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Namib Poultry weathering competition

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(Globalpost/GlobalPost)

Namib Mills Investment Chief Executive Officer Koos Ferreira has reiterated on Tuesday that Namibia's own large-scale chicken farm, Namib Poultry, is producing quality chickens and free of genetically modified products.

Speaking at a media briefing on Tuesday, Ferreira said the farm is weathering the pressure of competition in the market, especially on imported chickens from European Union and Brazil.

“We are a new established poultry farm and we cannot compete with subsidised products in the market,” he said.

On a question of why Namibian owned chickens are expensive than the chickens from South Africa, Ferreira indicated that the Namibian chicken's prices are in par with South African ones.

“But, still we can say, the cheaper you produce, the cheaper you sell you products,” he said.

He further reiterated that the Namibian broiler industry has felt pressure in the market, due to subsidised products, dumping and competitors making use of predatory pricing to enter Southern African market, which impact Namibia as well.

Protection in some form has become crucial as the industry operates in an environment that is capital intensive, he said, adding that the development of specialised skills and the development pf brands require time and financial resources invested over long periods of time, these need to be protected, sufficiently contribute to the country's economy.

He said the Ministry of Trade and Industry has issued the Broiler industry with an interim form of protection, through the use of the Import Export Control Act of 1994.

The import export Act comes in the wake of Infant Protection on broiler products still on hold.

“This protection will allow for Ministry of Trade and Industry to issue import on 'poultry' and and will not attract additional duties as in the case of Infant Industry Protection (IIP),” he said.

Namibia's own large-scale chicken farm is situated on the Klein Okapuka farm, about 30 kilometers from Windhoek towards Okahamdja.

The operation consists of a breeding section of three rearing sites and six laying sites, a hatchery, seven broiler sites with five houses each, and an abattoir, totaling more than 110 00 square metres.

With the capacity to rear 250 000 chickens and produce 2000 tonnes of chicken per month, NPI intends to significantly contribute to the domestic food security of Namibia.

Currently, 600 people have been permanently employed at NPI and the massive operation will see 270 Namibians trained and employed to work on the highly sophisticated abattoir floor alone.

The NPI invested N.dollars 600 million in the company, and is expected to contribute N.dollars 290 million to the country's Gross Domestic Product (GDP) annually.

The poultry farm is expected to be inaugurated in mid-June this year.

(edited)WINDHOEK: Namib Mills Investment (NMI) Chief Executive Officer Koos Ferreira on Tuesday reiterated that Namibia's own large-scale chicken farm, Namib Poultry Industries (NPI), produces quality chickens free of genetically modified products.

Speaking at a media briefing here on Tuesday, Ferreira said the farm is weathering the pressure of competition in the market, especially on imported chickens from the European Union (EU) and Brazil.

“We are a new established poultry farm and we cannot compete with subsidised products in the market,” he said.

Asked why Namibian chicken is more expensive than chickens from South Africa, Ferreira indicated that the Namibian chicken's prices are in fact on par with South African prices.

“But still we can say, the cheaper you produce, the cheaper you sell your products,” he stated.

He further stressed that the Namibian broiler industry has felt pressure in the market due to subsidised products, dumping, and competitors making use of predatory pricing to enter the southern African market, which also impact Namibia.

Protection in some form has become crucial as the industry operates in an environment that is capital-intensive, he noted, adding that the development of specialised skills and the development of brands require time and financial resources invested over long periods of time. These need to be protected in order to sufficiently contribute to the country's economy.

He said the Ministry of Trade and Industry has issued the broiler industry with an interim form of protection through the use of the Import Export Control Act of 1994.

Infant Industry Protection (IIP) on broiler products has however not yet been granted.

“This protection will allow the Ministry of Trade and Industry to issue imports on poultry and will not attract additional duties as in the case of Infant Industry Protection (IIP),” he said.

The large-scale chicken farm is situated on Klein Okapuka farm about 30 kilometres outside Windhoek towards Okahandja.

The operation consists of a breeding section of three rearing sites and six laying sites, a hatchery, seven broiler sites with five houses each, and an abattoir, totalling more than 110 00 square metres.

With the capacity to rear 250 000 chickens and produce 2000 tonnes of chicken per month, NPI intends to significantly contribute to the domestic food security of Namibia.

Six-hundred people are currently permanently employed at NPI.

NPI invested N.dollars 600 million in the company, which is expected to contribute N.dollars 290 million to the country's Gross Domestic Product (GDP) annually.

http://www.globalpost.com/dispatch/news/asianet/130411/namib-poultry-weathering-competition