Dairy sector shows growth potential
Production value increases to N$98.6m
While the sector shows growth potential, there is an urgent need to ensure sustainable growth, the union said.
Raw milk production dropped from 23.9 million litres in 2018 to 15 million litres in 2021.However, according to the Namibia Agricultural Union (NAU), the sector stabilised in 2022 with an increase in volume of about 3.8% from the 2021 figure.
“An improvement in raw milk production, together with a price increase towards the end of 2022 reflected in the fourth quarter of 2022 as a 5.2% increase year-on-year, pushed production value by 5.3%.”
The estimated production value increased from N$93.7 million to N$98.6 million.
The sector shows growth potential, but there is an urgent need to ensure sustainable growth, the union said.
“Hence, the theme for this year’s Dairy Producers’ Association members’ meeting and information day will be ‘the sustainable long-term survival of the dairy sector’.”
Dairy producers are invited to a gala dinner and awards night on 10 July as well as the annual members’ meeting and information day on 11 July at Xain Quaz in Gobabis. Producers are urged to attend the meetings to discuss current happenings and agree on a way forward with stakeholders.
The two-day event will be attended by Dr Koos Coetzee who has a wealth of knowledge on the dairy sector as well as various other speakers who will elaborate on milk production fluctuations and feed, amongst other things.
Poultry
In other news, the estimated growth for poultry - including broilers and eggs - stood at N$1.2 billion in 2021, but increased to N$1.3 billion in 2022, displaying an increase of about 8.9%.
According to the NAU, growth in value in the broiler and egg sub-sectors mainly came from a 7.5% and 18.2% increase in pricing, while broiler production fell from 33 219 chickens in 2021 to 32 835 chickens in 2022.
Egg-laying hens increased by 13.5% - from 497 717 hens in 2021 to 565 000 hens in 2022, meaning eggs increased from 12.1 million in 2021 to 13.7 million in 2022.
“These egg figures could have been higher, but some egg producers were forced to reduce production by 50 to 80% and had to lay off some employees due to the importation of lower-priced eggs,” the union said.
It added that small- and medium-sized enterprises were not spared as they lost some clients to cheaper imports, leading to egg stockpiles.
“Considering the growth of the local poultry sector and the number of imported poultry products coming into the country, it is essential that the sector establishes minimum standards.”
As a result, the Poultry Producers’ Association requested the Namibia Standards Institute (NSI) to develop local poultry meat and egg standards, it said.
A technical committee was established for the broiler sub-sector and a draft is now awaited. Meanwhile, the NSI recently approved the standards request.