Namibia advances livestock price equalisation fund for northern communal farmers
The initiative is intended to narrow the price gap between livestock producers north and south of the veterinary cordon fence.
NAMIBIA – Namibia’s Ministry of Agriculture, Fisheries, Water and Land Reform and the Namibia National Farmers Union (NNFU) are completing preparations to roll out a livestock price equalisation fund valued at US$5.5 million (N$100 million), with the aim of improving returns for livestock farmers in the country’s northern communal areas.
The ministry has invited the NNFU to contribute to the design of the implementation framework, according to the union’s chief executive, Kuniberth Shamathe, who said the organisation is participating in discussions on how the programme should operate once it is launched.
Shamathe said the union supports the establishment of fodder production projects, green schemes and feedlots as part of wider efforts to improve livestock production and marketing systems in the northern regions.
The fund was approved by Namibia’s Cabinet in 2024 and was created to reduce the price gap between livestock sold by farmers north of the veterinary cordon fence, commonly known as the redline, and producers in the southern parts of the country.
Last month, Agriculture Minister Inge Zaamwani informed Parliament’s Standing Committee on Urban and Rural Development and Land Reform that the government intends to make the fund operational before the end of the year after previous delays.
Although funding had already been made available last year, the initiative did not move forward because institutions involved in its implementation were unable to agree on how it should be managed.
The government has allocated US$2.75 million (N$50 million) to the programme in the 2026/27 national budget as part of efforts to begin implementing the scheme.
Market access remains a challenge
According to the agriculture ministry, livestock producers in the northern communal areas continue to face challenges linked to non-operational abattoirs, weak meat value chains, inadequate transport systems, limited processing infrastructure such as feedlots, feeder roads and tanneries, as well as restricted access to premium export destinations including the European Union, Norway, China and the United States.
Former NNFU president and Oshana Farmers Union chairperson Jason Emvula said livestock marketing in the northern communal areas remains difficult because auctions are poorly organised and farmers have few reliable market opportunities.
Emvula added that reopening the Eloolo Meatco abattoir would provide producers in the Ohangwena, Omusati, Oshikoto and Oshana regions with a more accessible outlet for selling cattle, while arguing that government support must extend beyond policy commitments to practical market solutions.
The ministry stated in April that only 15% of cattle from the northern communal areas are currently sold through the formal marketing system, highlighting the limited participation of producers in organised livestock markets.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
