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Livestock marketing hits higher levels

LIVE exports continue being the mainstay of the livestock sector compared to last year, with cattle exports increasing by 23,1% year on year (y/y) and goats rising by 50%, although sheep exports dropped 3,6% in October 2022.

According to an analysis by Simonis Storm Securities, South Africa and Botswana were the sole export destinations for mutton and pig products, respectively, whereas most beef products went to the European Union (71,4%), South Africa (12,8%), China (12,4%) and Norway (3,2%), following a lift of export bans in the third quarter of 2022.

Local livestock slaughtering remains on a downward trend, cattle slaughtering decreased by 28,1% y/y, sheep dropped 4,1% y/y and goats went down 20,3% y/y in October 2022.

“Only pig slaughtering recorded an expansion, rising 7,6% y/y in October 2022,” Simonis said.

Total livestock marketing activity (slaughtering and exports combined) has recorded higher levels throughout most of 2022 year to date (YTD).

Cattle marketing activity increased by 4,4%, whereas sheep marketing increased 43% year-to-date compared to the same period last year (January to October).

These levels should largely support growth in the agriculture industry, given that livestock is the largest sub-sector in the industry.

Namibian export abattoirs reduced the sheep A2 carcass price differential against the Northern Cape abattoirs to only 27 cents during October 2022, from the N$6,18/kg differential observed in October 2021.

“The pork ceiling price also increased by 18,4% due to an increase in the South African reference price, as well as the effect of the revised formula of the pork ceiling price,” according to the Meat Board of Namibia.

Weaner prices exceeded cattle prices for some time, as South Africans paid higher prices during restocking times and as farmers expanded herds following the drought period. However, this trend has reversed since mid-2022, said Simonis.

The value of fish exports decreased by 20,4% y/y in September 2022, compared to -4,5% y/y in August 2022. On a monthly basis, fish exports decreased by 21,9%, month-on-month (m/m) in September 2022, compared to a rise of 16,5% m/m in August 2022.

According to Simonis, YTD, the value of fish exports is marginally above the value of exports recorded in the same period last year (January to September).

YTD, a value of N$7,8 billion was recorded in 2022, compared to N$7,9 billion in 2021, a rise of 1,8%. Fish exports account for 12,5% of total exports on average in 2022 and YTD fish exports account for 5,7% of real GDP, making the local fish industry a crucial export earner for Namibia.

Average farm gate prices for various horticulture products decreased by 4,6% on an annual basis in September 2022, according to the latest data available from the Namibian Agronomic Board.

At the same time, average retail prices have increased by 25%. This is a clear indication of an increase in business costs as fuel (diesel), plastic, packaging and other materials have seen significant price increases in recent months.

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