Developing a collaborative marketing strategy for sheep farmers in Namibia

Agriculture is a very important sector in Namibia as approximately 70% of the country's population relies on it for a living, while it contributes to 5.5% of the gross domestic product (GDP). Due to the low rainfall in the southern parts of the country it is predominantly used for sheep farming while the central parts are used for cattle farming. There are basically four different marketing alternatives for sheep from commercial producers in Namibia. The live export of sheep to South Africa always was the best-priced market for Namibian producers. Since the SSMS had placed a limit on the amount of sheep that may be exported, the number of local slaughtering for export and local consumption has increased. These market options, however, results in a lower producer price and the average price for mutton and lamb in Namibia had thus decreased in comparison with the prices in South Africa. A focus group study was used to derive a collaborative marketing strategy for farmers. After conducting a risk analysis and setting short, medium and long term objectives, a SWOT analysis and TOWS matrix assisted the producers in deriving a strategy. After discussing every strategic option, the group decided that they will first market to the Windhoek market through a group-owned butchery. They will target the higher income groups, by selling high-value cuts in large quantities and low-value cuts to the low-income groups, thereby integrating further down the supply chain and gaining a larger proportion of the consumer dollar.