Milk price will also increase

Drought conditions in Namibia are impacting local dairy producers since only 50% of the available dry-land hectares in the country have been planted with maize during this planting season. This was revealed during the Dairy Producers’ Association and the Agronomic Producers’ Association when they held their first meetings for the year. During the Dairy Producers’ Association meeting, members and industry role-players gave their overview for the year as well as the challenges they are facing. According to the Namibia Agricultural Union (NAU), the drought conditions have caused large-scale losses in terms of the maize harvest in South Africa and the coupled shortages have caused huge increases in feeding costs in the past 12 months. Feeding costs make up the largest proportion of the total production costs for dairy production. According to the dairy production cost index of the NAU, the costs of feeding have increased with nearly 50% over the past year, which has a big impact on the profitability at farm level. The NAU says there is still a surplus of milk produced in especially Europe which describes the African market as an outlet. However, this causes additional competition and increases the pressure on local producers and processors. “As the total production expense basket of the dairy producers has increased with about 28% in the past year, there will most probably be an increase in dairy products in Namibia in order to ensure the survival of local producers.” According to NAU, the weakening of the South African rand and Namibia dollar caused Namibia Dairies to face some challenges in the form of increased input costs. “The drought and exchange rate lead to double taffy for the intensive industries in Namibia.” However it says even with the short- to medium-term challenges which the dairy industry experiences, it is still positive and growth can still be brought about by good cooperation between the producers and Namibia Dairies as the biggest partner. Also, the protection which is needed by the industry is still driven by the government and the industry despite the challenges being experienced in the industry. Meanwhile at the Agronomic Producers’ Association meeting, it was noted that the 2015 drought which was coupled with poor to no maize harvests during the 2014/2015 season, forced farmers to entrench their risks by planting larger hectare dry-land with forage crops which also includes established pasture. “Two drought years in the past three years lead to financial pressure amongst producers especially as the harvest insurance was withdrawn after the 2013 drought,” says the NAU. According to feedback from the various regions, only 50% of the available dry-land hectare is planted with white maize. According to NAU, because white maize is a staple for the bulk of the Namibian population, it is especially concerning to note the decrease of white maize under dry-land production. Imports from South Africa will also be hindered by the acute shortage of maize which is also experienced in South Africa. The area planted with groundnuts has also decreased with between 40 – 50% in comparison with the previous season. The Agronomic Producers’ Association together with the Agronomic Board is still in consultation with the Ministry of Agriculture to solve the drought aid situation soonest. Dry-land agronomists are requested to submit their applications despite the fact that the planting season is over. ELLANIE SMIT