Agri sector grew by 2% last year
The agricultural sector, which accounts for 8% of the gross domestic product (GDP), posted a growth rate of 2% in 2021, compared to 2020.
According to Simonis Storm’s update on the agricultural sector for March, this was supported by a 4.6% year-on-year growth in crop farming and a 3.2% year-on-year growth in fish production.
However, the report said livestock farming weighed on the sector in 2021, declining by 2.2% year-on-year.
The Bank of Namibia forecasted a 3.8% growth for the agricultural sector, with 4.5% growth forecasted for livestock farming, 3% for crop farming and 3.8% for fishing in 2022.
According to the report, gross fixed capital formation (net investment) in the agricultural sector, excluding fishing, has increased by 7.7% on an annualised basis in the last five years.
This, it said, is indicative of herd restocking taking place following the drought, whereas net investment in the fishing sector has declined significantly in the last five years.
“We remain net positive on the agricultural sector and it remains one of the sectors supporting our 2.5% GDP growth forecast for 2022.”
Livestock slump
The report further said cattle marketing decreased by 12.4% year-on-year in March, with sheep marketing declining by 34.6%. The marketing of goats fell by 6.4% and pig production decreased by 6.8%.
“On a quarterly basis, the livestock sector recorded positive growth, where improvements in cattle and sheep slaughtering by export-approved abattoirs mainly supported growth in the sector.”
Beef and sheep exports increased by 137% and 35% respectively during the first quarter of this year, compared to the same period last year, the report noted.
“These are early signs of the herd rebuilding season following the drought, coupled with soft commodity prices incentivising additional supply.”
It said 28% of beef exports were to South Africa, 27% to Europe (mainly Norway) and 18% to China.
South Africa and Botswana were the main export destinations for lamb and pork during March.
Global picture
Global beef prices are expected to rise further in the coming months, owing to higher demand from China, as well as higher input costs due to feed shortages and rising fuel prices.
Meanwhile, during March the Namibian borders remained closed to the importation of six different horticulture products, namely butternut, cucumber, coloured pepper, green pepper, pumpkin and sweet potato, according to the Namibian Agronomic Board (NAB).
The NAB at the end of March closed the borders for the importation of only four products for April - butternut, cucumber, coloured peppers and pumpkin, as local production forecasts are insufficient to meet local demand.
Profit margins of local horticulture farmers are also under pressure as global fertiliser prices have increased significantly in recent months.
According to Simonis Storm’s update on the agricultural sector for March, this was supported by a 4.6% year-on-year growth in crop farming and a 3.2% year-on-year growth in fish production.
However, the report said livestock farming weighed on the sector in 2021, declining by 2.2% year-on-year.
The Bank of Namibia forecasted a 3.8% growth for the agricultural sector, with 4.5% growth forecasted for livestock farming, 3% for crop farming and 3.8% for fishing in 2022.
According to the report, gross fixed capital formation (net investment) in the agricultural sector, excluding fishing, has increased by 7.7% on an annualised basis in the last five years.
This, it said, is indicative of herd restocking taking place following the drought, whereas net investment in the fishing sector has declined significantly in the last five years.
“We remain net positive on the agricultural sector and it remains one of the sectors supporting our 2.5% GDP growth forecast for 2022.”
Livestock slump
The report further said cattle marketing decreased by 12.4% year-on-year in March, with sheep marketing declining by 34.6%. The marketing of goats fell by 6.4% and pig production decreased by 6.8%.
“On a quarterly basis, the livestock sector recorded positive growth, where improvements in cattle and sheep slaughtering by export-approved abattoirs mainly supported growth in the sector.”
Beef and sheep exports increased by 137% and 35% respectively during the first quarter of this year, compared to the same period last year, the report noted.
“These are early signs of the herd rebuilding season following the drought, coupled with soft commodity prices incentivising additional supply.”
It said 28% of beef exports were to South Africa, 27% to Europe (mainly Norway) and 18% to China.
South Africa and Botswana were the main export destinations for lamb and pork during March.
Global picture
Global beef prices are expected to rise further in the coming months, owing to higher demand from China, as well as higher input costs due to feed shortages and rising fuel prices.
Meanwhile, during March the Namibian borders remained closed to the importation of six different horticulture products, namely butternut, cucumber, coloured pepper, green pepper, pumpkin and sweet potato, according to the Namibian Agronomic Board (NAB).
The NAB at the end of March closed the borders for the importation of only four products for April - butternut, cucumber, coloured peppers and pumpkin, as local production forecasts are insufficient to meet local demand.
Profit margins of local horticulture farmers are also under pressure as global fertiliser prices have increased significantly in recent months.
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