Empirical information on beef production in regions of Namibia as an aid to restructuring the livestock farming industry along equitable lines

Abstract

The paper considers the regional influence of prices and access to markets on beef numbers in Namibia, given the present inequalities, by using econometric analysis of time‐series data. This is relevant because Namibia is in a process of structural adjustment following independence in 1990. and in view of the livestock industry's importance in the Namibian economy. The results accentuate the role of access to markets in beef production in Namibia. Where access is severely restricted due to lack of infrastructure, such as processing facilities and adequate transport for example in the communal regions, beef producers do not act on price incentives, or cltmatological and ecological variables. However, beef producers with limited access to markets, mainly due to high transport costs, do react to environmental changes, but not to price incentives. Only producers with easy access to markets react to both environmental changes and price incentives. The major conclusion is that the present production and marketing structure in Namibia with respect to beef is probably not optimal. The results highlight the need for an overall policy which accounts for all related industries, producers, consumers and other relevant factors simultaneously.

Notes

The authors are indebted to anomymous reviewers for reviewing earlier versions of the manuscript and their valuable contributions.

Respectively, Lecturer in Agricultural Economics, University of Pretoria, Dean of Agricultural Sciences, University of Pretoria, and Associate Director, Policy Unit Development Bankof Southern Africa.