N$6m DVCD programme to transform rural dairy production
The Ministry of Agriculture, Fisheries, Water and Land Reform has launched an ambitious N$6 040 000 Dairy Value Chain Development (DVCD) Programme for the 2025/26 financial year, targeting 150 existing dairy producers across five key regions in a bid to transform the country’s dairy sector.
The comprehensive programme, set to roll out in Otjozondjupa, Omaheke, Hardap, Oshikoto and Zambezi, aims to reduce Namibia’s reliance on dairy imports by building a modern, self-sustaining dairy industry across small, medium and large-holder production systems.
According to implementation guidelines released by the ministry, the programme seeks to link informal milk producers to formal markets, including government offices, ministries and agencies (OMAs), catering services and retailers. This comes in response to the limited market share of locally produced milk and dairy products, which has left Namibia heavily dependent on imports.
“The scheme has the potential to make Namibia self-sufficient in milk and dairy products through the integration of small-scale rural dairy producers into the mainstream of the national dairy industry,” the guidelines state. The long-term goal is to organise producers into cooperatives, associations or structured groups that can collect, process and sell their products directly into formal markets.
Subsidies
The programme provides generous subsidies to qualifying dairy producers through a tiered system. The government will cover 60% of the cost of production stock and 50% of veterinary medicines, feed and transport. A once-off subsidy of 65% is also available for machinery, equipment, construction of shelters and milking parlours.
For dairy cow production, eligible farmers can access up to N$27 000 for a breeding bull (restricted to pure Brown Swiss breeds) or up to N$75 000 for five Brown Swiss cows. For dairy goat production, subsidies extend to N$45 000 for 30 female dairy goats and N$6 000 for a male goat ram, in line with breed standards but excluding local breeds.
Support also includes equipment such as milking machines (subsidy up to N$15,000), pasteurisers (up to N$40,000), cold storage tanks (up to N$26,000) and processing machinery, including cheese-making equipment and yoghurt/ice cream production lines.
Focus on value addition
A major emphasis of the programme is on value addition, with 65% subsidies available for fodder production materials such as molasses, plastic sheeting for silage and inoculants. The initiative also backs the development of proper dairy infrastructure, with subsidies for shelter construction, milking parlour equipment and the transport of dairy animals.
Quality assurance is another priority. Subsidies will cover testing kits for mastitis and milk quality, as well as biosecurity materials, including protective clothing and disinfecting equipment.
The Directorate of Agricultural Production, Extension and Engineering Services (DAPEES) will manage implementation, ensuring timely distribution of funds, as well as farmer training, demonstrations and information sessions. Regional Councils and Traditional Authorities will play key roles in raising awareness and encouraging participation, particularly among women, young people, marginalised groups and persons with disabilities.
Budget allocations show that N$4.6 million of the total programme budget has been earmarked for regional implementation. Otjozondjupa will receive the largest share at N$2.6 million, followed by Zambezi at N$1 million, Oshikoto with N$800 000, and Omaheke at N$200 000.
Impact and benefits
The ministry expects a wide range of positive outcomes from the DVCDP, including:
• Increased milk production and productivity.
• Enhanced value addition and farmer skills development.
• Improved quality and safety standards for dairy products.
• Greater food and nutrition security.
• Expanded job creation and income generation.
• Reduced reliance on dairy imports.
To qualify, applicants must be Namibian citizens already engaged in livestock production, with preference given to those willing to join cooperatives or associations. All applications will be verified by ministry staff and must include dairy marketing plans.
The comprehensive programme, set to roll out in Otjozondjupa, Omaheke, Hardap, Oshikoto and Zambezi, aims to reduce Namibia’s reliance on dairy imports by building a modern, self-sustaining dairy industry across small, medium and large-holder production systems.
According to implementation guidelines released by the ministry, the programme seeks to link informal milk producers to formal markets, including government offices, ministries and agencies (OMAs), catering services and retailers. This comes in response to the limited market share of locally produced milk and dairy products, which has left Namibia heavily dependent on imports.
“The scheme has the potential to make Namibia self-sufficient in milk and dairy products through the integration of small-scale rural dairy producers into the mainstream of the national dairy industry,” the guidelines state. The long-term goal is to organise producers into cooperatives, associations or structured groups that can collect, process and sell their products directly into formal markets.
Subsidies
The programme provides generous subsidies to qualifying dairy producers through a tiered system. The government will cover 60% of the cost of production stock and 50% of veterinary medicines, feed and transport. A once-off subsidy of 65% is also available for machinery, equipment, construction of shelters and milking parlours.
For dairy cow production, eligible farmers can access up to N$27 000 for a breeding bull (restricted to pure Brown Swiss breeds) or up to N$75 000 for five Brown Swiss cows. For dairy goat production, subsidies extend to N$45 000 for 30 female dairy goats and N$6 000 for a male goat ram, in line with breed standards but excluding local breeds.
Support also includes equipment such as milking machines (subsidy up to N$15,000), pasteurisers (up to N$40,000), cold storage tanks (up to N$26,000) and processing machinery, including cheese-making equipment and yoghurt/ice cream production lines.
Focus on value addition
A major emphasis of the programme is on value addition, with 65% subsidies available for fodder production materials such as molasses, plastic sheeting for silage and inoculants. The initiative also backs the development of proper dairy infrastructure, with subsidies for shelter construction, milking parlour equipment and the transport of dairy animals.
Quality assurance is another priority. Subsidies will cover testing kits for mastitis and milk quality, as well as biosecurity materials, including protective clothing and disinfecting equipment.
The Directorate of Agricultural Production, Extension and Engineering Services (DAPEES) will manage implementation, ensuring timely distribution of funds, as well as farmer training, demonstrations and information sessions. Regional Councils and Traditional Authorities will play key roles in raising awareness and encouraging participation, particularly among women, young people, marginalised groups and persons with disabilities.
Budget allocations show that N$4.6 million of the total programme budget has been earmarked for regional implementation. Otjozondjupa will receive the largest share at N$2.6 million, followed by Zambezi at N$1 million, Oshikoto with N$800 000, and Omaheke at N$200 000.
Impact and benefits
The ministry expects a wide range of positive outcomes from the DVCDP, including:
• Increased milk production and productivity.
• Enhanced value addition and farmer skills development.
• Improved quality and safety standards for dairy products.
• Greater food and nutrition security.
• Expanded job creation and income generation.
• Reduced reliance on dairy imports.
To qualify, applicants must be Namibian citizens already engaged in livestock production, with preference given to those willing to join cooperatives or associations. All applications will be verified by ministry staff and must include dairy marketing plans.
