Local taste for chicken grows
Namibians eat about 3 000 tonnes of chicken every month, of which local producers deliver 63%.
An appetite for chicken as a cheaper alternative to red meat continues to grow in Namibia, with local poultry producers able to supply nearly 63% of consumer demand for chicken by late last year.
As the local poultry industry awaits the outcome of court action brought by the South African Poultry Association (SAPA) to relax restrictions on poultry imports into Namibia, a report issued by the Meat Board of Namibia (MBN) based on statistics from October 2017 to October 2018 found 62.7% of the more than 3 000 tonnes monthly demand for chicken is met by local producers.
Moreover, average consumption shot up by 16.3% over the past 12 months of the reporting period, equalling around 3 012 tonnes per month, up from 2 589 tonnes during the previous 12-month reporting period from October 2016 to September 2017.
The report states that from the data available, with local consumption consistently more than 3 000 tonnes per month since October 2017, the increased appetite for chicken can be linked to the increase in the price of red meat, which makes poultry a source of cheaper protein.
Meanwhile, local production has not stood still, increasing from around 1 810 tonnes per month between October 2016 and September 2017, to a current monthly average of 1 889 tonnes per month since October 2017 to last October.
In comparison, imports rose from 764 to 948 tonnes per month during the last 12-month reporting period.
Ugly fight
The ongoing court battle about import restrictions is worrying, local experts say. Willie Schutz, a member of the MBN, told Namibian Sun's sister publication Republikein last week that if SAPA succeeds with its application, the impact could be dire for the local market.
“In my view, it could have a very negative impact on the development of the local industry,” he said.
He urged importers and consumers to support local producers and production with the Growth at Home strategy.
The report issued by the MBN was requested by the industrialisation, trade and SME development ministry to gain an overview of the current local market.
The report states that the poultry market share promotion scheme, implemented under the ministry, initially made provision for the importation of a maximum of 600 tonnes of poultry products per month, which was increased to a maximum of 900 tonnes per month on 1 November 20134, and 1 500 tonnes in May 2015.
Currently, 60 registered poultry importers operate under the scheme, of which an average of 36 companies apply for import quotas on a monthly basis.
There is only one major producer in the Namibian market, Namibia Poultry Industries (NPI), which over the past 12 months produced 1 889 tonnes per month, 62.7% of the average local consumption of 3 012 tonnes per month, the report notes.
Thirty smaller producers also operate and a large poultry farm is planned for the Otavi district.
The available import quota are determined on a bi-monthly basis, by evaluating supply and demand up to the maximum of 1 500 tonnes as currently set.
The report notes that individual quotas are calculated based on a company's historic market share (70% of quota) and local purchases (30% of quota).
“The inclusion of local purchases in the calculation of quota allows new entrants to acquire quote and motives local buy.
“Shortages or non-availability of specific cuts are “assisted on an ad-hoc basis with import permits to ensure there are no shortages in the market.”
Last week Namibian Sun reported that SAPA, along with several South African chicken producers, had returned to the Windhoek High Court with an application to have restrictions on poultry imports into Namibia set aside.
The matter returned after the Supreme Court had ruled that High Court Judge Shafimana Ueitele's dismissal of the application on 8 July 2016, without hearing the merits of the case, was wrong.
JANA-MARI SMITH
As the local poultry industry awaits the outcome of court action brought by the South African Poultry Association (SAPA) to relax restrictions on poultry imports into Namibia, a report issued by the Meat Board of Namibia (MBN) based on statistics from October 2017 to October 2018 found 62.7% of the more than 3 000 tonnes monthly demand for chicken is met by local producers.
Moreover, average consumption shot up by 16.3% over the past 12 months of the reporting period, equalling around 3 012 tonnes per month, up from 2 589 tonnes during the previous 12-month reporting period from October 2016 to September 2017.
The report states that from the data available, with local consumption consistently more than 3 000 tonnes per month since October 2017, the increased appetite for chicken can be linked to the increase in the price of red meat, which makes poultry a source of cheaper protein.
Meanwhile, local production has not stood still, increasing from around 1 810 tonnes per month between October 2016 and September 2017, to a current monthly average of 1 889 tonnes per month since October 2017 to last October.
In comparison, imports rose from 764 to 948 tonnes per month during the last 12-month reporting period.
Ugly fight
The ongoing court battle about import restrictions is worrying, local experts say. Willie Schutz, a member of the MBN, told Namibian Sun's sister publication Republikein last week that if SAPA succeeds with its application, the impact could be dire for the local market.
“In my view, it could have a very negative impact on the development of the local industry,” he said.
He urged importers and consumers to support local producers and production with the Growth at Home strategy.
The report issued by the MBN was requested by the industrialisation, trade and SME development ministry to gain an overview of the current local market.
The report states that the poultry market share promotion scheme, implemented under the ministry, initially made provision for the importation of a maximum of 600 tonnes of poultry products per month, which was increased to a maximum of 900 tonnes per month on 1 November 20134, and 1 500 tonnes in May 2015.
Currently, 60 registered poultry importers operate under the scheme, of which an average of 36 companies apply for import quotas on a monthly basis.
There is only one major producer in the Namibian market, Namibia Poultry Industries (NPI), which over the past 12 months produced 1 889 tonnes per month, 62.7% of the average local consumption of 3 012 tonnes per month, the report notes.
Thirty smaller producers also operate and a large poultry farm is planned for the Otavi district.
The available import quota are determined on a bi-monthly basis, by evaluating supply and demand up to the maximum of 1 500 tonnes as currently set.
The report notes that individual quotas are calculated based on a company's historic market share (70% of quota) and local purchases (30% of quota).
“The inclusion of local purchases in the calculation of quota allows new entrants to acquire quote and motives local buy.
“Shortages or non-availability of specific cuts are “assisted on an ad-hoc basis with import permits to ensure there are no shortages in the market.”
Last week Namibian Sun reported that SAPA, along with several South African chicken producers, had returned to the Windhoek High Court with an application to have restrictions on poultry imports into Namibia set aside.
The matter returned after the Supreme Court had ruled that High Court Judge Shafimana Ueitele's dismissal of the application on 8 July 2016, without hearing the merits of the case, was wrong.
JANA-MARI SMITH
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