The trade agreement gives Namibia, inter alia, levy and quota-free access to the European market for specifically beef.

In view of this, the LPO is of the opinion that it is of paramount importance that government enters into trade protocols with other countries, seeing that SADC/EU/EPA agreements are not finalised, while its exports requirements are getting tougher.

A stumbling block, according to the LPO chairman, Kai-Dieter Rumpf, that trade agreements with alternative markets are not finalised, is the sanitary and phytosanitary (SPS) requirement, which is solely the responsibility of government.

Rumpf said the national SPS committee that attempted to drive certain aspects such as the bone-in exports to the USA market more effectively, did not get the required results.

The Meat Board prepared a submission for the EU, which currently is only driven by the LPO on the Animal Consultative Forum and which on request of the Directorate of Veterinary Services, must now be put in writing.

"Even though the USA inspection at the local abattoir was successful, it is not yet clear when Namibia may export meat to the USA. These prolonged actions to obtain alternative market access are proof of the necessity to keep existing markets," said Rumpf.

He said although China and the Middle East countries are seen as alternative markets by government, no SPS agreements are in place yet with them.

"In the meantime, government and more specifically, the permanent secretary of the ministry of agriculture, signed a trade agreement with the (Democratic) Republic of Congo. Despite attempts by the LPF, the content and aim of the agreement could not be obtained," Rumpf added.

According to a Meat Board study on possible markets and production of organic meat, organic beef and mutton production as well as slaughtering and processing are possible in Namibia.

"There are also various markets for organic meat, such as the EU, USA, RSA and South Korea. However, to make production financially feasible, a premium of between 10 percent and 12 percent should be paid on the producer price," Rumpf suggested.

The other important trade agreement for the country is the European Free Trade Agreement (EFTA), under which Namibia can export 3000 tonnes of beef to Norway.

Meatco initially supplied this quota.

"However, currently this quota is divided into equal shares by a Cabinet decision, between Witvlei abattoir and Meatco, and not proportional to slaughtering capacity of each export abattoir," the LPO chairman said.

According to Rumpf, Cabinet again interfered, causing Meatco's prices to go down with an average of N$1 per kg, because of lost income.

"Meatco prices are used as a basis price in the Namibian market and in comparison with this, Witvlei abattoir pays on average, N$1 per kg more.

In spite of the increased quota to Witvlei abattoir, Witvlei still pays only N$1 per kg more than Meatco," Rumpf stated.

He said, as a result, Meatco's income decreased due to loss in quota, while Witvlei has a higher income but, in effect, pays less to producers.

"It seems that only individuals are benefiting. In the case of Witvlei, it is the majority of Norwegian shareholders who are getting the biggest advantage from the Cabinet decisions, and not the Namibian population," Rumpf argued.

The congress ends today.

Irene Hoaës

New Era/12/10/2011

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