Ostrich farming ‘in turmoil’ after Agribank withdraws funding

COMMUNAL ostrich farming in the Karas Region is on the verge of collapse after Agri-bank stopped its 100 per cent funding of the industry.

The Namibian has learnt that Agribank’s Board Chairman, Hans-Gunther Stier, informed stakeholders at a meeting in November that they had to find investors to finance the industry in order to qualify for funding. Briefing the stakeholders, Stier said the industry was “in turmoil” and Agribank therefore planned “to exit the industry in a responsible way”.He said Agribank stopped funding the industry because it was neither profitable nor sustainable and would remain dependent on subsidies.”Despite subsidies the industry still suffered losses,” stakeholders were told.In addition, studies by the bank revealed that communal farmers’ ostrich production was not enough to keep the abattoir facilities open, since they produced only about 2 500 chicks and the mortality of birds exceeded 40 per cent.In 2003, the ailing communal ostrich farming industry collapsed when most of the farmers were facing extreme hardship due to the high cost of fodder.However, the industry was revived after Agribank provided funding amounting to N$21,5 million to 49 emerging commercial farmers and Domestic Ostrich Production of Mariental (DOPM) in June 2004.Government guaranteed the full amount of the three-year revolving facility that was subject to an annual valuation of the industry.The Managing Director of Karas Abattoir and Tannery (KAT), Frikkie Mouton, said last week that Agribank’s decision would have a “radical impact” on the industry.”The skills communal farmers obtained during the three-year course and structures will be lost,” he said.Mouton admitted that the industry was experiencing a tough time.He cited the strong rand against the US dollar as one of the reasons.Briefing the stakeholders, Stier said the industry was “in turmoil” and Agribank therefore planned “to exit the industry in a responsible way”.He said Agribank stopped funding the industry because it was neither profitable nor sustainable and would remain dependent on subsidies.”Despite subsidies the industry still suffered losses,” stakeholders were told.In addition, studies by the bank revealed that communal farmers’ ostrich production was not enough to keep the abattoir facilities open, since they produced only about 2 500 chicks and the mortality of birds exceeded 40 per cent.In 2003, the ailing communal ostrich farming industry collapsed when most of the farmers were facing extreme hardship due to the high cost of fodder.However, the industry was revived after Agribank provided funding amounting to N$21,5 million to 49 emerging commercial farmers and Domestic Ostrich Production of Mariental (DOPM) in June 2004.Government guaranteed the full amount of the three-year revolving facility that was subject to an annual valuation of the industry.The Managing Director of Karas Abattoir and Tannery (KAT), Frikkie Mouton, said last week that Agribank’s decision would have a “radical impact” on the industry.”The skills communal farmers obtained during the three-year course and structures will be lost,” he said.Mouton admitted that the industry was experiencing a tough time.He cited the strong rand against the US dollar as one of the reasons.