The agricultural sector posted a 2.6% growth in 2022 compared to 1.3% in 2021, a new report has revealed.
According to AgriBank’s agricultural quarterly report, the growth of the sector was driven by a moderate increase in the livestock farming and fishing sub-sectors, which grew by 1.2% and 2.3%, respectively.
The crop sub-sector recorded a negative growth rate of 4.5% in 2022 compared to 5.5% in 2021.
“Furthermore, the sector is expected to remain at low levels during 2023 and 2024, mainly due to inconsistent rainfall patterns and broadly unchanged fishing quotas in 2023,” AgriBank’s agricultural quarterly report said.
The number of cattle marketed in 2022 stood at 183,000 presenting an increase of 4.3% compared to 2021 attributable to better grazing conditions in 2022 coupled with improved beef prices.
Small stock markets surged by 36% to 707,894 in 2022 compared to 519,167 in the prior year according to the report.
With regards to pricing, producer prices continue to be elevated with beef export prices averaging at N$60.15 per kg in 2022 compared to N$52.51 per kg in 2021. Sheep producer prices ranged at N$60.56 per kg in 2022 upwards, as opposed to N$58.89 in the prior year.
“Contrary to rising beef and sheep producer prices, the weaner prices declined by 6% to N$37.6 per kg in 2022 compared to N$39.89 per kg in 2021. The reduction in weaner prices could be attributed to increased demand for weaner exports to South Africa,” stressed the report.
On the other hand, the agri-focused bank said it was concerned about dire climatic conditions which are posing a threat to the sector outlook.
“Such a predicament is anticipated to increase the number of livestock to be marketed, to avoid losses and reduce pressure on grazing due to the looming drought,” AgriBank said.
Furthermore, it is stated that rangeland continues to deteriorate during March 2023 as dry conditions persist.
“We observed an increase in the controlled crop production to 33,918 tonnes in the fourth quarter of 2022 compared to 23,596 metric tonnes recorded in the corresponding quarter of 2021. Due to the impact of the Ukraine war on the crop markets, we further noted an increase in the price for white maize to N$7,228 per tonne in the 4Q2022 compared to N$4,819 per tonne in the 4Q2021,” the report shows.
In contrast, domestic production of wheat increased to 24 084 tonnes in 4Q2022 compared to 17,789 tonnes in the preceding year. Similarly, for white maize, the price of wheat skyrocketed to N$8,105 per tonne as opposed to N$6,771 in 2021.
