Cattle exports, slaughtering drop
Carcass prices increase
Weaner prices trended sideways during December, which could be attributed to reduced demand due to filled feedlot capacity in South Africa at year-end, the Meat Board said.
Both cattle exports and slaughtering declined by more than 37% in December compared to the previous month, while carcass prices increased.
A decline of 37.8% in the number of cattle exported was recorded last month, dropping to 8 018 heads of cattle from the 12 908 cattle exported in November.
According to the Meat Board of Namibia’s Monthly Market Watch for Beef, total slaughter numbers in Namibia also dropped by 37.6% - with only 4 494 heads of cattle slaughtered across all abattoirs in Namibia.
“The all-grade average carcass price increased by N$1.44/kg from the previous month’s level of N$60.63. Weaner prices, however, remained steady at N$38.17/kg, only dropping N$0.35 from the November price of N$38.52/kg.”
The Meat Board said weaner prices remained trending sideways during December and the steadiness of the price could be attributed to reduced demand due to filled feedlot capacity in South Africa at year-end, which is an annual occurrence.
Previous trends show that during January, prices can trend upwards until March, it added.
“The B2 weaner price ratio currently stands at 60% for the month of January. This is 4% lower than the benchmark ratio of 64%. This drop implies that if the trend is sustained, it will be more profitable to grow weaners to slaughter weight as opposed to export weaners.”
Cattle marketing
Furthermore, the total cattle marketing declined by 37.8% from November.
The Meat Board ascribed this decline to reduced slaughter at export and local abattoirs as well a drop in live exports.
Historic trends indicate marketing will remain low and only pick up momentum March. Similar trends are seen in slaughter at local and export abattoirs.
Meanwhile, South African Futures Exchange (Safex) feed prices declined between November and December by 5.68%.
“Although easing from the rapid increase experienced during the years, feed costs remain expensive for farmers.”
According to the board, projections indicate that yellow maize will remain below N$5 000/tonne throughout 2023.
International producer price
December saw Australian producer prices drop below European Union (EU) and United States of America (USA) prices for the first time in 2022, the Meat Board noted.
Australian producer prices were recorded at N$76.44/kg, a decline of N$13.11/kg from the November price level of N$89.56.
“This is noted to be a result of the oversupply of cattle ahead of holiday abattoir closure causing an oversupply at Australian abattoirs. The highest price producers received was N$119.62/kg in September.”
EU producer prices peaked during December, reaching N$92.63/kg. These producer prices increased by 23.60% since January 2022. This increase is due to a recovery in prices seen throughout Europe, according to the Meat Board, where in Ireland prices increased by 13% from November.
“The rise in prices could be due to continuous demand for manufacturing beef as well as tight supplies in northern European markets.”
The USA producer price increased by N$1.17/kg in December, and was the highest price compared to other competing markets in the international price benchmark.
“Up to 78% of the USA is currently experiencing a drought, which is projected to continue through 2023. The drought conditions - paired with the winter weather - have put a strain on cattle supply to abattoirs, resulting in reduced slaughter and an increase in beef prices,” it said.
A decline of 37.8% in the number of cattle exported was recorded last month, dropping to 8 018 heads of cattle from the 12 908 cattle exported in November.
According to the Meat Board of Namibia’s Monthly Market Watch for Beef, total slaughter numbers in Namibia also dropped by 37.6% - with only 4 494 heads of cattle slaughtered across all abattoirs in Namibia.
“The all-grade average carcass price increased by N$1.44/kg from the previous month’s level of N$60.63. Weaner prices, however, remained steady at N$38.17/kg, only dropping N$0.35 from the November price of N$38.52/kg.”
The Meat Board said weaner prices remained trending sideways during December and the steadiness of the price could be attributed to reduced demand due to filled feedlot capacity in South Africa at year-end, which is an annual occurrence.
Previous trends show that during January, prices can trend upwards until March, it added.
“The B2 weaner price ratio currently stands at 60% for the month of January. This is 4% lower than the benchmark ratio of 64%. This drop implies that if the trend is sustained, it will be more profitable to grow weaners to slaughter weight as opposed to export weaners.”
Cattle marketing
Furthermore, the total cattle marketing declined by 37.8% from November.
The Meat Board ascribed this decline to reduced slaughter at export and local abattoirs as well a drop in live exports.
Historic trends indicate marketing will remain low and only pick up momentum March. Similar trends are seen in slaughter at local and export abattoirs.
Meanwhile, South African Futures Exchange (Safex) feed prices declined between November and December by 5.68%.
“Although easing from the rapid increase experienced during the years, feed costs remain expensive for farmers.”
According to the board, projections indicate that yellow maize will remain below N$5 000/tonne throughout 2023.
International producer price
December saw Australian producer prices drop below European Union (EU) and United States of America (USA) prices for the first time in 2022, the Meat Board noted.
Australian producer prices were recorded at N$76.44/kg, a decline of N$13.11/kg from the November price level of N$89.56.
“This is noted to be a result of the oversupply of cattle ahead of holiday abattoir closure causing an oversupply at Australian abattoirs. The highest price producers received was N$119.62/kg in September.”
EU producer prices peaked during December, reaching N$92.63/kg. These producer prices increased by 23.60% since January 2022. This increase is due to a recovery in prices seen throughout Europe, according to the Meat Board, where in Ireland prices increased by 13% from November.
“The rise in prices could be due to continuous demand for manufacturing beef as well as tight supplies in northern European markets.”
The USA producer price increased by N$1.17/kg in December, and was the highest price compared to other competing markets in the international price benchmark.
“Up to 78% of the USA is currently experiencing a drought, which is projected to continue through 2023. The drought conditions - paired with the winter weather - have put a strain on cattle supply to abattoirs, resulting in reduced slaughter and an increase in beef prices,” it said.
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