Local businessman criticises large agriculture monopolies

GOVERNMENT should not use the taxpayer’s money to help establish monopolistic companies, because this is contrary to development objectives, a commercial farmer and businessman said on Friday.

Speaking at the annual business summit of the Namibia Chamber of Commerce and Industry (NNCI), Sidney Martin said smaller dairy farmers have stopped production because of the new Super Dairy farm at Mariental, which has started large-scale milk production.’How many milk producers have left the trade due to the investments of the Development Bank of Namibia (DBN) in the super farm?’ Martin asked. ‘Is the objective to apply taxpayers’ money to create a monopoly that can determine at will what the price of milk should be and the same taxpayer (has) to pay more for milk because he/she does not have any control over the price?’ Martin criticised.The DBN granted a loan to Namibia Dairies to develop the super farm.Martin added that the way taxpayers’ money was used to fund loans could be described as: ‘I give you money and you decide what price I have to pay for the product you produce with my money I gave you’.Martin has business interests in the fishing industry, has set up a dairy farm and has bought the defunct Witvlei abattoir from which he now exports meat to Europe.Martin also hit out at retailers that he accused of monopolies. ‘Retailers have become more powerful than ever before. Four retailers in Namibia control the entire retail market. Delaying tactics in payments to (agricultural) producers are causing cash-flow problems, which results in many producers and potential producers not taking up the challenge to become involved in food processing and food production,’ Martin charged.He proposed that large-scale seed and fertiliser production should take place in Namibia. ‘Namibia has no farm that produces seeds and chemical fertilisers and potato farmers in our country are all importing their potato seedlings from South Africa. This could be reduced if done locally,’ he said.He further said that farmers should not underestimate the value of manure from their livestock, which can be sold to crop farmers as a natural fertiliser.He called on Government to investigate ways to create new markets for agricultural produce locally and internationally to expand production, which would result in more jobs.Martin further urged Government to lower import tax on agricultural implements, which must all be imported. Namibia is a net importer of agricultural equipment and that increases the input production costs for farmers. ‘To overcome this challenge, food producers could receive a limited break on import tax linked to the repayment period of the equipment,’ he proposed. Significant Government investment in rural infrastructure such as fences, roads, rail links and dams is also necessary, since ‘the cost of doing agribusiness has risen dramatically,’ he added.He also called for rebates for farmers on water and electricity usage if used for agriculture.’The greatest challenge we as a nation should overcome is the danger of standing still,’ Martin concluded his presentation.