The Livestock Producers Organisation (LPO) of Namibia has reported a strong response from sheep farmers interested in joining a proposed producer-owned company. The LPO, an affiliate of the Namibia Agriculture Union, has processed applications from over 300 farmers. The organisation attributes the encouraging response to the need for farmers to gain control of the value chain and improve their profitability.
The registration period for interested farmers has been extended to 30 September to accommodate those who have not yet registered. The LPO has appointed Cirrus Capital, a 100% Namibian-owned financial services company, to manage the company's formal share offering structure and business modelling. Farmers can contact Cirrus directly for assistance with the registration process.
An upcoming meeting at Mariental on 25 September will provide additional support to producers who require assistance with registration. The meeting aims to encourage farmers to join the producer-owned enterprise. The LPO urges interested commercial, communal, and emerging farmers to register with the Livestock and Livestock Products Board of Namibia.
The initiative to establish a producer-owned company was driven by severe cost-price squeezes, drought destocking, and heavy reliance on South African live exports or single-market channels. In July 2022, 230 sheep farmers agreed to set up the company to improve farm-level profitability and expand export markets. The company aims to be open to commercial, emerging, and communal farmers.
Previous government interventions, such as the Small Stock Marketing Scheme, had failed to meet their objectives and were suspended. The 2024 LPO congress tasked the organisation's leadership to investigate active small stock farmer involvement in processing and marketing. This led to the current initiative, which has garnered significant interest from farmers.
The producer-owned company will be capitalised through founder shares, priced at N$7 500 each, and economic shares to build producer equity. The LPO aims to reduce dependence on traditional channels by targeting regional SADC and African markets, such as Angola and Zambia. This strategic move is expected to benefit farmers and the broader agricultural sector.
The LPO's initiative has the potential to transform the sheep farming industry in Namibia. By capturing processing and export margins, farmers can increase their profitability and contribute to the country's economic growth. The company's success will depend on the active participation of commercial, communal, and emerging farmers.
Key points
- Over 300 Namibian sheep farmers have applied to join the proposed producer-owned company.
- The registration period has been extended to 30 September to accommodate interested farmers.
- The company aims to target regional SADC and African markets to reduce dependence on traditional channels.
