Agribank’s monthly market watch report has indicated that the number of cattle exported from Namibia declined by 50 per cent to 9 688 in December 2020 from the post-lockdown peak of 19 106 in July 2020.The report, issued on Tuesday, said prices however…
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Agribank’s monthly market watch report has indicated that the number of cattle exported from Namibia declined by 50 per cent to 9 688 in December 2020 from the post-lockdown peak of 19 106 in July 2020.
The report, issued on Tuesday, said prices however increased by 32 per cent since July 2020, closing at N.dollars 42.78 per kilogramme in December 2020.
“While farmers can take advantage of the current high prices to restore income, restocking at high prices presents a risk to future profits in an event of the price rebound,” it read.
It further showed that reduced livestock population as a result of the drought affected the number of cattle marketed for slaughter by most farmers, declining by 48 per cent in 2020 compared to 2019.
The beef producer prices declined throughout 2020, except in October.
“October 2020 and October 2019 saw the same trend - which can be attributed to increased demand by abattoirs to meet their annual quota allocation to supply beef to the export market,” it said.
Abattoirs are expected to slaughter 90 per cent of the allocated quota by October, thus reconciling could mean increasing slaughter volumes or maintaining the same level.
The number of sheep marketed also declined by more than 50 per cent to 368 899 in 2020 compared to 741 444 in 2019. However, due to the significantly low supply of sheep, the price of mutton spiked to above N.dollars 50 per kilogramme at the end of last year.
Over the past seven years, drought has severely affected the stock count, but the good rainy reason anticipated in 2021 could partially restore confidence, it said.
“To revive the sheep and goat industries, good rainfall must be accompanied by policy certainty and farmers’ appetite for farm investment,” the report reads.
It went on to say that the outlook for the 2020/21 crop season has improved with the seasonal rainfall covering most of the crop-rich regions.
The rainfall is expected to yield improved crop output and restore the storage capacity of dams which are used for agricultural purposes.