…as demand for weaners in South Africa lowers
Live Cattle Exports declined by 1 503 heads from the January level of 9 840 to 8337 heads in February, the Meat Board of Namibia has said in its monthly market watch bulletin.
On the other hand, export abattoir slaughter increased by 108 heads from the January level of 3 910 to 4018 heads.
“The decline in live exports is due to reduced demand for weaners by South Africa. On the other hand, slaughter prices remained firm, attracting better export abattoir performance. The number of cattle auctioned increased by 160.13% amidst a lower level of live exports, an indication of better retention of cattle in the Country. Historic trends indicate livestock exports are to pick up in March. Similar trends can be expected in slaughter and export and local abattoirs,” the Board said.
The all grade-carcass price increased by 1.31% from the January level of N$61.14/kg to N$61.94/kg. Further declines were seen in the weaner auction prices which plunged to N$33.29/kg from the January 2023 level of N$37.12/kg; as well as the South African RMAA B2 Price which declined by 7.54%.
Weaner prices declined during the month of February by N$3.83/kg from the January level of N$37.12/kg to N$33.29/kg.
“This decline is due to a drop in demand for weaners in neighbouring South Africa where weaner prices have also declined. South Africa is the main destination of Namibian weaners,” reiterated the Board adding that the Weaner/B2 price ratio currently stands at 52% for the month of February 2023.
This is 12% lower than the benchmark ratio of 64%. This drop implies that if the trend is sustained, it will be more profitable to grow weaners to slaughter weight as opposed to export weaners.
SAFEX Feed prices have consistently remained below N$5 000/ton for yellow maize for the past three months and is expected to follow on this trend throughout 2023. This decline encourages an increase in weaner exports to South African feedlots. During February alone, 99.71% of live exports went to feedlots in South Africa and only 0.29% were exported for farming (breeding) purposes.
Internationally, February saw a sharp increase in Argentinian beef producer prices which rose by N$20.06/kg from the January price level of N$60.98/kg to the February level of N$81.04/kg. This increase is attributed to high prices paid by China accessioned by shortages due to the suspension of beef imports from Brazil.
Argentina also experienced a surge in exports influenced by demand in markets China and Europe. Uruguay saw a recovery of prices due to low supply reserves and an increased demand for export steers from EU and US Markets, where they had the advantage of receiving higher prices. Prices in Uruguay increased by N$5.81/kg. USA Prices have seen increases due to the resilience of beef demand due to declines experienced in slaughter numbers as well as lean beef availability. US slaughter figures are expected to continue trending down up until April/June.
Pork
The pork sector performed modestly during the first two months of the year with local slaughter in January being 4.88% higher than the production levels experienced last year. The pork ceiling price experienced a decline from the previous level of N$49.50/kg to N$47.21/kg.
“The price however will be fixed at N$51.03/kg until situations on the ground are more favourable for Namibian farmers.
“The number of pigs slaughtered at local abattoirs currently stands at 2 316 at the time of this publication. The trend indicates that since January 2022 the local production of pork has generally been on a slight decline amidst the shortage pork in the country. August 2022 experienced a surge in production but levels soon dropped below 4 500 heads slaughtered for the remainder of the year,” the Board said.
“The Pork ceiling Price has been fixed to N$51.03/kg as a mitigation strategy to counter the negative effects of the dwindling RMAA pork price, the current benchmark price for Namibia’s pork ceiling price calculation. The trend shows that since the border closure due to the FMD outbreak in August 2022, the pork consumer prices were seen to increase due to pork shortages on Namibian shelves. This situation prompted the adjustment of the producer incentive margin to 20% to deal with the pork shortages occasioned by reduced import supplies.”