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Agricultural Output Declined by 8.90% to N$7.64 Billion

 

By: Nghiinomenwa-vali Hangala

 

The Namibian agricultural sector’s production value has declined by 8.90%, decreasing from N$8.39 billion in 2024 to N$7.64 billion in 2025.

 

The sector is the biggest employer, both formally and informally, and is also one of the few sectors responsible for diversifying the Namibian export basket.

 

According to the 2025 fourth quarter report of the Namibia Agricultural Union (NAU), the country’s overall agricultural production has declined. Production, in theory is linked to employment, meaning that as more goods are produced, more people are employed.

 

According to the Union, the agricultural contraction is primarily attributed to the reduced livestock marketing volumes.

 

Given cattle’s significant share in total agricultural output, this contraction weighed heavily on overall sector performance,” the report read. It also clarified that it is important to note that this estimate does not account for the value of livestock retained on farms as part of ongoing herd-rebuilding efforts.

 

Cattle production value declined by 26.8%, with sheep down 14.5%. NAU explained that the decline reflects a normalisation in marketing volumes after the strong throughput observed in 2024.

 

Total marketed cattle declined by 44.9% year-on-year, with slaughter volumes decreasing by 24.9% and live exports contracting sharply by 66.7%.

 

Similarly, sheep marketing volumes declined by 31.8% compared to 2024 levels, with slaughter and live exports declining by 13.9% and 37.1% respectively.

 

Despite the reduction in marketed volumes, the statistics indicate that producer prices increased across both subsectors. The average B2 cattle price increased by 14.9% year-on-year, while sheep A2 prices rose by 20.3%, with auction prices also recording firm gains.

 

The price resilience observed during 2025 moderated the extent of value contraction, indicating that stronger price realisation partially offset lower throughput.

 

“However, the sector remains in a herd-rebuilding phase. While marketing figures have declined, on-farm stock levels are increasing,” NAU updated.

 

As such, livestock marketing volumes alone are not fully reflective of overall sector performance, as a significant portion of production value is being retained within herds rather than realised through the market.

 

In contrast, several subsectors demonstrated notable expansion, according to NAU data. Agronomy recorded substantial growth of 134.1%, suggesting a strong recovery supported by improved production conditions.

 

Within the grain sector, white maize recorded the largest total supply at 224,759 tonnes, with domestic production contributing 31%, while wheat remained heavily import-dependent, with

imports accounting for approximately 89.5% of total supply.

 

Poultry continued its upward trajectory with a growth of 19.4%, reinforcing its position as a structurally expanding subsector.

 

Swakara recorded a 91.3% increase in estimated production value in 2025, reflecting a significant recovery from the previous year. This expansion, according to NAU, was primarily price-driven, with average pelt prices nearly doubling following strong international demand and competitive auction performance.

 

White pelts achieved particularly strong price realisation, supported by renewed interest from global fashion markets. In addition, continued compliance with FURMARK certification standards and strengthened breeder participation reinforced industry credibility and long-term sustainability.

 

Although operating from a smaller production base, Swakara’s performance in 2025 highlights its resilience and niche export potential within Namibia’s broader livestock sector, the report revealed.

 

The divergence between declining total production value and improving producer margin spreads suggests that 2025 was characterised by stronger price realisation alongside moderated production volumes, particularly within the cattle subsector.

 

The sheep industry remains an important component of Namibia’s livestock sector, with marketing activity primarily driven by live exports.

 

A significant share of sheep marketed each year is exported live on hoof, particularly to neighbouring markets, due to limited domestic slaughter capacity and insufficient market absorption for lamb within the local processing sector, the report also revealed.

 

In 2025, a total of 548,817 sheep were marketed, representing a 31.8% decline compared to 2024 levels. Of this total, live exports accounted for 71% of marketed sheep, while slaughter volumes at export abattoirs represented 12% of total marketing activity.

 

Total mutton exports amounted to 598 tons, representing an 18.5% decline compared to 735 tons exported in 2024.

 

In terms of market share, Norway received 245,884kg of all the exports, followed by South Africa receiving 149,590kg, then Botswana with 116,428kg, and Lesotho at 87,071 kg.

 

erastus@thevillager.com.na

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