Presented by Vehaka M Tjimune at the Conference on Policies for Competitive Smallholder Livestock Production, Gaborone, Botswana, 4-6 March 2015

1. Role of collective action in enhancing competitiveness of
smallholder livestock farmers
Conference on Policies for Competitive Smallholder Livestock Production
Gaborone, Botswana, 4-6 March 2015
Vehaka M Tjimune

2. United States
Continuing decline in herd
87.75m cattle
Circa 10% decline since 2009
Record prices being paid
Same cattle prices as EU
YOY Oz imports up 36%
NZ/Can/Mex imports up 20%
Net importer
Mexico
Herd in 5 years decline
17.2m cattle
Circa 25% decline since 2009
YOY cattle prices 15% up
US demand a strong driver
Home consumption decreasing
Net exporter
Europe
Herd size declining slightly
88.0m cattle
2007-2012 cattle prices rose
2012 – 2014 cattle prices fell
2015 – cattle price forecast to rise
Net importer
Brazil
Herd in growth phase
212.7m cattle
Circa 10% increase since 2009
Open for China & Middle East
Exports up 11% YOY
Argentina
Herd size slightly increasing
51.7m cattle
Inflation is running at 40%
Cattle price YOY have risen
Q2 = 76%, Q3 = 95%
Exports remain difficult to EU
Uruguay
Herd size slightly increased
12.1m cattle
EU & US key export markets
EU hind quarter cuts
US manufacturing cuts
2nd largest supplier to China
China
Herd is in 5 years decline
4% reduction in Herd
Cattle prices YOY 17% up
Importers YOY up 20.3%
Same period 2013 up YOY
380%
Australia
Herd size slightly declining
2012/2013 slaughter topped
8m head
First time in 35 years
Prices low due to drought
slaughter & FX
New Zealand
Herd size stable
2014 cattle prices
continually rising
YOY exports 15% up
Pacific Rim, US, China
main export markets
The cattle herd across Africa is
estimated at 200 million.. of which
>8% is commercialised

3. Disease Zones
• Area in Green and Red is
FMD zone
• Area in white is FMD Free
zone
• Area in Red is the Zambezi
= FMD endemic area
Cattle Production
• 2.2 million cattle in Namibia
• 1.2 in the North of VCF
(FMD and Lung disease)
±8.1% Off-take
• 800 000 are South of VCF
(commercial purposes
±25% Off-take
NCA = 81.2% of all households that own cattle have herds of less
than 30 cattle, 17% have herds of 30 and 100 animals, 1.8% have
herds of 101 and 300 animals and only 0.1% have herds of more
than 300 animals

4. 63.38 %
Namibia is a net
exporter of beef
13.10%1.41%
0.24%
22.64%
0.28%
Meatco’s role

5. Corporate objective:
Maximise Producer Returns
We strongly believe that the success of the Corporation is vested in the success
of the Namibian Producer. The aim is therefore to maximise the returns to all
livestock farmers through the maximisation of the Corporation’s sustainable
profits
Maximum distributable
income
Ability to maximise Producer
returns and remain
competitive
Maximum
market returns
Maximum
carcass return
Production
efficiencies
Integrated planning
Cost
effectiveness

6. Collective actions…..
Collective actions by smallholder farmers gives them competitive
edge..
‘Milk Train’ Concept in Namibia (smallholder livestock producers)
Purpose:
• Aim is to supply required volumes to markets on a consistent
basis.
• Reduce transport cost (by maximising full loads)
• Negotiate better freight rates through collective bargaining
power
• Local FA’S recruited staff to organise logistics on their behalf
(paid with commission earned)
What are the benefits?

7. Market share
Average annual increase in
Meatco producer price amounts
to 9.82 % compared to the 9.37 %
increase in the RSA parity price
Exports of live cattle increased
significantly during the past 10
years.

8. What are some of the Policy Implications
At village / farm level:
• Support to FA’s / Coops capacity at local level
• Sustainability issues of FA’s / Coops (commission = 1-2% of turnover)
At institutional (government and industry) level:
• Local value addition is crucial but ‘incentivise, do not penalise = levies)
• Quantify impact of ‘Levies’ on supply chain cost and final producer price
• Create environment for genuine PPP
At Regional level:
• De-regulate intra regional trade = open borders for flow of livestock and
meat trade (taking into consideration TBD)
• Create capacity and trust amongst Competent Authorities
• There are structural design issues that needs serious urgent attention
(government owned ‘meat commissions’)
Question is: have we been able to influence
policy through what we now know already?

9. Questions …..later
Vehaka M Tjimune
Executive: Policy Innovation, Stakeholder Relations & Corporate Affairs
• 24 years in livestock and meat (government/unions/meat processing)
• Served as Regional Coordinator to SADC Smallholder Network (FOS Belgium)
• Professional interest: Policy Analysis in Agriculture and Land related matters