FMD pressure spreads across livestock value chain

The wider economic impact has been recognised by Government, with President Netumbo Nandi-Ndaitwah acknowledging that the outbreak has created uncertainty across the livestock value chain.The wider economic impact of foot-and-mouth disease (FMD) has been recognised by Government, with President Netumbo Nandi-Ndaitwah acknowledging the uncertainty the outbreak has created across the livestock value chain.

“The outbreak of foot-and-mouth disease in the Karasburg Veterinary District of the //Kharas Region has brought uncertainty and distress to farmers, workers and businesses across our livestock industry. Livelihoods are at stake,” she said in her high-level address on 5 October.

The financial impact of FMD therefore goes beyond farmers being unable to sell livestock. It affects an interconnected industry in which disruption on the farm can quickly spread to businesses and workers further along the value chain.

Namibia’s livestock industry operates as a connected chain, meaning disruption at one point can affect those further along it.

Nandi-Ndaitwah stressed this point, saying: “The livestock and meat industry is one of the cornerstones of our economy.”

She said the industry stretches “from the farmer and farmworker to the transporter, processor and exporter”, with the value chain sustaining families and communities far beyond the areas directly affected by the outbreak.

For a farmer unable to market livestock, costs can continue to rise while animals remain on the farm. A transporter may have fewer loads, an auctioneer fewer animals passing through sales, and a processor reduced throughput. Businesses supplying the industry can also face weaker demand.

From farm to fork

For livestock farmers, one of the most immediate financial challenges is disrupted cash flow.

The Namibia Agricultural Union (NAU) said livestock farmers depend on regular sales, but movement restrictions can leave animals on farms while normal expenses continue.

“A livestock farmer’s cash flow depends on regular sales. When animals cannot be marketed, the money stops coming in, but wages, bank repayments, feed and fuel still have to be paid,” the NAU said.

Restrictions can prevent farmers from moving animals to auctions, feedlots, abattoirs and buyers. Animals that would normally have been sold remain on the farm, delaying expected income.

“At the same time, farmers continue carrying the costs of those animals,” the NAU added.

Additional feed, lick, supplementary feeding, water, grazing pressure, veterinary expenses, labour and stricter biosecurity measures can add to the financial burden.

“The animal keeps costing money every day, but earns nothing until it can be sold,” the NAU said.

For animals already ready for market, being held for longer could also mean they move beyond the ideal weight or age for their intended market, potentially affecting their value.

Pressure cooker

The financial impact is closely linked to how long movement and trade restrictions remain in place. “I recognise the strain that movement restrictions and disruptions to trade are placing on farmers, workers and businesses,” Nandi-Ndaitwah said.

“For many families, this uncertainty concerns their next income and their ability to sustain their livelihoods,” she said.

The NAU warned that prolonged restrictions could deepen cash-flow pressure, with farmers continuing to meet bank repayments and wage obligations while carrying animals that cannot be sold.

The union has urged farmers to engage with their banks early rather than waiting until a repayment is missed or an overdraft is exhausted.

The Bankers Association of Namibia has indicated that banks may consider rescheduling or restructuring loans on a case-by-case basis, according to the NAU.

Government has also acknowledged the financial pressure.

Nandi-Ndaitwah added that government “will continue to assess these effects and engage relevant stakeholders to ensure that this animal health crisis does not lead to prolonged financial distress for otherwise viable farmers and businesses”.

However, no specific financial-support package was announced in the address.

What’s next?

Even once restrictions are eased, the financial consequences may not disappear immediately.

The NAU warned that if domestic trade reopens before export markets, large numbers of animals could enter the local market at the same time, potentially putting downward pressure on prices.

“Animals that have been held back may also no longer be in the condition or production stage originally intended for their market,” the NAU added.

This means the recovery of the livestock sector will depend not only on controlling the disease, but also on restoring market access and managing the flow of animals back into the value chain.

The impact also extends to workers and rural communities whose incomes depend on livestock moving through the market. “A transporter does not necessarily own livestock but depends on livestock moving. A processor depends on animals reaching the abattoir, while businesses supplying the sector depend on farmers and other industry participants continuing to spend,” the NAU said.

The union said the interconnected nature of the industry means disruption can reach rural towns and communities.

Every farm supports workers and their families, while livestock sales also generate work for transporters, auctioneers, processors, veterinarians, input suppliers and other service providers.