The Namibian National Farmers Union (NNFU) has called on the Ministry of Agriculture to fast-track the implementation of the long-awaited Northern Communal Areas (NCA) Equalisation Fund, warning that delays are holding back the development of communal farming.
Speaking at the groundbreaking ceremony of a new EU-funded feedlot facility in Etunda, NNFU representative Sylvanus Naunyango said that while infrastructure investments are welcome, they must be accompanied by financial mechanisms that allow farmers to participate meaningfully in the livestock value chain.
“We would like to use this opportunity to remind the Ministry of Agriculture to speed up the NCA Equalisation Fund. NCA equalisation is the conduit and enabler for these good works the ministry is doing. Let this be the beginning of many more such inclusive developments that truly unlock the potential of Namibia’s communal farming sector,” he said.
Naunyango described the feedlot as a long-overdue milestone for farmers in the Northern Communal Areas.
He said the biggest barriers for communal farmers had not been livestock numbers, but limited access to markets, poor animal quality, and a lack of consistent supply to abattoirs.
He noted that the NCAs are home to more than half of Namibia’s estimated 1.7 million cattle, yet the offtake rate remains below 5%, compared to around 25% in the commercial farming sector. While acknowledging some progress—such as Meatco NCA slaughtering approximately 9,000 cattle in the last financial year—Naunyango said efforts by farmers were still hampered by poor infrastructure and a weak enabling environment.
“We therefore appeal to all implementing ministries and contractors to expedite the construction process and ensure this facility becomes operational as soon as possible,” he said.
The NCA Equalisation Fund, approved by Cabinet on 9 July 2024, is a government initiative aimed at compensating cattle farmers north of the Veterinary Cordon Fence for the price disparities they face compared to their counterparts in the south.
Since cattle of equal quality and weight often fetch lower prices north of the red line despite similar production costs, the Fund is designed to cover the difference and ensure farmers receive fair market value.
Supported by the NNFU, the Fund aims to level the playing field and offer relief to farmers in disadvantaged regions.
