Namibia Sets Up First Broiler Integration14 March 2011
NAMIBIA - The country aims to start exports of chicken meat as a first broiler integration is announced.
Namibia will become independent in broiler processing in the next few years and the potential is there to become a net exporter to Angola, according to The Southern Times.
The project budget is at 500 million dollars (NAD) and would be funded by the Namib Mills Industry (NMI) Group as well as financial institutions in the country and abroad.
Poultry broiler processing has been identified by the group as a way of forward integration because no broilers are being produced in Namibia and the group has the capacity as well as the expertise in broiler feed production.
NPI forms part of the NMI Namibia group of companies, which include Namib Mills (Pty) Ltd and Feedmaster (Pty) Ltd. NPI is in the process of setting up the poultry operation between Windhoek and neighbouring town Okahandja.
The fully integrated poultry operation would consist of breeders flocks, a hatchery, a broiler farm and an abattoir with the production capacity of 250,000 broilers per week on a single shift. NPI plans to supply the whole Namibian market with chicken meat and the operation has the ability to double its size to 500,000 birds per week.
The project is in line with government's Vision 2030 and will provide more than 600 new job opportunities in the country. It would make a substantial contribution to import substitution, the Gross Domestic Product (GDP) and trade balance of Namibia.
The NMI Group is making its biggest investment in the country in 28 years.
Gys White, NPI General Manager, told journalists last week the project is about to enter its implementation phase. He said NPI completed a tender process whereby various preferred suppliers from South Africa and Namibia have been identified and letters of intent were given to the suppliers, subject to financial approval of the project.
"The project civil and building works is valued at N$245 million of the total project, of which 45 per cent was awarded to six Namibian contractors and 55 per cent of the value to one South African contractor," Mr White said.
He added: "The South African contractor specialises in modern environmental controlled chicken house and would employ up to 100 Namibian employees during construction."
According to Southern Times, most of the equipment is specialised and imported from Europe through South African agents. About five percent of the equipment value of N$190 million has been awarded to Namibian contractors. NPI encourage overseas and South African suppliers to make use of Namibian sub-contractors and employment during construction but cannot enforce anything on the suppliers, White said.
The project is due to have finance approval by mid-March, with construction aimed at starting at the end of March. The country should have its own locally produced chicken by March next year.