Mauritius Market Holds Potential For NCA Farmers
Communal farmers stand to benefit greatly from the new Mauritius market if the beef and live cattle trade becomes a permanent feature. Goliath Tujendapi, Acting CEO of the Livestock and Livestock Products Board of Namibia (LLPBN), says it is his intention to pursue making this a permanent market because it offers a new opportunity for producers especially in the Northern Communal Areas.
“Maurtius is tourist destination and there is a lot of beef consumed there. Not necessarily by local Mauritiusians, because their population is very small, but by the tourists that are visiting. And they want to eat premium beef. And if they f ound a place where they can source premium beef, why not?”
“They closed their doors to South Africa because of FMD, leaving Namibia as the only country with a strong animal health status. In fact, Namibia is currently the only nation in Africa in this position. When that opportunity arose, the buyers had no choice but to come to Namibia to source cattle. We are the only ones standing, and we must do our best to ensure the FMD virus does not enter our country,” said Tujendapi.
He made these statements during an interview at the LLPBN’s office in Windhoek on 8 April to clarify the current situation of cattle exported to Mauritius.
Tujendapi explained that the real potential of this market lies in how it matches the actual conditions of communal farming. For years, these farmers have struggled because "they don't have the range land, neither the capacity to hold or to maintain these weaners up to slaughterable mass."
Because they struggle to get cattle to slaughter weight, they often have no choice but to sell them light. The Mauritius opportunity, which has been in the pipeline since 2019, is built around this reality because it creates a high-value destination for exactly the kind of lighter, younger cattle that communal farmers are already producing, but previously had nowhere to send for a competitive price.
“Our producers, specifically from the NCAs, have been confined to the domestic markets. Producers have to have options and that's how you create competition within the value chain,” said Tujendapi
Plans for Kenya
Tujendapi explained they are exploring the idea with Mauritius to transport light cattle to Kenya, with whom Mauritius has an arrangement to raise cattle in feedlots to slaughter weight.
“They have an establishment in Kenya, where they can actually take the NCA cattle to Kenya... raise them there in a feedlot. It is basically the same as what we're already doing with South Africa. They also take our cattle and fatten them up. It is just the mode of transport that is different,” said Tujendapi.
This would allow the animals to gain weight in a more affordable environment before going to Mauritius.
Tujendapi added Mauritius has shown interest in buying Namibian beef as well with a consignment of between 20 to 40 tonnes already ordered from Meatco.
Local Value Addition and "Deadly" Cost of Feed
Responding to questions about why Namibia does not process the cattle locally to add value instead of exporting live Tujendapi explained that this stems from Namibia’s Growth at Home strategy and the country’s shortage of feed to raise cattle to slaughter weight.
The Growth at Home strategy was created to determine which products can be value-added. Currently cattle weighing 450kg and upwards are gazetted for value addition like slaughtering. Cattle below this weight are not because of the “deadly” cost of feed.
Tujendapi pointed out that for a communal farmer, trying to buy enough feed to get an animal fat enough for a local slaughterhouse is often impossible.
"The feeding cost is deadly... feeding alone makes 75% of your input cost. And that's a killing," he said. With electricity making up 45% of production costs, followed by high fertilizer prices, local feed is too expensive for most producers. Because neighboring countries can produce feed much cheaper, Tujendapi says that for communal farmers in Namibia, exporting live cattle "makes more financial sense" than trying to pay for expensive inputs at home.
No 30% Tax for These Cattle
Because this market focuses on lighter cattle, it avoids the government levy that applies to heavier export cattle.
"The 30% levy is only for cattle that are 450kg and over," Tujendapi clarified. The cattle destined for Mauritius typically weigh "between 250kg and 390kg." Because they fall well below that weight limit, they are exempt from the levy. "Anything above 450kg, there is a 30% levy applicable. And anything below 450kg, there is a 0% levy," he confirmed.
Tujendapi also explained that there are currently two views on the 30% levy that they are mediating between stakeholders and government.
One view is that the 30% levy should be completely abolished. “We should take the levy away. Because we (LLPBN) already have levies in place. General levies. So that is a double cost and an additional cost in the value chain,” Tujendapi.
The second view is that if the levy stays it should apply for cattle weighing 380kg upwards and not 450kg. “We wrote as an industry in 2015 a letter to the ministry of finance to relax the 30% levy on 450kg and replace it by reducing the threshold to 380kg. But nothing has come of it,” said Tujendapi. If this happens more cattle can be slaughtered locally which aligns with the Growth at Home strategy.
Tujendapi explained that if the LLPBN could successfully lobby the government then they would prefer the levy to be completely repealed. “My request to the Minister of Finance would be to say, don't change the levy threshold to a different level. Request that the whole Notice be repealed. The Ministry of Finance doesn't need to be a part of this equation at all. All this can be handle under the LLPBN Act”
Going forward and protecting the market
Tujendpai explained that even though the first consignment’s ship could take 3,000 cattle they only loaded 2,700 meaning Mauritius had to pay for those 300 empty spots. To reach 3,000 animals, cattle with a weight of 450kg upwards would have had to be exported. But these animals are meant for local value addition and “ I cannot allow that” said Tujendapi explaining that the export abattoirs must be protected.
While another consignment of 2,700 animals will be underway soon, Tujendapi explained that after that, the loads will be less. Mauritius plans to send vessels that can load 600 to 700 cattle at a time every 40 days.
“This represents a new market with excellent price-per-kilogram opportunities. It is a direct market where model operators can be established, allowing producers to sell directly to Mauritius without the need for multiple middlemen,” said Tujendapi.
Conditions on Ships
Tujendapi also addressed the transport by ship, stating that modern vessels provide a controlled environment.
He described the "state of the art" ships as having constant access to water, feed and employees looking after the animals. “The animal welfare issue is really taken care of. Very proper these vessels.”
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