Downward spiral continues
Stakeholders and authorities are concerned over the continuous decline in livestock production.
The livestock industry is continuing on its downward spiral, with local and South African price differences for sheep putting it at risk of collapse, while the cattle industry has experienced a decrease in production.
According to the Meat Board of Namibia there was an overall decrease in the total production of cattle between January and September this year.
It says a decrease in the availability of marketable cattle resulted in higher beef prices, as abattoirs tried to attract more slaughter animals.
Due to lower throughput, an export abattoir (Brukarros Meat Processors) closed during the third quarter of this year.
“This downward spiral was averted when a new export abattoir, Beefcor, was approved by the Meat Board during the same period.”
Also, smaller amounts of cattle continue to be slaughtered by Meatco's mobile slaughter units in the Northern Communal Areas, where 74 farmers marketed a combined total of 1 200 cattle thus far.
According to the Meat Board there was a 6.48% decrease in the total production of cattle during January to September 2018, compared to the same period last year. Production decreased from 384 544 in 2017 to 359 248 this year.
“The decline in total marketing was driven by decreased activity across all market segments,” the Meat Board said.
From the total cattle marketed, 66.59% were live exports, while 17.36% were taken up by local abattoirs and export abattoirs enjoyed a 16.05% market share.
A total of 21 498 cattle were declared to the Meat Board by registered local abattoirs.
Based on the hide purchases, however, it is estimated that 40 851 cattle were slaughtered at local abattoirs.
Meanwhile, the Meat Board says that sheep marketing is confronted by various challenges that put the sector in jeopardy, in terms of employment creation, retention and its contribution to the country's economy.
“Given the government's efforts to industrialise and promote value addition, the large price differences hamper its progress. Limited throughput at export abattoirs continues to hamper the profitability and therefore the competitiveness of the available export abattoirs.”
According to the Meat Board, export abattoirs will need to become more competitive in order to attract quality and a consistent supply of sheep.
“Despite all the other contributing factors, price remains the main determinant of marketing, both for the producers and abattoirs. The deteriorating grazing conditions in some of the sheep-producing regions, support the use of the too lean and too small drought marketing arrangement.”
The Meat Board said the long-term sheep marketing trend shows a gradual reduction. Despite a slight growth in live exports and butchers, the overall number of sheep marketed during the period under review declined compared to the same period in 2017.
With the reduction in sheep stock, marketing numbers are expected to follow a downward trend in the long-term, given the erratic climate conditions associated with Namibia and the current sheep marketing arrangements that are in place.
There was a 1.21% decrease observed in the sheep marketed this year compared to the same period in 2017. A total of 595 411 head of sheep were marketed in 2017, compared to the 588 213 in 2018.
During the period January to September this year, 373 356 head of sheep were exported live, accounting for 63% of the market share. The sheep slaughtered at export abattoirs accounted for 27% (157 339), while those slaughtered at the local abattoirs accounted for 10% (57 518).
Namibia was N$3.53/kg cheaper than the Northern Cape price observed at the close of the quarter in September.
The Meat Board said this gap discourages throughput at Namibian abattoirs. However, due to the 1:1 slaughter-to-export ratio, local abattoirs can receive some throughput.
“High overhead costs and the price for offal and sheep skin are some of the factors that are cited to affect the price that is offered to Namibian producers by export abattoirs. Producers are discouraged to market their sheep at export abattoirs due to the increased price gap.”
ELLANIE SMIT
According to the Meat Board of Namibia there was an overall decrease in the total production of cattle between January and September this year.
It says a decrease in the availability of marketable cattle resulted in higher beef prices, as abattoirs tried to attract more slaughter animals.
Due to lower throughput, an export abattoir (Brukarros Meat Processors) closed during the third quarter of this year.
“This downward spiral was averted when a new export abattoir, Beefcor, was approved by the Meat Board during the same period.”
Also, smaller amounts of cattle continue to be slaughtered by Meatco's mobile slaughter units in the Northern Communal Areas, where 74 farmers marketed a combined total of 1 200 cattle thus far.
According to the Meat Board there was a 6.48% decrease in the total production of cattle during January to September 2018, compared to the same period last year. Production decreased from 384 544 in 2017 to 359 248 this year.
“The decline in total marketing was driven by decreased activity across all market segments,” the Meat Board said.
From the total cattle marketed, 66.59% were live exports, while 17.36% were taken up by local abattoirs and export abattoirs enjoyed a 16.05% market share.
A total of 21 498 cattle were declared to the Meat Board by registered local abattoirs.
Based on the hide purchases, however, it is estimated that 40 851 cattle were slaughtered at local abattoirs.
Meanwhile, the Meat Board says that sheep marketing is confronted by various challenges that put the sector in jeopardy, in terms of employment creation, retention and its contribution to the country's economy.
“Given the government's efforts to industrialise and promote value addition, the large price differences hamper its progress. Limited throughput at export abattoirs continues to hamper the profitability and therefore the competitiveness of the available export abattoirs.”
According to the Meat Board, export abattoirs will need to become more competitive in order to attract quality and a consistent supply of sheep.
“Despite all the other contributing factors, price remains the main determinant of marketing, both for the producers and abattoirs. The deteriorating grazing conditions in some of the sheep-producing regions, support the use of the too lean and too small drought marketing arrangement.”
The Meat Board said the long-term sheep marketing trend shows a gradual reduction. Despite a slight growth in live exports and butchers, the overall number of sheep marketed during the period under review declined compared to the same period in 2017.
With the reduction in sheep stock, marketing numbers are expected to follow a downward trend in the long-term, given the erratic climate conditions associated with Namibia and the current sheep marketing arrangements that are in place.
There was a 1.21% decrease observed in the sheep marketed this year compared to the same period in 2017. A total of 595 411 head of sheep were marketed in 2017, compared to the 588 213 in 2018.
During the period January to September this year, 373 356 head of sheep were exported live, accounting for 63% of the market share. The sheep slaughtered at export abattoirs accounted for 27% (157 339), while those slaughtered at the local abattoirs accounted for 10% (57 518).
Namibia was N$3.53/kg cheaper than the Northern Cape price observed at the close of the quarter in September.
The Meat Board said this gap discourages throughput at Namibian abattoirs. However, due to the 1:1 slaughter-to-export ratio, local abattoirs can receive some throughput.
“High overhead costs and the price for offal and sheep skin are some of the factors that are cited to affect the price that is offered to Namibian producers by export abattoirs. Producers are discouraged to market their sheep at export abattoirs due to the increased price gap.”
ELLANIE SMIT
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