Increased Market Access for Namibia Products and Services within the Horticulture Sector

Michael Iyambo – NHTT Chairman

Outline 1. National Horticulture Development Initiative (NHDI)

2. Horticulture Market Share Promotion (MSP)

3. Implementation of the Potato & Onion Scheme

4. Eye-Catching Display by retailers in shops

5. Agreements between producers and Traders

NAB’s Mandate

• To promote the agronomic industry; and to facilitate the production, processing, storage and marketing of controlled products in Namibia.

3

NATIONAL HORTICULTURE DEVELOPMENT INITIATIVE

• National Horticulture Development Initiative (“NHDI”) was established 14 years ago in consideration of the promotion of local consumption of fresh produce, import substitution, agro-processing and export marketing of fresh produce.

• AIM: to support and enhance the horticultural production potential of the country through various programmes, promoting the local purchasing of horticultural produce by domestic retailers and consumers.

• Realized after fruit & vegetables were gazetted under section 2 of the Agronomic Industry Act of 1992.

• Initiative by MAWF

4 Stimulate the Namibian Horticulture sector by providing an enabling marketing environment for quality of

fresh produce to consumers

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

NHDI - Objectives

1. Increased national food self-sufficiency

2. Increased national food-security

3. Import substitution

4. Employment creation

5. Stimulation of the economy in general

5 Stimulate the Namibian Horticulture sector by providing an enabling marketing environment for quality of

fresh produce to consumers

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

Cont…NHDI

• The NHDI was implemented through a Horticulture MSP scheme

– Importers are obliged to ensure that a minimum % (currently is 39 %) of their horticultural produce sales consist of Namibian grown products, prior to qualifying for an import permit, allowing for imports of the remaining portion of fresh produce not currently available in the local market.

– However, the initial MSP was 5 % in 2005, but over the years this has been increasing by mutual consensus and is currently at 39 % (2012 quarter 4 to date).

6 Stimulate the Namibian Horticulture sector by providing an enabling marketing environment for quality of

fresh produce to consumers

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

Purpose of the Namibian Horticulture Market Share Promotion (MSP)

To promote the local sales of locally produced fresh fruit and vegetables by potentially restricting the direct importation of these products by importers such as:

wholesalers,

catering companies and

Retailers/traders.

7 Stimulate the Namibian Horticulture sector by providing an enabling marketing environment for quality of

fresh produce to consumers

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

National Horticulture Task Team (NHTT)

1. Hence the NHTT was organized by the Namibian Agronomic Board to be the steering committee for the NHDI.

8 Stimulate the Namibian Horticulture sector by providing an enabling marketing environment for quality of

fresh produce to consumers

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

NHTT

AHC

NCA

AHC

KARST

AHC

KAVANGO

AHC

ZAMBEZI

AHC

CENTRAL

AHC

SOUTH

AHC

ORANGE RIVER POPA NAHOP NOA

NHTT

AHC

NCA

AHC

KARST

AHC

KAVANGO/

ZAMBEZI

AHC

CENTRAL

AHC

COASTAL

AHC

SOUTH/

ORANGE

NATFP

TRADERS REP

PRODUCERS REP

NAB BOARD REPRESENTATIVE ON NHTT

National Horticulture Task Team (NHTT)

2. HORTICULTURE DIVISION

Horticulture’s Vision:

“to stimulate the Namibian Horticulture Sector by providing an enabling marketing environment for

quality fresh produce to consumers”

HORTICULTURE DIVISION

Hort strategic voice:

“Keep local horticulture productions moving”

3. MSP %

Quarterly performance of local vs Import in Value (2006 Q1 – 2013 Q4) “K

eep lo

cal h

orticu

lture p

rod

uctio

ns

mo

ving

”

Top 20 of local produce versus import (2012/2013 financial)

15 Stimulate the Namibian Horticulture sector by providing an enabling marketing environment for quality of

fresh produce to consumers

4. IMPLEMENTATION OF POTATO

AND ONION SCHEME

(NAB BOARD RESOLUTION NO: 2011/62/70)

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

The Potato and Onion agreement

• Signed on 26 November 2013 by both parties (POPA & NATFP)

• The NHTT members agreed at its meeting which took place on Friday, 7th February 2014 that the implementation will be 1st April 2014.

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

The Potato and Onion agreement

Objective: • Provide marketing assurance to the local potatoes and

onions industry; and

• Provide a consistent and continued availability of potatoes and onions in the Namibian market and specifically in the retail market on the basis of short and long term sustainability; and

• Stimulate potato and onion production in Namibia and to promote domestic sales of Namibian produced potatoes and onions; and

• Source locally produced potatoes and onions provided that the correct quality, grade and quantity are available.

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

Yearly performance of Potato in Value Local vs Import (2010 – 2013)

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

Yearly performance of Potato in tonnage Local vs Import (2010 – 2013)

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

Monthly performance of Potatoes in Value Local vs Import (April 2011 – March 2013)

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

Yearly performance of Onions in Value Local vs Import (2010 – 2013)

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

Yearly performance of Onions in tonnage Local vs Import (2010 – 2013)

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

Monthly performance of Onions in Value Local vs Import (April 2011 – March 2013)

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

6. EYE-CATCHING DISPLAY

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

EYE-CATCHING DISPLAY

Local Fresh Produce

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

EYE-CATCHING DISPLAY “Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

HORTICULTURE MSP Message to stakeholders

1. Producers

– MSP creates an environment for substituting the import of horticulture commodities that can be produced locally.

– MSP creates value for your farming business by facilitating the increased production and income.

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

Cont…MSP Message to stakeholders 2. Traders

– MSP adds value to your business by providing easy access and availability of local horticulture fresh produce;

– MSP facilitates a link between producers and traders, through predetermined planting programmes that guarantees availability of horticulture stock.,

– The advice and support given by the Horticulture Division provides an enabling marketing environment for business growth.

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

7. HORTICULTURE PLANS

“Keep

loca

l ho

rticultu

re pro

du

ction

s m

ovin

g”

Production Action Plan

Which?

Crop?

Grown?

Where? When?

Much?

Whom

35

“Keep local horticulture productions moving”