Dairy farm dormancy irks Venaani
Dairy sector 'battling to survive'
The Uvhungu Vungu dairy farm in the Kavango East Region cost government N$141 million to construct and has been non-operational for 11 years.
With the dairy sector in Namibia fighting for survival, Popular Democratic Movement (PDM) president McHenry Venaani has raised concern about the dormant status of the Uvhungu Vungu dairy farm in the Kavango East Region.
This is according to an open letter that Venaani wrote to agriculture minister Calle Schlettwein.
The farm cost government N$141 million to construct and has been non-operational for 11 years.
He said the dairy farm industry is pivotal to creating jobs and promoting sustainable development.
"Currently, the Namibian dairy sector is battling to survive, with production decreasing and the price-cost squeeze forcing producers to exit the sector."
Project vital to economy
Venaani said recent reports indicate that raw milk production dropped from 21.8 million litres in 209 to 17.2 million litres currently, which equates to a 21.1% decline in volumes.
"The operationalisation of this dormant dairy farm is of paramount importance to addressing the pressing challenges we face concerning food security."
Venaani pointed out that Namibia imports 80% of its food.
"The unavoidable truth remains that 33 years after independence, it is unacceptable that we still implore upon the government to exigently mechanise the agriculture sector."
Venaani said reports indicate that the value added to the agriculture sector in the third quarter of 2022 was estimated to be N$3.2 billion in nominal terms, representing 6.4% of the GDP.
"The agriculture sector continued to be the lowest contributor to the country’s GDP among the major industries of the economy despite being Namibia’s highest employer of labour. The growth rate of agriculture declined to 1.6% during 2022."
Revitalise
He said that by revitalising the dairy farm, government can harness its potential to bolster agricultural production and create a stable foundation for future generations.
"Therefore, it remains a grave concern that 11 years after its establishment, the dairy farm remains underutilised."
Venaani said that the manner in which farming activities are conducted in the country entails poor productivity and is incompatible with Africa’s zero hunger goals.
He said while the ministry received a total of N$2.4 billion in the 2023/2024 financial year, further investment is required in the sector to ensure the complete overhaul and mechanisation of agriculture.
Provide answers
Venaani said the Uvhungu Vungu dairy farm was awarded to a Namibian and Indian joint venture for a period of 25 years.
He demanded that the ministry provide information on the current status of the dairy farm, whether the evaluation and adjudication stages have been completed, what volume of milk can be expected, and when operations will finally begin.
The agriculture ministry said a response to this would be given in the National Assembly.
This is according to an open letter that Venaani wrote to agriculture minister Calle Schlettwein.
The farm cost government N$141 million to construct and has been non-operational for 11 years.
He said the dairy farm industry is pivotal to creating jobs and promoting sustainable development.
"Currently, the Namibian dairy sector is battling to survive, with production decreasing and the price-cost squeeze forcing producers to exit the sector."
Project vital to economy
Venaani said recent reports indicate that raw milk production dropped from 21.8 million litres in 209 to 17.2 million litres currently, which equates to a 21.1% decline in volumes.
"The operationalisation of this dormant dairy farm is of paramount importance to addressing the pressing challenges we face concerning food security."
Venaani pointed out that Namibia imports 80% of its food.
"The unavoidable truth remains that 33 years after independence, it is unacceptable that we still implore upon the government to exigently mechanise the agriculture sector."
Venaani said reports indicate that the value added to the agriculture sector in the third quarter of 2022 was estimated to be N$3.2 billion in nominal terms, representing 6.4% of the GDP.
"The agriculture sector continued to be the lowest contributor to the country’s GDP among the major industries of the economy despite being Namibia’s highest employer of labour. The growth rate of agriculture declined to 1.6% during 2022."
Revitalise
He said that by revitalising the dairy farm, government can harness its potential to bolster agricultural production and create a stable foundation for future generations.
"Therefore, it remains a grave concern that 11 years after its establishment, the dairy farm remains underutilised."
Venaani said that the manner in which farming activities are conducted in the country entails poor productivity and is incompatible with Africa’s zero hunger goals.
He said while the ministry received a total of N$2.4 billion in the 2023/2024 financial year, further investment is required in the sector to ensure the complete overhaul and mechanisation of agriculture.
Provide answers
Venaani said the Uvhungu Vungu dairy farm was awarded to a Namibian and Indian joint venture for a period of 25 years.
He demanded that the ministry provide information on the current status of the dairy farm, whether the evaluation and adjudication stages have been completed, what volume of milk can be expected, and when operations will finally begin.
The agriculture ministry said a response to this would be given in the National Assembly.
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