Drought escalates livestock marketing
The increase in total marketing was mainly driven by increased slaughtering at export abattoirs due to drought conditions forcing farmers to reduce their herds.
Livestock marketing has escalated as a result of the drought in Namibia with approximately 11% more cattle marketed during the first half of the year as opposed to the same period in 2018.
Marketing increased from 221 530 cattle in the first half of 2018 to 245 706 in 2019.
“The increase in total marketing was mainly driven by increased slaughtering at export abattoirs due to drought conditions forcing farmers to bring their livestock herds to manageable levels,” says the Meat Board of Namibia.
Compared to the same period last year, export abattoirs slaughtered 56% more cattle than the 246 000 cattle that were marketed.
According to the Meat Board this is mainly because of the price initiative that was offered by the export abattoirs.
The average slaughter prices at export abattoirs increased with 9%, whereas export abattoirs on average pay N$7.38/kg more than the equivalent price in South Africa, Argentina and Brazil.
“Weaner prices have, for the reporting period however decreased with 28% on a year-to-year basis.”
On the other hand, an amount of 452 000 sheep were slaughtered during the first half of the year, which is a mere 0.6% more compared to the same period in 2018 when 449 545 sheep were marketed.
“The biggest shift took place regarding the export of sheep and especially animals that are not fit for slaughter and fat tails, as opposed to animals that were offered for local slaughter,” says the Meat Board.
During the first half of 2019, a total of 296 137 head of sheep were exported live, accounting for 65% of the market share. Sheep slaughtered at the export abattoirs accounted for 27% at 120 266 head while those that were slaughtered at the B and C class abattoirs accounted for 8% at 35 934 sheep.
Sheep prices fell 15.38% for the first half of the year on a year-to-year basis, while the price difference between Namibian export abattoirs and South African Northern Cape abattoirs was N$4.84/kg.
The Meat Board further said they have started negotiations to attain additional market access for bone-in beef and lamb to the European Union, China, the United Arab Emirates and Saudi Arabia.
“Except for the European Union, and to a lesser extent China, Saudi Arabia and the United Arab Emirates offer opportunities to import bone-in products produced north of the Veterinary Cordon Fence under certain conditions,” the Meat Board said.
It said that every potential importing country is measured according to the potential income Namibia could earn as well as import conditions set by the importing country and the costs to adhere to such conditions. China already imports a certain amount of Namibian beef.
According to the Meat Board indications are that globally, the meat industry has grown with 1.4% and the biggest contributors to this growth are beef, pork and poultry. Countries that mainly contributed to this growth are the EU, Russia and the USA, with additional contributions from Argentina, Australia, India and Mexico.
“The growth in the meat industry is mainly driven by improved productivity, whereas increased slaughter numbers due to the drought (Australia) are also a factor. There was a decrease in the production of pork in China as a result of the devastating impact of African swine fever.”
The Meat Board said that as for the South African market, it is predicted that the slaughter volumes will decline due to a herd building phase that will follow the drought period. Although normally associated with a price increase, it is also predicted that prices will be under pressure due to the foot-and-mouth disease outbreak in South Africa.
“Meat that generally gets exported is now being locally canalised which results in an oversupply of beef while the buying power of the consumer has decreased because of the economic downturn.”
ELLANIE SMIT
Marketing increased from 221 530 cattle in the first half of 2018 to 245 706 in 2019.
“The increase in total marketing was mainly driven by increased slaughtering at export abattoirs due to drought conditions forcing farmers to bring their livestock herds to manageable levels,” says the Meat Board of Namibia.
Compared to the same period last year, export abattoirs slaughtered 56% more cattle than the 246 000 cattle that were marketed.
According to the Meat Board this is mainly because of the price initiative that was offered by the export abattoirs.
The average slaughter prices at export abattoirs increased with 9%, whereas export abattoirs on average pay N$7.38/kg more than the equivalent price in South Africa, Argentina and Brazil.
“Weaner prices have, for the reporting period however decreased with 28% on a year-to-year basis.”
On the other hand, an amount of 452 000 sheep were slaughtered during the first half of the year, which is a mere 0.6% more compared to the same period in 2018 when 449 545 sheep were marketed.
“The biggest shift took place regarding the export of sheep and especially animals that are not fit for slaughter and fat tails, as opposed to animals that were offered for local slaughter,” says the Meat Board.
During the first half of 2019, a total of 296 137 head of sheep were exported live, accounting for 65% of the market share. Sheep slaughtered at the export abattoirs accounted for 27% at 120 266 head while those that were slaughtered at the B and C class abattoirs accounted for 8% at 35 934 sheep.
Sheep prices fell 15.38% for the first half of the year on a year-to-year basis, while the price difference between Namibian export abattoirs and South African Northern Cape abattoirs was N$4.84/kg.
The Meat Board further said they have started negotiations to attain additional market access for bone-in beef and lamb to the European Union, China, the United Arab Emirates and Saudi Arabia.
“Except for the European Union, and to a lesser extent China, Saudi Arabia and the United Arab Emirates offer opportunities to import bone-in products produced north of the Veterinary Cordon Fence under certain conditions,” the Meat Board said.
It said that every potential importing country is measured according to the potential income Namibia could earn as well as import conditions set by the importing country and the costs to adhere to such conditions. China already imports a certain amount of Namibian beef.
According to the Meat Board indications are that globally, the meat industry has grown with 1.4% and the biggest contributors to this growth are beef, pork and poultry. Countries that mainly contributed to this growth are the EU, Russia and the USA, with additional contributions from Argentina, Australia, India and Mexico.
“The growth in the meat industry is mainly driven by improved productivity, whereas increased slaughter numbers due to the drought (Australia) are also a factor. There was a decrease in the production of pork in China as a result of the devastating impact of African swine fever.”
The Meat Board said that as for the South African market, it is predicted that the slaughter volumes will decline due to a herd building phase that will follow the drought period. Although normally associated with a price increase, it is also predicted that prices will be under pressure due to the foot-and-mouth disease outbreak in South Africa.
“Meat that generally gets exported is now being locally canalised which results in an oversupply of beef while the buying power of the consumer has decreased because of the economic downturn.”
ELLANIE SMIT
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