By: Nghiinomenwa Erastus
MOST producers reduced their herd by almost 50%, since 2019 with more young animals sold.
The Namibia Agricultural Union (NAU), second quarter Agri-Review for 2021, revealed.
Research Bertha Ijambo, highlighted in the report that calves born at the beginning of 2019 and 2020 (i.e., January) were likely to be marketed as oxen or heifers in the second half of 2021 and 2022, respectively.
“It is important to note that many young animals had been sold in 2019,” she highlighted.
The phenomena have continued in the past six months of 2021, as 57 683 live cattle in 2021 (January-June), of which about 90% were weaners.
In terms of restocking, Ijambo highlighted that it is indeed happening despite live exports, Ijambo used the number of heifers retained.
She said that the number of heifers exported as a percentage of the number of heifers sold at auctions was estimated to be 19,5% in 2020 (January-June) and 15,6% in 2021 (January-June).
“This demonstrates that a good number of heifers were absorbed by the domestic market for restocking purposes,” she said.
She also affirmed that although the marketing of livestock is low, the national herd is growing.
FARMING COSTS ON THE RISE
The report has also indicated as in the past report that the cost of producing livestock has been on a rise resulting in producers paying more for inputs.
NAU tracks the cost of agricultural inputs (mostly for livestock production)-the agri-inflation has increased by a significant amount of 7% in the first half of 2021, as opposed to the same period in 2020.
According to Ijambo, the escalation emanated from price increases in fuel (7,7%), maintenance and fixed improvements (12,9%), capital expenditure (17,4%), and medicinal costs (6,6%).
“A surge in the cost of transportation also had a negative impact on imported products,”. She added.
While cattle prices grew by more than 17,6% following a 21,8% and 11,4% improvement in the price of weaners and oxen.
Ijambo indicated that “the production and sale of weaners remained more profitable than growing out weaners to oxen”.
She said this is because on average the weaner price as a percentage of slaughter price stood at 76% in 2021 (Jan-June).
A demand for weaners triggered weaner prices to improve in 2020 and 2021, leaving the average weaner price as a percentage of slaughter price above the long-term average of 64% and making weaner production profitable
The ready-to-slaughter cattle prices recovered in 2021, leading to an improvement in the income for cow-ox producers.
“However, for oxen producers who buy weaners to do backgrounding, their profitability remains negative because of the high price at which weaners are purchased,” she noted.
EAT FISH FOR NOW
Ijambo indicated that as producers continue to restock, throughput to abattoirs is expected to be low.
Hence, export abattoirs received a throughput of 14 436 head of cattle in the first 6 months of 2021, meaning slaughter at export abattoirs contracted by 31% on average.
The low throughput to abattoirs and butchers in the past six months has been detrimental to the cost of meat products in the country, with their prices leading contributing more to the cost of food.
According to the Namibia Statistics Agency, food accounts for 14,8% of the consumer basket in the Consumer Price Index- which captures the price movement of the most consumed goods and services.
Within the food sub-category, bread, and cereals account for the highest weight of food items that consumers purchase, having a weight of (4,8%) followed by meat (3,5%).
Prices for meat were 14,9% more expensive than a year ago, NSA revealed in July’s figures.
The highest inflation within this category was observed in chicken (20,5%), followed by Offal (19%), minced meat (18,9%), and mutton/lamb (15,4%). Email: gerastus16@gmail.com
