Poultry business no chicken feed
While government reviews the status quo of chicken imports, there is room for growth in the local industry, if the environment allows.
JM Kretschmer - The importance of poultry farming in Namibia cannot be over-emphasised, with special focus on the country’s particular challenges of joblessness and rural communities who rely on farming.
Chicken remains an important mainstay for many households, and coops abound in informal settlements with families relying on chicken for eggs and meat.
The trade ministry is currently reviewing the state of affairs in the local poultry industry and recently announced that it is not taking any new applicants for registration as importers of chicken.
The latest measures indicate that only 1 200 tonnes of chicken may be imported monthly. This was reduced from 1 500 after wide public consultations were held in 2019. The ministry is also in charge of issuing all import permits having taken over from the Meatboard around the same time.
CONSUMPTION
A local overview commissioned and completed in 2018, indicated that Namibia lags far behind South Africa in annual per capita consumption with roughly 13kg consumed locally compared to South Africa’s 38kg. It was also determined that in the Namibian context, chicken was the most important source of protein due to its cost-efficiency.
A recent study published by Poultry World probing meat consumption in 35 countries across the world has indicated that chicken consumption, worldwide, comprises 43% of all meat consumption with pork coming in at 33% and beef at 19%. Chicken is favoured for different reasons – in the developed world for its health benefits as opposed to red meat and in the developing world, for its relative cost-efficiency and quick turnaround time.
The study further notes that “world poultry consumption per capita was 14.8kg in 2019, compared with 9.8kg in 2000. Absolute poultry consumption per capita more than doubled in 13 countries. Of the 35 countries studied, 30 experienced a linear increasing trend between 2000 and 2019 in per capita poultry consumption. In 15 countries, the increase was greater than 10 kg/capita, and it was greater than 20 kg/capita in Peru, Russia, and Malaysia.
TECHNICAL SUPPORT
Research published in Poultry in the 21st Century by Frands Dolberg from the University of Arhus in Denmark, indicated that technical support is of critical importance in the enhancement of poultry production for livelihood improvement and poverty alleviation.
The research found that the smallholder poultry approach is biased towards poor women and moreover, that estimates are that this is relevant for 160 million women – and their families – worldwide, but bad governance and weak institutions make it almost impossible to reach them for support to develop their enterprises.
In Bangladesh, research in 2015 found that operating small, family poultry farms improved the livelihood of 38% of farmers. Around 60% of participants in a technical support programme indicated an increase in income.
South African research in 2018, performed by the University of Johannesburg concurs by concluding that “chicken farming could be used for alleviation of rural unemployment and poverty; success of such projects depends on farmers receiving technical and financial support; hands-on training was considered the best form of training.”
The research thus indicates that technical support is very important and leads to increased income and poverty reduction.
LOCAL ASSISTANCE
Currently, the only technical support offered to SMEs in the local poultry industry is from Feedmaster and Namib Poultry Industries (NPI) that has staff deployed where needed. The roll-out is quite intense with NPI’s day-old chicks programme that acts almost as a starter pack for small-scale poultry production.
Rene Werner, the chair of the Namibia Poultry Producers’ Association says that direct jobs currently supported by the industry are around 2 000.
These figures apply only to the larger role players and the 350-odd SMEs currently active in the industry. They do not include the small-scale ‘backyard’ chicken farmers or the egg sellers in the informal market.
According the to the Namibia Statistics Agency (NSA), the dependency ratio per wage earner is around 4.6 – so there are a lot of Namibians that rely on chicken to put food on the table. In line with the research from Denmark, the poultry industry employs mostly women.
CHALLENGES
But there are major challenges and of course, concern over the ‘review’ of the status quo by authorities.
Werner says “any importation slows the growth of the industry”. Because there is so much money in chicken, in particular with tenders for hostels and the military, there are difficulties. Importers benefit from low price of production in other countries, but this is not passed on to the consumer or the government when it pays for tenders.
In 2018, discrepancies found that almost 5 000 tonnes of chicken imported into the country, ‘fell off the truck’ and is unaccounted for. There is also often criticism levelled at importers and during the public consultation process in 2019, they were accused of creating very little infrastructure, and few jobs and that they undermine the creation of a sustainable, local industry.
ROOM FOR GROWTH
These difficulties aside, there is a lot of room for growth in the local poultry industry.
In the 2018 study, the multiplier effect of the existence of the broiler industry in Namibia was assessed as being “substantially larger than the direct output from the industry would suggest”. Using meat processing for the social accounting matrix, it was found that the multiplier effect stood at 4.42.
For every N$1 output the industry generates, the overall impact on the economy is N$4.42.
Namibia needs to grow its local poultry production and create the much-needed jobs the government keeps talking about, Pieter van Niekerk, commercial manager at NPI, says.
According to Van Niekerk, the biggest challenge small-scale producers in Namibia currently face is gaining access to markets.
Traders mostly look at big loads and the shortages in the market are controlled by a handful of importers. NPI has received international accolades for its support in the local industry by aiding new entrants into the market with much-needed technical know-how and support. This extends way beyond its day-old chicks programme which allows small players to enter the market in a safe and affordable manner.
In his view, the slaughtering and route market need attention.
Most SMEs still slaughter by hand and getting access (and transport) to shelves in-store remain a major obstacle, forcing many to give up before they started. “No matter what product you grow, if you do not have a market, you do not have a business,” he says.
DEVELOPING THE INDUSTRY
Chicken and eggs are quick to produce, relatively cheap and efficient. A support centre for this industry - where industry, government and the unions (labour and industry) play a role – would be a boon for many start-ups.
Thirty years after independence there is absolutely no reason Namibia should be reliant on imported chicken to fill the gaps. The multiplier value and job creation alone should drive us to develop this sector in particular, because it drives rural economies – as the research shows.
Import limits should be increased to drive demand amongst investors and entrepreneurs and to create local wealth. If done right, Namibia could, as with its beef industry, develop into a chicken-exporting country.
Namibia needs a conducive environment to allow for more local poultry producers, both small- and large-scale, creating sustainable jobs and food security.
*JM Kretschmer is a freelance journalist.
Chicken remains an important mainstay for many households, and coops abound in informal settlements with families relying on chicken for eggs and meat.
The trade ministry is currently reviewing the state of affairs in the local poultry industry and recently announced that it is not taking any new applicants for registration as importers of chicken.
The latest measures indicate that only 1 200 tonnes of chicken may be imported monthly. This was reduced from 1 500 after wide public consultations were held in 2019. The ministry is also in charge of issuing all import permits having taken over from the Meatboard around the same time.
CONSUMPTION
A local overview commissioned and completed in 2018, indicated that Namibia lags far behind South Africa in annual per capita consumption with roughly 13kg consumed locally compared to South Africa’s 38kg. It was also determined that in the Namibian context, chicken was the most important source of protein due to its cost-efficiency.
A recent study published by Poultry World probing meat consumption in 35 countries across the world has indicated that chicken consumption, worldwide, comprises 43% of all meat consumption with pork coming in at 33% and beef at 19%. Chicken is favoured for different reasons – in the developed world for its health benefits as opposed to red meat and in the developing world, for its relative cost-efficiency and quick turnaround time.
The study further notes that “world poultry consumption per capita was 14.8kg in 2019, compared with 9.8kg in 2000. Absolute poultry consumption per capita more than doubled in 13 countries. Of the 35 countries studied, 30 experienced a linear increasing trend between 2000 and 2019 in per capita poultry consumption. In 15 countries, the increase was greater than 10 kg/capita, and it was greater than 20 kg/capita in Peru, Russia, and Malaysia.
TECHNICAL SUPPORT
Research published in Poultry in the 21st Century by Frands Dolberg from the University of Arhus in Denmark, indicated that technical support is of critical importance in the enhancement of poultry production for livelihood improvement and poverty alleviation.
The research found that the smallholder poultry approach is biased towards poor women and moreover, that estimates are that this is relevant for 160 million women – and their families – worldwide, but bad governance and weak institutions make it almost impossible to reach them for support to develop their enterprises.
In Bangladesh, research in 2015 found that operating small, family poultry farms improved the livelihood of 38% of farmers. Around 60% of participants in a technical support programme indicated an increase in income.
South African research in 2018, performed by the University of Johannesburg concurs by concluding that “chicken farming could be used for alleviation of rural unemployment and poverty; success of such projects depends on farmers receiving technical and financial support; hands-on training was considered the best form of training.”
The research thus indicates that technical support is very important and leads to increased income and poverty reduction.
LOCAL ASSISTANCE
Currently, the only technical support offered to SMEs in the local poultry industry is from Feedmaster and Namib Poultry Industries (NPI) that has staff deployed where needed. The roll-out is quite intense with NPI’s day-old chicks programme that acts almost as a starter pack for small-scale poultry production.
Rene Werner, the chair of the Namibia Poultry Producers’ Association says that direct jobs currently supported by the industry are around 2 000.
These figures apply only to the larger role players and the 350-odd SMEs currently active in the industry. They do not include the small-scale ‘backyard’ chicken farmers or the egg sellers in the informal market.
According the to the Namibia Statistics Agency (NSA), the dependency ratio per wage earner is around 4.6 – so there are a lot of Namibians that rely on chicken to put food on the table. In line with the research from Denmark, the poultry industry employs mostly women.
CHALLENGES
But there are major challenges and of course, concern over the ‘review’ of the status quo by authorities.
Werner says “any importation slows the growth of the industry”. Because there is so much money in chicken, in particular with tenders for hostels and the military, there are difficulties. Importers benefit from low price of production in other countries, but this is not passed on to the consumer or the government when it pays for tenders.
In 2018, discrepancies found that almost 5 000 tonnes of chicken imported into the country, ‘fell off the truck’ and is unaccounted for. There is also often criticism levelled at importers and during the public consultation process in 2019, they were accused of creating very little infrastructure, and few jobs and that they undermine the creation of a sustainable, local industry.
ROOM FOR GROWTH
These difficulties aside, there is a lot of room for growth in the local poultry industry.
In the 2018 study, the multiplier effect of the existence of the broiler industry in Namibia was assessed as being “substantially larger than the direct output from the industry would suggest”. Using meat processing for the social accounting matrix, it was found that the multiplier effect stood at 4.42.
For every N$1 output the industry generates, the overall impact on the economy is N$4.42.
Namibia needs to grow its local poultry production and create the much-needed jobs the government keeps talking about, Pieter van Niekerk, commercial manager at NPI, says.
According to Van Niekerk, the biggest challenge small-scale producers in Namibia currently face is gaining access to markets.
Traders mostly look at big loads and the shortages in the market are controlled by a handful of importers. NPI has received international accolades for its support in the local industry by aiding new entrants into the market with much-needed technical know-how and support. This extends way beyond its day-old chicks programme which allows small players to enter the market in a safe and affordable manner.
In his view, the slaughtering and route market need attention.
Most SMEs still slaughter by hand and getting access (and transport) to shelves in-store remain a major obstacle, forcing many to give up before they started. “No matter what product you grow, if you do not have a market, you do not have a business,” he says.
DEVELOPING THE INDUSTRY
Chicken and eggs are quick to produce, relatively cheap and efficient. A support centre for this industry - where industry, government and the unions (labour and industry) play a role – would be a boon for many start-ups.
Thirty years after independence there is absolutely no reason Namibia should be reliant on imported chicken to fill the gaps. The multiplier value and job creation alone should drive us to develop this sector in particular, because it drives rural economies – as the research shows.
Import limits should be increased to drive demand amongst investors and entrepreneurs and to create local wealth. If done right, Namibia could, as with its beef industry, develop into a chicken-exporting country.
Namibia needs a conducive environment to allow for more local poultry producers, both small- and large-scale, creating sustainable jobs and food security.
*JM Kretschmer is a freelance journalist.
Comments
Namibian Sun
No comments have been left on this article