Africa-Press – Namibia. The Ministry of Agriculture, Fisheries, Water and Land Reform has allocated N$6.04 million to subsidise farmers that produce milk and dairy products locally.
This is a bid to reduce Namibia’s dependence on imported milk and dairy products.
According to ministry executive director Ndiyakupi Nghituwamata, the Dairy Value Chain Development Scheme aims to build a modern and self-sustaining dairy industry by supporting small, medium and large producers, and to link informal milk production to formal markets.
“The scheme seeks to link informal milk production to formal markets including government offices, ministries and agencies, catering services and retailers, thereby increasing the production of milk and dairy products in the country,” says Nghituwamata.
She adds that the scheme has the potential to make Namibia self-sufficient when it comes to milk and dairy products.
Due to the low market share of milk and dairy products in the formal market, the country relies mainly on imports.
The programme will be implemented during the 2025/26 financial year in the Otjozondjupa, Omaheke, Hardap, Oshikoto and Zambezi regions, with an initial target of 150 existing dairy producers.
“The programme is being piloted in the above-mentioned regions, therefore, other neighbouring regions are allowed to benefit from those regions with budgets,” says Nghituwamata.
Government support under the scheme will take the form of subsidies on inputs, equipment and services for both dairy cattle and goat production.
The government will provide a 60% subsidy on production stock while providing a 50% subsidy on veterinary medicines, feeds and transport.
For infrastructure and processing-related investments, the government will provide a 65% subsidy on machinery, equipment, materials, construction of shelter and a milking parlour once-off.
The maximum subsidy per beneficiary per year will be capped.
“The maximum subsidy per beneficiary per annum for dairy development (cattle) is N$200 000 and N$100 000 for goats,” adds Nghituwamata.
The scheme also makes provision for milk processing equipment, sour milk culturing containers, testing kits, packaging materials and protective gear for dairy producers, as well as support for the establishment of shelter and milking parlours.
The funds earmarked for subsidies will be channelled through regional authorities.
“Regions will create awareness on the project and register interested farmers, thereby creating a database of dairy producers who will be eligible to benefit,” says Nghituwamata.
For the 2025/26 financial year, the Dairy Value Chain Development Programme has been allocated N$6.04 million.
According to the breakdown, N$2.7 million is set aside for subsidies to beneficiaries, N$900 000 for capacity building, N$940 000 for the procurement of voucher books and airtime vouchers, N$1 million for the establishment of a milk processing centre, and N$500 000 for dairy benchmarking activities.
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