Weaner exports to SA plummet

Since last year live exports of cattle to South Africa have dropped by 6%, but the Meat Board of Namibia warns that the full extent of revised import conditions remains to be seen.
According to the Meat Board live exports of cattle to South Africa dropped from 100 332 last year to 94 291 cattle in 2016.
With the revised import conditions that have been implemented since 1 July, weaner exports to South Africa have come to a halt and there is a need to develop in-house capacity to retain weaners in the country.
“Farmers would then opt to move into weaner production in order to save on the available feed as well as associated costs. A decrease in the slaughtering at the abattoirs compared to the live exports could be anticipated as the year commenced,” the Meat Board said.
It said the new South African import conditions are expected to have a negative impact on live cattle exports, as South Africa is the market for Namibian weaners.
“The combined impact of the drought as well as that of the new import conditions might put the cattle sector at large at a disadvantage.”
According to the Meat Board the total number of cattle that were marketed between January and May this year stood at 144 859, of which 50 568 were slaughtered and 94 291 exported on the hoof.
Live cattle exports make up 65% of the total cattle marketed while cattle slaughtered locally accounted for 35% during the reporting period.
Comparing year on year, a decrease of 10.18% was observed in the total marketing of cattle from 161 277 last year to 144 859 in 2016 over the reporting period.
Furthermore there has been a general decrease in the marketing of sheep compared to last year.
The total marketing of sheep by the end of May 2016 was 396 295 head, indicating a 10.12% decrease, down from 440 934 head last year.
This is composed of 148 196 head of sheep exported to South Africa and 158 900 head of sheep slaughtered during the reporting period. Despite the rainfall received in some parts of the country, it was not sufficient to help farmers maintain the animals on the land, due to limited availability of forage, said the Meat Board.
With a three-month capacity of 165 000 a total of 60 763 sheep were slaughtered at the Mariental abattoir, representing a 37% capacity utilisation of the abattoir from January to May 2016.
The Keetmanshoop abattoir and the Aranos abattoir utilised 38% and 21% of their five-month slaughter capacity respectively.
The low capacity utilisation percentages can be attributed to a shortage of slaughter-ready sheep.
The Meat Board says abattoirs continue to face the challenge of the 60% levy on the export of raw skins, which contributes to the low prices offered to producers when compared to that offered by the South African abattoirs.
These factors could result in Namibia losing market share in South African retail markets due to the inconsistency in delivery and lower quality products.
The Meat Board announced that it was appointed by the Minister of Water, Agriculture and Forestry to chair a technical committee that has to put together a long-term strategy for the marketing of sheep in Namibia.
The technical committee consists of two representatives each from the Namibia Agricultural Union, the Namibia National Farmers Union, the Abattoir Association, Ministry of Agriculture, Water and Forestry, Ministry of Trade and Industrialisation and SME Development.
The committee has already met three times to formulate a strategy that will be submitted to the Minister of Agriculture, Water and Forestry within the next 14 days for consideration by the Cabinet Committee on Trade and Economic Development.
As soon as the strategy has been finalised, the outcomes will be communicated.

ELLANIE SMIT