Pork producers saved from financial ruin
Demand increased since pork import ban
An increase in production has been observed in the informal pork sector in Namibia.
The import ban imposed on pork as a result of a foot-and-mouth disease (FMD) outbreak in South Africa has saved Namibia’s pork producers from financial ruin, producers say.
Recent statistics on pork slaughtering indicate that there has been a slight decline in slaughtering from April 2022 to April this year.
The total number of pigs slaughtered from January to April 2022 was 14 961, compared to the 14 752 slaughtered during the same period this year. This is a decrease of 1.4% compared to 2022.
Increase in production
However, the Namibia Agricultural Union (NAU) said this has to be seen in the context of the marketing dynamics of the months preceding April to June 2022.
According to the NAU, the average ceiling price for February and March 2022 was N$34.48/kg, which means that importers could import huge amounts of pork at very cheap prices from SA, hence the drop in numbers sold locally.
"These imports were then sold from April to June, when the pork price in South Africa increased by N$2/kg."
The union said local production still covers 45 to 50% of consumption in Namibia.
The shortfall is imported from Europe at this stage, with Germany and Spain being the main exporting countries.
"As far as the informal sector is concerned, we see an increase in production, even though this is not included in the statistics recorded by the Meat Board."
Increase in demand
The NAU said that Gideon Goosen, chair of the Pork Producers’ Association of Namibia, said that he can base this on the number of breeding animals he has sold in the last four months, which increased from four last year between January and April to 28 during the same period this year.
"The demand increased since the import ban from South Africa due to the foot-and-mouth disease outbreak in August 2022, which created a bigger than normal shortage of pork in Namibia."
Goosen added that the higher demand increased the price, making it a more profitable option for small-scale farmers to diversify their income stream.
According to the NAU, the current ceiling price is capped at N$51.03/kg, but this will only be in place until the import ban is lifted.
High costs
Production costs in Namibia, a net importer of feed, are very high, and if the price drops to the normal ceiling price calculation (currently N$41.50/kg), the sector will certainly not be profitable going forward, the union said.
Global maize and soya prices, however, have declined due to record harvests in South America, a projected record harvest in the USA, and a decline in demand for feed from China.
"Combine this with the strain the South African pork sector is experiencing and the fact that South Africa also reduces sow numbers, and hopefully we can see a better producer/ceiling price towards December of this year," Goosen said.
Recent statistics on pork slaughtering indicate that there has been a slight decline in slaughtering from April 2022 to April this year.
The total number of pigs slaughtered from January to April 2022 was 14 961, compared to the 14 752 slaughtered during the same period this year. This is a decrease of 1.4% compared to 2022.
Increase in production
However, the Namibia Agricultural Union (NAU) said this has to be seen in the context of the marketing dynamics of the months preceding April to June 2022.
According to the NAU, the average ceiling price for February and March 2022 was N$34.48/kg, which means that importers could import huge amounts of pork at very cheap prices from SA, hence the drop in numbers sold locally.
"These imports were then sold from April to June, when the pork price in South Africa increased by N$2/kg."
The union said local production still covers 45 to 50% of consumption in Namibia.
The shortfall is imported from Europe at this stage, with Germany and Spain being the main exporting countries.
"As far as the informal sector is concerned, we see an increase in production, even though this is not included in the statistics recorded by the Meat Board."
Increase in demand
The NAU said that Gideon Goosen, chair of the Pork Producers’ Association of Namibia, said that he can base this on the number of breeding animals he has sold in the last four months, which increased from four last year between January and April to 28 during the same period this year.
"The demand increased since the import ban from South Africa due to the foot-and-mouth disease outbreak in August 2022, which created a bigger than normal shortage of pork in Namibia."
Goosen added that the higher demand increased the price, making it a more profitable option for small-scale farmers to diversify their income stream.
According to the NAU, the current ceiling price is capped at N$51.03/kg, but this will only be in place until the import ban is lifted.
High costs
Production costs in Namibia, a net importer of feed, are very high, and if the price drops to the normal ceiling price calculation (currently N$41.50/kg), the sector will certainly not be profitable going forward, the union said.
Global maize and soya prices, however, have declined due to record harvests in South America, a projected record harvest in the USA, and a decline in demand for feed from China.
"Combine this with the strain the South African pork sector is experiencing and the fact that South Africa also reduces sow numbers, and hopefully we can see a better producer/ceiling price towards December of this year," Goosen said.
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