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Restricting live sheep exports illegal - South African study
GOVERNMENT’S restriction of live sheep exports to South Africa has been found to be illegal by the South African Agricultural Marketing Board.
Government introduced the Namibian Small Stock Marketing Scheme (NSSMS), under which live sheep exports are restricted to one head exported for every six slaughtered locally (a 6:1 ratio), in 2004 to stimulate value addition locally.
The SA study was initiated in 2007 following a request from the South African Red Meat Producers Organisation (RMPO) to investigate the impact of the NSSMS on the South African red meat industry.
According to the study, released in June, the ban contravenes World Trade Organisation, SADC Protocol on Trade and Southern African Customs Union (SACU) regulations, all three of which Namibia is a signatory to.
The study recommends that high level bilateral discussions between South Africa and Namibia be initiated to address the issue.
Approached recently, RMPO CEO Gerhard Schutte said a failure to reach agreement with Namibian red meat producers, has necessitated that the governments of the two countries try finding a solution to the impasse.
“A free market system is the best solution, therefore Namibia should abolish its current small stock marketing scheme,” Schutte said.
“It would not be that difficult for Namibia to do this, because both countries trade within the SACU Agreement, which promotes a free market system environment,” he said.
The South African Agricultural Marketing Board study states that South African sheep carcass prices have dropped significantly since the export restriction was imposed, which has had an adverse impact on the South African meat industry.
“This will in turn affect the operations of South African abattoirs, employment and business in the small stock industry in general,” the report further states.
The study also indicates that the price impact is compounded by anecdotal evidence showing that monitoring and control of carcass (and even live) imports from Namibia are not efficient.
However, the South African findings come at a time when Namibian sheep producers and some abattoirs have reached agreement on long-standing differences over the NSSMS. According to this agreement, the NSSMS ratio of 6:1 will be replaced by an export levy of N$40 on every live sheep exported. The levy is expected to serve as a disincentive to export live sheep to the South African market.
When contacted for comment on the South African study, both Agriculture Minister John Mutorwa and Abattoirs Association Chairperson Diana van Schalkwyk, said they were not aware of it. President of the Namibia Agricultural Union (NAU), Sakkie Coetzee, ackowledged having seen a copy of the report.
“Only the South African perspective is reflected in the report, therefore at this stage the union does not want to comment on it,” said Coetzee.
“I have not seen a copy of the study report, but those contesting the legality of it (NSSMS) have the right do so. Only the court of law can pronounce itself on the alleged illegality of the scheme,” said Mutorwa.
“The scheme is a political decision aimed at boosting value addition, thus I cannot comment on it,” was Van Schalkwyk’s response.
How the new agreement struck between local sheep producers and some abattoirs affects the South African position remains unclear at this stage.
luqman@namibian.com.na
