THE introduction of a local value-addition scheme six years ago to slaughter more sheep in Namibia and to reduce live exports to South Africa not only decreased local sheep production but also caused large financial losses to farmers in southern Namibia, according to commercial farmer Gawie Ngatajosi.

"I am losing about N$500 000 a year because I get paid far lower prices at local abattoirs than if I would export my Dorper sheep to abattoirs in South Africa," says Ngatajosi, who markets approximately 3 000 sheep annually on his commercial farm east of Aranos.

In 2004 Government practically closed the border for sheep exports by stipulating that for every sheep exported live, six sheep must be slaughtered locally.

"The price difference for me is around N$200 less per sheep. I am a black commercial farmer and communal farmers in the South lose about N$168 per animal because of this. This Small Livestock Marketing Scheme Government introduced in 2004 does not work," Ngatajosi told The Namibian on Friday.

"The matter has been dragging on with agricultural unions negotiating with the Agriculture Ministry to find a better solution like allowing unlimited exports again but putting a levy of N$40 on each sheep exported. The NAU and NNFU are negotiating for a long time now, but where are the results?

"No solution is in sight, we are frustrated and we are planning to hold a demonstration in Windhoek soon and to hand over a petition to President Hifikepunye Pohamba," Ngatajosi said.

"We are also planning to start a new association, the Small Livestock Producers' Organisation, so that our voice can be heard and commercial and communal sheep farmers alike can be represented better at the negotiating table."

"The 6:1 ratio has caused the Namibian economy losses of about N$340 million in taxes due to lower prices paid locally and communal and commercial sheep farmers have lost N$980 million since 2004," Ngatajosi cited from a study done a while ago on the Government small livestock scheme.

For every 100 sheep going to abattoirs in the Northern Cape for much better prices, 600 sheep must be sent to Namibian abattoirs since 2004.

"Six years ago sheep farmers received N$16 per kilogramme for Dorper lambs sold to local abattoirs and today it is only N$10 per kg," according to Ngatajosi.

"In 2004 there were about 1,4 million sheep in the whole of Namibia, today there only 800 000 in the national herd. Due to lower prices, communal, emerging and commercial farmers have laid off workers and they turned to other farming like karakul for an income."

Agriculture Minister John Mutorwa recently said that the sheep scheme should be resolved by the meat industry. Mutorwa however did not mention that Government had introduced the 6:1 sheep export ratio.

"Changes on that require Government approval," says Sakkie Coetzee, NAU Executive Manager.

The leaders of the NAU and the Livestock Producers' Association will meet this week in Windhoek and it is expected that the sheep export scheme will be discussed.