Beef prices to strengthen
...As producer profits dwindle
During the first quarter of 2022, Norway took up 29.02% of Namibia's beef exports, overtaking South Africa. The third destination for Namibian beef was the European Union, the Meat Board said.
World beef prices are expected to strengthen in 2022, underpinned by strong demand from China and high input costs due to feed shortages occasioned by the Russia-Ukraine conflict.
However, given increasing prices of fuel and feed, profitability of producers in real terms is likely to dwindle. This is according to the Meat Board of Namibia, which said
a total of 51 241 cattle was marketed during the first quarter of 2022, an 18.96% growth from the same period in 2021.
Marketing at export abattoirs and live markets contributed to this positive performance while slaughtering and local abattoirs decreased, it added.
“While total marketing remains below the five-year average of the first quarter, export abattoirs performed above the five-year average of 13 998 cattle by 8.92%, having posted a kill of 15 247 cattle in the first quarter of 2022.”
The Meat Board said although live exports were higher than those of 2021, this year’s live exports - at 28 972 cattle - are almost half of the five-year average performance (56 373 cattle) of the first quarter.
On the meat trading front, beef exports in the first quarter of 2022 totalled 2 043 tons, up by 137% from 862.7 tons recorded in 2021. On the other hand, beef imports - comprised mainly of processed products and offal - increased by 9% to stand at 539.7 tons in the first quarter, signalling a recovery in demand.
“The ratio of beef imports as a percentage of beef exports was almost halved at 26% in comparison to 57% in 2021, an improvement in the beef trade balance as a result of increased production and export of beef,” the Meat Board said.
Norway overtakes SA
While imports have been relatively stable, a reduction in beef exports has resulted in imports as a percentage of exports steadily dropping until the first quarter of 2022, when the ration was reduced to 26%, indicating a return of production to normal levels after a reduction in beef production that surfaced during the herd-rebuilding season.
During the first quarter of 2022, Norway took up 29.02% of Namibia’s beef exports, overtaking South Africa, which came in second at 24.66%. The third destination for Namibian beef was the European Union, which took 23.97% of the export pie, the board said.
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However, given increasing prices of fuel and feed, profitability of producers in real terms is likely to dwindle. This is according to the Meat Board of Namibia, which said
a total of 51 241 cattle was marketed during the first quarter of 2022, an 18.96% growth from the same period in 2021.
Marketing at export abattoirs and live markets contributed to this positive performance while slaughtering and local abattoirs decreased, it added.
“While total marketing remains below the five-year average of the first quarter, export abattoirs performed above the five-year average of 13 998 cattle by 8.92%, having posted a kill of 15 247 cattle in the first quarter of 2022.”
The Meat Board said although live exports were higher than those of 2021, this year’s live exports - at 28 972 cattle - are almost half of the five-year average performance (56 373 cattle) of the first quarter.
On the meat trading front, beef exports in the first quarter of 2022 totalled 2 043 tons, up by 137% from 862.7 tons recorded in 2021. On the other hand, beef imports - comprised mainly of processed products and offal - increased by 9% to stand at 539.7 tons in the first quarter, signalling a recovery in demand.
“The ratio of beef imports as a percentage of beef exports was almost halved at 26% in comparison to 57% in 2021, an improvement in the beef trade balance as a result of increased production and export of beef,” the Meat Board said.
Norway overtakes SA
While imports have been relatively stable, a reduction in beef exports has resulted in imports as a percentage of exports steadily dropping until the first quarter of 2022, when the ration was reduced to 26%, indicating a return of production to normal levels after a reduction in beef production that surfaced during the herd-rebuilding season.
During the first quarter of 2022, Norway took up 29.02% of Namibia’s beef exports, overtaking South Africa, which came in second at 24.66%. The third destination for Namibian beef was the European Union, which took 23.97% of the export pie, the board said.
[email protected]
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