Weaner value chain under ‘immense pressure’

Although South Africa will remain an important market for weaners, local market competition in Namibia is expected to increase, while weaner exports to South Africa are projected to decline in the long term.“The weaner value chain is therefore under immense pressure across southern Africa. Everyone is waiting for the recovery of consumer purchasing power, after which a price increase in weaner prices is expected.”This is according to the Namibia Agricultural Union (NAU), which last week noted that Namibia can consume only about 30% of its meat production, making it reliant on both regional and international export markets.According to the Red Meat Industry Report prepared by the Bureau for Food and Agricultural Policy and released by the Industry Services, it is estimated that 2.8 million cattle would have been slaughtered in South Africa in 2024.Severe pressureThe Livestock Producers' Organisation (LPO) estimates that Namibia exported around 180 000 live cattle to South Africa in 2024, a year marked by emergency marketing and further herd liquidation.“This represented approximately 6.4% of the cattle slaughtered in South Africa," NAU said. The NAU added that between 2022 and 2024, South Africa slaughtered a total of 7.85 million cattle, while Namibia exported a total of 468 000 live cattle, accounting for 5.9% of the total slaughter numbers in South Africa.“Despite Namibian weaner exports making up only around 6% of total cattle slaughtered in South Africa, there were emotional claims at the start of 2025 that imports of weaners from Namibia were contributing to the low weaner prices in South Africa," the union said.The NAU, however, said the reality is that Namibian weaner producers, like their South African counterparts, are facing severe financial pressure.High costsNAU noted that according to production cost analyses conducted by the LPO, weaner production in 2023 and 2024 was operating at a loss when accounting for land, taxes and management costs.“The primary reason for this is that costs have increased by 61% since 2017, mainly due to international conflicts, while the weaner price has decreased by 23% over the same period.”As a result, producers have been forced to seek alternative income sources or reduce their breeding herds to survive, the union said.It said what is currently happening is that the profit drivers of an extensive primary meat producer are limited to stocking rate per hectare, the efficiency of converting grass to meat, price per kg and cost per hectare.“The LPO is consistently engaging with its counterparts in South Africa and Botswana to ensure mutual understanding and address matters of common interest," NAU said last week. The NAU further said Namibia is strongly focused on exporting meat to international markets, and four beef export abattoirs will be operational in 2026.

Weaner value chain under ‘immense pressure’

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Namibian Sun 2025-04-04

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Weaner value chain under ‘immense pressure’

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Namibian Sun 2025-04-04

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