Download Presentation - South African Feedlot Association

STRATEGIC PLAN
MEAT BOARD OF NAMIBIA
2011-2016
STRATEGIC OBJECTIVES
OF MEAT INDUSTRY
South African Feedlot Association – 15 March 2012
POENA POTGIETER
CHAIRPERSON

RUGBY WORLD CUP 2011: FIVE REASONS
1. Referee - Bryce Lawrence
2. Offensive – David Pocock
3. Heinrich Brüssow's injury (FMD outbreak)
4. Too late to use the boot
5. Defensive - Selections and injuries

MAINTENANCE OF
NAMIBIA’S
ANIMAL HEALTH STATUS
FMD Surveillance Zone
150,000 HH (55% with cattle)
1.1 mil cattle (increasing)
Off-take rate: 2%
FMD Infected Zone
12,000 HH (75% with cattle)
150,000 cattle (increasing)
Off-take rate: 4%
FMD free zone
4,000 farmers
1 mil cattle (declining)
Off-take rate: 20 – 25%
Source: NRI
adapted

PERFORMANCE OF NAMIBIAN MEAT INDUSTRY
-Export market utilization - 2011
Cattle
u 200 000 weaners - South African feedlots
u 110 000 oxen – EU export abattoirs (Meatco & Witvlei)
Small stock
u 60 000 sheep – South Africa (informal market)
u 270 000 goats – South Africa Kwazulu-Natal (ceremonial market)
Beef
u 9 400 tons – South Africa (Woolworths, Steers)
u 9 500 tons – EU (UK, Norway, Germany, Finland)
Lamb
u 850 000 carcasses – South Africa

EU Beef predicted shortage for 2020: 538 000 tons

MAINTENANCE OF LUCRATIVE MARKETS
- Compliance to importing country requirements –
South of Veterinary Cordon Fence (SVCF)
Traceability (double ear tagging) – NamLITS -
movements
Record keeping (medicine, supplements, movements,
management ect)
No stimulants and hormones
Consistent supply of superior quality meat products
Quality Assurance Scheme – Farm Assured Namibian
Meat Scheme (FAN Meat)
Animal Welfare policy / Environmental sensitivity
Modern Technology: carcass
classification & ultrasonic scanning
of live cattle

FARM ASSURED NAMIBIAN MEAT SCHEME
(FAN MEAT)
- Minimum Standards and Traceability System -
“A consumer-oriented, total meat quality assurance scheme
which, through a process of inspections, monitors and certifies
Namibian meat for the export market
to the highest European Union requirements/standards
with respect to bio-safety, food safety, animal welfare and meat quality
and makes adequate provision for individual traceability
subscribes to Good Agricultural Practices
supportive to existing QA systems ISO, HACCP
certification: competent authority: Directorate Veterinary Services

OFFENSIVE (GROWTH) STRATEGIES
Decline in Cattle production approximately 12.5%
Decline in Sheep production approximately 15%
Decline in export abattoir capacity utilisation
Diversification to tourism and game farming
Diversification from ox farming to weaner farming
Bush Encroachment

LONG-TERM TREND IN MARKETING
700,000
CATTLE
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
600,000
500,000
400,000
300,000
200,000
100,000
0
LIVE EXPORTS SVCF SLAUGHTERING NVCF SLAUGHTERING BUTCHERS
TOTAL PRODUCTION TOTAL SLAUGHTERING Poly. (TOTAL SLAUGHTERING) Poly. (TOTAL PRODUCTION)
Head of Cattle

May-11
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
Trend: Slaughtering vs Live Export
SHEEP
1:1 1:2 1:6
Sep-02
Jan-03
May-03
Sep-03
Jan-04
May-04
Sep-04
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
Slaughtering Live Export Total Marketing (Inc Butchers) Poly. (Total Marketing (Inc Butchers))
May-02
Jan-02

OFFENSIVE (GROWTH) STRATEGIES
STRATEGY : CRITICAL MASS – CONSISTENT SUPPLY OF QUALITY PRODUCT
INITIATIVES TO OPTIMISE PRODUCTION
North Veterinary Cordon Fence – Commercialization of production
Low reproduction/low off-take ( LPF Farmer Mentorship program)
NCA Master Plan – which interventions is needed
Improvement animal health status (MCA Caprivi CBT)
Increase in quality (NCA cattle value improvement)
Increase in cattle and sheep production
Restoration of production potential of pastures (125 000 kg/l
arboricides)
• Better Management Practices
• Improved on-farm productivity/ competitiveness/efficiency
Problem (Predator) animals /stock theft
Increase in reproduction rate

INITIATIVES TO OPTIMISE PRODUCTION (CONT….)
Value addition along the value chain
Genetic improvement (DNS technology), pasture
conversion, eating quality, carcass yield
Development of new markets
New markets – Goat meat / Processing meat
(USA, China)
Creating a strong brand (natural/ no hormones) in
existing markets

NAMIBIA = QUALITY MEAT
Naturally produced grass fed
beef

POTENTIAL ECONOMIC BENEFIT
WEANERS TO OXEN

GOVERNMENT – VALUE ADDITION
DIRECTIVES
Cattle > 450kg = 30% export levy (Reduce to 380 kg)
Cattle (weaners) < 450kg = exempt
Cattle exports max 120 000 p.a.
Sheep 6:1 local slaughter : export ratio applied (Envisaged
to be replaced - 15% - 30% levy)
Goats = exempt
Hides and Skins dry and wet salted = 60% export levy
Hides and Skins pickled = 30% export levy

CASE STUDY - 2011
Uruguay
Cattle Numbers (n) 12 mil 2.4 mil
Cattle production (n)
Production
Environment
2.1 mil slaughtered
340 000 tons exported
Markets: Russia, EU (67 000 tons)
and Arab countries
Feedlot 10% of slaughtering
Grass-fed production
Anabolic & hormones banned
65% Production is exported
350 000 slaughtered
21 000 tons
10 000 tons
Markets: RSA, EU, EFTA
Namibia
Grass-fed production
Anabolic & hormones banned
80% Production is exported
Government
Intervention
FMD (Disease)
outbreaks
Policies promote grass-fed
No hormones/anabolics
Farm tax (over 2000 ha)
Restrict live cattle exports (15%
over 300kg
Regulates feedlots
Animal welfare certification
Last Aug 2001
Vaccination against FMD
Result: No access to Japan and
Korea
No hormones/anabolics
Farm tax
Restrict live cattle exports (30% over 450kg
Animal welfare certification
Traceability
2011

OPTIMISING PRODUCTION -
POTENTIAL ADDITIONAL VALUE TOTAL
INDUSTRY
Present Off-take Off-take Off-take
off-take
Actual (2010) 15% 20% 25%
Total census (n) 2 383 960 2 383 960 2 383 960 2 383 960
Total marketing (n) 352 613 357 594 476 792 595 990
Off-take % 14.79 15 20 25
Total value (N$) 1 516 235 900 1 537 654 200 2 050 205 600 2 562 757 000
Additional value 21 418 300 533 969 700 1 046 521 100
• Value N$ 4300.00 per head
• Actual off-take SVCF: 31%