FMD drops cattle production
FMD drops cattle production

FMD drops cattle production

Ellanie Smit
Despite drought conditions, livestock exports declined considerably, by 26.49%, during the first quarter of the year, due to the weak demand for weaners by South African feedlots that were adversely affected by foot-and-mouth (FMD) disease-related trade restrictions.

“Since livestock exports are a leading contributor to the sector's performance, their decline greatly influenced an overall weak performance,” says the Meat Board of Namibia.

Export abattoirs improved performance with a 22% growth rate on account of drought-induced marketing. Butchers, on the other hand, experienced a decline of 21.2%, losing market share to export abattoirs whose producer prices remained competitive during the first quarter.

The Meat Board says that although weighted average capacity utilisation of export abattoirs for the first quarter stood at 70.30%, it is worth noting that Meatco registered a 107.86% monthly capacity utilisation in March alone, an obvious over-capacity utilisation.

Meanwhile, there was an overall decrease in the total production of cattle between January and March.

Year on year, an 18.5% decrease was witnessed in the total production of cattle during the months of January to March 2019 compared to the same period of 2018. Production decreased from 115 257 head in 2018 to 93 873 in 2019.

An amount of 177 180 cattle were marketed through various formal channels in the first quarter of 2019, translating to a 17.37% increase in comparison to the same period in 2018 when 150 961 cattle were marketed.

From total cattle marketed, 68% were live exports, 23% were taken up by export abattoirs while B&C class abattoirs only enjoyed 9% of the market share.

The Meat Board explained that FMD disease conditions forced South African feedlots to reduce their purchase of Namibian weaners as they did not have a market for their beef.

“This resulted in a significant reduction of weaner exports, hence poor cattle sector performance. Beef export abattoirs performed very well reaching unusual levels of capacity utilisation. Despite increased supply, abattoir prices remained at competitive levels.”

With regards to the sheep sector, the Meat Board says that the long term sheep marketing trend continues to depict a gradual reduction.

“The sheep sector performed well with both live exports and slaughtering by export abattoirs driving the momentum. Due to the drought situation, producers have been forced to manage their livestock levels to prevent further deterioration of rangelands and avoid losses from livestock mortalities.”

During the first quarter of 2019, a total of 104 196 head of sheep were exported live, accounting for 59% of the market share. The sheep slaughtered at export abattoirs accounted for 30% at 53 851 head, while those that were slaughtered at the B&C class abattoirs accounted for 11% with 19 133 sheep.

“Due to the small stock marketing scheme export restrictions, farmers are supplying sheep to abattoirs at below optimum prices as a matter of preventing a total loss of livestock.”

The Meat Board of Namibia is contemplating an interventionist strategy to encourage abattoirs to pay competitive prices while producers are also encouraged to support value addition ideals by slaughtering locally.



ELLANIE SMIT

Comments

Namibian Sun 2024-03-28

No comments have been left on this article

Please login to leave a comment

Katima Mulilo: 19° | 37° Rundu: 17° | 33° Eenhana: 18° | 33° Oshakati: 20° | 31° Ruacana: 19° | 33° Tsumeb: 17° | 29° Otjiwarongo: 16° | 28° Omaruru: 18° | 31° Windhoek: 17° | 28° Gobabis: 17° | 28° Henties Bay: 16° | 19° Wind speed: 24km/h, Wind direction: S, Low tide: 10:54, High tide: 04:57, Low Tide: 22:58, High tide: 17:16 Swakopmund: 15° | 17° Wind speed: 29km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:55, Low Tide: 22:56, High tide: 17:14 Walvis Bay: 16° | 22° Wind speed: 33km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:54, Low Tide: 22:56, High tide: 17:13 Rehoboth: 18° | 29° Mariental: 22° | 32° Keetmanshoop: 21° | 34° Aranos: 21° | 31° Lüderitz: 15° | 29° Ariamsvlei: 23° | 34° Oranjemund: 15° | 21° Luanda: 27° | 30° Gaborone: 20° | 32° Lubumbashi: 17° | 24° Mbabane: 15° | 23° Maseru: 12° | 28° Antananarivo: 16° | 27° Lilongwe: 17° | 29° Maputo: 20° | 28° Windhoek: 17° | 28° Cape Town: 17° | 23° Durban: 21° | 25° Johannesburg: 18° | 28° Dar es Salaam: 26° | 32° Lusaka: 18° | 30° Harare: 15° | 31° Currency: GBP to NAD 23.96 | EUR to NAD 20.53 | CNY to NAD 2.63 | USD to NAD 19.03 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.33 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.74 | ZWL to NAD 0.04 | BRL to NAD 3.8 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 134.35 | USD to AOA 832.63 | USD to BWP 13.71 | USD to EGP 47.3 | USD to KES 130.98 | USD to NGN 1415.13 | USD to ZAR 19.02 | USD to ZMW 24.97 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 73909.5 Up +0.41% | Namibian Stock Exchange (NSX) Overall Index 1516.02 Down -0.13% | Casablanca Stock Exchange (CSE) MASI 12981.98 Up +0.34% | Egyptian Exchange (EGX) 30 Index 28224.37 Down -2.87% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 212.07/OZ UP +0.97% | Copper US$ 3.98/lb DOWN -0.0008 | Zinc US$ 2 446.40/T DOWN -0.41% | Brent Crude Oil US$ 86.78/BBP UP +0.45% | Platinum US$ 898.23/OZ UP +0.37% Sport results: Weather: Katima Mulilo: 19° | 37° Rundu: 17° | 33° Eenhana: 18° | 33° Oshakati: 20° | 31° Ruacana: 19° | 33° Tsumeb: 17° | 29° Otjiwarongo: 16° | 28° Omaruru: 18° | 31° Windhoek: 17° | 28° Gobabis: 17° | 28° Henties Bay: 16° | 19° Wind speed: 24km/h, Wind direction: S, Low tide: 10:54, High tide: 04:57, Low Tide: 22:58, High tide: 17:16 Swakopmund: 15° | 17° Wind speed: 29km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:55, Low Tide: 22:56, High tide: 17:14 Walvis Bay: 16° | 22° Wind speed: 33km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:54, Low Tide: 22:56, High tide: 17:13 Rehoboth: 18° | 29° Mariental: 22° | 32° Keetmanshoop: 21° | 34° Aranos: 21° | 31° Lüderitz: 15° | 29° Ariamsvlei: 23° | 34° Oranjemund: 15° | 21° Luanda: 27° | 30° Gaborone: 20° | 32° Lubumbashi: 17° | 24° Mbabane: 15° | 23° Maseru: 12° | 28° Antananarivo: 16° | 27° Lilongwe: 17° | 29° Maputo: 20° | 28° Windhoek: 17° | 28° Cape Town: 17° | 23° Durban: 21° | 25° Johannesburg: 18° | 28° Dar es Salaam: 26° | 32° Lusaka: 18° | 30° Harare: 15° | 31° Economic Indicators: Currency: GBP to NAD 23.96 | EUR to NAD 20.53 | CNY to NAD 2.63 | USD to NAD 19.03 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.33 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.74 | ZWL to NAD 0.04 | BRL to NAD 3.8 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 134.35 | USD to AOA 832.63 | USD to BWP 13.71 | USD to EGP 47.3 | USD to KES 130.98 | USD to NGN 1415.13 | USD to ZAR 19.02 | USD to ZMW 24.97 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 73909.5 Up +0.41% | Namibian Stock Exchange (NSX) Overall Index 1516.02 Down -0.13% | Casablanca Stock Exchange (CSE) MASI 12981.98 Up +0.34% | Egyptian Exchange (EGX) 30 Index 28224.37 Down -2.87% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 212.07/OZ UP +0.97% | Copper US$ 3.98/lb DOWN -0.0008 | Zinc US$ 2 446.40/T DOWN -0.41% | Brent Crude Oil US$ 86.78/BBP UP +0.45% | Platinum US$ 898.23/OZ UP +0.37%