DTA protests livestock levy

A CABINET decision to impose a levy on the export of certain livestock products, especially weaners (calves still drinking from their mothers), will be a severe blow to communal farmers, says the DTA.

The party’s leader Katuutire Kaura has taken issue with the decision to lift a 2004 exemption on the export levy of weaners at the end of October, saying besides communal farmers, the resettled as well as farmers who bought farms under the affirmative action scheme stand to suffer the most. In 2004, Government imposed an export levy on slaughter-ready cattle above 450 kilogrammes.An exemption was granted on weaners for three years.In a motion put before the National Assembly Kaura said there was not enough land for communal farmers to raise oxen that can only be marketed after three years when they have attained a weight of 450 kilogrammes.According to his estimations, communal farmers produced at least 75 per cent of the 150 000 weaners exported to South Africa on the hoof each year.He has asked the House to discuss retracting the Cabinet decision.”The problem does not lie in the idea, it lies in its execution,” said Kaura.Currently a 30 per cent levy is charged on slaughter-ready mature cattle that weigh in excess of 450 kilogrammes.Kaura said while the principle of “value addition” was laudable, Government had to consider whether the situation on the ground allowed for it.Kaura was of the view that disadvantaged farmers would need more than one farm to rear an animal to a weight of 450 kilogrammes to prevent overgrazing on farms between 3 500 and 5 000 hectares.”Communal land lacks the capacity to accommodate the 150 000 weaners annually and that will lead to severe land degradation in an area, which is stretched to the limit already,” contended Kaura.Kaura said Namibian buyers could not afford to put up feedlots because grain was imported from South Africa, which would make it an expensive exercise.In addition, Kaura said there were not enough abattoirs in Namibia to slaughter the 150 000 weaners that were transported on-the-hoof to South Africa each year.In 2004, Government imposed an export levy on slaughter-ready cattle above 450 kilogrammes.An exemption was granted on weaners for three years.In a motion put before the National Assembly Kaura said there was not enough land for communal farmers to raise oxen that can only be marketed after three years when they have attained a weight of 450 kilogrammes.According to his estimations, communal farmers produced at least 75 per cent of the 150 000 weaners exported to South Africa on the hoof each year.He has asked the House to discuss retracting the Cabinet decision.”The problem does not lie in the idea, it lies in its execution,” said Kaura.Currently a 30 per cent levy is charged on slaughter-ready mature cattle that weigh in excess of 450 kilogrammes.Kaura said while the principle of “value addition” was laudable, Government had to consider whether the situation on the ground allowed for it.Kaura was of the view that disadvantaged farmers would need more than one farm to rear an animal to a weight of 450 kilogrammes to prevent overgrazing on farms between 3 500 and 5 000 hectares.”Communal land lacks the capacity to accommodate the 150 000 weaners annually and that will lead to severe land degradation in an area, which is stretched to the limit already,” contended Kaura.Kaura said Namibian buyers could not afford to put up feedlots because grain was imported from South Africa, which would make it an expensive exercise.In addition, Kaura said there were not enough abattoirs in Namibia to slaughter the 150 000 weaners that were transported on-the-hoof to South Africa each year.