More than 230 sheep farmers attended the Livestock Producers Organisation’s (LPO) Sheep Indaba on 22 July at the Padlangs Padstal in Mariental, sending a strong message that the industry is united in its pursuit of greater profitability at farm level, stronger participation throughout the value chain and improved access to competitive markets.

Hosted by the LPO, the Indaba provided farmers with an opportunity to discuss the future of Namibia’s sheep industry and consider practical steps towards achieving long-term sustainability.

Establishment of farmer-driven company receives overwhelming support

“To determine the way forward, farmers were asked to decide on two fundamental principles. The first was whether they supported the establishment of a farmer-driven entity with the objective of ensuring that farmers are represented throughout the value chain and have greater insight into its operations, ultimately improving profitability at farm level.

“The second was to decide what structure the investment vehicle should take,” says Jako van Wyk, Chairperson of the LPO.

“The first principle received overwhelming support from the small stock farmers who attended the meeting. On the second principle, farmers resolved to proceed with the establishment of the company.”

The proposed structure will include both founder shares and economic shares, with founder shares priced at N$7 500 each.

“In the view of the organisers, this represents a modest investment in securing the long-term future and sustainability of Namibia’s sheep industry,” says Van Wyk.

He explains that the company will have two classes of shares: Class A and Class B. Class A shares will be held by farmers and will provide the mandate to direct and govern the company in line with its objectives, while Class B shares will represent the economic shareholding in the business.

Jako van Wyk, Chairperson of the LPO. (Image: Supplied)

‘A broader vision for the future’

“Drawing on the numerous studies commissioned by the LPO over the years, particularly those conducted during the past two years, as well as the work of the small stock advisory committee it established, one message emerged clearly: small stock farmers have a broader vision for the future,” says Van Wyk.

“Their ambition extends beyond investing in a single processing facility or relying on a single marketing channel.”

Following its work on the sheep industry study, Cirrus Capital was appointed to oversee the development and implementation of the share offering. Further details will be communicated to interested farmers, including communal and emerging commercial farmers. To participate, farmers must be registered with the Livestock and Livestock Products Board of Namibia (LLBPN).

The sheep advisory committee, established at last year’s LPO congress, presented its recommendations at the Indaba. Central to its findings was the need for farmers to play a more influential role across the entire value chain, ensuring they have a greater say in the marketing and commercialisation of the products they produce.

The committee also highlighted the importance of expanding export opportunities for Namibian mutton and lamb. Rather than relying predominantly on one or two traditional markets, it recommended exploring new opportunities in neighbouring countries such as Zambia and Angola, alongside the established South African market.

Safeguarding the industry’s future

“Looking ahead, the next eight weeks will focus on an intensive awareness and marketing campaign to establish the company and invite interested farmers to become shareholders,” says Van Wyk.

“The campaign will make use of the Namibia Agricultural Union’s communication platforms, while the union’s regional representatives and the small stock advisory committee, which has been instrumental in guiding the process over the past year, will host regional meetings to inform farmers about the initiative.”

An online communication campaign will also be launched to ensure that farmers across the country have access to the necessary information.

“Farmers are encouraged to follow these communication channels and attend the regional meetings to learn more about the company and the opportunities it presents,” Van Wyk concludes.

The committee stressed that decisive action is needed to safeguard the industry’s future, warning that if farmers do not take the lead in shaping the sector, others will, potentially resulting in outcomes that do not reflect farmers’ interests.

With special thanks to Nicole Schwandt, Marketing Assistant, NAU.

For more information, contact Leigh-Ann Nehoya at stats@nau.com.na or (+26)482-4099-320. Interested parties can also visit https://www.facebook.com/NamibiaAgriculturalUnion