Namibia's live cattle exports shoot up

June 22, 2022

Cattle slaughtering increased marginally by 3.4% y/y in May 2022, while that of sheep dropped 12.0%, goats down 90.7% and pigs rose 12.8%. Live cattle exports increased by 35.9% y/y while sheep rose 47.5% y/y although goats dropped 9.8% y/y in May 2022.

South Africa was the only export destination for live cattle during May 2022, with 99% of live sheep and live goat exports going to South Africa.According to Simonis Storm, processed beef product exports increased by 76.9% y/y in May and were mainly sold to Europe (61.1%), China and the US (23.9%) and Africa (15.1%).

“Processed sheep product exports increased by 96.3% y/y in May 2022 and were sold only to South Africa, whereas pork meat product exports were recorded at eight tonnes in May 2022, compared to zero tonne in May 2021.”

YTD, average auction prices decreased from N$32.19/kg to N$29.34/kg dropping 8.9% for cattle, decreased from N$35.22/kg to N$34.39/kg a 2.4% decrease for sheep, increased from N$37.04/kg to N$38.21/kg rising 3.2% for goats and increased from N$36.76/kg to N$36.95/kg for pigs rising a slight 0.5%, according to data from the Meat Board.The Meat Board expects beef prices to reach above N$60/kg by the end of this year. This will be reflective of increased input costs of diesel and animal feed.Livestock marketing is expected to provide support to the economy’s continued recovery from the lockdown induced recession. This will be aided by local farmers reaping the benefits from restocking initiatives in the past two years, according to the Meat Board.
One of the reasons for the decline in net investments in the fishing sector in is the quota allocation. For example, some industry players have three boats but receive quotas which only needs one boat.

“Quotas have been allocated to an increasing number of right holders without an increase in the Total Allowable Catch.In other words, fishing companies get a smaller slice of a fixed size pie. As a result, we could continue to see net investment in new vessels decrease in the fishing sector and drag overall industry net investment lower if policy does not reallocate resources in a better way,” said Simonis in an analysis.
Initially, the Namibian borders were closed to the importation of 11 different horticulture products during May 2022, but this list was revised to nine products later in May 2022 according to the Namibian Agronomic Board (NAB).Only tomatoes and green peppers were removed from the list, owing to lower production locally.Average farm gate prices of various horticulture products have decreased by 2.7% y/y in May 2022, whereas the average retail price for the same products have increased by 6.3%.During May 2022, cabbage prices dropped 28.6% y/y, sweet potato were down 28.1% y/y, lettuce dropped 20.6% y/y and tomatoes
fell 20.5% y/y, recording the largest annual drops in farm gate prices.

On the other hand, beetroot prices rose 42.7% y/y, cucumber were up 29.8% y/y, sweet potato were 26.1% higher y/y and green peppers were up 25.2% y/y,
recording the largest annual retail price increases in May 2022.The fact that farm gate prices are declining, yet retail prices are increasing, could be indicative of market power – or the abuse thereof – resting with retailers in forcing stock prices down whilst increasing profit margins.

“We expect profit margins for local crop farmers to remain under pressure owing to rising input costs such as higher diesel and fertiliser prices amongst other.

As a result of improved rainfall during the first few months of 2022, the NAB forecasts a surplus in local harvests of most horticulture products between May and September 2022, only two products – potatoes and gem squash – harvests are forecasted to fall short of local demand.

“Crop production is therefore largely forecasted to show improved harvest levels compared to 2021 and should support growth in the agricultural sector going forward,” said Simonis.

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Last modified on Saturday, 25 June 2022 21:13