An economic analyses; business case for sustainable engagement into the game meat export ...

223 Pages·2014·2.68 MB·English

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ACKNOWLEDGEMENTS

This study was funded by the German Development Cooperation (GIZ) through its
Biodiversity and Sustainable Land Management (BSLM) project, in cooperation with the
Ministry of Environment and Tourism (MET), with the aim to conduct an economic analyses
to identify business cases for commercial and communal producers in Namibia for a
sustainable engagement into formal game meat value chains. We are grateful to Dr Konrad
Uebelhoer and Daniel Kehrer for guiding the process and to Jaco Hanekom and Jacob
Kwashirai for conducting the interviews and field work. A special thanks goes to numerous
private operators within the beef, sheep and game value chains who provided us with
essential data and to Jurgens Twyman for his specialised input to the economic / financial
models. Opinions and recommendations expressed in this document are not necessarily
those of these contributors.

Contact details:

Dr Diana van Schalkwyk
FoodChainSolutions (Namibia)
P.O. Box 11774
Windhoek
Namibia
e-mail:[email protected]

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TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:17)(cid:20)(cid:20)
1. Non-agricultural resource-based production
2. Wildlife utilization
3. Economic contribution of wildlife and tourism
4. Wildlife management
5. Conclusion

CHAPTER 2 GAME / WILDLIFE PRODUCTION(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:17)(cid:20)(cid:23)
1. Game / wildlife farming
2. Meat production from game / wildlife
3. Sustainable harvesting
4. Characteristics of game / wildlife
5. Conclusion

CHAPTER 3 GAME / WILDLIFE USES(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:17)(cid:23)(cid:25)
1. Game / wildlife inventory
2. Value of game / wildlife use
3. CBNRM programs
4. Tourism
5. Live sales
6. Trophy hunting
7. Hunting tourism and safari hunting
8. Commercial harvesting and biltong hunting
9. Own consumption
10. Land uses
11. Constraints
12. Conclusion

CHAPTER 4 LEGISLATIONS, ACTS AND REQUIREMENTS(cid:171)(cid:171)(cid:171)(cid:17)(cid:17)56
1. Nature Conservation Ordinance
2. Harvesting regulations
3. Parks and Wildlife Management Bill
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4. Competent Authority
5. Legislations and guidelines for game meat export
6. Impediments
7. Conclusion

CHAPTER 5 GAME / WILDLIFE HARVESTING AND DRESSING(cid:171)...66
1. Game harvested for meat production
2. Areas approved for harvesting
3. Requirements for harvesters
4. Ante mortem inspection
5. Shooting
6. Bleeding
7. Evisceration in the field
8. Transport to the field abattoir
9. Partial dressing at the field abattoir
10. Chilling of carcasses
11. Transporting of harvested game
12. Hygiene control
13. Receiving of carcasses at the processing facility
14. Dressing and portioning of carcasses
15. Controls at the game harvesting facility
16. Quality control of meat
17. Conclusion

CHAPTER 6 GAME MEAT MARKETS(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:17)(cid:17)(cid:26)(cid:28)
1. Demand for game meat
2. Consumer behaviour
3. Attributes of game meat
4. Game meat production in Namibia
5. Contribution to rural food security
6. World venison and game meat trade
7. Marketing options for game meat
8. Market challenges
9. Game meat as organic product
10. Conclusion

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CHAPTER 7 ECONOMIC ANALYSES(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:17)(cid:17)(cid:17)(cid:28)(cid:21)
1. Introduction
2. Methodology
3. Value Chain Mapping
4. Quantification - Namibian game meat, beef, lamb/mutton and goat value chains
5. Role of livestock and game in the ecosystem
6. Effects of livestock and game on land degradation
7. The impact of climate change on wildlife and livestock and future business prospects
8. Contribution of livestock and game to CO emissions
2
9. Impact of HIV / AIDS on livestock and game farming
10. Survey results from qualitative research conducted in commercial and communal
areas
11. Financial modeling (cid:177) mixed farming enterprises (livestock and game)
12. Farming enterprises from which income is generated
13. Farming practices of respondents
14. Enterprise contribution as a percentage of income
15. Game utilization schedule of respondents
16. Direct allocated farming costs of respondents
17. Labour expenses incurred by respondents
18. General farming expenses incurred by respondents
19. Gross margins for mixed farming (livestock and game)
20. Financial modeling for livestock only, or game only farming (as opposed to mixed
farming)
21. Advantages of mixed farming
22. Comparison of income, expenses, gross margins and value-added across different
value chains (beef, lamb and game meat)
23. Amortisation of the necessary investments and cash flow requirements
24. Conclusion

CHAPTER 8 INDUSTRY NEEDS, CONSTRAINTS AND
OPPORTUNITIES(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:17)143
1. Needs, constraints and opportunities
2. SWOT analyses
3. Vision and strategies
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4. Conclusion

GENERAL RECOMMENDATIONS AND CONCLUSIONS(cid:171)(cid:171)(cid:171)(cid:171)(cid:17)(cid:17)(cid:17)(cid:20)(cid:24)(cid:20)
1. Livestock and game farming
2. Wildlife uses
3. Game harvesting and processing
4. Game meat markets
5. Value chain performance
6. Industry needs and constraints
7. Conclusion

REFERENCES(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:17)(cid:17)(cid:20)55

ANNEXURES (cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:20)(cid:26)(cid:23)
1. Questionnaires
2. List of interviewees
3. Summary of economic / financial model

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ACRONYMS

CBC Central Bureau of Statistics
CBD Convention on Biological Diversity
CBNRM Community-based Natural Resource Management
DRC Democratic Republic of the Congo
DVS Directorate of Veterinary Services
EC European Commission
EU European Union
FAO Food and Agriculture Organisation
FMD Foot and mouth disease
GDP Gross Domestic Product
GDP Gross Domestic Product
GHG Green House Gas
GIZ Deutsche Gesellenschaft für Internationale Zusammenarbeit GmbH
GNI Gross National Income
GNP Gross National Product
Ha Hectare
HACCP Hazard Analysis and Critical Control Points
IEEA Intelligent Energy Executive Agency
LSU Livestock Unit
MAWF Ministry of Agriculture, Water and Forestry
MET Ministry of Environment and Tourism
MOHSS Ministry of Health and Social Services
MTI Ministry of Trade and Industry
NACSO Namibian Association of CNRNM programs
NAPHA Namibia Professional Hunters Association
NCA Northern Communal Areas
NEF Namibia Employers Federation
NICE Namibia Institute for Culinary Education
NMA Namibian Manufacturers Association
NTB Namibia Tourism Board
OIE Office International des Epizooties
PWC Price Waterhouse Coopers
SAM Social Matrix Model
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SSU Small Stock Unit
SVCF South of the Veterinary Cordon Fence
SWOT Strengths, Weaknesses, Opportunities and Threats
VCF Veterinary Cordon Fence
WTTC World Travel and Tourism Council

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EXECUTIVE SUMMARY

(cid:55)(cid:75)(cid:72)(cid:3)(cid:49)(cid:68)(cid:80)(cid:76)(cid:69)(cid:76)(cid:68)(cid:81)(cid:3)(cid:42)(cid:82)(cid:89)(cid:72)(cid:85)(cid:81)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:57)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:21)(cid:19)(cid:22)(cid:19)(cid:3)(cid:68)(cid:76)(cid:80)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:81)(cid:86)(cid:88)re biodiversity conservation and the
(cid:86)(cid:88)(cid:86)(cid:87)(cid:68)(cid:76)(cid:81)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:88)(cid:87)(cid:76)(cid:79)(cid:76)(cid:93)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:85)(cid:92)(cid:182)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:71)(cid:79)(cid:76)(cid:73)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:70)(cid:82)(cid:81)(cid:82)(cid:80)(cid:76)(cid:70)(cid:3)(cid:69)(cid:72)(cid:81)(cid:72)(cid:73)(cid:76)(cid:87)(cid:17)(cid:3)(cid:3)(cid:36)(cid:83)(cid:83)(cid:85)(cid:82)(cid:68)(cid:70)(cid:75)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:76)(cid:79)(cid:71)(cid:79)(cid:76)(cid:73)(cid:72)(cid:3)
conservation have changed considerably over recent years, where moving away from
practising conservation towards wise and sustainable use of natural resources has had a
major impact.

The wildlife industry in Namibia has shown tremendous growth over the past decades and is
currently the only extensive animal production system that is expanding. Wildlife in Namibia
is traditionally marketed as non-consumptive tourism, trophy hunting, live game sales and
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and livestock since the early 1900s, commercial rights over wildlife were only given to
freehold farmers in 1967. Since 1975 the wildlife industry has been regulated by the Nature
Conservation Ordinance No. 4 of 1975 as amended.

The Namibian tourism industry is the strongest driving force behind the growth of the wildlife
industry and this sector is envisaged to grow by 6.9% per annum until 2017. Until recently
live sales were a feasible option for managing wildlife populations, but auction prices are not
always favourable. Trophy hunting contributes approximately 14% to the total tourism
industry, but only removes about 1% of the wildlife population. Hunting tourism has long
been an important part of the Namibian tourism and wildlife policies, but remains poorly
explored in economic terms. A recent study found that only 16% of farmers interviewed,
derived income from commercial harvesting, while 24% derived income from biltong hunts.

Currently approximately 2 million larger wild animals contribute to the physical wildlife asset
base which is estimated to have a value of N$ 10.5 billion and a gross output of N$ 1.5
billion. The wildlife use sector today represents approximately 2.1% of GNP, compared with
4.6% for agriculture, 5% for fishing, 6.8% for mining and 3.4 % for tourism. Wildlife and
tourism contributed N$ 1.4 billion to Namibi(cid:68)(cid:182)(cid:86)(cid:3)(cid:42)(cid:85)(cid:82)(cid:86)(cid:86)(cid:3)(cid:49)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:44)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:19)(cid:28)(cid:15)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)
N$ 1.97 billion of the livestock industry. It is anticipated that wildlife use values will triple its
economic contribution in the next 30 years bringing it close to its spatial potential. The direst
use val(cid:88)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:68)(cid:80)(cid:76)(cid:69)(cid:76)(cid:68)(cid:182)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:71)(cid:79)(cid:76)(cid:73)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:82)(cid:85)(cid:76)(cid:74)(cid:76)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:71)(cid:76)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:72)(cid:80)(cid:69)(cid:85)(cid:68)(cid:70)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:72)(cid:89)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)
sectors of the economy and for every N$ 1.00 contributed to the Namibian Gross National
Product through wildlife use, a further N$ 0.86 is contributed indirectly as a result.

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Currently at least 41% of the country is under wildlife management. Approximately 15.3% of
the area is under communal conservancy management, 16.5% managed by government as
game parks and state protected areas, 6.1% comprise freehold areas and 2.1% protected
land.

Game has a superior meat production potential compared to domestic livestock since most
game species have higher carcass yields. Researchers found the dressing percentage of
wild ungulates to be between 55 and 66% of live weight. Game meat can offer a healthy
alternative to consumers. The fat content of game meat is less than 3% and significantly
lower than that of livestock. Research on muscle tissue from wild animals indicated that the
percentage of poly-unsaturated to saturated fatty acids is more important than the total fat
content from a health point of view.

There is a clearly defined demand for meat from species such as springbok, gemsbok and
kudu in some countries in Europe and niche markets are offering high prices. Environmental
concerns resulted in consumers sharing more interest in free range and organic products.
Research has, however, shown that consumers are poorly educated regarding the nutritional
benefits and cooking methods of game meat and venison. Therefore the marketing of game
meat on a larger and more organised scale could be beneficial and also increase profits to
both game farmers and game meat processors.

Game harvesting operations with the purpose of satisfying local and export demand for
game meat is still in its infancy in Namibia as the formal game meat trade in Namibia is
underdeveloped. The quantities of game meat produced in Namibia in informal and formal
ways are estimated to vary between 3 400 and 18 000 tonnes annually. Game meat from
commercial farms contributes mainly to food security in Namibia as an important source of
rations for farm workers. They receive on average 3.8 kg of game meat a week, which is
about 1.8 times more than the amount of meat received from domesticated animals. Game
meat potentially benefits 33 000 people on farms when families are also taken into account.
Game harvesting also has a positive impact on the environment, since it provides a tool to
land owners and custodians of land to manage wildlife numbers for ecological carrying
capacity.

Namibia has a number of regulations that apply to sustainable harvesting of game for
commercial meat production. Countries importing game meat, such as South Africa and the
European Union, also lay down specific rules and regulations whereby exporting countries
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