Auction numbers drop
As a result of lower numbers of animals marketed, Agra’s auctions department showed a N$11.5 million decrease.
04 November 2020 | Agriculture
While Agra has recorded an increase in its turnover during the 2019/2020 financial year, its auction department suffered due to a decline in livestock being marketed.
The total turnover for the Agra group increased by 3.1%, which translates to N$1.787 billion for 2019/2020 compared to the previous year’s N$1.734 billion.
According to Agra’s integrated financial annual report for the year ended 31 July, this was reflected in a similar growth in gross profit.
According to the report, Agra’s auctions department, however, showed a decrease from N$67.3 million in 2018/2019 down to N$55.8 million in 2019/2020.
This was as a result of lower numbers of animals marketed, mainly due to the rebuilding of breeding stock and weaner exports which has shown a significant decrease compared to the previous year.
The number of livestock marketed decreased from 165 055 in 2019, with an average price of N$5 713 per head, to 120 548 in 2020, with an average price of N$6 502.
“Weaner exports remain an important source of income for producers. Towards the latter part of the financial year, weaner prices increased significantly. This was largely due to limited numbers of livestock marketed, which is prevalent in a rebuilding phase when producers aim to restock production units,” the report said.
The gross turnover of sheep decreased from N$140.3 million for 2019 to N$118.8 million for 2020. There was a notable decrease in the number of heads marketed from 148 103 in 2019 to 113 917 in 2020, with the prevailing drought contributing largely to the severe decline.
The average price, however, increased with approximately N$96 per head, limiting the negative affect of the lower volumes on offer.
According to the report, there was a marginal increase in live exports, whereas slaughter at local export abattoirs continued to decline, largely due to the Brukaros and Farmers Meat Market abattoirs closing.
The gross turnover for goats decreased from N$43.9 million in 2019 to N$40.4 million in 2020, with a slight price recovery of N$122 per head.
“The coronavirus regulations impacted negatively on the goat market, resulting in lower numbers exported to South Africa.”
Meanwhile, Swakara pelt quantities offered at the two auctions in Copenhagen during September 2019 and April 2020 amounted to 51 793 pelts, which reflects a decrease of 8.07% compared to the 56 337 pelts offered during the previous financial period.
Unit prices per pelt decreased from an average of N$456.63 to N$378.02 in 2019/2020. This represents a decrease of 17.21%.
The decrease in price of the September 2019 auction can be attributed to the struggling economic climate within the Swakara consumer markets. Countries such as Russia, Greece and other European countries were all affected. Another contributing factor was the trade war between the United States and China.
The turnover for the pelts sold was N$8.7 million for the period, compared to N$25.7 million for 2018/19.
The Swakara Pelt Centre recorded a net operating loss before head office expenses of N$686 000 for the year under review, compared to a net loss of N$137 000 for the previous year.
According to the report, Agra recorded a profit - before taxation - increasing from N$36 million in 2018/19 to N$42.8 million in 2019/20.
Meanwhile, the total comprehensive income was N$24.4 million in 2018/19, which increased by 18.4% to N$28.9 million for the current year under review.