2021 agri inflation highest in five years

Agriculture inflation jumped from 3.1% in the fourth quarter of 2020 to 10.8% in the fourth quarter of 2021, which is the single highest jump in agricultural production costs since 2016.The surge resulted largely from costs associated with fuel (30.5%), feed (17.3%), and maintenance and fixed improvements (11.6%).This is according to the 2021 fourth quarterly review report by the Namibia Agricultural Union (NAU).It said although the marketing of livestock was slightly slow last year, it is expected to increase somewhat in 2022 as farmers move into their third year of herd rebuilding.Agricultural debt was N$7 140 billion as at June 2021, showing a reduction of about 8.3%.“There is some positivity in the sector and with the right institutional support and policy environment, the agricultural sector will be able to contribute more to the rural economy and the Namibian economy at large,” the union said.Overall, most agricultural sectors saw positive returns due to good prices offered in 2021, it added.Fur trade collapsesAccording to the report, in 2020, international bans due to the Covid-19 pandemic had a major negative impact on the Swakara subsector, leading to it receiving 87.9% less revenue than in 2019.“The average production value for Swakara was estimated at N$37 million between 2016 and 2019, but this amount reduced to as little as N$2.7 million in 2020 and N$6.8 million in 2021 - that is 20% less of historic figure.”Nevertheless, the production value of 2021 improved by 146.7% compared to 2020.Food prices upMeanwhile, a high demand for cattle, sheep and goats pushed producer prices upwards, increasing their production value by 12.3%, 22.5% and 26.3% respectively.Grain and horticulture producers received good rains, which increased production. Therefore, the estimated production value for agronomy and horticulture increased by 30.2% and 10.0% respectively.However, the report noted that for three years in a row, the dairy sector continued to show a negative revenue, with 2021 recording a 12.3% decline in production value.Feed costsThe estimated production value for poultry - including broilers and eggs - stood at N$1.2 billion in 2021, displaying an increase of about 13.4%.“The increase resulted from a growth in the sales of broilers, while the egg subsector’s contribution dropped by 19.3% from the previous year. The drop was caused by an influx of imported eggs.”The report said egg producers resultantly decreased their production stock by about 20%, which negatively affected output.It pointed out that Namibia is a net importer of feed, therefore, drastic changes in feed ingredient prices have major implications on feed costs and the production cost thereof.“When prices of inputs increase, so does the cost of feed.”In Namibia, yellow maize meal prices showed a growth of about 13.5%, with prices being N$4.1/kg in 2020 and N$4.6/kg in 2021. These increases, together with surges in fuel prices and other factors, pushed the agri inflation upward.The report added that for the second year in a row and due to low supply of livestock on the market as farmers continue to restock their herds, producer prices performed well. Sheep producer prices increased by 4.1%, while cattle prices advanced by more than 12.3%.

2021 agri inflation highest in five years

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Namibian Sun 2025-09-18

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2021 agri inflation highest in five years

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Namibian Sun 2025-09-18

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