The Ohlthaver & List Group of Companies approached the Ministry of Agriculture, Water and Forestry with a proposal to establish a dairy super farm at the Hardap irrigation scheme in the Gardap region.
Namibia Dairies, a subsidiary of the O&L Group, owns a plot on the Gardap scheme that produces fodder under irrigation, which is used as feed for milk producing cows. The company has a modern manufacturing plant in Windhoek and six depots in the southern, far northern, north central and western regions of the country. Approximately 460 people are employed in its operations. Namibia Dairies has a market share of approximately 46% and produces milk, cream, butter, cheese, cultured milk, yoghurt, daury mices and juices.
World trends and cross border trade with the Southern African Customs Union are forcing producers to invest in more efficient and high yielding production methods to ensure competitiveness. Namibia Dairies intends to restructure the milk value chain to secure the future supply of locally produced milk at competitive prices.
To establish its super farm to accommodate 1 520 cows in milk, Namibia Dairies needs approximately 300 hectares of additional land for infrastructure to keep the cows under roof, since reduced temperatures increase milk production by up to 10%. Namibia Dairies, therefore, approached the government to lease the remainder of portion R607, which is 398,73 hectares in size in the Hardap region and belonging to the government for a period of 99 years.
Cabinet gave its approval for the establishment of a super farm and for the lease and set the lease amount at N$ 130 000 per annum (this amount to be reviewed annually).