Agri Sector Not Out Of The Woods

By:Justicia Shipena
The Agricultural Bank of Namibia (Agribank) has warned that the agriculture sector is not out of the woods yet and is faced with enormous headwinds.
The state-owned financial institution stated this in its market watch report for the month of February 2023.
According to the report, the ongoing floods, contingency action plans for areas affected by poor rainfall performance, cyclones and flooding should be put in place by government and its stakeholders.
Agribank also advised farmers to start preparing for post-harvest care and marketing of crops.
“Farmers and potential off-takers are encouraged to start preparing for post-harvest care and marketing of crops to realise maximum benefit from the 2023 harvest,” the report stated.
The report says inflation food prices remain elevated, one year after Russia’s invasion of Ukraine on 24 February 2022, and occupying parts of its neighbour.
This development has affected agricultural commodity markets which reached peak levels at the end of 2022, Agribank said.
The Food and Agricultural Organisation (FAO) said Ukraine being one of the world’s largest exporters of wheat and other crucial crops, with the war entering its second year, many vulnerable countries still face heightened food insecurity.
“Countries that rely on food imports are particularly at risk,” Agribank warned.
The state-owned bank added that the Namibian inflation rate stood at 7.0% in January 2023, from 4.6% in the same period of 2022, with transport and food remaining the major contributing factors.
The bank’s report said food and non-alcoholic beverages surged to 14.0% in January 2023, up from 5.6% in January 2022.
In addition, food inflation is predominantly attributed to the fact that prices of bread and cereals surged by 22.3% in January 2023, from 3.8% in January 2022.
Agribank said the price hikes are attributed to increases in all types of grains.
Also, fruits increased by 22.3% in January 2023, from 12.8% in the same period in 2022.
“This is owed to significant increases in the prices of citrus fruits, watermelons and avocados.”
According to the market watch report, the number of cattle marketed in January 2023 declined by 9% to 14,645 compared to 16,065 cattle marketed in January 2022.
“The decrease is attributed to slow activities at export and local abattoirs, slaughtering 4,805 heads in January 2023, 38% lower than 7,765 heads in January 2022.”
AgriBank said cattle production in some parts of Namibia will be adversely affected by the poor rangeland conditions due to uneven distribution of rainfall.
The bank further observed an increase in the number of live exports by 19% to 9, 840 in January 2023.
It said the upsurge can be ascribed to the rise in weaner auction for South Africa exports, which has in turn resulted into a decrease in the price by 17% to N$37.12/kg in January 2023.
Considering harsh climatic conditions, coupled with global crisis, the bank said farmers are expected to introduce innovative ways of coping with drought to avoid further losses.
Agribank added that government support is required in terms of proactive risk transfer instruments, market access and drought relief programmes.
Similarly, the report showed that the number of goats marketed declined by 18% to 5,315 in January 2023, lower than the 6,470 of January 2022.
“Farmers reduced the number of live exports to South Africa, due to the low demand in goats, coinciding with the end of the festive season,” said AgriBank.
Contrary to the decline in cattle and goats, Agribank said the sheep industry continues recording a 4% increase in the number of sheep marketed to 20,727 heads in January 2023 from 19,893 heads January 2022.