Exports of food and livestock drop 0 There has been a significant drop in exports of food and live animals from Namibia on a yearly basis, while the production of milk has continued to decline during the second quarter of 2016 (April to June). In its quarterly bulletin for September, the Bank of Namibia (BoN) says that during the second quarter of 2016 the value of food and live animal exports declined significantly by 24.3% to N$957 million on a yearly basis.
However, it did register a quarterly increase.
According to the report the weaker export performance was primarily because of a decrease in exports of live animals (down 43%,), meat and meat products (down 7.7%), and unprocessed fish (down 19.3%).
“The weaker performance emanated largely from slower activities in the agricultural sector during the period under review, mainly stemming from a reduction in the number of small stock available for marketing due to the effects of the drought,” notes the report.
BoN however says that quarter-on-quarter the earnings from exports of food and live animals increased by N$277 million during the second quarter of 2016.
This stemmed from a rebound in earnings from livestock, as the number of exports increased due to high demand from feedlots in South Africa for live weaners.
Furthermore, the increased marketing activities prior to the implementation of the veterinary requirements for exports to that market also boosted earnings.
According to the report the number of cattle marketed (slaughter and live) rose significantly, by 49.9 % and 15.1%, year-on-year and quarter-on-quarter, to 113 323 head, during the second quarter of 2016, respectively.
The increase was mainly reflected in the total number of livestock exported which rose by 61.1% during the quarter under review. This was mainly due to high demand from feedlots in South Africa as well as destocking by farmers in anticipation of new export requirements to South Africa.
Conversely, the total number of small stock marketed declined by 9.3% during the period under review, mainly due to base effects. On a quarterly basis, however, small stock marketing activities rose significantly by 72.7% to 324 781 head during the quarter under review.
This was also reflected in the number of small stock exported to South Africa (both slaughtered and live) over the period under review. The rise was primarily as a result of farmers’ anticipation of new export requirements for live animals to that country.
The report also says that during the second quarter of 2016, the average price for beef increased, both on an annual and quarterly basis, owing largely to the limited supply of live cattle marketed. The average price for beef rose by 10% and 6.5% to N$29.6 per kg, year-on-year and quarter-on-quarter, respectively.
On the other hand, average prices for weaners decreased both on an annual and quarterly basis by 3.4% and 10.1% respectively, to N$17.9 per kg, driven mainly by competitive prices offered in the South African market.
Furthermore the production of milk continued to decline during the second quarter, mainly due to the prevailing drought. Milk production declined, year-on-year, by 3.2% to 5.9 million litres.
This was ascribed mainly to the drought, which made it harder to grow fodder as a result of water shortages, coupled with the high price of maize.
On a quarterly basis, however, milk production rose by 2.2% during the quarter under review. This was mainly attributed to favourable temperatures during the quarter under review.
Going forward, the water shortage as a result of low rainfall poses a major risk to the dairy industry, says the report.
ELLANIE SMIT