CHAMWE KAIRA
Namibia’s sheep industry is facing a temporary processing disruption after Farmers Meat Market (FMM) in Mariental, the country’s only export-approved sheep abattoir, suspended slaughter operations amid rising costs, high inventory levels and challenges in export markets.
A research analysis by Simonis Storm Research said the disruption should be viewed as a processing and market access challenge rather than a collapse of the sheep sector.
The firm said information disclosed by FMM points to four key issues including disrupted slaughter schedules, higher local procurement prices combined with exchange rate pressures, stock holdings reaching about 90% capacity, and ongoing negotiations with European customers over prices.
According to the analysis, the problem stems from an “export parity squeeze”, where procurement costs rise before export revenues are received. The stronger Namibia dollar against the euro reduced export earnings when translated into local currency, while higher livestock buying prices increased pressure on margins.
“The interruption is open ended and carries no public restart trigger,” Simonis Storm said, adding that the available information does not indicate insolvency or permanent closure.
FMM is owned by Hartlief Corporation, which is 85% controlled by the Ohlthaver & List Group. The research noted that the group has invested about N$373 million in the Mariental operation, including the abattoir, a biogas plant and the Aimab Super Farm.
The disruption comes at a time when Namibia’s sheep sector has recorded strong marketing performance. Between January and May 2026, the country marketed 353 944 sheep, representing a 38.2% increase compared to the same period last year.
Live exports dominated the market, accounting for 280 567 sheep, or 79.3% of total marketed animals. Export-approved slaughter accounted for 34 814 sheep, while domestic slaughter contributed 38 563 animals.
South Africa absorbed 99.6% of Namibia’s live sheep exports during the period, highlighting the sector’s dependence on regional markets.
Simonis Storm said this creates a structural challenge for Namibia’s livestock industry. While live exports provide farmers with an important alternative market and protect producer liquidity, they also result in value addition taking place outside Namibia.
“A stoppage at the only export abattoir does not destroy the farm output represented by affected animals. It changes where processing value, wages, by-products and logistics margins are captured,” the report stated.
The research also highlighted that the challenge is not simply one of weak demand. Instead, the processor is caught between higher procurement costs, increased financing costs due to high inventory levels, reduced throughput and limited ability to adjust customer prices.
The analysis estimated that restoring previous export revenue levels could require customer price increases of between 12% and 14%, depending on procurement costs and processing margins.
The situation has also triggered renewed calls among producers for greater participation in the sheep value chain. More than 230 farmers attended a Livestock Producers Organisation indaba in Mariental on 22 July 2026, where they agreed to establish a producer-driven company with founder shares priced at N$7 500 each.
The initiative aims to give farmers greater ownership and influence over the industry, including future market development and value addition opportunities.
