Sheep farmers back producer-owned company

More than 230 sheep farmers have thrown their weight behind plans to establish a producer-driven company aimed at giving farmers greater control over Namibia's sheep industry to improve profitability and unlock new export markets.

The decision was reached unanimously during a sheep indaba hosted by the Livestock Producers Organisation (LPO) on 22 July in Mariental, where producers from across the country gathered to discuss the future of the sector.

According to the Namibia Agricultural Union (NAU), the proposed company will be owned by producers through a shareholding structure comprising founder shares and economic shares. 

The union said farmers agreed that founder shares will be priced at N$7 500 per share, laying the foundation for what industry leaders describe as a new era of producer participation in the sheep value chain.

Cirrus Capital, which conducted a recent sheep industry study, has been appointed to investigate and implement the share offering. Further details on the process will be shared in coming days with interested producers, including communal and emerging commercial farmers.

To participate, farmers must be registered producers with the Livestock and Livestock Products Board of Namibia (LLBPN).

During the indaba, the sheep advisory committee presented its recommendations following extensive consultations on the industry's future.

The committee concluded that sheep producers must play a far greater role in decisions affecting their products beyond the farm gate, with stronger participation throughout the value chain.

Increasing producer ownership and influence is essential if farmers are to capture a larger share of the value created from Namibian mutton and lamb production, the committee stressed.

Branching out

Discussions also highlighted the need for the industry to diversify its export destinations instead of relying heavily on a limited number of markets.

While South Africa remains Namibia's primary market for sheep products, producers agreed that future growth will depend on accessing new regional markets.

The committee identified neighbouring countries such as Zambia and Angola as promising markets where demand for Namibian mutton and lamb could be developed, reducing the industry's dependence on traditional export channels.

One of the strongest messages that emerged from the indaba was the need for unity within the industry.

Farm-level profitability, increased producer participation in the value chain and improved market access were identified as the three key pillars needed to secure the industry's future.

Producers were also warned that delaying action could result in others shaping the industry's future without farmers having meaningful influence.