By Charl van Rooyen
This may sound obvious, but rain and the state of the pasture are two of the most important factors when farming on a Namibian livestock farm. Hella and Streicher Coetzee of Hochfeld, Namibian Livestock Producer of the Year for 2024, always consider this and three other factors when making any farming decisions.
As bona fide farmers, they do not owe too much and try to follow a no-compromise policy on the quality of grazing, breeding material and feed. As difficult as it may be, they continue to follow their long-term vision and assess the risks in farming to manage unforeseen circumstances optimally.
This is the opinion of Streicher and Hella Coetzee, who were awarded Namibian Livestock Producer of the Year for 2024. The couple keep a Bonsmara stud and a commercial cattle herd on the farm Omantumba, 20 km north of Hochfeld, on 8,000 ha of their own land and 4,000 ha of rented land. Sheep, crops and game provide for a smaller income but also play an important role on their farm.
In this article, the Coetzees talk about their views on farming, production decisions, record keeping, and the importance of always staying optimistic. As they put it: “To us, farming is about very easy principles. Keep your hand on the farm, your eyes and ears among the cattle, your feet in the kraal, and your knees on the ground.”
Production decisions
Production decisions are based on the following factors (in order of importance):
Rainfall. Manage this resource very conservatively, and also manage the volatility of rain.
Grazing. Speculation is a good supplement for the stud business. Field loads can be adjusted up and down depending on the field conditions.
Commodity prices. Branches with good profits are developed, and low profitability is avoided.
Input prices and interest rates. Avoid high costs. Continuously research input prices and interest rates. Be careful of debt if interest rates are high.
Risk. Don’t bite off more than you can chew. Try to have alternatives. Reduce and avoid risks that can bankrupt a farmer. There is a difference between risk and uncertainty. Risk is like a wildfire. It is inevitable, but do not be afraid of it. Manage it as best as possible. In addition to droughts, livestock theft and other risks are also taken into account by the Coetzees. The farm is part of the local neighbourhood watch, which uses cameras to monitor movements. They and the workers are constantly keeping their eyes open, especially on the remote parts of the farm.
Remain optimistic
It is important to remain optimistic and always have a plan for any situation, regardless of poor rainfall. They have had good late rains this summer, and the farm looks like a paradise. “If you take good care of your farm, he takes good care of you, something we are once again experiencing now.”
The couple is therefore always ready to harness the potential of agriculture in general and cattle farming in particular by being adaptable. This involves purchasing livestock at lower purchase prices and budgeting for higher slaughter prices. Anti-cyclical investments in the speculation branch (buying cheap tolls) and holding back cattle for slaughtering in the feedlot for better prices have widened their farming base, says Streicher.
They constantly monitor the farm’s cash flow and pay off debts. Rather than striving for numbers and fashionable brand property, they invest in high-quality cattle, vehicles, and tools.
The Coetzees fully realise that 70% of Namibia’s population is directly or indirectly dependent on the agricultural sector for their livelihood, but that agriculture contributes only 4–6% to gross domestic product (GDP). “Actually, this small percentage doesn’t really make sense because agriculture is crucial to the economy. Agriculture cannot be ignored because it is important for economic stability in the country,” they say.
The agriculture sector is also important for job opportunities, the alleviation of poverty among particularly unskilled workers, food security, training, and empowerment for trades and skills.
Record keeping
Record keeping is paramount. They use the Bengufarm programme to record and keep up to date all servings, births, weight figures, gestation, sales, bull screenings and vaccinations. Everything is also recorded on a hard copy.
On average, the farm’s turnover shows a rising trend, especially over the past three years. In 2022, turnover increased by 26% when farming improved significantly and expansion was undertaken thanks to favourable conditions. In 2023, growth decreased by 16% (but initial gains stabilized) due to other issues affecting growth, such as market prices and available livestock numbers for marketing due to the drought. In 2024, growth increased by 11%.
The Coetzees explain the influence of these market forces.
Market stagnation. Most parts of Namibia have had below-average rainfall since 2019. This lowered the disposable income for purchasing bulls. Due to weakened or reduced pasture, the cow herds shrank, causing a decrease in demand for stud bulls. Still, thanks to genetic progress, the Coetzees’ stud farm has always been able to secure good prizes at bull auctions and maintain satisfactory sales of farm bulls.
Extensive economic conditions. Farmers are price takers, and it can easily happen that their production increases but that increased input costs affect profits. High interest rates and input prices are beyond the control of the farm and reduce turnover and profitability.
As a result, the farm’s profit has been very volatile over the past three years. It fell by 37% in 2022, rose by 86% in 2023 after successful measures were introduced to tackle past issues or unfavourable market conditions, and fell again by 18% in 2024. The volatility is due to loans for extensions, additional tool purchases, increased interest rates, fuel prices and input costs, and reduced revenues from the collapse of markets due to droughts.
The Coetzees provide for this with their own microfinance. Fortunately, their feedlot brought great stability and fewer risks with marketing.
This year, they expect less growth again, “but if we experience favourable growth, it’s a very good situation to be in in the current economic circumstances.”
The farm also uses consulting services, old textbooks they used in university, information from the meat and the agronomy board, prices obtained in these industries, veterinarians, and the Bonsmara Cattle Breeders’ Society’s inspectors to obtain information for decision making. The internet is also an indispensable source of information.
Inquiries: Streicher, +264 81 129 8397; Hella +264 81 203 6484; email: omantumba@iway.na
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