FUTURE OF THE LIVESTOCK AND MEAT INDUSTRY IN NAMIBIA

Transcription

1 FUTURE OF THE LIVESTOCK AND MEAT INDUSTRY IN NAMIBIA P. J. Strydom General Manager MEAT BOARD OF NAMIBIA UNAM 3 May 2017

2 OUTLINE OF PRESENTATION Introduction to the Meat Board of Namibia Overview international & regional markets Meeting the requirements of the international consumer Background to Namibian meat industry Challenges Conclusion

3 MEAT BOARD OF NAMIBIA GOAL OF MEAT BOARD: According to the Meat Industry Act The objects of the board are to promote the interests of the meat industry of Namibia in Namibia and elsewhere ROLE OF THE MEAT BOARD The mission of the Meat Board of Namibia is to promote a conducive environment for sustainable livestock production, market growth and diversification for livestock, meat and meat products; and to maintain standards and quality assurance by way of appropriate regulatory intervention For species cattle, sheep, goats and pigs and meat derived there from

4 STRATEGIC FOCUS AREAS

5 ssource IMS World Meat Congress 2016 Richard Brown

6 Sources: ITC calculations based on UN COMTRADE and ITC statistics (2017) ssource IMS World Meat Congress 2016 Richard Brown

7 International Competitors (2016) Beef Exporters (frozen) Tons Sheep meat Exporters (All) Tons India Australia Brazil New Zealand Australia United Kingdom USA Ireland New Zealand Netherlands Namibia exports (32) Namibia exports (21) Sources: ITC calculations based on UN COMTRADE and ITC statistics (2017)

8 SOUTH AFRICA MEAT CONSUMPTION GROWTH Sources: BFAP BASELINE Agricultural Outlook

9 SOUTH AFRICA BEEF PRODUCTION, CONSUMPTION AND PRICE Sources: BFAP BASELINE Agricultural Outlook

10 SHEEP MEAT CONSUMPTION AND IMPORTS Sources: BFAP BASELINE Agricultural Outlook

11 INTERNATIONAL MEAT TRADE Price & Exchange rates Agri-politics - Key Drivers - Farm policy - Interventions Trade Policy FTA s Environment Livestock Long Shadow (FAO) Safety, Nutrition & Health (Scares) Sustainability (water, pesticides, cloning, genitically modified, antibiotics) Animal Diseases / Animal Welfare

12 CONTRIBUTION OF AGRICULTURE TO GDP Source Namibia Statistics Agency, 2017

13 CONTRIBUTION OF AGRICULTURE TO GDP Source Namibia Statistics Agency, 2017

14 PERFORMANCE OF NAMIBIAN MEAT INDUSTRY -Export orientated - 85% (N$2.0 billion) Numbers Cattle : 2,77 million, Sheep : 1,97 million, Goat : 1,79 million Cattle weaners (8 month; kg) South African feedlots steers Export & local abattoirs (Meatco, Brukkaros) Small stock sheep South Africa (informal market) goats South Africa Kwazulu-Natal (ceremonial market) Beef ( tons) tons South Africa tons EU, UK, Reunion, Norway Lamb carcasses South Africa Norway?

15 NAMIBIA CATTLE MARKETS Export slaughter Butchers Live exports Total Marketing , , , Source Meat Board of Namibia, 2017

16 NAMIBIA SHEEP MARKETS Export slaughter Butchers Live exports Total Marketing Source Meat Board of Namibia, 2017

17 AR-380 AR-800 AR-900 AR-26K UY-90 BR-60 BR-300 BR-500 BR-680 BR-800 BR-1750 CO-130 CO-160 CO-520 CO-800 PE-1700 CN-70 CN-150 CN-300 CN-940 CN-2000 ID-2 ID-4 ID-100 KZ-800 AU-85 AU-150 AU-280 AU-450 NZ-375 MA-280 TN-45 ZA-3000 ZA-75K NA-600 NA-25K BEEF: COST, RETURNS AND PROFITABILITY (USD PER 100KG CARCASS WEIGHT) AR UY Cash cost Depreciation Opportunity cost Total returns PE CN ID KZ AU NZ MA TN ZA NA 600 BR CO Source Agri Benchmark 2016

18 DE-600 DE-1200 ES-800 ES-900 ES-950 FR-460 FR-470 FR-500 FR-750 FR-860 IE-230 UK-450 UK-500 MX-300 BR-35 BR-150 CO-380 UY-600 CN-340 AU-1250 AU-1500 AU-1600 AU-3000 AU-2000 AU-4800 AU-7800 NZ-3200 DZ-300 JO-100 MA-300 TN-40 NA-1000 NA-3000 ZA-850 ZA-1500 ZA SHEEP: COST, RETURNS AND PROFITABILITY (USD PER 100KG CARCASS WEIGHT) DE Cash cost Depreciation Opportunity cost Total returns ES FR IE UK MX BR CO CN AU NZ DZ JO MA TN ZA UY NA 0 Source Agri Benchmark 2016

19 LONG TERM TRENDS IN CATTLE MARKETING Source Meat Board of Namibia, 2017

20 LONG TERM TRENDS IN SHEEP MARKETING Source Meat Board of Namibia, 2017

21 INTERNATIONAL PRICE COMPARISONS - CATTLE Source Meat Board of Namibia, 2017

22 INTERNATIONAL PRICE COMPARISONS - SHEEP Source Meat Board of Namibia, 2017

23 IMPORTATION OF MEAT PRODUCTS Source Meat Board of Namibia, 2017

24 Industry Challenges Financial dilemma of GRN/Directorate Veterinary Services Secure and proven animal disease freedom (FMD, CBPP, BSE, PPR) Improving NCA animal health status Market exploration: NCA cattle & Beef (SADC & MENA), Lamb bone-in (EU) Increasing regulatory cost of production & compliance, e.g. livestock and feed traceability, livestock identification, animal welfare, sustainability, bush encroachment, RSA import conditions) Maintaining market access: Free Trade Area negotiations (South Africa, Norway, Brexit?) Government s interventions sheep marketing (scheme), export levies, compliance to multitude legal obligations, land utilization, trade agreements (India, Mercusor), compulsory diversion of functions to GRN agencies Updating Quality Assurance Schemes FAN MEAT, Classification Diminishing primary sector output, i.e. contribution to national economy (GDP) Coherent industry focus, collaboration and corporate governance Supply side constraints/costs skills, labour, telecommunication, roads * Blue script denotes priorities for 2017

25 CONCLUSION Improve competitiveness of Namibian meat industry Create conducive operating environment policies Strive for more efficient service delivery Address value chain input costs on financial viability of meat industry I THANK YOU