieved through: 1. Tracking and recording of data and processes activities, to keep the finger on the pulse at all times. 2. Reports progress through 24/7 updated status reports on any aspect of the dairy activities. 3. Notifies stakeholders when milestones are reached or the status of items requiring actions. 4. Empowers managers to make smart decisions to save cost and enhance productivity. Furthermore the technology required to reduce the heat stress of the cows is also very important. This includes improved airflow in the cow houses, as well as fans &misters to cool cows down during the very hot days in the year.

Economies of scale in milk production & processing Milk production and processing is highly capital intensive. Financial viability is only achieved by achieving economies of scale, therefore milking the maximum number of cows, correlated to the available fodder resources.

Skill attraction and retention Skills attraction and retention remains one of the most critical success factors for a specialized industry in a developing world. The remoteness of the UVhungu Vhungu site further complicates this important factor. People development with continuous coaching and training, is imperative to attract and grow specialists within Namibia.

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Chapter 7 | Diary

Structure of the business

Chapter 7 | Diary

Super Farm: Namibia’s biggest dairy farm


naugurated in 2009, Mariental’s Aimab Super Farm is Namibia’s biggest dairy farm housing 3000 cattle, of which 1 300 currently produces diary through the black and white cows.

Sitting on 250 hectares of land under irrigation that is used to produce fodder for the herd, the Super Farm employees 120 who help produce 40 000 litres of milk every day. The farm has professionally run departments which aides productivity, from the milking division, the calf division, feeding division, agronomy division to the workshop division. Annually the farm produces over 15 million litres of milk in both fresh milk and UHT milk. No substances or GMOs are used. The Super Farm makes up 60% of the milk that the Namib Dairies purchases. The other 40% is acquired from 14 different farms in Gobabis (10), Grootfontein (1) and Mariental (3). The Super Farm is locally the biggest dairy manufacturer, of the local segment making up 90 % where other local farmers make 10%. There are a few challenges encountered in this business. Currently the biggest challenge in the dairy industry is that of too much milk globally which has adversely affected prices, hence imported milk to Namibia is often at very low prices, which makes it difficult for local producers to compete. The other challenge is drought. This is not only for the unavailability of fodder because even if it’s available it is very expensive. Also the water crisis is giving us sleepless nights, because we are in a water intensive industry. We have to clean the factory before and after processing. Hygiene is of utmost importance in the industry. Cost of fodder is a big challenge because since there is drought there is no maize produced and we have to import which makes it very expensive. The other worry is that Hardap dam is now at 40% and it is the lifeline to the farm and if it does not rain we have a big challenge. As an industry, where therefore appeal to the government to relook the 70% rule and maybe go back to the 100% rule.


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The Agri Handbook 2015


Chapter 8 | Veterinary & Animal Husbandry

VETERINARY SERVICES IN NAMIBIA Oshikango completed during the 2013/2014 financial year. Office facilities and staff accommodation at Nama-Pan and Palmfontein veterinary control gates were completed. State Veterinary at Outapi,Epukiro,Okakarara,Omuthiya and Eenhana were also completed with assistance from the US government under the Millennium Challenge Account programme.Renovations of the old wing and construction of the new post-mortem facility at the Central Veterinary Laboratory (CVL) were underway and due for completion in April 2014. The Construction of the Bio-Security level-3 Laboratory (BSL-3L) and the new post-mortem facility were nearing completion and were expected to be operational from April 2014.Meanwhile; provisional plans were prepared for the construction of the Eenhana Research Laboratory. The site for its construction has been identified and fenced-off. The site for construction for Ondangwa regional veterinary laboratory and state veterinary office was also identified. The architectural plans were completed and the tender process is underway. Two local abattoirs at Eenhana and Outapi that are relocated in the FMD protection zone were completed. The construction of cold storage facilities and meat processing plants at Ondangwa and Rundu were expected to start in 2014.In the FMD infected zone, plans are underway for the construction of a meat processing/ cooking facility at Bukalo.

The Livestock Population


he mandate of the Directorate of Veterinary Services (DVS) is to maintain and promote animal health, reproduction and to assure safe and orderly marketing of animals and animal products through animal disease control, veterinary surveillance, epidemiology, extension, and diagnostic services and veterinary public health services. DVS successfully carried out its mission during the year under review. Existing markets for livestock and livestock products were maintained and new ones explored. The severe drought conditions experienced across the country caused many livestock losses. Ministry of Agriculture Water and Forestry assisted farmers by providing a marketing incentive scheme and lifting restrictions on the exportation of animals to neighboring countries to alleviate the impact of the drought. Manyfarmers were forced to sell animals at low prices.

Infrastructure development DVS was implementing comprehensive infrastructural development programmes throughout the country. A number of construction projects were completed during the project under review. Construction of sanitary and phytosanitary import/export control points at Buitepos, Noordoewer, Ariamsvlei and


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Annual livestock census conducted in 2013 showed that the number of all livestock species from 2012 decline during the year under review (2013).The major reason for this decline was drought, which caused many farmers to de-stock. The changes are highlighted in the table below. In the financial year under review, two hundred and five thousand one hundred and twenty-three (205,123) cattle were tagged, whilst in the 2011 and 2012 financial years eight hundred and twenty-six thousand six hundred and eleven (826,611) and five hundred eighty thousand and sixty-seven (580,067) cattle were tagged, respectively. The NamLITS system was unified for the whole country on 4 October 2013 in order to have one system for the north and south of Veterinary Cordon Fence (VCF).This system enables DVS to keep accurate records of animal disease control and surveillance activities and trace movements of animals in case of disease outbreak. It also allows for monitoring of breeding programmes as well as population dynamics and future projects.

Disease Surveillance Animal disease surveillance is a major activity of DVS. Routine active and passive surveillance activities such as farm inspections, community visits, ante-and post-mortem inspections at abattoirs, supervision of livestock auctions, export certification and inspection of imported animals and

During 2013, one thousand seven hundred and seventyfour (1,744) community visits were done and five thousand one hundred and fifty-eight (5,158) farms inspected. Mass vaccinations of animals against diseases such as footand-mouth disease (vaccination only in the infected zone), Lung sickness and rabies were carried out during the year. In Zambezi and Kavango East regions, three hundred and thirty-one thousand nine hundred and sixty-five (331,965) vaccinations against foot and mouth disease were carried out. This was targeted at one hundred and twenty three thousand (123 000) cattle in the Zambezi region and thirty thousand (30 000) cattle in Mukwe and Ndiyona constituencies of the Kavango East Region. The average coverage for FMD vaccination was 90%.Cattle in the eastern parts of the Zambezi Region are vaccinated three times a year, whereas those in western parts of Zambezi and Mukwe and Ndiyona constituencies of East Kavango Region are vaccinated twice per year. One million one hundred and fifty four thousand two hundred and eighttwo cattle (1 154 282) were vaccinated against lung sickness in the northern communal areas. A population of 1 446 712 was targeted for vaccination against lung sickness. Overall, vaccination coverage of 80% was thus achieved. Twenty-five thousand and seventy-six (25076) cattle were vaccinated against anthrax in the Zambezi Region and Tsumkwe area of Otjozondjupa regions. In 2013,141,623 cattle, 831,219 sheep and 9,160 cattle were slaughtered under veterinary supervision at eight (8) export abattoirs. Figures one and two below show the trends in the number of cattle and sheep slaughtered, respectively, at export abattoirs. Major animal disease events reported in the period under review include foot and mouth disease, lung sickness, anthrax and rabies.

Foot and Mouth Disease The Zambezi Region reported an outbreak of foot and mouth disease at lvilivinzi Crush-pen which was detected on 5 August, 2013 by DVS vaccination teams. Fifteen cattle belonging to two herds, showed clinical signs at the village where there are 761 cattle risk. The outbreak is suspected to have been caused by the transmission of the SAT 1 strain of the FMD virus from buffaloes that were sighted in the area. The FMD contingency plan was activated to contain the outbreak. Cases of FMD were later detected at two additional crush-pens namely Ikumwe on 8 August 2013 and at Masikili on 16 August 2013. To find a lasting solution, DVS requested the Meat Board of Namibia, with funding from the Millennium Challenge Account Namibia (MCA-N), to undertake an epidemiological study of FMD in the region to establish the risk factors responsible for the increasing frequency of outbreaks; assess the feasibility and suitability of DVS’ current FMD risk and outbreak management; to make recommendations on business continuity models that ensure animal disruption of marketing

of livestock and their products during outbreaks and to build diagnostic capacity at CVL.The study yielded useful information that will be used to manage FMD in the Region. CA-N also funded the upgrading of the two quarantine farms (Kopano and Katima Mulilo) in the Zambezi Region.

Lung-sickness Lung-sickness (CBPP) was confirmed by laboratory diagnosis to have affected 4 foci in Mashare, Tjova and Ndiyona constituencies in the eastern parts of Rundu State Veterinary District in May. The outbreak was precipitated by the illegal importation of an infected ox from Angola in December 2012. The first cases associated with the animals were discovered in March 2013 when eight (8) clinical CBPP cases were observed at a village east of Rundu in Kavango Region and a further three (3) had died from the disease. Five cattle from a different village west of Rundu were also observed to have typical CBPP lung lesions on post-mortem at Oshakati Abattoir in April 2013.The significance of this occurrence is that no cases of CBPP had been reported in the Kavango Region since 1999.The outbreak was controlled by mass vaccination, movement control, community awareness and intensified surveillance. Because of mass vaccinations carried out throughout the Northern Communal Areas since 1997 the incidence of CBPP has declined significantly but cannot be eradicated as a result of the continuous introduction of animals from Angola due to the porous nature of the border. The graph below illustrates trends in the occurrence of CBPP over the years.

Anthrax The Zambezi Region experienced another outbreak of anthrax. In June 2013, the disease was reported at Masikili involving two (2) elephant deaths. In July 2013, three (3) elephants died of anthrax at Kasika.At the end of the year, five cattle from one kraal at Shaile Village in Western Zambezi Region died of anthrax between 28 and 30 December. Response by DVS was swift, with vaccination teams deployed into the area. In all these cases, there was human exposure as the public salvaged meat for home consumption. There is therefore a need for concerted community awareness-raising by the Ministry of Agriculture, Water and Forestry and the Ministry of Health and Social Services on food safety issues. A confirmed case of anthrax in various species of wild animals was also reported at Okaukuejo in the Outjo State Veterinary District.

Rabies Rabies continues to pose serious health risk to the public. Three hundred and fifty-five (355) cases were reported countrywide during the period under review. The highest number of cases was r Ported in the Windhoek State Veterinary Disrict.Figure 4 and 5 show the distribution of rabies cases by state veterinary districts and species.

Other Reported Diseases Other economically important diseases reported during the year under review included African Horse Sickness,Dourine,African Swine Fever, Ovine Brucellosis, Sheep Scab,Orf,Bovine Campylobacteriosis,BovineTrichomoniasis,Lumpy Skin Disease, Bovine Brucellosis, Malignant Catarrh and Bovine Cysticercosis.A number of physical,metabolic,toxic and reproductive disorders were also reported.

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Chapter 8 | Veterinary & Animal Husbandry

animal products were carried out during the year with relatively favorable results, as no major events were observed. The International Organization for Animal Health (OIE) recognized that FMD-free zone status without vaccination was maintained in areas south of VCF.The FMD protection zone, which consists of much of the Northern Communal Areas (NCA) stretching from west of Mukwe Constituency in the Kavango Region in Kunene North, did not experience an outbreak of FMD.

Chapter 8 | Veterinary & Animal Husbandry

Strategies for dry season feeding of animals N

amibia is an extensive livestock production country and the agricultural sector is divided into two major groupings; a well-developed and organised commercial sector with privately owned farms, and a very large communal sector on State owned land. Practices and strategies used in these two sectors vary considerably. While the commercial sector is business orientated, the communal sector, to a large extent, is orientated to subsistence farming. Since independence a third group has appeared on the scene; the “Former Communal Farmers (FCF’s)�, these are larger communal farmers who have acquired commercial farms and are now, with the assistance/ guidance of extension and research officers, starting down the road of commercial agriculture.


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Commercial livestock sector The use of licks Namibia is an extensive livestock producing country with a relatively low and highly variable rainfall. Due to this the nutrient content and availability of the natural pastures fluctuate from year to year and between the wet and the dry season. The wet season commences during November/ December and continues until March/April, with January and February as the months with the highest precipitation. The dry season stretches from May until the end of October. The most difficult period is August until October, when the nutritional value of the natural grazing is at its lowest, and the cows are in the final trimester of pregnancy. Typical licks used in Namibia, are winter, summer and production licks. Their use is advocated in both farming sectors, since the benefits have been proven over many years. Communal farmers are reluctant to use the licks as prescribed due to the high initial costs. Advantages are only recognized later, but an immediate response is not always visible. Licks are only used to supplement the most limiting nutrients. It is thus important to keep the animals on the pasture and not to substitute pasture with lick. Licks should directly supply minerals, protein and energy to the animal or improve digestibility, and thus increase energy and crude protein availability.

Summer lick (Green veld lick): Large parts of Namibia are phosphorus (P) deficient, especially the northern and eastern sandy areas. A phosphorus supplement is recommended during the active

During the severe drought years of the 1980’s, different methods of feeding animals were tested in Namibia; whole maize, sodium bicarbonate (Na HCO3) treated maize, maize + untreated hay, maize + urea treated hay, maize + sodium bicarbonate (NaHCO3) treated hay. These treatments were tested for survival, maintenance and production diets in cattle and sheep (Van der Merwe, 1984; Visser, 1984; Voordewind, 1986, 1987). The sodium bicarbonate treated maize (also called chocolate maize, because of the brown colour) proved to be effective, and has since been used as supplementary feeding during times of drought.

Winter lick: The primary aim of a winter lick is protein-supplementation (mostly NPN) (although in sandy areas P is included at a maintenance level). By law, such a supplement will provide an equivalent of 150 g crude protein per day to cattle. Maize meal or hominy chop is used in the winter lick to cause a pH-drop in the rumen for slower urea release. Intake is regulated with salt. The protein in the lick is to sustain the rumen microorganisms and thus improve the digestibility of the pasture.

First mix the maize and four litres of sodium bicarbonate until all the maize is wet. Then mix all the dry ingredients and add to the wet maize. Mix until the dry ingredients have formed

Composition of chocolate maize: 70 kg maize

for energy and protein

rumen buffer

7 kg protein + mineral concentrate

for protein and minerals

14 g Bovatec

4 lts Na HCO3 (20% Solution) ®

(3 level teaspoons)

for improved feed conversion and against


for Ca: phosphate balance and to prevent bloat

2 kg feed quality lime (CaCO3)

Production lick: This usually expensive product supplies the animals with energy in a combination with protein and/or P and trace elements. It is offered to young animals being finished off for the market, or pregnant or lactating cows to help them maintain their body condition for reconception. Intake typically varies between 1.5 to 2.5 kg per animal per day, supplying 150 g CP, 12 MJME and six g P per day.

Utilisation of crop residues Due to the relatively low and variable rainfall of Namibia, the country produces very few commercial crops, the main one being maize in the Tsumeb, Grootfontein, Otavi triangle. In the rest of the country, north of the capital, farmers produce maize for their own consumption. The crop residues in all these areas can be utilised, post harvest, as grazing, mostly for cattle and to a lesser degree small stock, during the dry season. This practice is of great value in management of pastures, and the control of early weeds in the cultivated fields. Other crop residues utilised to a lesser degree; are groundnuts, sorghum and cotton. The utilisation of crop residues, together with the provision of a balanced lick, provides good grazing for the fattening of steers or for cows during late pregnancy, when the natural grazing cannot supply their nutritional needs.

Supplementary feeding Supplementary feeding, is only practised on a small scale, by stud breeders, for preparation of show animals. Some commercial farmers who produce maize for their own consumption, utilise the stover and grain to fatten their oxen on the veld, in order to obtain better grading, higher slaughter masses and ultimately higher incomes per animal.

a brown coating around the maize (in a concrete mixer this takes ± 5 minutes). Leave for 12 hours before feeding. During trials in Namibia sheep which received 100 g chocolate maize per sheep per day on natural grazing performed better than animals which received chocolate maize (500 g per sheep per day), 400 g chocolate maize + 200 g hay per day and 300 g chocolate maize + 500 g hay per day in pens. The latter three groups all lost weight during the trial (Visser, 1984).

Utilisation of urea treated crop residues Though the advantages of the use of urea treated straw/ crop residues are known to the commercial farming sector, it is not widely used in Namibia. The reason being that only a relatively small area is cropped, and the crop residues are utilised as such, together with a protein supplement.

Utilisation of planted pastures Though not widely practised, the utilisation of planted pastures, especially Cenchrus ciliaris, a species well suited for dry land production, during the dry season, produces excellent results in the higher rainfall areas (± 400 mm and higher). Hoffmann and Mouton (1990) indicated the potential of this planted pasture in the northern parts of Namibia. The animals are withdrawn from the natural veld during the active growing period, and placed in small camps under Cenchrus ciliaris. This practice greatly enhances the stability of the production unit and increases the carrying capacity of the farm. It is however advised not to increase animal numbers and to rather utilise the benefits of improved available grazing during the dry season. This practice can really be advocated to farmers, in rainfall areas of above 400 mm per annum, for it can be started on a very small scale and then expanded over time.

During normal years, farmers very seldom supply their animals with supplementary feeding. In Namibia this practice is normally only practised during times of severe drought, when additional grazing is not available.

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Chapter 8 | Veterinary & Animal Husbandry

Maize treated with sodium bicarbonate

growing season of the veld (December -April). This coincides with the main growing period of cattle due to the availability of high quality grazing. Since P-excretion is an “energy sapping” process, P-supplementation in winter is reduced or totally left out, so as not to supply an excess. P is supplied at six g per animal per day and usually together with trace elements.

Chapter 8 | Veterinary & Animal Husbandry

Communal livestock sector The use of licks The use of commercial or home mixed licks is not yet common practice in the communal areas, especially in those areas north of the Veterinary Cordon Fence. The main reasons being the high cost of licks, and the lack of transport. In the Eastern Communal Areas of the Omaheke Region, licks are used, but not in the intended manner; the farmers normally provide too little lick. Thus the animals do not benefit from it. Through a process of farmers days and Farmer Extension Demonstration (FED) Groups, the research and extension staff, with the support from lick manufacturers, are training communal farmers in the advantages, and correct means of supplying licks to animals.

Utilisation of crop residues

value and will be readily accepted by the animals. The only drawback is the price of the bags. An alternative to the bags is to use pits similar to those used for the urea treatment of straws. Another avenue which should be actively propagated, is the introduction of a system of rotational grazing, whereby certain portions of a headman’s area is rested during the growing season, and then utilised during the dry season. This will need a massive effort, for it will need the co-operation of everybody under the headman’s jurisdiction. The principle can be demonstrated by means of fenced off plots. A practise currently advocated in the Southern Communal Areas, is the planting of drought and saline water tolerant feed and fodder bushes. These plant materials can then be cut and fed, during the dry season, as a supplement to the animals.


Most of the farmers in the Northern Communal Areas; Caprivi, Okavango, Omusati, Oshikoto, Oshana and Ohangwena Regions, cultivate Mahango (Pearl Millet) fields. The crop residues from these fields are utilised by the animals; sheep, goats and cattle, or left to be blown away.

promote the introduction of rotational grazing in communal areas

promote the correct use of, and train communal farmers in the correct use of licks

In the North Central Regions it is common practice to fence off (wire or brush) the cultivated fields, as protection against animals. In the Caprivi and Okavango Regions and the communities around the big towns in the North Central Regions, the animals are moved away during the planting and growing season as protection for the crops. After harvesting the animals are allowed to graze the standing crop residues. Unfortunately many wind losses occur, leaving only the hard unpalatable stems.

promote the optimal utilisation of crop residues; both in commercial and communal sectors

promote the use of treated crop residues, especially in communal areas

promote the use of adapted dry land planted pastures

train farmers in the correct use of supplementary feeding

The farmers are advised to harvest the crop residues and to store them. These residues are then fed to the draught oxen and cows used for milking. This practise will ensure that the oxen are ready for the next ploughing season, and will improve the milk production of the cows during the dry season.

introduction of drought/saline tolerant fodder species for dry season utilization-FAO

Supplementary feeding This is not a normal farming practise in communal areas. Supplementary feeding is mostly done in the form of drought relief aid, during declared disaster droughts. This then takes on the form of whole maize, broken maize and during the last number of years, chocolate maize.

Utilisation of urea treated crop residues As most of the northern communal farmers are mixed farmers; livestock and crops (maize/mahango), large amounts of crop residues are available, which are not fully utilised. During the past number of years numerous projects were executed to determine the easiest way in which farmers could treat their crop residues with urea, and then feed it to their animals during the dry season. Iyambo et al., (1998) evaluated different pit designs (1m × 1m × 1m) and the acceptance of the technology by communal farmers.From an economical point of view, the farmers preferred the pits built with mud bricks covered with mud and the dug pit covered with cow dung/mud. From a cost/maintenance point of view, the pits built from mud bricks covered with mud and the dug pit covered with cement, should be promoted. These two can easily be built and maintained by the farmers.

Other alternatives Often crop farmers panic when droughts strike, for no preparations have been made. A source of animal feed often overlooked is the plant material of the failed crop. Even though the crop might be a failure, the green material may yield a total crop of up to six m/t per ha. If this material is harvested early enough and stored in plastic/polythene bags, it can be conserved as a type of silage, which has improved nutritional


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Chapter 8 | Veterinary & Animal Husbandry

The role of livestock agriculture in the Namibian economy “a quick glance” Daniel motinga

What we ought to know? GDP statistics do not tell the complete story about the role of agriculture and specifically livestock agriculture in Namibia Lots of households depend directly or indirectly on the farming value chain given that more than half of Namibian households still reside in rural areas To fully appreciate the role of livestock farming and its contribution to the Namibian economy you must follow the full value chain – from the farm gate to the fork as it were The value chain can experienced divergent growth trajectories (e.g. meat processing contracted by 15% in 2014 whereas livestock agriculture grew by 8%!) Because of the nature of farming it remains a highly volatile sector (e.g. contracted by 27% in 2008 and by 27% in 2013. Livestock farming contracted by 38% per year over these two years

How big is the Namibian economy?

How big is the Namibian economy?

Size of  SA  and  Nam  economy  (billion  N$)   4000   3500   3000   2500  









2000 1500   1000   500  






69.91 2008  



nominal GDP  (Nam)  


90.12 2011  






nominal GDP  (Nam)  nominal  GDP  (South  Africa)  

How big is the sector? 2% of GDP

How big is the sector? 2% of GDP

Livestock sector  value  added  (billion  N$)   4.5   3.835  

4 3.365  



3 2.5   2  


1.775 1.34  



0.356 2007  

2.872 2.431  



1 0.5  







0.328 2008   Primary  livestock  



2009 Meat  processing  



2011 Leather  and  related  products  



0.683 0.327   2013  


Global livestock  sector  

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Chapter 8 | Veterinary & Animal Husbandry

Gvt partners Chinese firms for FNMD factory Agriculture minister John Mutorwa says the Chinese firms, Anhui Foreign Economic Construction Company (AFECC) and Jinyu Group will be coming in as technical partners for the capital project. Jinyu Group, is specialised biopharmaceuticals manufacturing company involved in research and production of veterinary vaccines, and AFECC, which is a multi-operational business engaged in international project contracting and mineral resources development, among others. Namibia, which has about two million cattle, four million goats and 2.6 million sheep., is prone to outbreaks of foot and mouth disease with the latest reported in May this year. Although the outbreak was contained, it cost the country N$157 million and a state of emergency to contain the outbreak.


The partnership between government and the Chinese companies come as Chinese government pledged to invest heavily in agriculture in Africa and that Namibia is one of the African countries where China will set up 100 agricultural centres to assist with technical support and knowledge transfer to ensure better food security. amibia could soon start manufacturing its own foot and mouth disease vaccines after the Ministry of Agriculture, Water and Forestry engaged two Chinese firms.

The factory is expected to be operational within the next three to five years on a 100 hectare plot at Eenhana in the Ohangwena Region.


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Currently Namibia relies on Botswana which is the only SADC country presently manufacturing FMD vaccine The proposed manufacturing plant at Eenhana would put an end to such dependency and Namibia would be in a position to export much-needed FMD vaccine, as well as other animal medicines.

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Chapter 8 | Veterinary & Animal Husbandry

Chapter 8 | Veterinary & Animal Husbandry

HALOLI PIGGERY: A country’s first


gricultural investment funds have experienced significant growth in numbers and volume in Namibia and have underscored public and private sectors’ interest to help address the resource constraints for achieving food security. The growing attractiveness of agricultural investment projects as profitable business ventures has played a role in the emergence and growth of such funds, especially because of improved business climates that favour longer-term investments. Agribank continues to finance numerous sectors in agriculture including pig farming and piggeries. The pig industry has a big role to play in the agriculture sector as it is part of ensuring food security. Some communal, emerging and commercial farmers have succeeded in making a success from the benefits of such funding and the positive environment that farmers are operating in with these regards. Haloli Piggery owned and run by Wilhem Bosch in Tsumeb is one of the success stories that came from Agribank’s financial intervention. In 2010 building of the piggery was started and it was during this period that Bosch received animals and started operations of the pig farm. It is located 70 kilometres North West of Tsumeb. In 2012, the farm had grown considerably and had a feed mill built on the premises. The maize silos function well and has a capacity of holding 1000 tonnes of maize. It currently has 7000 pigs. The year 2015 was of sizable growth as Bosch set out the building of their own abattoir in Tsumeb. It is commendable that he built the piggery himself owing to his prior experience as a building contractor and also does all the maintenance. The employees that complements Bosch’s expertise is made up of 30 staff members, accommodated at the farm and 15 casuals working outside of the piggery project.


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Being a member of the Pig Association of Namibia and Meat Board Namibia has also helped Haloli Piggery and other similar business to become competitive players in the industry. The introduction of a trial pig protection scheme on October 1 2012 resulted in local producers producing up to 70 percent of all pork in the Namibian market. The scheme encouraged the growth the country's pork industry by providing the sector with economic viability and implementing a quantitative restriction on the importation of fresh or frozen pork cuts or carcasses, with a ratio of one local purchase to three imports per kilogramme. It also looked to ensure the future co-existence of the pig production and processing sectors. The dramatic increase from just supplying 23 percent of all pork on the market in 2011, to 70 percent from 2013 of all pork for the local market, was the direct result of the trial pig

Chapter 8 | Veterinary & Animal Husbandry protection scheme. The protection came at just the right time and it has resulted in especially small holder farmers such as Haloli Piggery and previously disadvantaged people showing increasing interest in the industry. Great strides were made in securing the Namibian pig farming industry and the future is bright as long as this protection that puts the farmers on an even footing with cheaper imports from mainly South Africa exists. Although there has been an expansion of Namibia’s pig industry and protection from the government, it has not been without challenges for the farmers which range from expensive feed costs to high transport costs and the perennial problem of cheap imports. Haloli Piggery uses a large amount of Yellow maize, wheat bran and soya which is imported for animal feed from South Africa. Importing raw materials in any business causes financial stress on the operating costs thereby affecting the price of the end product which may also be controlled by external instruments and forces beyond the control of farmers. Wilhem Bosch advises fellow farmers interested in pig farming to engage a consultant in advance before setting up a farm, so as to comply with European standards. Furthermore, these standards are usually cost effective mechanisms to maximise profits in market set-ups where demand is high. Haloli Piggery and Mariental Piggery are the only two large producers of pork in Namibia. Together they supply only a third of Namibian pork consumption through various companies and individuals. Plans are to expand operations to be as big as Mariental Piggery or even more so as to be able to better meet the demand for pork in the country. The plan for the long term is to import the products but provided the demand in the Namibian market has been met. Clearly, Agribank’s financial intervention is highly commendable as can be showcased by Haloli Piggery. Funding such as this is essential to continuing improvement and also be open to interpretation for each of Namibia’s agricultural sectors in order to best address that country’s potential in food security.

Funded by

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Groundwater Investigation and Management in the CuvelaiEtosha Basin

GEO HYDROLOGY Borehole water Levels and Quality Long term, systematic measurements of water levels provide essential data needed to evaluate changes in the resources over time to develop ground-water models and forecast trends, and to design ,implement, and monitor the effectiveness of ground water management and protection programmes.

The investigation of the Ohangwena Aquifer system is still continuing to further determine the groundwater flow and detail hydro-chemical condition and sustainable yield, especially for the deeper seated fresh water quifer Ohangwena II (KOH II). Moreover, since the investigation was limited to the Ohangwena II (KOH-I) and Ohangwena II (KOH-II), an additional four (4) shallow boreholes (max depth 30 m) were drilled for the preched aquifer (Ohangwena 0 (KOH-0) study.

A total of about six hundred and sixty five [665] boreholes were monitored for ground water level twice in the financial year 2013/14 and the data is stored in GROWAS || database. The measurements were conducted in the following region such ; Zambezi, Ohangwena and Omusati which have boreholes installed with digital loggers while Kunene, Otjozondjupa, Oshikoto, Khomas, Erongo ,Omaheke, Hardap and //Karas region consist of boreholes measured manually and some installed with digital recorders. A water quality sampling campaign was done in August 2013 by the Geohydrology staff in the uranium province region (Erongo Region). The sampling campaign was done on 13 boreholes, and results from the campaign show that the water is unsuitable for human consumption.

In co-operation with NamWater, a long-term pump-test was successfully conducted in Eenhana for Changwena II aquifer and is delivering water with qualify A at around 30m/h. A well field consisting of three abstraction wells and three monitoring boreholes were drilled In Oshandi, Ondobe constituency.

A monitoring borehole WW 201047 at Omalapapa was given to the Ohangwena Regional Council to be used for water supply to the community at Omundaungilo village. Two monitoring boreholes in Zambezi Region were taken by the communities for private use without authorisation from the Geohydrology Division and this caused some interruption in our data collection and resulted in to data gaps.


Licensing and Compliance Checking Ninety (90) licensed irrigation farms in the Otjozondjupa, Oshikoto, Khomas, Omaheke and Hardap regions where visited in an effort to create awareness on the rule and regulations pertaining to irrigation permits. Permit holder contract details where renewed, permit renewals were encouraged where necessary and borehole coordinates were taken to upgrade the current borehole database of the Geohydrology Division. Illegal irrigation of farms was observed and farmers were reminded of their misconduct. The farmers were however encouraged to apply for irrigation permits. Registered groundwater user lists in the field of irrigation were updated and staff is currently in training to support the manpower in this field. Groundwater Support to DWSSC and Other Agencies In total, over 300 boreholes have been drilled for the Directorate of water Supply sanitation and Co-ordination during the 2013/2014 financial year (FY). The large numbers of boreholes are a result of drought during the last financial year. Over ninety (90) boreholes were have been drilled for other agencies, such as for MLR, OPM, MSS, ME and ME. Similarly, over 70 boreholes were rehabilitated in various regions. These work were done inhouse as well as through consultants and contractors.


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The well field abstraction rate is estimated around 150m3/h for the three wells. The well field is planned to be connected to NamWater infrastructure for long-term water supply in the region. The cooperation with the Federal Institute of Geosciences and Natural Resources of Germany (BGR) was renewed until March 2017, to further assist in the investigation and finalisation of the project.

The Hydrology division lost its Deputy Director Mr Guido Van Langenhove was one of the longest serving employees and, most hardworking and dedicated in the Ministry. May his souls rest in peace. Development of Management Plans Hydro-meteorological extremes namely drought and floods characterised the 2013/14 rainy season in Namibia and the surrounding border areas. Rainfall conditions improved during this rainy season. Heavy rains and high water levels in the Zambezi River have caused flooding compelled people to move to safer ground and relocation camps, disrupted, damaged and destroyed infrastructure, field crops and businesses, interrupted access to schools, health services and other services and set back soci-economic progress in the area. Flood and drought management workshops were successfully hosted with national and international participants. The Ministry of Agriculture, Water and Forestry, together with UNESCO, hosted a delegation from the Serbian “Jarolslav ‘Cerni’’ institute for the Development of water Resources from 8 to 16 February 2014. The main objective of the mission was to share lessons and experiences with the Sebian Institute, which is a UNESCO Category A institute with expertise in the development of water recourses for sustainable development and adaption to climate

Chapter 9 | Water change. Possible areas of collaboration and co-operation in various fields such as development of water resources, with particular focus on capacity building and development of flood management plans for the Cuvelai- Etosha Basin aimed at improving the countries water sector; were identified. Helicopter flood inspections with the Serbian delegation that involved the regional governors took place in the CuvelaiEtosha Basin. This was for the purpose of capacity building, flood and water resources management. Since the 2008floods the hydrology division has been making use of satellite images obtained through charter .for sustainablility and operational purposes the hydrology division ,though the European space agency tiger capacity building. under the capacity building initiave,got support for satellite images data acquisition and capacity building. Under the capacity building programme hydrology staff received training on application and handling of satellite imagery.another key achievement was a sciencentific publication at the end of the project with the title “application of a satellite based rainfallrunoff model; a case study of the trans-boundary cuverlai basin in southern africa’’.

Three [3] monthly routine service trips were undertaken by DWAF in the six [6] service areas [East,South,Kunene,Kuised,North, West] to collect hydrometric data.A total of eighty-three[83] gauging station were visited,this is the number of station that are currently active /open and do not include the Cuvelai service area.The Cuvelai service area has twenty-four [24] station that are visited on an ad-hoc basis. The construction of low-flow gaugibg weir in lower Orange River namedly,Sendelingsdrif Gauging weir,was complieted on the Namibia side of the river and Blouputs Gauging weir near Kakamas is 100% complete. Construction of the two weir was done by DWAF,South Africa with Namibias total construction of fifteen million Namibia Dollar [N$15,000,000] to this projet.The Ministry paid seven hundred and seventythree thousand and forty-nine Namibia Dollar and fifty-three cents [N$773,049,53] in book years 2013/2014. Tender awarded for Grass Sud Weir construction on the Fish River. Site hand-over between MAWF, NamWater and contractor took place.Site establishment was done done by the construction.Maintenance and activation of telemetry station in far North-East and Cuvelai.

Currently ,the hydrology division is receiving continued support from ESA through the TIGER-NET project for the water information observation system .the hydrology project proposal was one of the five accepted projects for Africa. The WOIS system currently produces 10 days advance flow forecation for the Kavango River at Rundu.

Two shelters were constructed in the upper Omaruru River and Lake Liambezi to the house real-time satellite transmission instruments for hydrological data collection.Maintenance of hydrological monitoring station was done in three[3] hydrological monitoring area,namely,Kuiseb Area,North West Area and Cuvelai Area.

Upgrading and Expansion of hydrology Monitoring Network Throughout Namibia

Law Administration

Namibias hydrology division provide annual data for more than 50 gauging station to the global runoff data centre [GRDC] ,but due to blacklong,only few station data could be provided. In addition ,several other data requersts were receiving from Namwater,UNAM,polytechnic,Botswana,consultants\ researchers,municipalities,Namdeb,UN,line ministries and students. A total of 51 data requests were receive and 75% of data requests were handled.

Permits Issuing The Directors issues issued permits for borehole drilling,groundwater abd surface water abstraction and wastewater discharge,throughout the year in accordance with the water law.

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Legislatoin The water Resource Managements Act was passed by Parliament on December 2013 and commencement is expected to be in 2015.

Chapter 9 | Water

STRATEDIC WATER PLANNING Water Supply Augmental to the Central Areas of Namibia and Cavelai The first draft pre-feasibility study reports were produced and the project was officially launched by the hon. Minister .which was attended by the media organised through the Laison office .by end of fiscal year,six hundred and thirtythree Namibia dollar and twenty-three cents[N$680,133,23] had been spent on the project. The Natural resources Accounts for Water The NamWater report for Erongo region was present to the management of NamWater.The repot was well receive and the NamWater management agreed to assist the Division of Water planning obtain relevant information that is needed to finalise the report for submission and representation to MAWF management.The report will be presented to management as is in the next financial year. Updated NRA data was collected from Walvis Bay and Henties Bay municipality, Langer Heinrich Uranium Mine, Namwater Rundu, Rundu and Nkurenkuru town councils. More than one hundred and twenty (120)weather station rainfall data sets were collected from the Meteorological Service of Namibia and the Division Hydrology within DRM with the purpose to compile the normal rainfall data for Namibia to be used for NRA project. Environmental Impact Assessment (EIAs) The Division of water planning assisted the Directorate of Extension and Engineering services (DEES) to carry out EIAs for proposed Green Scheme project for Musese, Tandjieskoppe and Liselo\Katima farm irrigation projects and Uvungu-vungu dairy farm project. The reports are in their final stage and will be submitted to the Ministry of Environment and Tourism (MET) Directorate of Environmental affairs for an environmental certificate. The Divison of water Planning investigated the possibility of deepening one of the Omadhiya Lakes and a report was compiled which was delivered to the office of the Deputy Permanent Secretary of Department of Water Affairs and Forestry. The proposed Otjituuo Green Scheme Initiative (OGS) project in Okatjoruu village south east of Grootfontein is still in its early stages. A desktop study of the study area has been done and report compilation has begun. Water Environment Water Quality and Wetlands Resources Investigations The Division continued with monitoring and management of ecological and environmental aspects of water resources in the country. Water Resources Quality Protection and Monitoring were carried out in the Swakopport Dam, Ugab River, Kunene,


The Agri Handbook 2015

Nyae-Nyae pans and Zambezi River. Wetlands and water resources quality in these wetlands remain generally good. The infestation of Kariba weed (Salvinia molesta) in eastern Zambezi wetlands remains under control. Regulations on use of Wetlands Resources, Control of the Aquatic Invasive Species and Protection of the Riparian Zones have been drafted and are just waiting for stakeholders input. Data and information on water demand management has been collected from different municipalities and service providers; and will be analysed during the next year. Analysis of collected water samples continued throughout the year. The outsourcing of water analysis to contracted laboratories will continue will continue (until) the ministerial Water Quality Laboratory is fully upgraded. Important instruments for the laboratory have been bought and the process to operationalise the laboratory is ongoing. The water Quality Information System (WAQIS) was handed over to the Division and the Consultant created user interfaces for each user in the Division to start with practising and inputting data on the system. Individual training will be provided to the users as need arises. Dundee Precious Metals-Tsumeb (DPM-T) formerly known as Namibia Customs Smelter (NCS) and surrounding areas are monitored annually on quarterly basis, to assess the impact of smelter activities on drinking water. The quality of water around DPM-T and Tsumeb town is still within Namibia drinking water quality guidelines. The Technical Committee for the Dundee Precious Metals-Tsumeb continue to discuss issues related to the operations of the smelter. The last technical committee (TC) meeting for the year was held on 9 December 2013. The aim of the meeting was to reflect on the TC activities regarding DPM-T compliance with the Cabinet directives issued to the TC about two (2) years ago. Protection of Water Resources, Efficient Use and Awareness Pollution control surveys and compliance monitoring continued throughout the year. Capacity to operate and maintain wastewater treatment facilitate remains a challenge for most service providers such as local authorities and some industries. There is also no clarity on who is responsible for wastewater treatment facilities falling under some institutions such as (health, education and works) after decentralisation, which makes pollution control and compliance challenging. This dilemma needs to be addressed to prevent pollution. The annual World Water and Wetlands Day Commemorations took place from 26-27 March 2014 in Outapi, Omusati Region. The awareness creation event was held under the theme: Integrating Water, Food and Energy for Improved Livelihoods. Field excursions were conducted to the Ruacana Hydropower Scheme, Etunda Irrigation Scheme, Omahenene Aquaculture Project and Olushandja Horticulture Producers Association. Mr Abraham Nehemia, Deputy Permanent Secretary of Water Affairs and Forestry delivered a keynote address on behalf of the Minister of Agriculture, Water and Forestry. Integrated Water Resources Management and Planning at Basin and National Level Divisional staff continued to be involved in the implementation of national and international river basins projects in the Okavango, Cuvelai-Etosha, Kunene, Omaruru, Zambezi,

Basin Management in Namibia Integrated Water Resources Management and Planning at Basin and National Level For the purpose of IWRM implementation at basin level, during the 2013/2014 FYI, the established basin management committees (currently 8; lishana, Olushandja, Niipele and Tsumeb sub-basins, Okavango, Omaruru, and OrangeFish basins) carried out functions as mandated in the Water Resouces Management Act No. 11 of 2013. These functions were performed with financial and technical support of MAWF and these include; Basin Support Office opertions, Awareness raising and promotion- see. Waste Management, Pollution Control and Sanitation, etc. The Ministry hosted the annual basin management co-ordination and information sharing workshop at Out of Nature Country Lodge between 11 and 12 December 2013. Olushandja Sub Basin Committee co-hosted the World Wetland/ Water Day 2014 in Outapi. No additional new BMCs were stablished during this financial year, however, the Upper-Swakop Basin Management Committee is excepted next financial year. International River Basin Commissions Namibia has a number of bilateral and multilateral agreements with neighbouring countries with whom it shares rivers. Orange- Senqu River Basin Commissions (ORASECOM) Several interventions towards integrated water resources management in the basin, supported by UNDP GEP are progressing well. The Strategic Action Plan (SAP) is complete and the ministerial endorsement for the SAP is still pending. Phase 3 of the development of an IWRM plan is expected to be finalised in December 2014. The IWRM Plan is formulated with support from GIZ, UKAID and AUSAID. The final reports were made available on the ORASECOM website (www. Permanent Water Commission (PWC) Namibia and South Africa have a drafted a memorandum of understanding on the principles of co-operation towards a water-sharing agreement based on the principle of reasonable and equitable allocation from shared Lower Orange River. The Moh is expected to be signed in the next financial year. Zambezi Watercourse Commission (ZAMCOM) Key activities of ZAMCOM for the period under review included advertisement of the Secretariat position of Chief Executive followed by interviewing of shortlisted candidates on 12 December 2013 at the SADC headquarter in Bostwana, Gaborone. It was also decided that the Secretariat office will be hosted by Zimbabwe. The ZAMCOM council of Ministers was established on 29 May 2013. During this time Zambia also acceded to the ZAMCOM agreement and was able to fully participate in the decision-making process for the first time.

An Atlas for the Zambezi River Basin was launched during the financial year ended March 2014. The Permanent Okavavngo River Water Commission (OKACOM) Various meetings were held in the basin countries. Amongst the issues discussed were: The finalisation of the Sweden/OKACOM financial agreement in both the English and Portuguese version and an update on the Sweden support to Phase 2 of the OKACOM 5-year plan. A plan for adjudication of national seconded staff to OKASEC, the “Road Map’’ for the 20th OKACOM meeting and celebration of the 20th anniversary of OKACOM was the highlight. A policy brief that servers as a tool to assist with Cabinet endorsement of the Strategic Action Programme (SAP) and National Action Plan (NAP) at country level summarising the TDA and SAP processes was compiled and distributed to all countries. For effective monitoring of the NAP implementation, a Monitoring and Evaluation (M& E) Plan still needs to be developed at country level. Kunene River Permanent Joint Technical Committee (PJTC) Several technical meetings were held to discuss technical issues around the Calueque Dam rehabilitation by Angola, upon requested of the PJTC and following the misunderstanding with regards to how the rehabilitation project was carried out. This contention also impacted on the progress of the Kunene Transboundary Water Project. The Task Force Calueque developed proposal with regards to both projects, which will be submitted to the PJTC council for approval. Cuvelai Watercourse Commission ((CUVECOM) The Agreement to establish a Cuvelai Watercourse Commission (CUVECOM) between Angola and Namibia has been finalised and is available in both English and Portuguese. The agreement is expected to be signed by the two water ministers during the 2014/15 financial year. Southern Africa Development SADC SADC technical and ordinary meetings were attended during the course of the year. Human Resources Staff shortage in some of the divisions within the Directorate of Resources Management has been a major problem, especially in rare or scarce fields like engineering, chemistry and geo-hydrology. At the same time, staff members continued to be trained through shared water commissions and SADC, while others are involved in qualifying courses.

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Chapter 9 | Water

and Upper Swakop. These include technical support and coordination of basin plans and project activities. A concept paper for the implementation of the Integrated Water Resources Management Plan has been finalised. The Concept Paper will be discussed with the stakeholders in the coming Financial Year.

Chapter 9 | Water


Water Supply Subsidy Implementation: A strategy and operational plan to subsidise poor households in both urban and rural households was submitted to Cabinet for approval in 2012/13.In the year under review, the operational plan has been implemented in collaboration with the NamWater and jointly with the Ministry of Regional and Local Government, Housing and Rural Development (MRLGHRD) after the MRLGHRD agreed to be part of a task team to work together with DWSSC on the water supply subsidy. An investigation to determine the criteria to identify beneficiary households who will qualify for subsidy is underway based on the Cabinet-approved recommended amount of 15 liters of water per person per day as the poverty lifeline subsidy measure.

The Recurrent Budget The DWSSC 2013/2014 appropriated recurrent budget was one hundred and seventy-three million forty-three thousand Namibia Dollars(N$173,043,000).An overall expenditure for the DWSSC 2013/2014 recurrent budget of 96.5% has been achieved, which is just outside the required 2% under, or over expenditure. The expenditure per vote at the end of the financial year was as follows:

Development Activities Construction of the following projects continued: Katima MuliloNgoma Water Supply Scheme Phase 2 and the Onambutu Water Supply Scheme Phase 6 commenced. Rehabilitation of the Southputs Water Supply Scheme was completed. Feasibity studies for the litapa-Okeeholongo Water Supply Scheme, Oshivelo-Omutsegwonime Water Supply Scheme, King Kauluma-Omutsegwonime Water Supply Scheme, Ondangwa Omuntele forty (40) km Water Supply Pipeline Scheme and the Augmentation of water supply to Central Area of Namibia and the Cuvelai from the Okavango River. A number of water points have been rehabilitated and new ones drilled as had been identified by all regions. Three hundred and twenty(320)water points were installed, three hundred and twenty-eight (328) water points were rehabilitated, one hundred and eleven (111)boreholes drilled, water points were cleaned and pump tested, five (5) extension pipelines were constructed and three hundred and twenty-eight (328) engines were repaired.


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The construction of seven water points was completed for displaced communities in Kavango Region. The construction of Mukwe Rural Water Extension Center (RWEC) in the Kavango East region was completed. The renovation of the RWECs in Omuthiya in the Oshikoto region and in Otjituuo in the Otjozondjupa region was both completed. The implementation of the sanitation implementation plan continued during the year under review. A tender was approved to construct fifty- three (53) toilets per region in all regions of the country. Community awareness activities proceeded during the year in each region. Preparations continued to develop a new desalination bulk water supply plant to supply the mines at the coast.

Neckartal Dam The successful contractor was awarded the tender to construct Neckartal Dam Phase 1 on 18 September 2013.After the official site handover, the contractor started drilling and blasting to prepare/level the areas where the different plants would be set up. These included the area of the batching plant at the dam site, the on-site office complex, excavating the river-bed temporary access roads and dewatering and construction of the river diversion coffer dam. Other activities that subsequently took place were the preparation of the quarry site, drilling and blasting to level and prepare the site for the crushing plant, setting up of power supply lines and substations and the construction of the site accommodation. Upstream of the Neckartal Dam site, clearing of the main Fish River channel was completed about one kilometer downstream of Hardap Dam.

Drought Relief The 2013/2014 rainfall season in Namibia was very poor, which resulted in serious drought conditions being experienced in certain regions. This had a major impact in some of the NamWater operational areas such as the Cuvelia area. This impacted on both community drinking water and also livestock water supplies. Considerable efforts were made to ensure that water was available at all times. Water supply shortages were also experienced on the coast and some of the mines. In support of the Office of the Prime Minister, drought relief measures budgeted at over one hundred and seventy million Namibia Dollars (N$170 million) were implemented by DWSSC as follows and in the following regions.

Chapter 9 | Water

Solar Grapes (Pty) Ltd Background • 110 Ha Table Grape Farm located in Aussenkehr Namibia • Early white, red, black seedless varieties • Week 46 to 51 availability • GlobalGap, Natures Choice, Smeta Accredited Sustainable Farming We focus on producing top quality table grapes in a sustainable way. Our vineyards are irrigated using Solar Power thereby reducing our carbon footprint. Philosophy “Growing healthy grapes in harmony with nature” Feel free to contact us SOLAR GRAPES (Pty) Ltd PO Box 703, Aussenkehr, Namibia Tel: +264 63 297220 Background of Aussenkehr Farms • • • • • • • • • • • • •

Dusan Vasiljevic (Aussenkehr Farms (Pty) Ltd) started farming at Aussenkehr on the Orange River in 1988. Initially he experimented with many types of fruits and vegetables until he concluded that the area was most suited to table grapes. The climate at Aussenkehr is perfect for grapes as it is very hot in Summer and there is virtually no rain and no hail. Furthermore there are no frosts in the cooler winter months. Grapes at Aussenkehr are produced in November and December which is well timed to supply the pre Christmas market in the Northern Hemisphere. In 2010 road from Noordoewer to Aussenkehr is tarred By 2015 grape industry at Aussenkehr approaching 2000 Hectares with plans to double the industry in the next 10 years. Today approximately 20,000 people live at Aussenkehr More than 1500 permanent workers and 6000 seasonal workers Plans to start shipping grapes through port of Luderitz in 2015 Road to Rosh Pinah is set to be tarred making exports from Luderitz more economically viable. Amta is established to ensure standardization in the industry as well as administration of traceablility of grapes Agribusdev begins managing Orange River Irrigation Project Nampower plans to upgrade Electricity supply to Aussenkehr Namwater busy with construction of bulk water supply to the new Town

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Chapter 10 | Forestry

Directorate of Forestry Annual Report for 2014-2015


he Directorate of Forestry exists to practice and promote the sustainable and participatory management of forest resources and other woody vegetation, to enhance socio-economic development and environment stability. While the vision of the directorate is to promote a well-organised forestry sector that is socially, environmentally and economically sustainable while creating significant and equitable wealth and opportunities enjoyed by all Namibians.

Achievements A total of 18, 816 permits were issued for utilizing forest products, while 89 fines were issued to persons illegally transporting or harvesting forest products. A total of 436 roadblocks, 685 resource inspections and 468 patrols were conducted. About 57,686.9 tons of firewood; 108, 737 tons of charcoal 11 m3 of timber; 399,568 droppers; 110,103 poles, Planks m3, 756 woodcarving pieces and 20 tons of Mopane roots were legally removed from the forests. While 1,246.1 tons of firewood; 2,863 droppers, 3, 849, 1,080 tons of charcoals, 304 m3 of planks and 275 woodcarving pieces were confiscated from people as a result of not having legal supporting documentations, therefore contravened the Forest Act.

The Namibia Forested Land project started in December 2014 to support community based forest management in the 13 hotspots in Omaheke, Otjozondjupa, Kunene, Omusati, Oshikoto, Ohangwena and Oshana region and started with inception workshops and meetings. The 13 hotspots were supported with quart bikes for the fast tracking of the implementation of the activities. Various community forests, forest management committee (FMC) together with technical staff from Kavango West and East and Zambezi region were supported and took exposure trip to Okongo Community Forest to learn more on farming with guinea fouls. The FMCs mobilized the communities to participate in clearing of fire cut lines as income generating activities (total amount of N$ 702 750.00 was paid in Kavango east). The communities were provided with firefighting equipment to fight fire in case it occurred. 19 Gazettement certificates were handed over to gazettement Community Forest of 2012. The block permits to harvest timber, firewood were issued to community forests such as Ncumucara, Ncamangoro and Mbeyo while the Kaptope was given a provisional permission to harvest firewood and was supported with machine to process firewood to generate income for community. Forest management Committee were trained in their role and responsibly, Devil’s claw post harvesting and monitoring training, fire management and beekeeping.

Project 2: Community Forestry Community-based forest management is of paramount importance to the forest management in communal area where forest resources are shared by inhabitant. In carrying out such mandate, the regions were engaged in preparation and implementing milestones as indicated in the community forestry guidelines namely developing Constitutions, integrated management plans, by-laws and consulted Legal Assistance Centre for inputs on legal issues. The community forests such as Ondjou was assisted in developing the constitutions and by-laws, while M’Kata, Nyae-Nyae and N #agna were assisted to develop the operational plans to ensure transparency and accountability. In the same vain, the community forest held their annual general meetings. During these meetings, achievements and constraints were highlighted. Three Community Based Forest Management Units were established and trained in fire management at Gamm, N#agna and Nyae Nyae area. The Ondjou CF and M’Kata CF management committees were then trained on the roles and responsibilities. Moreover, collaborative meeting was held with community forest committees covered in the community forestry project operation area at Tsumkwe. The purpose of the meeting was to introduce the donor funded projects to the public, find ways of collaboration in order to avoid the implementation of overlapping activities being by different projects such as NNDF, NamParks, METand CFNII. Directorate has assisted the M’Kata community forest with the transportation of the Acacia pods to Grootfontein for marketing in an effort of promoting income generation to communities. The M’Kata community forest office is also now operational and the call interested companies or individuals to harvest firewood from the community forest was published in the newspapers and evaluation completed.


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The community forest management committee generated income from various income generating activities namely from devil claws, selling of poles and droppers, firewood, issuing of permits, thatch grasses, craft shop (wood carvings), fire cut lines a total of N$ 1, 596,835.00. Fire break has been constructed in most fire prone areas in order to control the spreading of wild fires. Various firefighting equipment and tools were purchased to be used in fire suppression, namely face shields, GPS’s pressure fire pumps, fire beaters, firefighting protection overalls, gloves, and safety boots, and knap sacks and 10 firefighting LDV vehicles fitted with accessories and water tanks and tools were purchased to assist in firefighting in the regions at a cost of N$6.5million. A Tender F1/18/1-53/2014 for the supply and delivery of firefighting equipment and protective clothing was prepare, approved and awarded. The Ministry engaged local people to clear fire break in fire prone areas and about 3,602 km of firebreaks cleared, means 36,020,000ha protected against fire and were constructed at a cost of N$5,326,040.00 State Forest in Zambezi region was inventoried and the report is available and will be used to prepare the management plan of the forest.

Project 6: De-bushing programme The programme was initiated with the aim to increase agricultural land productivity and accessibility to the Ministry’s infrastructure and contribute to employmentCreation

Research trials: The Subdivision Forest Research has managed to maintain and apply treatments to all its fieldbased research trials. These trials are the Makambu and Kanovlei fire trials, Terminalia coppicing trial, Ziziphus mauritiana (Chinee apple / Indian plum) species trial, Marula germplasm multiplication trial, and Phenological studies of Annona senegalensis ( Africa custard apple). The aim of the Makambu and Kanovlei fire trials is to test the effect of different fire regimes (fire applied at different times of the year) on the tree and shrub as well as grass growth patterns. For the Terminalia sericea by applying different pruning methods. For the Ziziphus mauritiana species trial, the main aim is to test the ability of this species (original from Malawi) to grow under our climate conditions. The trial was planted at Eunda in Omusati region. In the case of the Marula germplasm multiplication trial, the main aim of this trial is to determine the ability of marula to be propagated through rafting. In addition to the above-mentioned trials, two new trials were established in the northern and southern parts of Namibia. They are the baseline survey and vegetative propagation of Strychnos cocculoides in the Kavango West and Ohangwena regions, and the frost and drought resistant species trial in the Hardap and Karas regions. The aim of the Strychnos cocculoides trial was to determine the best mother trees in consultation with the community members. These mother trees were then used for vegetation propagation. In the case of the drought and frost resistant species trial, the main aim is to identify tree species of specific value that can survive the harsh environmental conditions in Namibia. 432 Seedlings were planted during this exercise consisting of Salt bush, Kei Apple , Anna Tree, Orange, Naartjie and Real Olive.

Forest Monitoring and Mapping In the case of the Subdivision Forest Monitoring and Mapping, all monthly burnt area reports as well as the daily fire bulletins were produced as scheduled and distributed. These maps give a clear indication where veld fires occurred. All other maps such as the State forest vegetation map for Caprivi State Forest, Community Forest zone maps and fire cutline priority area maps were produced. With regards to GPS/GIS training to regional staff members, the training was conducted at Ongwediva, Epukiro and Otjiwarongo district office where 24 staff members were trained all together. The Directorate of Forestry has attended the UNDCCC twentieth session of the conference of the parties (COP 20) and tenth session of the conference of the parties, 30 November to 13 December 2014, Lima, Peru

National Forest Inventory The Section National Forest Inventory has carried out forest inventories in the Caprivi State Forest and also conducted Forest Inventory training at Rundu and Ongwediva District offices involving 19 trainees. The section also successfully carried out a forest assessment of carbon emissions on Mopane Forest/woodlands in North Western Namibia.

of trees in the forests remain a challenge in the country. • Water disconnected at Okahao ADC due to unpaid water bill by General Services led to high death rate of seedlings in the nursery. • Trees in orchards attached by Red scale diseases and Nematodes leading to 526 orange trees dead and Cyperfos 500 EC was used to treat the disease. • Trees such as Eucalyptus and Casuarinas equistefolia in the orchards established in the glassland died which might be due to frost and salty underground water. High number fruit trees in the orchards died due to frost namely Psidium guajava and Mangifera indica therefore hampering the progress of tree growth and survival in orchards. • People stealing fruits in the orchards. • Ministry of works and transport delays in issuing of bill of quantity which is a big problem hampering the construction of planned work in the South region, as example Otjinene Office,Karasburg house which was earmarked could not be built last financial year due to these delays. • Electricity at Berseba Borehole is not connected due to the delays from Ministry of Works to contact someone to install the electricity. Berseba Orchard water continues to be a problem as the casual labourers find it difficult to do their job properly. • The regions without trucks need trucks to collect nursery soil and manure as well as load poles, droppers, firewood and charcoal confiscated during law reinforcement operations as well as carrying water tanks to water departmental and community orchards. • Delay in payment of casual workers. Monitoring of casual labourers is cumbersome since there are shortages of staff members in regions. They need strict monitoring, hence they require staff presence to perform. • The South region there is lack of water facilities and ground water level is deep, this results in slow process of tree planting. The water is perceived to be for human and animals priorities, hence the drilling of borehole for tree planting sounds or perceived as improper by the communities. • Generally, South region staff, this result in poor accordance to regional district work plans, for a DoF annual work plans.

has low number of technical implementation of activities in implementation strategy and realization of implementing the

• Ill-health condition of the workers causes set back on work productivity, and most offices suffered the consequence of staffs transferred back to regions of origin especially those on additional employment. • Plant and fleet delay approval the services requests of vehicles in the region. In addition, low competency in those garages on tender to repair government vehicle and this also compounded with old vehicles hamper implementation of forestry projects since they are not fit to be used in the field. • Lack of staffs’ ministerial ID cards to identify them when carrying law enforcement operations.

CHALLENGES • Illegal harvesting and transporting of forest products are still high. Several meetings were held to discuss procedures on how to get permits. Despite the intensification of patrols and awareness campaigns, illegal harvesting and logging

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Chapter 10 | Forestry

opportunities especially for the youth. A total of 2650ha cleared, costing N$7,5 million in the government owned farms involving 1026 people.

Chapter 10 | Forestry

Diversified Agriculture: Ombanje Farm



Hangala Foods (Pty) Ltd is part of the Hangala Group’s agribusiness arm and its core business is the production, processing and distribution of diverse range of food for plants, livestock and people


s farmers adopt various means which ensure value addition in their enterprises, diverse activities are being implemented on Namibian farms to achieve this feat. African farmers have for a long time been unable to reach their full potential in terms of profits because of various causes which stem from their specialization of single crops or animal breed. Namibian farmers are now exploiting new machinery innovations and adopting globally trending farming techniques and thus diversifying their agricultural activities. Few are now also moving from primary production to value addition whereby they process their produce in order to cut down external production expenses. The dynamic Hangala Group is a diversified company with main interests in property development, financial services and agribusiness. The Group has established Hangala Foods (Pty) Ltd to spearhead its agribusiness initiatives. Hangala Foods’ core function is the


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Chapter 10 | Forestry

production, processing and distribution of diverse range of food for plants, livestock and people. Ombanje Farm is situated 30km between Otavi and Tsumeb along the B1 road, live at the center of Hangala Foods production activities. The farm was bought in 2002 by Dr. Leake S. Hangala, a Namibian entrepreneur who is the founder and Executive Chairman of Hangala Group. The farm has an average rainfall of about 500mm per year and has got a mixed landscape comprising of mountains, valleys and flatlands. Ombanje farm envisions being one of the country’s top food producer and agro-processor in the next five years by diversifying into the critical areas of food production and processing while modernizing farming practices and techniques. The farm currently has 550 Bonsmara herd, both stud and commercial (Hangala Bonsmaras) and a small stock comprising 560 commercial Boer goats and sheep. There is a fluctuating stock of 1000 Boschveld chicken (Hangala chicken) making up the poultry farm. Agronomy is also part of the diverse agricultural activities at Ombanje, with 300 hectares having been cleared, earmarked for maize and fodder production. This will be for both irrigated and dry-land crops. A small section of the farmland is also used for horticultural production. At the farm is also a guesthouse for hunters who visit Ombanje for its game viewing and trophy hunting. The farm employs 10 permanent workers and around 30 contract workers who fluctuate depending the amount of work available. For a long-time, Ombanje Farm is involved in the training of future Namibian agriculturists by providing field attachments for students from University of Namibia, Nuedamm and Ogongo Campuses. Each year at-least three students will be attached at the farm for their in-service training. Matric Students from the nearby town, Tsumeb secondary schools come for their agriculture practicals as well.

CURRENT DEVELOPMENTS AND EXPANSION Primary production of maize, cattle, small stock and chicken is being done at the farm but currently developing towards secondary production whereby the end consumer products are processed at the farm. Due to climatic change, new methods of farming and agriculture need to be implemented so that seasonal changes do not heavily affect agricultural output. At the moment all the livestock is sold through cattle auctions and individuals while maize is sold to local milling companies. The small Namibian market for agro-products is daunting for farmers as prices are not determined by the farmer but as the case for maize, by government regulations while for livestock auctions, it is market regulated. This makes it of utmost importance for farmers to produce high quality products that are fit for export as most livestock products have a high chance of ending up in Angola, Norway, South Africa and Zimbabwe. This has seen the beef market growing externally especially because of the Namibian government’s intervention of linking Chinese markets to local beef producers.

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Chapter 10 | Forestry

The small Namibia market for agro-products is daunting for farmers as prices are not determined by the farmer but as the case for maize, by government regulations while for cattle auction, it is market regulated Ombanje Farm General Manager Tapiwa Daniel Mashinge, details the on-going expansion drive at the farm which has seen further value addition being made through many current and future ventures in order to thrive in the challenging market setup. Debushing is being undertaken to facilitate more farming potential at the Ombanje. As at November 2015, 2500 hectares of the 6000 hectares of farmland has been debushed in order to increase the carrying capacity of the farm for livestock and game. The 2015 planting season is set to see 250 hectares of some debushed farmland being utilized for maize production. The encroacher trees and bushes being cut down on the farm pose a threat to farming as they significantly reduce the carrying capacity, movement and visibility of the farm. They are then ground into wood chips on site by a heavy machinery, wood-chipper and then transported to Ohorongo Cement Plant twenty kilometres from the farm. The wood shavings are used in the cement plant’s furnaces as a substitute for coal thereby cutting significantly the costs of importing the energy source. Therefore, the cement making industry is greatly benefitting from this substitution energy sources and alternative fuels. Hangala Foods is planning to create and establish an integrated forward and backward food production and processing linkages at Ombanje Farm. The future will also see the establishment of fertiliser (blending, packaging and distribution), stock-feeds (manufacture and distribution), milling and chicken (hatchery, broiler line and abattoir).

INVESTMENT MERITS The Hangala Foods, through its various companies in agriculture and Ombanje Farm have devised many additional mechanisms to add to the existing enterprises that will see their contribution to the agricultural sector of Namibia growing. Their goals include to produce food for Namibia in particular and Africa in general and make the country self-sufficient in food, to stimulates growth of the Namibian economy, to preserve investors capital and facilitate solids returns and job creation and skills transfer in Namibia.


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Chapter 10 | Forestry The Agri Handbook 2015


Chapter 10 | Forestry

Debushing Namibia

Vision of an emerging sector Estimates are that at least 30 million hectares of land in Namibia are bush encroached. This is one third of the country. This used to be land of open Savannas. The species that forms is often thorny and impenetrable bush are mainly indigenous to Namibia such as black thorn, blade thorn, white thorn, red thorn and circle bush. Grass cannot compete with this species. It is left with little room to grow and not allowing enough water. Hydrologists find that encroachment has catastrophic effect on the Namibian water reservoirs, drastically decreasing water inflow into underground reservoirs. Bush control is possible. All over Namibia farmers are experimenting with different methods. Some are investing in manual bush turning which is labour intensive and effective. Others make use of semi-mechanised and mechanical debushing methods. Chemical debushing kills encroachables and has secondary effects. Regardless of the method used after care is essential. Farmers observe that the bush simply grows back. Debushing might provide more grass but not necessarily better grass. A long term recovery of the grazing capacity requires active rehabilitation of the grass ward in order to achieve growth of the desired perennial grass. Bush control will only be effective on a large scale if the woody biomass is recognized as a valuable resource. Currently encroached bush is sold as firewood for local communities; made into charcoal for export and compressed for other uses. It is used for carving to make furniture, floor boards and fencing materials. Bushes are being turned into fertilizer and even into animal fodder. Creative and inventive productive ideas are developing across Namibia turning the problem into an opportunity. The biggest chance for up scaling lies in utilizing the energy content of the biomass. Today woodshops are already being used to produce heat for cement production and other industries are starting to realize the potential of this resource. Namibia could even use the woody biomass for a decentralized electricity production, thereby rendering its economy and people independent from imports, strengthening the regions and using alternatives to fossil fuels.

Joseph Hailwa (Director of Forestry) Obviously there are a number of private farmers who are doing very good job out there, harvesting the wood and they create better rangeland on their farms. And it is our strong belief


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An estimated 2 000 tons of firewood mainly from trees are used daily in Namibian households. This high demand can be mapped through the use of invader and encroacher species, thereby reducing illegal logging.

that if the bush encroachment problem is actually properly addressed we are going to increase the capacity of our land. We shall be able to produce more and we shall actually be able to have more people sharing the land to produce.

Ben Amathila (Former Namibian Minister of Trade and Industry) Our Agricultural land is taken up by the bush. The biggest problem is that we are losing valuable land where grass would normally grow. Namibia is a cattle country; the bush reduces the carrying capacity of every farm thereby reducing the national herd carrying capacity. Bush encroachment is a big topic but for us it’s also a big opportunity and we would like to support the change from a problem to a solution.

Tapiwa Daniel Mashinge: (Manager Ombanje Farm): The problem which we have with bush encroachment in Namibia is the less accessibility to your farm because in some areas you can’t move because of excessive bush. Bush avoids the growth of grass which is the major hindrance. In Namibia there is a general norm that you buy your farm twice because when you are debushing your farm, you start all over.

Nico de Klerk (Consultant) We have disturbed the entire nature in one way or another. The grass layer all over the country was over utilized to a large extent that it lost competitive advantage. Amos K. Hengua (Manager John Pandeni Research) Namibia is an arid country, the bit of rainfall that we get is meant for grass growth and these places are actually competing against grass and they are not ideal to livestock. We should uproot everything to avoid regrowth.


Bush encroachment is a problem but it can be wisely addressed to increase the carrying capacity of rangeland and also to ensure that we do not destroy our biodiversity.



Chapter 10 | Forestry

s a result of bush encroachment Namibia has an enormous biomass resource at its disposal that is estimated at 20 000 000 tons. There is plenty of biomass to be used for instance, in Industrial boilers fossil fuels such as coal or oil can be substituted by wood chips from encroaching bush. There is a range of Industries in Namibia that use heat in the production processes such as abattoirs, breweries, fish factories and mines. Ohorongo cement is among the first major plants that use wood chips on a large coal fire, for its industrial combustion chambers. Turning biomass into power will benefit Namibia. The vast amount of the energy sector could spark large scale bush harvesting projects. This will benefit the agricultural sector substantially. Bush to electricity is ideal for a decentralized power supply. Biomass power plants with the capacity of 5 megawatts can source biomass from a radius of less than 20km in most bush encroached areas. A plant of 20 megawatts in a radius of above 50 km. Such decentralized approach literally brings power to the people. It allows for alternative ownership and governance and provides the opportunity to empower communities as well as energize local democracy and self-governance. The Electricity Control Board of Namibia defines feed-in tariffs; these determine the price at which electricity from renewable sources can be fed into the National Power grip. Thus feed-in tariffs are a strong mechanism to empower renewable energy sources. Many areas in Namibia are not connected to the electricity grip. In these rural areas fully self-sufficient power systems cab be established so called mini-grids. These grids can be based on hybrid solar biomass power generation.

Bush encroachment is affecting one third of Namibia’s farmable land. Debushing is expensive and only viable if value can be added to the biomass.

At the moment Namibia is supplied by hydro but also power, gas and heavy fuel oil and most of that has to be imported from neighboring countries South Africa, Zambia, Zimbabwe and Mozambique and the more we use renewable energy like solar, wind and biogas or water energy the more benefit for the country and its people.

source of fuel. It’s locally available that is the benefit compared to fossil fuels which are not available in Namibia. Industries will need competitive, reliable and standardized supply of large volumes of biomass fuel. The harvesting of encroaching bush will have to be upscale drastically to guarantee supply. Currently only individual Namibian biomass producers are harvesting and processing encroaching bush. Not many farmers have the means to harvest bush on large scale. And the harsh Namibian conditions require specialized engineering solutions. Cooperation between future biomass harvests and processors is necessary to ensure rapid up scaling operations.

Bernd Walbaum (CEO Olthaver and List Energy) A brewery is quite energy intensive plant. We need electricity for the machines; we need steam and hot water for the brewing process and of course also cleaning process in our bottling plants. Our plans are and we have started already to replace the heavy fuel oil boilers and the oil with wood chips. We have already ordered a special wood boiler to burn wood instead of oil.

Manfred Pirker (Plant Manager Ohorongo Cement) This main productive process is a very energy intensive process and that is where wood chips come in as an alternative

The charcoal industry is Namibia’s oldest wood value chain and currently the most important use of wood from debushing. Namibia exports between 60 000 and 158 000 tons of charcoal annually, and is the 6th largest exporter in the world. Internationally the demand for charcoal exceeds supply.

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Chapter 11 | Engineering & Extension

Directorate of Extension and Engineering Services Annual Report 2014/15 Dry Land Crop Production Programme (DCPP)

twenty (20) tractors were delivered and deployed to the various regions. That will bring the total number of tractors to one hundred and twenty five (125) procured for the Dry Land Crop Production Programme. • During the 2013/14 cropping season, eleven thousand three hundred and thirty two (11, 332), (5,654 male & 5,678 female) farmers benefited from the ploughing services. This represents an increase of about 26 % compared to eight thousand four hundred and thirty four (8,434) farmers that benefited during 2012/2013 cropping season. • Meanwhile, a total of twenty thousand and seventy two hectares (20,072 ha) were ploughed during the same year. This shows an increase of 38% compared to twelve thousand three hundred and seventy two hectares (12,372) ha in 2012/2013. The increase in hectares ploughed was a result of the additional thirty tractors procured by government. • The Comprehensive Conservation Agriculture document for the Dry Land Crop Production Programme which was jointly developed by Ministry of Agriculture, Water & Forestry and Food and Agriculture Organization is currently with the printers.

Namibia has implemented the Dry Land Crop Production Programme in the following regions: Kavango East and West, Zambezi, Oshikoto, Oshana, Ohangwena, Omusati, Kunene North and partly in Otjozondjupa and Omahake to increase food production. Through this programme farmers were assisted with subsidised farm inputs (fertilizers and improved seeds) and agricultural services (ploughing and weeding services).


Fertilizers Distribution


Seed Distribution

• A total of five hundred and forty two (542) tones of different type of fertilizers [NPK 2:3:2 (37%), MAP (0.7% Zinc), Ammonium Sulphate (21%nitrogen), LAN (28%Nitrogen), UREA (46%), Superphosphate (18-21% Ca) were acquired by MAWF and distributed in the crop growing regions as part of Government subsidy during 2014/2015 cropping season. • During the cropping season 2013/2014, a total of two thousand two hundred and thirty nine (2239), (1002 male & 1237 female) farmers benefited from the fertilizer subsidy.

• During the 2014/2015 cropping season, the Food and Agriculture Organization (FAO) through the Government provided fifty six (56) tons of free maize seeds which were distribution to farmers in Northern Central Regions (NCRs) of the crop growing regions. Meanwhile, resettled farmers in Zambezi and Kavango East and West were provided with ten (10) tons of free maize seeds. • Government procured additional forty six (46) tons of maize seed which were distribution through Government subsidy in the above mentioned regions. • Furthermore, a total of one hundred and thirty (130) tones of pear millet (mahangu) and sorghum seeds were also distributed through Government subsidy to farmers in those regions during 2014/2015 cropping season. • During the cropping season 2013/2014, twelve thousand six hundred and ninety eight (12,698), (4,870 male &7,828) farmers in the crop growing regions benefited from improved seeds distributed through Government subsidy. This represents an increase of 7.9% compare to eleven thousand six hundred and ninety five (11,695) farmers who benefited during 2012/2013. • During the same year, sixty two thousand nine hundred and ten (62,910), (25,145 male & 37,765) farmers benefited from free improved pearl millet and maize seeds in the NCRs. This is an indication that seeds distribution through Government subsidy need to be increased by allocating more funds to the programme to ensure all communal farmers benefit from the provision of subsidized improved quality seeds for better yields.


Ploughing Services

• A total of fifty (50) additional tractors and implements were procured through Government tender of which


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Weeding Services

• During the 2013/2014 cropping season a total number of two thousand eight hundred and ninety one (2,891), (1,167 male & 1,724 female) farmers benefited from the weeding services. This showed an increase of seven hundred and seventy two farmers who benefited from weeding services compared to 2012 /2013. • Five thousand three hundred and five hectares (5,305 ha) of farmers fields were weeded in those regions. This represents an increase of 17.5 % compared to four thousand three hundred and seventy eight (4378) hectares during 2012/2013 cropping season. Through the provision of weeding services to farmers, the Namibian government created two thousand four hundred and ninety temporally jobs for unemployed youth.


Horticulture Production 1.3.1 Support to Urban and Peri-urban Horticulture

• In the quest to contribute to increased food production, improve household food security and employment creation, Dry Land Crop Production Programme continue to support the existing gardens and the newly established gardens by providing training and technical advice to farmers and communities in the regions. This extension support is very important to encourage farmers and communities at large and Dry Land Crop Production Programme to assure them for the support they need to produce food for their livelihood and also for income generating. In that regard, seven hundred and seventy four (774) exiting backyard and community gardens were visited to assess progress and to provide information and training regarding crop husbandry, horticultural production and marketing. Furthermore, a total of six (6) new gardens were established.


Migrant pest management

• There were no pests or diseases outbreak reported in the regions during the period under review.

• •

1.5 Cereal Production 1.6 Livestock Production 1.7 Livestock Marketing 1.7.1 Drought marketing incentives schemes for both large stock and small stock

• During the reporting period, Namibia was still severely affected by drought, thus the drought marketing incentive scheme, the lease of grazing incentive scheme and the transportation of livestock incentive scheme were put in place by Government to assist both communal and commercial farmers whose livestock were affected by drought. In that regard, farmers were assisted to market their animals through the scheme, to lease grazing areas and transportation of their livestock to better grazing areas identified by them. • A total of thirteen thousand two hundred and twenty seven (13,227) claims were received and processed of which two thousand four hundred and ninety seven (2,497) were from the Northern Communal Areas (NCA) and ten thousand seven hundred and thirty (10,730) were from South of the Veterinarian Cordon Fence (SVCF). The value of these claims that were paid out to farmers was N$ 106,390,873. It represents a combined off-take of 899,078 animals from the land of which six million five hundred and ninety seven thousand and fifty two (6, 597, 52) were small stock units and two million three hundred and ninety three thousand and twenty six (2, 393, 26) large stock units. • In addition, a total of two hundred and thirty nine (239) claims for transport hire and four hundred and one (401) claims were all processed from both NCA and SVCF. The value of the above mentioned claims amounted to N$1,049,145.58 and N$3,878,513.14 respectively.

• •

1.8 Farmers Advice and Training

• Provision of continuous training and advice to farmers is to enhance their capacity so that they are better equipped to produce more and healthier crops and increase yields in order to reduce food imports and also ensure food security. As such, a total of five thousand eight hundred and ninety five (5895) farmers were provided with in-service training by field extension staff in collaboration with other stakeholders in the regions. Farmers were trained in various topics with regards to best agricultural practice in crop and animal husbandry, horticulture production, land preparation, soil fertility, draught animal power, rangeland management, bush encroachment, record keeping and livestock marketing amongst others. •

1.8.1 Phytosanitary Services

Namibian government carries out phytosanitary inspections on farms that are exporting crops to ensure that production procedures are conforming to international standards. • Three thousand five hundred and forty four (3 544.00) phytosanitary certificates were issued for the exportation of plant and plant products. An amount of five hundred and thirty one thousand six hundred

Namibia Dollars (N$531 600.00) was generated from the issuance of phytosanitary certificates, import and in-transit permits in line with the Plant Quarantine Act 8 of 2008. Border inspections and surveillance programmes continue unabated. A project funded by FAO on the Management of the Asian fruit fly, Bactrocera invadens in Namibia was implemented in 2014 and the inception workshop was held in Livingstone, Zambia. Under this project 71 fruit fly traps were deployed in the project area (Zambezi Region), and more traps will be deployed in 2015. In country National inception meeting was launched with 18 various stakeholders (Public & Private) present. Under this project, training of NPPO personnel will take place next year in Kenya at ICIPE. For sustainability; after the external ToT at ICIPE; to ensure there is ongoing in-country training for other NPPO personnel as well as non NPPO personnel for total buy-in and ownership from the targeted beneficiaries. The duration of this project will be for two years. In addition to the current project, another project funded by FAO on strengthening controls of food safety threats, plant and animal pests and diseases for agricultural productivity and trade in Southern Africa will be implemented as off 2015. Detection surveys are underway throughout the country to determine the presence and distribution of the Asian fruit fly. MAWF has deployed 335 National serviced traps across the country as part of control measures against the pest and monitoring is ongoing every sixth weeks. One hundred and Fifty (150) applications for the Subdivision of Agricultural Land under Act 5 of 1081 were received and processed during the 2014/15 financial year. Three hundred (300) new registrations were done for fertilizers, farm feeds and agricultural remedies and two thousand renewals (2000). An amount of (N$587 950) was generated from registration and renewal of fertilizer, farm feeds and agricultural remedies in line with Act 36 of 1947. Twenty (20) inspections of retailers and manufacturers were conducted in all 13 regions in order to determine if the products on sale are registered with the Ministry. One hundred and twenty (120) fruit fly surveillance visits were conducted in Otjozondjupa , Omusati, Oshikoto, Oshana, Zambezi, Kavango East &West, Hardap and //Karas regions. Five hundred and fifty two (552) export permits were issued for the exportation of breeding animals. An amount of fifty five thousand and two hundred (55 200) were generated. Five hundred and nineteen (519) import permits were issued and fifty one thousand nine hundred Namibian dollars was generated (N$ 51 900).


• Construction of five hundred (500) ha of Phase II at Ndonga Linena is completed • Construction of the Rundu Agricultural Technology Centre was complete and inaugurated on 29 January 2015. • Construction of the boundary fence, pump station, irrigation system, road and bulk earth works and bulk water pipeline were completed at Uvhungu-Vhungu dairy farm. • Feasibility study and development of Sunflower Oil Processing Plant at Rundu, Kavango East region was finalized.

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Chapter 11 | Engineering & Extension

• A total of two thousand five hundred and five (2505) farmers and communities benefited from that support.

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• The construction of Sikondo irrigation project platform alteration drainage is completed • The replacement of five center pivots and construction of electrical reticulation of Etunda phase 7 and 8 are completed.

3. ONGOING CAPITAL PROJECTS 3.1 CAPITAL PROJECTS 3.1.1 Construction of Agricultural Development Centers (ADCs). • Completion of Bukalo ADC in Zambezi Region, • Completion of Edundja ADC in Omusati Region,

3.1.2 Development of Agricultural Technology Centers 3.1.3 Green Scheme • 95% of AGRIBUSDEV employment structure is filled • A five year strategic and business plan was produced as a planning tool • Nine medium scale farmers were placed at Sikondo Green Scheme • Five small scale farmers were placed at Kalimbeza green scheme project • 90% of Kalimbeza Rice branding is completed • Key internal policies of AGRIBUSDEV are completed • AGRIBUSDEV has created a large network with its external stakeholders • A harmonized book keeping system at four Green Scheme projects was installed. • •AGRIBUSDEV developed an implementation manual for the green Scheme programme

3.1.4 Integrated Grain Storage

• The management of Rundu Silo was under the management of Kavango Mills and management of this facility has now been transferred to Agro Marketing Trading Agency (AMTA) with effect from the 1st April 2014. • AMTA through Minister of Agriculture, Water and Forestry has acquired 4.3213 ha of portion Farm Rundu Town lands No. 1329 piece of land for expansion for Rundu grain storage facility. • AMTA has so far purchased grain grading equipments to the value of N$ 141 613.65 to ensure that grain purchased and stored in the grain storage facilities (Silo) is of good quality. • AMTA commenced with purchasing of maize grain in May 2014 in order to replenish the silos, which were depleted due to the drought situation experienced in 2013. The first load was delivered to the Rundu silos on 5th May 2014, which is now filled up. • The purchasing of pearl millet also started in June 2014 and the total tonnage of twelve thousand three hundred and nineteen (12 319) MT maize has been purchased. The nine hundred and seventy four (974) MT of maize was a surplus from subsistence farmers in Zambezi region and four hundred and eighty six (486) MT was of pearl millet. So far, a total of N$ 42 546 263.16 has been spent on grain procurement and related issues such as grain transportation, levies, and casuals.


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• During 2014/2015 financial year, a total of one thousand two hundred and thirty four (1234) MT grains of which 9.6 MT is pearl millet has been released and sold from the silos. A total of six hundred and forty two (642) MT is sold to private millers and five hundred and ninety two (592) MT is released to Etunda Irrigation Project by the request from the OPM to be used by Kunene Regional Council for distribution to drought victims in that region. The sale/ release of this quantity has generated a total of N$ 4 141 981.53.

3.1.5 National Horticultural Development Initiative

• A Fresh-Mark Trading system was installed to create a well regulated and transparent trading system for the producers and buyers. • The two hubs were operationalized / launched for trading and a total amount of about one thousand nine hundred and twenty eight (1928) tones of fresh produce and to the tune of about N$ 6.7 million has been moved through the hubs by Agents. • Farmers around the country up to about 80% have been clustered for the purpose of training and crop planning in terms Good Agricultural Practices (GAP) and Hazard Analysis Critical Control Points (HACCP). About 60% of the farmer’s country wide has been trained with Phase 1 GAP training in conjunction with the Technical Advisor. • Capacity building of MAWF, AGRIBUSDEV, AMTA staff and Agents training in GAP and HACCP is ongoing and is to be completed in 3 years. • The Fresh Produce Business Hubs Operations Manual was developed. • AMTA has been mandated through GRN Notice 268 of December 2014 to collect special levies including import levies as an agent of NAB. This levy collection has commenced as of 01 January 2015. Special account has been opened for levies charged and collected. • The unit has carried out product conformity assessment on table grapes at Aussenkher Valley during the packing season of 2014 (November to December) together with PPECB (Perishable Product Export Control Board) a South African government agency, contracted by Namibian grape producers. The purpose of AMTA to carry out a joint conformity inspection with PPECB is to prepare AMTA to take over the conformity assessments for table grapes, which is a statutory assessment and generate


• AMTA Border Inspectorate unit have recruit 26 inspectors, that were deployed to all borders on 15 December 2014 as it was announced by Honourable John Mutowa, Minister of Agriculture, Water and Forestry to carried out product inspection for Import and export at the border by documentation verification for fresh and Grain Produce consignments that across the Namibian Border. • AMTA issued over two hundred (200) in transit permits and one thousand (1000) permits for grain and fresh produce importers. • 3.1.6 Construction of Marketing Facilities (Auction kraals)

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Chapter 11 | Engineering & Extension

Choosing an irrigation method


o choose an irrigation method, the farmer must know the advantages and disadvantages of the various methods. He or she must know which method suits the local conditions best. Unfortunately, in many cases there is no single best solution: all methods have their advantages and disadvantages. Testing of the various methods - under the prevailing local conditions - provides the best basis for a sound choice of irrigation method. This chapter gives some very broad guidance and indicates several important criteria in the selection of a suitable irrigation method. The suitability of the various irrigation methods, i.e. surface, sprinkler or drip irrigation, depends mainly on the following factors: u natural conditions u type of crop u type of technology u previous experience with irrigation u required labour inputs u costs and benefits.

Natural Conditions The natural conditions such as soil type, slope, climate, water quality and availability, have the following impact on the choice of an irrigation method:

Soil type: Sandy soils have a low water storage capacity and a high infiltration rate. They therefore need frequent but small irrigation applications, in particular when the sandy soil is also shallow. Under these circumstances, sprinkler or drip irrigation are more suitable than surface irrigation. On loam or clay soils all three irrigation methods can be used, but surface irrigation is more commonly found. Clay soils with low infiltration rates are ideally suited to surface irrigation. When a variety of different soil types is found within one irrigation scheme, sprinkler or drip irrigation are recommended as they will ensure a more even water distribution.

Slope: Sprinkler or drip irrigation are preferred above surface irrigation on steeper or unevenly sloping lands as they require little or no land leveling. An exception is rice grown on terraces on sloping lands.

Climate: Strong wind can disturb the spraying of water from sprinklers. Under very windy conditions, drip or surface


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Water availability: Water application efficiency is generally higher with sprinkler and drip irrigation than surface irrigation and so these methods are preferred when water is in short supply. However, it must be remembered that efficiency is just as much a function of the irrigator as the method used. Water


Surface irrigation is preferred if the irrigation water contains much sediment. The sediments may clog the drip or sprinkler irrigation systems. If the irrigation water contains dissolved salts, drip irrigation is particularly suitable, as less water is applied to the soil than with surface methods. Sprinkler systems are more efficient that surface irrigation methods in leaching out salts.

Type of crop Surface irrigation can be used for all types of crops. Sprinkler and drip irrigation, because of their high capital investment per hectare, are mostly used for high value cash crops, such as vegetables and fruit trees. They are seldom used for the lower value staple crops. Drip irrigation is suited to irrigating individual plants or trees or row crops such as vegetables and sugarcane. It is not suitable for close growing crops (e.g. rice).

Type of technology The type of technology affects the choice of irrigation method. In general, drip and sprinkler irrigation are technically more complicated methods. The purchase of equipment requires high capital investment per hectare. To maintain the equipment a high level of ‘know-how’ has to be available,. Also, a regular supply of fuel and spare parts must be maintained which together with the purchase of equipment - may require foreign currency.

Surface irrigation systems - in particular small-scale schemes - usually require less sophisticated equipment for both construction and maintenance (unless pumps are used). The equipment needed is often easier to maintain and less dependent on the availability of foreign currency.

Previous experience with irrigation The choice of an irrigation method also depends on the irrigation tradition within the region or country. Introducing a previously unknown method may lead to unexpected complications. It is not certain that the farmers will accept the new method. The servicing of the equipment may be problematic and the costs may be high compared to the benefits. Often it will be easier to improve the traditional irrigation method than to introduce a totally new method.

Required labour inputs Surface irrigation often requires a much higher labour input for construction, operation and maintenance - than sprinkler or drip irrigation.Surface irrigation requires accurate land leveling, regular maintenance and a high level of farmers’ organization to operate the system. Sprinkler and drip irrigation require little land leveling; system operation and maintenance are less labour-intensive.

Costs and benefits Before choosing an irrigation method, an estimate must be made of the costs and benefits of the available options. On the cost side not only the construction and installation, but also the operation and maintenance (per hectare) should be taken into account. These costs should then be compared with the expected benefits (yields). It is obvious that farmers will only be interested in implementing a certain method if they consider this economically attractive. Cost/benefit analysis is, however, beyond the scope of this manual. In conclusion: surface irrigation is by far the most widespread irrigation method. It is normally used when conditions are favourable: mild and regular slopes, soil type with medium to low infiltration rate, and a sufficient supply of surface or groundwater. In the case of steep or irregular slopes, soils with a very high infiltration rate or scarcity of water, sprinkler and drip irrigation may be more appropriate. When introducing sprinkler and drip irrigation it must be ensured that the equipment can be maintained.-FAO

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irrigation methods are preferred. In areas of supplementary irrigation, sprinkler or drip irrigation may be more suitable than surface irrigation because of their flexibility and adaptability to varying irrigation demands on the farm.

Chapter 11 | Engineering & Extension

Boosting Agriculture with solar energy


griculture meaningfully contributes to the sustenance of the and solar energy can provide a boost if farmers embrace it.

The Namibian economy, requires investments in the agricultural sector in order to spur growth. Energy drives agriculture. However, this has been one of our greatest challenges as a nation. The energy crisis which is poised to affect the country will seriously impact agricultural production. Power cuts and high cost of power ,will result some farmers abandoning the production of other crops, due to high cost of irrigation power. This article highlights how solar energy can turn around our agricultural system. It is common to use petrol or diesel to power generators in agricultural operations. These are used as an alternative


The Agri Handbook 2015

source of energy when they are power cuts or in cases where farmers are not connected to the national grid. While these systems can provide power when needed, there are some significant drawbacks associated with them. For instance, the fuel has to be transported to the generator’s location, which may be quite a distance. The fuel is also costly. Worse still, fuel can spill and contaminate the land. The noise and fumes from the generator can also disturb livestock. Generators require a significant amount of maintenance and, like all mechanical systems, they break down during the most inconvenient times and need replacement parts that aren’t always available. For agricultural purposes, the best alternative source of energy is solar. Modern, well designed, simple-to-maintain solar systems can provide the energy where and when it is required. These are systems that have been tested and proven around the world to be cost-effective and reliable.

In poultry production, solar lighting comes in handy, particularly for feeding and electric-powered egg collection. Other uses for PV systems on farms, ranches and orchards include power for feed or product grinding, livestock feeder and sprayer motors and controls, compressor and pumps for fish farming, electric fencing and battery charging. There are solar technologies that use the sun’s energy to create heat. Drying crops and grains by simply exposing them to the heat of the sun is one of the oldest uses of solar energy. But allowing crops to dry naturally in the field exposes them to elements of contamination as well as birds and insects. Modern solar crop driers are very simple yet much more effective and hygienic. The basic components of a solar dryer are an enclosure or shed, screened drying racks or trays and a solar collector. The collector can be as simple as glazed box with a dark coloured interior to absorb the solar energy that heats air. The heated air in the collector moves, by natural convection or a fan, up through the material to be dried. Solar systems are already raising levels of agricultural productivity worldwide. Solar-generated electricity panels, called photovoltaic (or PV), are a well-established, proven technology with a substantial international industry network.PV is increasingly more costeffective compared to electrical grids and generators.PV systems are very economical in providing electricity at remote locations on farms,ranches,orchards and other agricultural operations. A “remote” location can be as little as 15 meters from an existing power source. Water pumping is one of the simplest and most appropriate uses of photovoltaics.From crop irrigation, stock watering to domestic uses; photovoltaic-powered pumping systems meet a broad range of water needs. Most of these systems have the added advantage of storing water for use when the sun isn’t shining, eliminating the need for batteries, enhancing simplicity and reducing overall system costs.

Solar energy can also be used for water heating in order to achieve high agricultural productivity-particularly in livestock operations. If one is into poultry, pens and equipment must be cleaned periodically. Simple solar water heaters are available to provide hot water for this purpose. These systems require a solar collector, a storage tank, plumbing and pumps. Commercially available systems are widely available and offer simple installation. If you’re processing poultry, cleanliness is essential. Again, a commercially available solar water heater can provide water at 60 degrees Celsius. Takaendesa Denhere is a researcher and writer on renewable energy. He can be contacted on takaendesadenhere@yahoo. com

Let us first consider water, the basic need in agriculture. Photovoltaic-powered pumping systems meet a broad range of water needs, from crop irrigation, stock watering to domestic uses. There are custom-made solar water pumps available for all farmers, they come in different variations, depending on the scale of the project. Most of these systems have the added advantage of storing water for use when the sun is not shinning, eliminating the need for batteries, enhancing simplicity and reducing overall system costs. Poultry production can be enhanced by solar energy systems. Solar incubators are made for those that are not connected to the grid. These incubators vary in sizes-the smallest can accommodate about 20 eggs and the biggest can accommodate about 800 eggs. The amount of eggs accommodated depends on the type of birds that you want to hatch. The size of chicken eggs is different from duck’s or quail’s, etc and so this determines how many eggs one can hatch. When keeping the birds in endorsed buildings, solar can be used to power electric fans for proper air circulation. Modern pig and poultry farms double and even triple production by raising the animals in enclosed buildings. PV can also be used for lighting agricultural buildings and enclosures. Running electrical wiring from the grid to an outbuilding can be expensive alternative, yet lighting in these buildings can significantly extend working hours and increase productivity. This is especially true for those who use precious evening hours for equipment repair and maintenance. Working hours can also be extended into the night if there is an urgent order or if it is a farmer’s daily routine. Chicken can be slaughtered in the night time, dressed and sent to the

The Agri Handbook 2015


Chapter 11 | Engineering & Extension

market when they are still fresh. Refrigerators can also be powered by solar electricity.

Chapter 11 | Engineering & Extension

Hochland Tractor Centre COMPANY PROFILE Hochland Tractor Centre hereby confirms that it is the sole distributor of Tafe Tractors in Namibia and that it is backed by Michigan Tractors in Mahikeng, South Africa which in turn holds the franchise rights to distribute Tafe tractors in Southern Africa. Hochland Tractor Centre has grown to be one of the leading tractor, implement and equipment suppliers in Namibia. It has also started importing parts in bulk to ensure sustainable supply of parts to its customers which will ensure that its products are backed by good after sale service. Hochland Tractor Centre has got two fully equipped workshops located in Windhoek and Ongwediva respectively. These workshops enable Hochland Tractor Centre to service its clients efficiently while providing expert services to equipment as well as parts for the said equipment. As is evident by closely examining Hochland Tractor Centre’s business model, it continuously strives towards providing a high quality product with a good after sale service which will ensure sustainability to its clients and itself. Hochland Tractor Centre currently holds distribution rights for the following: • • • • • • •


Tafe/Massey Ferguson Tractors Afri-Ca Implements (Threshers) BP Implements Buster Engineering Staalmeester Implements Greenfields Agricultural Holdings Feeler Forklifts Triomf Fertilizer

The Agri Handbook 2015

Chapter 11 | Engineering & Extension

Through which it distributes among others the following items: Tractors, Forklifts, Hammermills, Threshers, Disc, Cultivator Integral, Ploughs, Tillers, Trailers, Slashers, Planters, Balers, Hydrualic add-on equipment, Graders, Ridgers, Bin Spreaders, Rotovators, Woodchippers, Rakes, Mowers, Tents, Tables, Chairs, Shredders, Feed Mixers, Fertilizer. It is however not limited to the above mentioned products and is currently looking to expand its product range to provide a wide variety of products to satisfy its customers.

Guarantees and Services Tractor & Forklift Guarantee: Implements Guarantee:

2 years or 2000 hours 1 year on frames, not normal wear and tear

WINDHOEK TEL: +264 61 229 655 FAX: +264 61 229 656

ONGWEDIVA TEL: +264 65 238 852 FAX: +264 (0)88 655 6251

Feel free to visit our website at

The Agri Handbook 2015


Chapter 12 | Policy



he 2015 Namibia Agriculture Policy is an outcome of the review of the 1995 National Agricultural Policy, which was done through a broad consultative process with the stakeholders in the agriculture sector. The policy together with relevant legislation provides an enabling environment that is favorable to all role players in thesector, to ensure that the agriculture sector remains one of the biggest employers and continues to increase its contribution to the Namibia’s Gross Domestic Product and the economy as a whole. The Namibia Agriculture Policy is aimed at contributing towards the attainment of Vision 2030, which is implemented through the various National Development Plans. This Policy is applicable to both the private and public sector. The key indicators for Agriculture and its related industries includes sectors contribution to GDP at 4.9 % in 2012, growth rate of 8.1 % during the same year (2013 National Accounts) and agriculture together with forestry and fisheries being the highest employment sector with 172 530 people employed in 2012, representing 27.4 % of total employment (2012 Namibia Labour Force Survey). A major factor in agriculture’s relatively lower performance has been the effect of droughts and floods on crops and livestock as a result of climate change. Whilst the contribution of agriculture has declined in the past decades, about 70% of Namibia’s population is dependent directly or indirectly on it for a livelihood. This policy document presents a new direction in the process of agricultural development. The Namibia Agriculture Policy is the overarching policy and will serve as a base for drafting new as well as aligning existing policies, law and regulations. The policy presents a framework for the design of programmes and projects that will steer the performance of the sector. The Namibia Agriculture Policy was formulated to: • Accelerate the agricultural sector’s contribution to the National Gross Domestic product (GDP) • Create a conducive environment for increased and sustained agricultural production and productivity which is regionally and internationally competitive • Create a common understanding among national and international stakeholders as well as investors, about the vision of the Government of the Republic of Namibia for the development of Namibia’s agriculture sector and its downstream industries • Create a framework that will enable streamlined efforts by all stakeholders in Namibia’s agriculture sector and its downstream industries, towards common developmental goals • Promote the development of the national agriculture sector across the value chain • Serve as a basis for drafting new as well as aligning existing legislation

• • • • •

Crop production

In order to implement the stated policies on crop production, Government intends to : • Expand the Green Scheme Programme under which it will develop irrigable land along perennial rivers and large dams and other sustainable water sources • Implement conservation agriculture programme • Implement the Dry Land Crop Production Programme (DCPP) and support farmers through the provision of subsidized fertilizer, improved seeds as well as weeding and ploughing services


The Agri Handbook 2015

• • • •

Expand extension services and capacitate extension personnel in order to bring services closer to crop farming communities Implement and support the Horticultural Development Programme Support research for soil fertility enhancement technologies Develop ATCs and continue to import and adapt the latest production technologies to Namibian conditions Promote the adoption of new and appropriate technologies through extension services and Intensify crop production training programme for farmers at the ADCs with special emphasis on GAP in order to ensure production of safe and quality food Implement pest management programs Develop instruments to regulate the production and importation of GMO crops and related products Enforce soil conservation through implementation of the Soil Conservation Legislation Enforce and ensure utilization of policy instruments at national, regional and multilateral level in order to promote the sustainable existence of Namibia’s crop production

• • • • • • • • • • • •

Design and implement support programmes for various categories of crop farmers Implement and continuously improve programs aimed at improving the productivity of arable land Develop and implement targeted programmes to support organic production and certification Regulate levels of residues in crops Encourage farmers to diversify crop production Identify and introduce new crop varieties Develop and implement an agro-forestry promotion programme Develop and implement regulations for use of agricultural land Protect and promote the conservation of indigenous plants and genetic materials through intellectual property rights Maintain an environment that is conducive for investment by the private sector in crop production Promote food fodder production Promote local fertilizer production Establish irrigation scheme targeting fodder production

Livestock Production

In order to implement the stated policies on livestock production, Government intends to: • Implement the National Rangeland Management Policy and Strategy • Strengthen the capacity for rangeland/pasture science research and rangeland management monitoring, so as to assist and guide farmers accordingly • Diversify breeding materials through the livestock research stations, livestock development centers and private breeders • Increase the number of farmers that benefit from quality breeding materials originating from breeding stations, livestock development centers and private breeders • Strengthen the outreach of programs such as extension and veterinary services in order to support livestock production • Develop and implement appropriate incentives to encourage the application of appropriate production enhancing technologies • Equip and operationalize laboratories in order to detect the presence of LMOs in livestock • Protect and promote the conservation of indigenous breeding materials through appropriate legislation • Promote the development of feedlots in areas where they are economically viable • Promote the use of livestock breeds that can adapt to the local climatic conditions • Encourage the production of fodder within the country • Enforce and ensure utilization of policy instruments at national, regional and multilateral level in order to promote the sustainable existence of Namibia’s livestock production • Design and implement support programmes for various categories of livestock farmers • Promote the implementation Farm Assured Namibia (FAN) Meat Scheme as a national marketing and trade tool. • Develop and implement livestock trade regulations • Continue to promote the implementation of good animal husbandry practices

• • • • •

Legislate the exportation and importation of breeding materials Prohibit the use of growth stimulants and growth hormones in livestock production Legislate the use of fodder and supplements containing GMOs and LMOs Establish embryo and sperm banks in order to conserve and preserve our quality indigenous and exotic livestock breeding material Foster the implementation of the national drought policy and strategy

Plant and Animal Health

In order to implement the stated policies on plant and animal health, Government intends to: • Enhance the sensitivity of the animal disease surveillance network for early detection and rapid response through increased human resources, infrastructure development and the implementation of animal identification and traceability • Enhance the research capacity for improving animal and plant health in the country • Expand provision of public veterinary services to include local abattoirs, butcheries and slaughter houses • Enhance the rapid response capability through the development of contingency plans and allocation of appropriate resources • Develop local and regional institutional framework and veterinary infrastructure to bring services closer to the animal producers • Cooperate and strengthen the framework for surveillance and the control of trade related TADs • Prevent and control animal disease outbreaks through vaccinations, animal movement control and training of farmers • Expand the capacity in the country to provide veterinary diagnostic services • Develop and implement the animal welfare policy and legislation • Provide registration services of plant product and agro-chemical • Provide certification services of plant and plant products destined for domestic and export markets • Provide inspection services for on-farm feed establishments • Establish a functional national plant protection organization • Establish and strengthen plant, pest and disease surveillance programs • Establish and safeguard pest-free areas (PFAs) • Implement programmes aimed at safeguarding pestfree areas • Strengthen border controls in order to prevent the introduction and spreading of pests and diseases threatening Namibian agriculture • Continue to cooperate at regional and multilateral levels to safeguard plant health • Build human and infrastructure capacity in the area of plant health • Eradicate pests and diseases in crop production areas which are excluded from export markets due to prevalence of such pests and diseases • Support strategies to attain freedom from FMD and CBPP • Promote regional standards to conform with OIE guidelines The Agri Handbook 2015


Chapter 12 | Policy

Chapter 12 | Policy


Vision 2030;


National Development Plan Four (NDP4);


MAWF Strategic Plan;


Agricultural Policy (revised one to be tabled in Cabinet soon);


2008 Revised Green Scheme Policy;


Rain Fed Crop Production Strategic (RFCPP) – to be updated (DAPEES);


Eradication of TransBoundary Animal Diseases from NCA’s (DVS);


Integrated Water Resources Management Plan for Namibia , (DWAF, DWRM, DRWSSC).


Namibian Agriculture Marketing and Trade Policy and Marketing Strategy (AMTA);


Namibia Industrialization Policy (DPBD, AMTA);


Growth at Home Implementation Strategy (DPBD, AMTA);


Mahangu Marketing Strategy Plan (to be updated – DPBD, DAPEES, DART, NAB);


Sanitation Strategic Plan (DRWSSC, DWRM);


Communication Strategy for Eliminating Open Defecation in Namibia (DRWSSC);


AMTA Strategic Plan, 2014-2019 Foundation: Strategy (AMTA);


Forest Strategic Plan; (review and update: DOF);


MAWF Training Policy (DART);


Cooperatives Policy 1992 (being revised (DPBD, CAB);


Rabies Control Strategy, (DVS).




The Agri Handbook 2015


Amendments to the Agronomic Industry Act, 1992 (submission to CCL, approved by Cabinet in October 2014, Minister, DM’s;


(Seeds and Seed Variety Bill – with Legal Drafters since 2013; DART, Minister, DM’s;


Namibia Meat Company Bill and Livestock Producers’ Cooperative By Laws ═ Approved by the CCL in October 2013, Legal Drafters to finalize Bill soonest ═ for tabling in Parliament; Minister, DM’s;

Water Resources Management Act, (finalize regulations DWRM).


Namibia Agricultural (NARI), DART;


Sub-Division of Agricultural Land Act, 1970, (Amendments and Review); DART, DAPEES;


Cooperatives Act 1996 (Revision and updating), DPDB, CAB).


Forest Act 2001 (Act Number 12 of 2001) (Forest Council, DOF).





WHK Fresh Produce Hub; (Khomas Region);


Ongwediva Agricultural (Oshana Region);


Rundu Abattoir; (Kavango East Region);


Neckartal Dam; (//Kharas Region);


Tandjieskoppe; (//Kharas Region);


Katima Farm - Liselo Green Scheme Project; (Zambezi Region), new development.;


Ohangwena Ground Water Aquifer; (Ohangwena Region);


Zone Green Scheme Project; (Kavango West Region); new development;


Farm Ghaub; (Otjozondjupa Region);


MAWF Regional Offices; (different Regions);


State Veterinary Clinic; (Regions that don’t have such facilities);


Ondangwa Central (Oshana Region);


Veterinary Cordon fence VCF → shift North? → Minister, DVS;


DVS Offices, accommodation, Control Points construction (DVS);


(Kalimbeza National Rice Project expansion, equipment, marketing; (AgriBusDev);


National Desalination Plant, Erongo Region; (NDTF);


Ndonga Linena Green Scheme Project: completion of the Second Phase; (AgriBsuDev);


Shitemo Green Scheme Project: Implementation of the Tripartite Agreement, signed between MAWF, NDC and AgriPro in 2014 (AgrBusDev);


Mashare Commercial Farming Unit Green Scheme Irrigation Project: Debushing of Second Phase: (DAPEES, AgriBusDev);


Musese Green Scheme Project: Completion of Second Phase; (AgriBusDev);


Shadikongoro Green Scheme Project: Sunflower Processing Plant and other infrastructural Developments): (DAPEES, AgriBusDev);


Katima-Ngoma Water Supply Project (DRWSSC);


Etunda Green Scheme Project: Phases 7-8, (AgriBusDev);


Hardap Green Scheme Project: (AGRIBUSDEV);





Uvungu-Vungu Dairy Project: Completion of Construction Activities and commencement of Production Activities;


Uvungu-Vungu Infrastructural AgriBusDev);


Water from the Kavango River Project: (DWAF, NamWater);


Rundu Agricultural Technology Centre – prudent Administration and Management (AgriBusDev);


Water Supply to Windhoek and to other Central Areas of Namibia Project (DWAF, NamWater, City of Windhoek);


Calueque-Oshakati Water (NamWater, DWAF);


Bukalo Meat Processing Plant Construction, (DVS);


Debushing and Rangeland Management: (DART, DOF, NAU, NNFU).


2015 Imminent Drought: (Ministers, DAPEES, DART);

Green Scheme Project: Development: (DAPEES,





The Agri Handbook 2015


Chapter 12 | Policy


Chapter 12 | Policy






The Fourth National Development Plan of Namibia has identified Conservation Agriculture (CA), as a core strategy, for sustainable crop production in Namibia. Consequently, the Ministry of Agriculture, Water and Forestry introduced CA as an essential crop production system base, for enhancing the production of crops and livestock, livelihoods and the quality of life of farmers across our country, not only in the so-called Northern Communal Areas (NCA’s). The agriculture sector in Namibia ideally needs to grow or is expected to grow by 4% a year, to meet the food requirements for the Country’s growing population. However, the expansion of cultivated areas to compensate for low yields, the exploitation of low nutrients status soils, without restoration of soil fertility; changing climate patterns , including low, unpredictable and erratic rainfalls, and lack of well-adapted technologies, have been long identified, as some of the major challenges of soil fertility management in Namibia. The conservation and maintenance of soil fertility are, therefore, essential, to improve the efficiency and effectiveness of inputs, used while hoping to achieve increased productivity. Future food security relies not only on higher The Agri Handbook 2015

5. 6.


production and access to food, but also on the need to address the destructive effects of agricultural production practices on the environment; as well as the devastating negative conseques of Climate change, particularly in a most arid or dry country, like ours, Namibia. Therefore it is believed and hoped that, CA will increase the resilience of production practices impacted by, amongst others, climate change. Conservation Agriculture in Namibia will, to a large extent, address the problem of low and erratic rainfalls, through the use of practices that reduce water losses and increase infiltration and low soil nutrients status, by increasing soil carbon and nitrogen, through the use of organic soil cover and legumes in rotation. It has been proved here in Namibia and elsewhere that, CA enables the sustainable intensification of agriculture by conserving and enhancing the quality of the soil, leading to higher yields and the protection of the local environment and ecosystems services. A vigorous consultative process took place with national stakeholders and development


Objectives of the programme: This programme aims to: a) Increase awareness and knowledge of CA among stakeholders, including farmers, extension workers, researchers and policy – and decision-makers; b) Increase farmers’ and extension workers’ skills of practicing CA; c) Conduct farmer-focused research, to develop appropriate CA technologies and packages for the farming systems; d) Establish institutional arrangements for harmonized and coordinated implementation of the CA programme; e) Ensure farmers have sustained access to CA equipment, inputs, markets and services and; f) Develop standards, then monitor and evaluate adoption and impact of the programme.



Budget: The budget for the CA programme is estimated to be N$94.46 million over a period of 5 years with commitments from the MAWF as well as other reliable stakeholders, such FAO, EU and the German Government.


Key Interventions: The key interventions of the CA programme are as follows: • Awareness creation; • Coordination of activities; • Establishment of evidence base for CA; • Development of standards for M&E; • Technologies packaging; • Capacity building of research, extension, training and engineering services; • Capacity building of farmers; • Equipment, inputs and services; • Research methods and topics; and • Marketing.

Targeted Areas and Beneficiaries This programme will target all crop producers in Namibia, encouraging them to adopt CA practices, depending on the resources available to them. The programme also aims at providing Government assistance in a form of subsidy to: •

• •


Communal crop and livestock producers concentrated in Omusati, Oshana, Ohangwena, Oshikoto, Kavango-East, Kavango-West, Zambezi, Otjozondjupa, Kunene, Omaheke regions; as well as Hardap, Erongo and //Kharas Regions, where applicable. Commercially rain-fed farmers, including resettlement farmers, affirmative action farmers and irrigation farmers in the maize triangle and elsewhere; Farmers as categorized in Horticultural Programmes; and, Farmers from the GRN Green Scheme Irrigation projects (commercial irrigation schemes with some rain-fed cropping, large scale service providers and associated medium scale emerging farmers), farming along the perennial rivers in the extreme Northwest, northeast and south of the country and near the Country’s dams elsewhere.

Linkages This programme is structured, conceptualized and will be implemented in line with National Development Priorities as stipulated in Vision 2030 and NDP4. The programme is complementary to existing Government projects and programmes, e.g. Rain-Fed Crop Production Programme, Green Scheme Programme, Horticultural Projects etc. The Agri Handbook 2015


Chapter 12 | Policy

partners since 2010, with technical support from FAO to develop the programme and the Policy document that is being launched, today. This process was so followed, to ensure that there are inputs to the programme, in an inclusive and collective manner. MAWF staff and private farmers were sent to selected SADC countries for exposure and inputs to the ultimate finalization of the CA document for Namibia, with the most valuable assistance of the FAO.

Chapter 11 | Engineering & Extension

Continental Spares Company Profile

Continental Spares offers the following products:

Stationary Engines


Glonet, Lister ,Premuim Plus , Deutz, spares on all

Generating Sets


1.5 to 3500 kVA Glonet, Lister, SDMO, , Deutz,

Franklin Distributor on the following:

• Solar Borehole Pumps - Franklin / Grundfoss • Booster Pumps • Pressure pumps • Centrifugal Pumps Tel: 061 227151/694 l 061 230057/27 l Fax: 061 228145 Cell: 081 124 5541 l l Cnr of Brahman & Simmentaler Street l Northem Industria


The Agri Handbook 2015

Submersible pumps 220V / 380V

Chapter 11 | Engineering & Extension

Positive displacement Orbit/ Mono pump elements and Discharge Heads

Complete Borehole Equipment

Pipes, cylinders and other pumping equipment

Wind Mills Climax Southern crass The Agri Handbook 2015


Chapter 13 | Training


ACHIEVEMENTS CROP PRODUCTION RESEARCH • The subdivision of Agronomy and Horticulture is continuing to maintain the released crop varieties of pearl millet, sorghum, cowpea and other crops. •

Research is still on-going for the selection of crop varieties that adapt to the Namibian environment through conventional breeding and mutation breeding.

• The subdivision continues to undertake research in areas of crop improvement; crop diversification and plant-soil nutrients management. • The Sub-division produced 26.6 tonnes of foundation seed (Okashana 2) and 5 tonnes foundation seed (Kangara).Some seed of Kangara is not yet processed. The subdivision also 95.5 tonnes of certified seed of improved varieties at research stations and green scheme projects. However, seed from Sikondo and Shadikongoro Green Scheme and from Mashare and Bagani Research Station is not yet processed. Low rainfall during the last cultivation season resulted in low quantity and quality of harvested seeds. • The sub-division continued to provide technical back stopping to registered seed growers for foundation seeds and certified seeds. Thirty-one (31) seed growers have contributed to seed production with minimal amount of 21 tonnes. This is due to low rainfall received and resulted in low yield in their fields.


The Agri Handbook 2015

During the year under review, the twenty-nine (29) field research activities of different crops were implemented at research stations and on farmers’ field. The subdivision planned to implement the research activities this season

• The subdivision of agronomy and horticulture is also propagating citrus and mangoes for the communities and also to increase fruit orchard at research stations. Livestock Research Division Large Stock Research • The research project on the Investigation of Prickly Pear (Opuntia ficus indica) as an alternative feed for livestock (Phase Two) has been completed. The Phase One of this study was done with the Dorper sheep breed; whereas Phase Two was done with the Damara sheep breed. The main conclusions from this research were that Opuntia can be used to replace part of lucerne hay, which is increasingly becoming scarce and expensive for farmers to afford. Farmers will get comparable growth and carcass quality from their livestock if they use Opuntia-bases diets in the feedlots instead of lucerne-based diets. Two articles have been written from this study and they are in the last stage of publication. • A survey on urban agriculture was also undertaken to explore the existing agricultural practices in Windhoek.

Sub-Division: Small Stock Research • The sub-division continued with the Swakara (Karakul) Support Scheme by successfully completing three training courses in lamb description at Gellap ost Research Station. Also 71 participants, including Ministerial staff from the Directorate of Agricultural Production, Extension and Engineering Services from Kunene Region attended the Swakara courses for beginners. • The distribution of the Gellapper ewes has commenced, by auction the first eight ewes to the farming public. The multiplication of the breed is progressing very well. Sub-Division: Livestock Improvement Schemes • Six weighing lists on Performance Testing were prepared and dispatched to participating farmers for non- Stud book purposes. For Studbook animals, the following was performed: • Three different breeds of 10 stud breeders were evaluated; • Six Phase D tests were opened with a total of 220 bulls; • Thirteen Phase D tests were closed at 12 breeders with 422 bulls and three different breeds. Sub-Division: Rangeland Management Research • Mara Grazing System carried out at Sandveld Research Station to establish the effect of high stocking densities with long periods of rest on the botanical composition and Dry Material production in the Camelthorn Savannah of Namibia. This project has now been going on for 7 years and has scheduled project life for 20 years. • The last surveys to establish bush encroachment in south east Namibia with the aim to generate a bush encroachment map was carried out. The map for south east Namibia has since this date been generated and published. • Vegetation surveys carried out at Alex Muranda Livestock Development Center (LDC) to establish baseline vegetation data. Data has been analyzed and is ready for use. The idea is to have such data available for each of the Ministry’s research stations in order to monitor changes in vegetation as a result of whatever livestock research project is carried out at these stations. Surveys already completed for Oshaambelo, Okapya, Sonop and Omatjenne Research Stations. Conservation of Animal Genetic Resources • For the first time in the Northern Communal Areas of Namibia, four (4) Nguni Studs herds at Okapya, Sachinga, Alex Muranda and Mashare were registered with the Nguni Breeders Society.

• The conservation efforts of the hardy, strategic and well adapted livestock breeds such as Swakara sheep, Damara sheep, Boer goats, Namibian Indigenous goats, Sanga, Afrikaner and Simmentaler cattle, continued very well. • 1x Master of Biochemistry; • 1x Master of Silviculture; • 1x Master of Business Administration and Strategic Planning; UPGRADING OF FARM INFRASTRUCTURE AND IMPROVEMENT OF IRRIGATION SYSTEMS AT RESEARCH AND TRAINING INSTITUTIONS The seven-kilometer access road under Targeted Intervention Programme for Employment and Economic Growth at Alex Muranda Livestock Development Centre was upgraded and water reticulation system was installed plus the renovation of Sachinga Livestock Development Centre. During the period under review, the renovation of 4x2 bedroom staff houses, 1x3-bedroom staff house and garage, farm workshop, assembly hall and procurement of agricultural implements for Kalahari Research Station was completed. Meanwhile, a feasibility study for the upgrading of abattoir/ slaughter house at Mashare Agricultural Development Institute (MADI) was conducted. Meanwhile BeefPro scales with stick readers for MADI, Tsumis Arid Zone Agricultural Centre (TAZAC) and Okomumbonde Breeding Station were procured. During the reporting period, electricity was installed in the renovated and upgraded self-contained flats for staff accommodation and a seed store with working rooms for sorting out seed, a shed with store rooms for storing seed and grains were constructed/repaired.Meanwhile,a septic tank was repaired, and feasibility study for the construction of a tissue culture laboratory at Mannheim Research Station was conducted. During the period under review, retention fees for services rendered for 10x2-bedroom houses constructed at the Mannheim Research Station during the 2012/2013 financial year were paid. The leaking concrete slab at the hostel was repaired, plus the construction of a new chicken house, Meanwhile, 2x-2 bedroom houses, 4x3-bedroom houses for staff accommodation at Tsumis Arid Zone Agricultural Centre were repaired and renovated. It was reported that parking facilities were constructed and minor renovations were undertaken at the Swakara Training Centre, which included painting and inter-locking; and feasibility study for the construction of 2x2 bedroomed flats and ablution facilities at Gellap-Ost Research Station was conducted.Meanwhile,retention fees for services rendered for the upgrading of the irrigation system and water facilities during the 2012/2013 financial year at Omahenene Research Station were paid, while the upgrading of Phase C facilities at Omatjenne Research Station was conducted.Finally,the conversion of an old building into a guesthouse undertook minor repairs and closed up the garage for house no.1 at Okapya Livestock Development Center.

• A successful Sanga/Nguni Promotion Day was held at Omatjenne Research Station and it was attended by over 150 participants. • A Scientific book on Namibia’s livestock breeds and types (Namibia’s Livestock Catalogue) was completed and officially launched by the Hon.Minister of Agriculture, Water and Forestry. The Agri Handbook 2015


Chapter 13 | Training

The study was done in the three constituencies of Windhoek from May up to July 2013.A final report of this project is nearing completion and will be published before December 2014.

Chapter 13 | Training



Relevant Documentation

The Department of Agriculture was started in 1990, offering only a three year Diploma of Natural Resource Management (Agriculture).

Applicants from other recognised institutions must submit academic records for all courses in their highest qualifications, as well as contact details of two referees. The latter also applies to applicants who have been working in the field subsequent to obtaining their previous qualifications.

In 1999, the Bachelor of Technology in Agricultural Management was introduced. In 2008, the Bachelor of Agricultural Management Honours was introduced before the Diploma, Bachelor and Honours of Agricultural Management was registered with the National Qualifications Framework (NQF) in 2011. In 2014, the department made further progress when the master of Agribusiness Management was introduced. Qualifications Offered •

Bachelor of Agriculture- Full time (3years)

Bachelor of Agriculture Honours specialising in Agribusiness Management or Sustainable AgricultureFull-time Block Mode (1 year)


Master of Agribusiness Management- Full time Block Mode (2 years)

The Agri Handbook 2015

Admission Requirements Holders of the Polytechnic’s Diploma in Agricultural Management (level 6) will be admitted to the third year of this programme, and will be exempted from Work Integrated Learning (WIL) in semester 5, but are required to complete the following courses in order to qualify for the award of the Bachelor of Agriculture: Animal Health, Contemporary Issues, Non-running Husbandry, Agroecology, Agricultural Land Management, Financial Management (Agriculture), Food Science and Technology, Rural Development Sociology. Candidates will be considered for admission to the Master of Agribusiness Management if they have a Bachelor of Agricultural Management Honours from the Polytechnic of Namibia, or an equivalent qualification at NQF level 7 from a recognised institution, worth at least 360 credits.

Agriculture Programme Aims The Bachelor of Agriculture will enable students to acquire cognitive/intellectual skills, practical skills and key transferable skills. They will be able to apply these skills in

solving agricultural related problems that face the Namibian agriculture and commercial/ communal farming sector. The Bachelor of Agriculture Honours specialises in Sustainable Agriculture or Agribusiness Management and aims to consolidate and deepen the knowledge and skills of students in the main cognate area of learning, as well as developing their capacity to conduct supervised research of an applied nature.

Chapter 13 | Training

Candidates will be considered for admission to the Master of Agribusiness Management if they have a Bachelor of Agricultural Management Honours from the Polytechnic of Namibia, or an equivalent qualification at NQF level 8 from a recognised institution that includes a component of supervised research, Applicants need to provide evidence of having completed Econometrics at NQF level 8.

The Master of Agricultural Management address the knowledge needs of high level specialist and managers who can provide practical solutions to agribusiness management related problems in Namibia and beyond.

Curriculum Bachelor of Agriculture Honours First year semester 1 Research Methodology; Contemporary Agribusiness Management; Natural Resource Economics; Dryland Permaculture; Design Applied Econometrics for Agriculture

First year semester 2 Mini-thesis; Sustainable Animal Production Systems Sustainable Plant Production System; Agricultural Policies; Agricultural Trade Analysis

Master of Agribusiness Management


First year semester 1

Bachelor of Agriculture

Advanced Research Methodology; Agribusiness Management Analysis; Production Economics

First year semester 1 Introduction to Chemistry; Computer User Skills; Introduction to Mathematics; Language in Practice;

First year semester 2 Advanced Agricultural Marketing and Price Analysis; Agricultural Supply Chain Management; Project Design; Planning and Management

Introduction to General Biology

Second year semester 3 and 4

First year semester 2


Agricultural Mechanisation; Agricultural Economics; Rangeland Science; Agricultural Statistics; Soil Science; English in Practice

Candidates must be medically and physically fit for field work, which forms an integral part of the programme.

Second year semester 3 Information Competence; Small Ruminant Husbandry; Rangeland Management; Large Ruminant; Husbandry; Agronomy; English for Academic Purposes.

Second year semester 4 Agricultural Land Management; Horticulture; Animal Health; Basic Research Methodology; Agricultural Extension; NonRuminant Husbandry

Third year semester 5 Work Integrated Learning (WIL)

Third year semester 6 Contemporary Issues; Agroecology; Agribusiness Management; Financial Management (Agriculture) IV; Food Science and Technology; Rural Development Sociology

For more information For inquires on programme related Issues:


Neriene Hoebes Faculty Officer Telephone (061)2072963 Fax (061)2072 1143 E-mail:


Salomo Mbai Head of department Telephone: (061) 2072 1 94 E-mail:

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Chapter 13 | Training

Modelling price expectation and volatility effects on producer behaviour: A case of Namibian Beef market

Uchezuba, D.I1 and Mbai, S2 Lecturer Polytechnic of Namibia, Department of Agriculture & Natural Resource Sciences, Namibia. Tel +264-61- 207 2491, E-mail:


Lecturer Polytechnic of Namibia, Department of Agriculture & Natural Resource Sciences, Namibia, Tel. +264-61- 207 2194,


Salomon Mbai


David Uchezuba

The objective of this paper is to characterize beef producers’ price expectation and investigate price volatility response in a rational expectation framework for aggregate producers’ supply response in the Namibian beef market, by applying Exponential Generalised Autoregressive Conditional Heteroskedasticity EGARCH (1, 1) model framework to monthly data ranging from January 2000 to December 2013. The study found that price uncertainty has strong influence in the beef market. A ten per cent increase in the producers’ expectation about future beef price changes induces beef producers to sell 3% of their animals instead of keeping stock. Further investigation into producer price elasticity response shows that producers respond more strongly to price changes in the long-run than in the short-run. Other result for price volatility shows that there is a negative and significant asymmetric price effect. This means that a negative shock in price causes more volatility than a positive shock of the same magnitude. In other words, producers respond more intensely to a negative shock than a positive one and this effect was found to persist to the next period. Other important factors investigated are; the influence of rain and technical change. The results show that producers sell cattle during dry months but withhold them when it rains. Influence of technology was poor; this call for future needs to investigate technology adoption and the effectiveness of extension services.

Key words: Price expectation, volatility, asymmetric effects, relative marginal risk premium, conditional variance. 154

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Chapter 13 | Training The Agri Handbook 2015


Chapter 14 | Stakeholders

Meatco at a glance Meatco serves niche markets locally and internationally with premium quality products that are traceable all the way from the farm to the fork.

Who we are Meatco is meat-marketing entity. We serve niche markets locally and internationally with premium quality products that are traceable all the way from the farm to the fork. We buy cattle from farmers engaged in extensive livestock farming practices that give our end product its unique characteristics. After processing through our world-class value chain, our meat fetches a significant premium in carefully selected markets across the globe. In recent years, Meatco has also started to integrate backwards into the value chain to produce slaughter-ready livestock in partnership with Namibian producers. The Corporation was established and is regulated under the Meat Corporation of Namibian Act to serve, promote and coordinate the interests of livestock producers in Namibia. The Corporation is also listed as a state-owned enterprise under the State-owned Enterprises Governance Act, 2006(Act 2 of 2006), although the Government has no shareholding or direct financial interest in Meatco. Membership in the Corporation is restricted to those Namibian livestock producers who sell at least one unit of livestock to Meatco once every two years. Since we have no owners or shareholders, our overall objective is to pay participating producers the maximum sustainable prices for their cattle and retain only the minimum profit necessary for future capital requirements. We believe it is in the best interests of a sustainable cattle industry that producers receive the highest possible return for their cattle. Chief executive officer: Adv Vekuii Rukoro

Our Objectives

The overall objectives of the Corporation, set out in Section 3 of the Meat Corporation of Namibia Act, are the following To serve, promote ad coordinate the interests of the producers of livestock in Namibia, and to strive for the stabilisation of the meat industry of Namibia in the National interest.

To erect, rent, purchase or otherwise acquire, stabilise, optimally utilise and maintain abattoirs and other meat factories in the public interest.

What we do In our efforts to become a leading and admired provider of premium products to niche markets, we have assumed the responsibility of running our business in accordance with the highest technical, ethical, social and environmental practices. Our organization and processes are regularly audited by independent, internationally recognised auditing companies such as SAI Global. All our facilities comply with International Organisation for Standardisation (ISO) 9002, Hazard Analysis and Critical Control Points (HACCP) 1033:2007 as well as the quality benchmarks set by the South African Bureau of Standards (SABS).


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To rationalize abattoir and related plant activities, and conduct and manage such business in an orderly, economical and efficient manner.

To market products within Namibia and elsewhere to the best advantage of the producers of livestock in Namibia

In addition, Meatco’s export abattoir in the town of Okahandja holds an ‘A’ grading in terms of the internationally recognised British Retail Consortium (BRC) Standards, while our export abattoir in the capital,Windhoek,holds a ‘B’ grading. The BRC measures ethical and fair practices, animal welfare, and corporate social responsibility, as well as technical and operational factors in food production. The Corporation is also subject to various audits by our clients. The heart of Meatco’s business is of course its cattle producers. We act as a value-adding and marketing operation on behalf of producers and pass the value gained from various markets back to them through the producer price paid for cattle. In other words, our objective is not to return profits to the Corporation. In the year under review, the share of business earnings that were passed on to producers was 66.3%, which is higher than in the previous financial year (2013/14:63.18%).These high earnings remain our aim.

VISION Our vision is to have the most sought-after meat brands in selected markets in the long-term interest of our stakeholders.

MISSION We will achieve this vision by creating added value for our customers through unique competencies, costeffective and innovative process, sound social and environmental practices, and motivated staff.

OBJECTIVE Our principal objective is to maximize producer returns sustainably.

As a consequence, we are constantly developing our value chain by placing greater emphasis on the quality and unique characteristics of our beef. Almost 100% of the slaughtered animal is processed and sold. In this way, we can maximise value addition opportunities.

Chapter 14 | Stakeholders

What drives Meatco?

To highlight the unique qualities of our product, we have developed our very own Natures Reserve brand of products, which-along with the Meatco brand-acts as a vehicle to extract the maximum value from international markets for the Corporation’s livestock producers. Meatco’s Natures Reserve brand has opened up free-range beef marketing channels and serves various international customers. We believe that the key to the unique flavour of Natures Reserve products is our emphasis on healthy and contented cattle and animal welfare is therefore a priority. All farms registered with Meatco are required to be members of the Farm Assured Namibian Meat (FAN Meat) scheme and to adhere fully to its high standards of livestock husbandry within the ‘Five Freedoms,’ which are an internationally recognised means of assessing good animal welfare (See page 80 for more details) All cattle in Namibia are allocated a unique identification ear tag to be able to trace their movements and monitor welfare standards, feed regimes, and many veterinary treatments they receive. In Namibia, we launched the Meatma brand and in addition to the outlet next to our head office in Windhoek, we added a second Meatma outlet in Okahandja, which provides an affordable, high-quality protein product directly to the Namibian public. Not only was this a prudent business move but it also reflects Meatco’s commitment to feeding our nation in a cost-effective way. We also have also have a strong range of canned meat brands in local and regional markets. These include the Texan, Eloolo and Ranch brands. In 2014, Meatco developed and launched two new caning labels or brands, aimed specifically at the African market: the Cattleman brand was designed for the Nigerian market and the Long-horn brand was mainly developed in order to create a platform for launching new products into the local and regional market. We have also established the market for our Texan brand in Zimbabwe. The development of additional products –such as Chicken Loaf, Luncheon Roll, Spaghetti and Meat Balls, and caned Vienna’s-is ongoing and these products are designed for the domestic and regional markets. We are engaged in the production of premium wet-blue hides through the Meatco Okapuka Tannery.

How we add value Adding value to Namibian beef starts in the veld, where farmers rear free-range cattle using natural methods. Animals are raised on veld grass for the majority of their lives and no growth hormones or routine antibiotics are used in their rearing. Apart from using naturally reared cattle for our production and ensuring they are treated according to strict animal welfare principles, we further differentiate ourselves by eschewing commodity trading as far as possible. So we do not sell carcasses in international markets but focus instead on producing value-added, deboned cuts of meat to meet various client specifications for customers across the world. Our aim is to add as much value to carcasses as possible and to thus closely align ourselves with the needs of the end consumer of our products. Our labour intensive value addition focus has assisted Meatco in creating more than 1,000 jobs.

The price that results from the value addition that Meatco generates from all these different markets and operations benefits all Namibian cattle producers-even those who not to sell to Meatco ad those who are in the weaner production business (Meatco only slaughters adult animals).The price that Meatco pays for cattle is used locally by competitors to determine their price for slaughter animals. Meatco therefore sets the benchmark for cattle prices in Namibia and elevates it because of our ability to sell into export markets.

Business environment We operate in a highly competitive business environmentlocally, regionally and internationally. We have to position our products in strategic niche markets in competition with the big beef-producing countries such as Australia and Brazil. Through our world-class processes, consistent product quality, and our Natures Reserve brand, we have managed to successfully differentiate ourselves from other abattoirs and processors.

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Chapter 14 | Stakeholders Front: Mr. Kingsley Kwenani Executive Officer: Meatco Foundation (Left), Advocate Vekuii Rukoro Chief Executive Officer: (Centre) and Ms. Rosa Katjivena Executive: Quality Assurance (Right). Back: Jannie Breytenbach Executive Operations, Tannery & Canning, Mr. Vehaka Tjimune; Executive Stakeholder Relations & Corporate Affairs, Mr. Stanley Hoveka-Mbura Executive: Human Resource, Mr. Heiner Böhme Executive Lifestock Procurement, Mr. Nico Weck Chief Financial Officer and EXCO Executive, Marketing & Sales Cyprianus Khaiseb

Markets The European Union (EU) is a major export market for Namibian red meat, fish, and grapes, receiving 40-70% of Namibia’s agricultural exports. Preferential access to the EU market for premium beef cuts has made it possible for the Namibian red meat industry to upgrade its production facilities and to meet international standards. Compliance with EU standards gives the country a competitive advantage over other beef producers in the world, including South Africa producers. The highest value comes from our international markets, including Norway and the European Union (EU)-more specifically the United Kingdom (UK), Germany, Denmark and Italy. We export the bulk of our prime cuts (mostly from the hindquarters) to these countries as their markets provide the highest value for these particular products. Meatco’s biggest market by volume in Africa is in neighboring South Africa, which receives 38.4% of the Corporation’s exports. Due to South Africa’s population size, income levels, and proximity, it remains a lucrative market for some of our beef products. Compared with international buyers, the local market is not yet a high-value earner for Meatco, accounting for just 11.5% of actual sales curretly.Nonetheless, the Namibian market has high strategic value for us: we need the raw material-the cattle-provided by local producers to enable us to sell high-value cuts to our international clients. This means we act as a supplier in the local beef market to ensure we maintain our share of local raw material. By supplying the local market with meat products we are competing on two fronts: selling our product to the local market, and procuring cattle from the local producers.


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Having access to the EU market means we conform to the best quality standards internationally. This gives Meatco the potential to access other high –value-marketssuch as those in Asia, Russia, and the United States of America-since these countries regard compliance with the EU quality standards respectively. The unlocking of these markets would mean more value for our producers and broader market diversification for Meatco.

What our International client says FRANCO MORO - Chief Executive Officer, Del Zoppo ‘For some years now we have been processing Meatco products with great success. The quality of the meat has the right texture to produce Bresaola della Valtellina IGP (i.e., Indicazione Geografica Protetta, an indicator of geographical protection) In the last few years our relationship with Meatco has strengthened, with the hope that we can get it even stronger. ‘The Namibian farming system and the care the Meatco abattoirs take with their product allow us to obtain an absolute 100% top quality product in regard to the strict production rules of our Consortium of Bresaola. In fact, Namibia origin meat is lean, compact and light in colour. The final result gives a bresaola which is compact, elastic and free, with a uniform pink/red colour and a pleasant smell. ‘For us, we take great pride to have a partner like Meatco, enabling us to bring consumers the Bresaola della Valtellina experience.’

the price for ‘A’ and ‘AB’grade increased by 13 and 16%, respectively. The price for ‘B’ Grade increased by 29.71%, while prices for ‘C’ Grade increased by 30.56% from the previous year.

Chapter 14 | Stakeholders

Figure 16 depicts the average weighted producer price per kg (all grades) since the 1992/3 reporting year. From the figure it is clear that in 2014/15, Meatco has been able to outperform all the previous years in terms of the average producer price achieved. Meatco was able to protect Namibian wearner producers against the negative impact of an effective ‘closed border’ between ourselves and South Africa from May to August 2014. GRAPH During the 2014/15 reporting period, the average price paid by Meatco at our Okapuka Feedlot for weaners amounted to N$16.88/kg compared with the average price of N$13.89/kg for the corresponding period during the 2013/14 reporting year. This represents a 21.53% increase when compared with the prior year.

SUSTAINABLE CATTLE PRODUCTION IN NAMIBIA PROJECT In 2013, the Meatco Foundation joined forces with Conservation Agriculture Namibia (CAN), as well as with the network organization Solidaridad Network Trust and Danish Coop as donors, to implement and manage the Sustainable Cattle Production in Namibia Project for a three-year period.

Meatco’s principal goal is to be a successful, profitable business in the interests of our producers. The more successful and profitable we are, the more profit we are able to return to the producer.

The project is specifically aimed at farmers in Namibia’s communal areas, where there is a great deal of poverty. Most people there are dependent on sustainable farming practices of income. Unfortunately the cattle population per square kilometer and the cattle/human ratio is indicative of overstocking and overpopulation with regard to the communities’ herds.

Meatco does not change its policy regarding price from one year to the next: the price is sorely dependent upon environmental and market factors. Meatco and our producers benefited from these external factors in 2014/15, given the exchange rate and the increase in Meatco’s allocation of the Norwegian quota.

So far, the project has enabled 2,400 smallholder communal farmers to sustainably manage their livestock while making their herds commercially viable. Through the project, the Foundation also has the opportunity to improve cattle genetics as well as overall animal condition and reproductive health.

During the 2014/15 reporting period, Meatco paid the highest average producer price (across all grades) in the interest of the Corporation.

The project aims to reach out to around 800 farmers each year, encouraging each of them to produce four or five extra cattle for slaughter. The total amount of additional cattle procured will be about 4,000 a year, which amounts to roughly N$12 million derived from cattle sales annually.

Producer returns

Meatco increased its overall producer price by N$5.59/kg (or 23.06%) when compared with the previous reporting year. The average producer price amounted to N$29.83/ kg compared with an average producer price of N$24.24/ kg for the corresponding period during the 2013/14 reporting year. The producer price for cattle received SVCF increased by 21.22%, and by 51.05% in the NCA. This overall increase compelled the rest of the industry to also increase its producer prices in order to secure throughput for them. In terms of our estimation of the number of cattle slaughtered in the local market during this period, the increase represents an additional N$91.9 million in terms increased producer prices. It is important to note that the price wasn’t just driven by normal market trends in southern Africa. The total premiums paid by Meatco over and above the South African price were N$102.9 million over the period, which represents N$3.88 per kg.Most of these premiums went to producers naturally producing ‘B’ and ‘C’ grade cattle. Price per grade was also higher during 2014/15: SVCF,

Thus, three years after the project’s inception, the total benefit will amount to around N$36 million in additional revenue that has flowed into the area. We expect the increased revenue will give farmers a critical income boost, with this money being used to reduce food insecurity and to help their children meet their schoolrelated needs. In this way we aim to contribute towards a reduction in poverty in the areas covered by the project.

Success to date In 2014/15, the Meatco Foundation supported 24 farmers through access to improved bulls in the different communal areas. In total, 13 bulls were purchased and distributed to communities SVCF and 6 went to communities north of the Veterinary Cordon Fence. The objective of this initiative was to introduce improved breeding material within the herds in these communal The Agri Handbook 2015


Chapter 14 | Stakeholders

areas. To date six calves have been sired by the two bulls in the Omuramba community’s herd in Kunene Region, and more are expected. The Meatco foundation also funded another activity that aimed at training the Omuramba farmers in aspects of commercialisaton.The training was undertaken by Meatco staff in order to encourage farmers to sell animals for slaughter at peak condition and not wait until their animals become too old or the need arises for emergency marketing(such as during periods of drought). This training also enlisted traditional leadership in promoting certain behavior change strategies, thus communicating to the farmers the benefits of selling their animals for slaughter at peak condition. Since the establishment of the multipurpose crush pens, 1,195 cattle have been marketed at the facility, which has injected a total of N$4.3 million back into the Omuramba community. The Meatco Foundation also implemented sustainable rangeland management training to these farmers in order to integrate a sustainable rangeland management programme into the Meatco field activities using techniques developed in the conservancy areas of Namibia. Sustainable rangeland management techniques, as developed by IRDNC (Integrated Rural Development and Nature Conservation) in Namibia conservancy areas, have been integrated into Meatco field activities. Through a training of trainers approach to rolling out programmes, CAN assesses rangeland carrying capacity, develops stocking plans for farmers, and helps to create adaptation strategies. The other activities include the utilization of Global Roundtable for sustainable Beef (GRSB) principles in global roundtables through sharing best practices and


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experience. To date, 1,198 farmers have trained in ecological literacy with respect to rangeland management and 157 farmers were trained in holistic rangeland management looking at herd structures, carrying capacity and available grazing. The Foundation also agreed to fund Meatco-owned Cattle (MoC) pilot project in NCA communities. Meatco’s MoC scheme has already been successfully implemented in commercial areas and in May 2014 the same scheme was piloted in communal areas to ascertain ways to adapt it successfully to the circumstances of communal farmers located north of the Veterinary Cordon Fence. In total, 750 cattle have been identified for inclusion in the pilot project; 29 farmers are participating in the scheme and N$2,625,000 has already been paid to farmers. The initial average weight of animals engaged in the scheme was 285kg and the second weighing showed an average weight increase of 560 grams per animal.

HEAD OFFICE Sheffield Street P.O. Box 3881 Windhoek Namibia Tel: + (264) 61 3216400 Fax: + (264) 61 3216401 Website: FaceBook page:

Chapter 14 | Stakeholders

Namibia`s labour regulations


mployment in Namibia is regulated under the Labour Act of 2007.

The Act reaffirms constitutional provisions on fundamental rights and protection, including the prohibition of child labour, forced labour, discrimination (it outlaws discrimination against HIV positive people) and sexual harassment. The Act lays down basic conditions of employment and limits working hours generally to a nine-hour working day during a five-day working week with shifts limited to eight hours. Exceptions for continuous shifts, extended working hours and Sunday working are permitted under special circumstances. Employees are entitled to at least four consecutive weeks annual leave with full remuneration as well as five days compassionate leave. Women with six months’ service are entitled to 12 weeks maternity leave. During maternity leave, employees are entitled to basic pay from the Social Security Commission (SSC) up to N$10,000 per month. Employers are required to provide adequate housing for employees living at the place of employment. The Act also lays out the process that must be followed to terminate employment, including notice periods, severance pay and procedures to be followed in cases of dismissal.

Ministry of Labour and Social Welfare exists to oversee the implementation of the Labour Act, to act as conciliator and arbitrator, and to promote harmonious industrial relations. Labour standards are monitored and enforced by labour inspectors, civil servants employed by the Ministry of Labour and appointed by the Minister. A Labour Court exists with exclusive jurisdiction over appeals arising from decisions of the Labour Commissioner, arbitration tribunals and compliance orders as well as significant powers of review and the granting of urgent relief. A tripartite 13-member Labour Advisory Council advises the Minister on a wide range of employment issues. A Wages Commission can be established on an “as needs” basis to investigate issues of remuneration and employment and can make wage orders that are binding on employers. The Social Security Commission (SSC) was established under the Social Security Act of 1994. All employers and employees are obliged to register with the SSC and to pay monthly contributions of 0.9% of the employee’s basic salary up to a maximum of N$54 per month to the Maternity leave, Sick leave and Death benefits (MSD) Fund of the SSC, which can then be drawn upon for these purposes. The SSC also runs the Employees Compensation Fund (ECF) established under the Employees Compensation Amendment Act of 1995.

All workers have the right to belong to a trade union.

Claims can be made from the ECF in the event of disability or death caused by industrial accidents or diseases.

Trade unions must be registered with the Labour Commissioner. A trade union that represents the majority of employees “in an appropriate bargaining unit” is entitled to recognition as the exclusive bargaining agent of the employees.

Payments to the ECF are the responsibility of the employer and are made on the basis of assessments conducted by the SSC using information supplied by employers in an annual return.

Employers are obliged to deduct union membership fees. Workplace union representatives are provided for as is “reasonable time off” during working hours to perform union duties. Under certain conditions, collective agreements reached by unions and employers can be extended to nonparties and whole industries at the Minister of Labour’s request.

These assessments will differ from industry to industry and company to company according to levels of risk. Employers will generally make annual lump-sum payments. The SSC also runs a Development Fund, the purpose of which is to provide training and employment schemes to unemployed people and to grant financial assistance to students. Legislation and application forms can be downloaded from the SSC website.

The Act lays down detailed procedures regulating strikes and lockouts and gives the Minister powers to appoint conciliators and arbitration tribunals in disputes although private arbitration is also permitted. Arbitration awards may be binding or advisory.

To address the continued lack of skills, Government introduced a National Training Levy from 1 April 2014. Companies with payrolls of N$1,000,000 or more will pay a levy of 1.0% of their gross payrolls monthly in arrears to the National Training Authority (NTA), which they are then able to claim back to finance training initiatives approved by the NTA. Certain categories of employers are exempt.

Institutionally, the Office of the Labour Commissioner in the

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Chapter 14 | Stakeholders

Volume 5 • May - September 2007

NFU is proud to announce a successful 2007 Congress. Serving as the organization’s highest decision making body, the NNFU holds a congress every three years. This year’s congress was guided by the theme, “Organized Agriculture: The future hub for economic growth in the agricultural sector” and organized under the authority of the former Executive Committee headed by former President Mr. Manfred Rukoro.

Namibia National Farmers Union (NNFU)

The build up to the event was positive, and all Regional Farmers Unions participated with women making up a 60% majority of this year’s delegates. Hon. Dr. Nickey Iyambo, Minister of MAWF, opened with the words of HE president H. Pohamba at the August 30th gala dinner sponsored by Meatco. The NAU, Communal Farmers Consortium, and a number of other sponsors and partners delivered speeches and messages of solidarity at the opening ceremony. Hon. Isak Katali, Deputy Minister of Lands and Resettlement, closed the event on September 1st.

The Voice of Namibian Farmers.

Officially starting with closed sessions in order to review its progress and constitutional matters, presentations from experts in the agricultural sector were allowed at the open session in order to better inform delegates’ perspectives regarding proposed resolutions.

What is NNFU?

NNFU is a national federation of regional farmers unions. It was established in June 1992 to serve as a mouthpiece for the Namibian communal and emerging farmers. Twelve regional farmers unions are currently affiliated. Nationally 130 Farmers Among resolutions passed, Congress adopted two new submissions. The first includes a organisations, with a total membership of 35125 individual farmers are affiliated to NNFU.

In this issue:

• From the Governance Pen - NNFU Congress 2007

• NNFU Strategic plan 2008 - 2010

• Business Advice

Policy- Show Education activities in 2007

constitutional amendment, which rephrases article 5.1 (g) of the constitution to state that ‘An individual person or cooperative is not allowed to affiliate directly to NNFU, but can become a member via affilitation to a farmers association.’ The second submission mandates the new Exco to enter into dialogue with the Namibia Agricultural Union (NAU) and Namibia Emerging Commercial Farmers Forum (NECFF) and requires that the Exco periodically consults and informs NNFU members before making any decisions or passing any constitutional amendments.

Congress also resolved to adopt a financial report, remarking that more time is needed to analyze the financials. Congress also expressed concern regarding declining donor interest, noting that membership fees have also declined and urging that contributions by RU’s should be seriously examined. Resolving to adopt the activity report, Congress remarked that RU’s must participate in regional & meetings Advocacy focus on: and events,Unit also advising that RU’s be more organized in order to take advantage of the training and capacity building offered by the NNFU.

• Land reform and environment (including rural water supply) - Grain marketing • Livestock production and marketing • Grain production marketingThe FNB also offered its own perspective on small-scale farmers’ access to agricultural credit. tillage project and marketing • - Conservation Horticulture production It stated that the NNFU should negotiate with the government in order to explore possibilities • Issues regarding farm laborers for using or accepting communal land as a means for collateral along with exploring possible • HIV/AIDS in agricultural sector options with other stakeholders in the agricultural credit sector. • Agricultural credit • Newsflashes

Congress also resolved that the Regional Farmers Unions will discuss the NNFU strategic plan at regional level and offer input on the plan to NNFU before the end of September. After receiving these responses, NNFU Secretariat and Executive Committee will finalize the strategic plan.

Business advisory unit focus on: • • • •

In addition to new resolutions and constitution amendments, one of the highlights of any Livestock marketing Congress is the election of new leadership for the next three years. Support to agricultural shows Grain marketing Grain production

4 Axali Doeseb Street,Windhoek-West, PO Box 3117,Windhoek, Namibia Tel.: +264 61 271 117, Fax: +264 61 271 155 Email:

Institutional strengthening programme focus on: • • •


Assistance regarding annual programme planning Assistance regarding leadership training Assistance regarding record-keeping and supporting to other stakehlders

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• • •

Chapter 14 | Stakeholders

Special project to focus on activities that would assist regional farmers unions and or local farmers association in their efforts to access funding for: Annual agricultural shows Auction pen renovations Grain marketing and direct access to marketing

Legal Status NNFU is currently registered as “an association not for gain’’ in accordance with the provisions of section 21 of the Company act, Act No 61 of 1973. Official registration number: 21/98/529.


NNFU aimed to increase food production for household food security, enhance marketing of farming products to increase income, increase participation and recognition of women in farming, contribute to environmental protection and sustainable utilization of natural resources. NNFU through its policy education and advocacy programme promoting active participation of the small scale farmers in: • The design of conducive and an enabling agricultural policy environment • Implementation of national agricultural policies, laws, projects and schemes. NNFU through its institutional strengthening programme assisting its core members, viz local farmers associations and regional farmers unions, in efforts that are regarded to: • Annual action planning • Leadership training • Mentoring during action plan implementation. NNFU is getting involved in the institutional strengthening in order to create a vibrancy at grass-root level that allows for complimentary action. NNFU through its business advisory unit is a assisting farmer to: • Understand the factors that influence the commodity market chain • Understand the factors that influence price structure in the market place NNFU is getting involved in the business advice to assist farmers to take informed decisions during marketing and to increase the bargaining power based on farmers at the market place.NNFU does not have a mandate to provide material support to the projects at local village but is implementation of pilot projects in order to: • Demonstrate feasibility • Hand over to local farmers organizations for further implementation

Financing the organizations

Operating budget: N$3 to N$ 4 million annually. Sources of financing: 40%-50% of our budget comes from levy charges which is being paid by the Namibian meat producers. The remaining is mainly covered by local and international donors thought fund raising efforts. 4 Axali Doeseb Str Windhoek West Tel: +264-61-271117 Fax: +264-61-271155 PO Box 3117, Windhoek, Namibia E-mail: Website:

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Chapter 14 | Stakeholders


As u dus op een of ander manier emosioneel seergekry het, of nou seer het, neem vrymoedigheid om met ons kontak te maak. Ons sal u graag in die heelword proses wil begelei om weer sinvol en vreugdevol te leef.

Tel: +264 62 503803 or +264 62 500168/9 Fax: +264 62 504486 Website


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