Namibian weaners in demand in SA
While the South African farmers are holding back their animals, Namibian producers have a golden opportunity to market their animals for a good price.
The demand for Namibian weaners by South Africa grew substantially during the first quarter of the year.
The market for Namibian weaners in that country almost dropped to zero following the introduction of draconian import restrictions during the middle of last year.
The restrictions have been revised by the South African authorities but they still remain in force. The local agriculture sector has vowed to continue to challenge the restrictions.
Other livestock sectors have also performed well during the first quarter of this year. According to the Meat Board there was a 12.4% increase in the number of cattle marketed between January and March in 2016 compared to 2017. During the first quarter of this year, 73 569 cattle were marketed compared to the 64 421 cattle in 2016.
Higher rainfall, coupled with better rangeland conditions, are contributing factors to the increase of marketing stock, according to the Meat Board.
“Due to the high demand for weaners in the South African feedlot markets, 76% of the cattle marketed were live exports.”
However, a reduction in the number of cattle slaughtered at export abattoirs was observed on the slaughter market.
This trend spilled over into the first three months of the year as cattle slowly became available for slaughter. Only 1 093 cattle were slaughtered at Meatco and Brukkaros in January 2017.
“In general, cattle are mostly not market-ready in January and this constrains the supply to abattoirs; however, as soon as the cattle become ready, the supply gradually increases and slaughtering at the export abattoirs are expected to reach their peak from April,” the Meat Board further said in March.
With regards to weaners, 55 822 animals were marketed during the first quarter of this year compared to the 48 248 weaners in 2016.
This is an increase of 13.6%.
The board also said the weaner calf shortage and tightened supply in South Africa has created a demand for Namibian weaners.
This means that Namibian weaner producers are able to fetch better prices for their weaners which will subsequently increase their income and purchasing power. After the drought, South Africa received good rains which forced producers into herd rebuilding and this led to less South African weaners available for the feedlots.
Lower maize prices are another factor that contributed to the increase in the demand and subsequently, the price. Maize prices decreased by 22% during the reported period and as a result, feedlots are able to feed more weaners at a much lower cost.
There is an approximate N$8.58 average price difference between the average weaner price in Namibia and South Africa. It said that the promising outlook for maize prices at the backdrop of expected bumper crops is positive for the livestock feeding industry. This season's good rainfall has improved grazing conditions and will subsequently promote herd rebuilding, the Meat Board said.
In conclusion, the Meat Board said in an effort to lower production costs, Namibia will continue to pursue the restrictive export conditions that were implemented by South Africa at the World Trade Organisation.
ELLANIE SMIT
The market for Namibian weaners in that country almost dropped to zero following the introduction of draconian import restrictions during the middle of last year.
The restrictions have been revised by the South African authorities but they still remain in force. The local agriculture sector has vowed to continue to challenge the restrictions.
Other livestock sectors have also performed well during the first quarter of this year. According to the Meat Board there was a 12.4% increase in the number of cattle marketed between January and March in 2016 compared to 2017. During the first quarter of this year, 73 569 cattle were marketed compared to the 64 421 cattle in 2016.
Higher rainfall, coupled with better rangeland conditions, are contributing factors to the increase of marketing stock, according to the Meat Board.
“Due to the high demand for weaners in the South African feedlot markets, 76% of the cattle marketed were live exports.”
However, a reduction in the number of cattle slaughtered at export abattoirs was observed on the slaughter market.
This trend spilled over into the first three months of the year as cattle slowly became available for slaughter. Only 1 093 cattle were slaughtered at Meatco and Brukkaros in January 2017.
“In general, cattle are mostly not market-ready in January and this constrains the supply to abattoirs; however, as soon as the cattle become ready, the supply gradually increases and slaughtering at the export abattoirs are expected to reach their peak from April,” the Meat Board further said in March.
With regards to weaners, 55 822 animals were marketed during the first quarter of this year compared to the 48 248 weaners in 2016.
This is an increase of 13.6%.
The board also said the weaner calf shortage and tightened supply in South Africa has created a demand for Namibian weaners.
This means that Namibian weaner producers are able to fetch better prices for their weaners which will subsequently increase their income and purchasing power. After the drought, South Africa received good rains which forced producers into herd rebuilding and this led to less South African weaners available for the feedlots.
Lower maize prices are another factor that contributed to the increase in the demand and subsequently, the price. Maize prices decreased by 22% during the reported period and as a result, feedlots are able to feed more weaners at a much lower cost.
There is an approximate N$8.58 average price difference between the average weaner price in Namibia and South Africa. It said that the promising outlook for maize prices at the backdrop of expected bumper crops is positive for the livestock feeding industry. This season's good rainfall has improved grazing conditions and will subsequently promote herd rebuilding, the Meat Board said.
In conclusion, the Meat Board said in an effort to lower production costs, Namibia will continue to pursue the restrictive export conditions that were implemented by South Africa at the World Trade Organisation.
ELLANIE SMIT
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