This article will review the performance of cattle, small stock and pork marketing in the third quarter of 2024, compared to the same period in 2023.
Cattle sector
An overall marginal increase in cattle marketing was recorded during the third quarter of 2024. Due to prevailing drought conditions coupled with better producer prices, slaughtering at export abattoirs increased substantially by 23,3%, leading to an overall improvement of 1,5% in total animals marketed – even in the face of poor performance at B- and C-class abattoirs. Live exports recorded decreases of 21,9% and 7,7% respectively.
Production and marketing
- Year-on-year, a 1,5% percent increase was recorded in total cattle marketing during the third quarter of 2024 compared to the same period in 2023. Marketing increased from 98 016 to 99 451 heads of cattle.
- The increase was mainly driven by higher slaughtering numbers at export abattoirs due to drought conditions that have forced farmers to bring livestock to manageable levels.
- From total cattle marketed, 47,9% were live exports, 42,7% were taken up by export abattoirs while B- and C-class abattoirs only took up 9,4% of the market share. Compared to the third quarter of 2023, live exports lost 4,7% of its market share to export abattoirs whereas butchers lost 2,8% to export-approved abattoirs.
- A total of 9 316 cattle were marketed at B- and C-class abattoirs during the third quarter of 2024 bringing the total slaughter year-to-date (YTD) to 42 989 cattle.
- The average weaner price south of the veterinary cordon fence (sVCF) dipped to N$24.64 per kg during the third quarter of 2024. In the corresponding period last year, the price was N$30.66 per kg.
- On the other hand, the tolly price north of the veterinary cordon fence (nVCF) averaged N$22.13 per kg during the period under review. The lowest and highest price of N$20.20 per kg and N$24.02 were recorded in July and September 2024, respectively.
- Year-on-year, the B2 producer carcass price dropped by N$1.31 per kg, averaging N$60.54 per kg during the third quarter of 2024 compared to the N$61.65 paid to producers during the same period in 2023.
- The weaner to B2 ratio averaged 40,7% during the period under review compared to the 42% recorded in the corresponding 2023 period. This low ratio, which is below the 64% benchmark, represents relatively stable producer carcass prices paid by abattoirs.
Sheep sector
Sheep marketing declined in the third quarter of 2024 and for the first time this year posted a negative performance compared to 2023. A total of 144 045 sheep were marketed in the third quarter of 2024 compared to 150 175 during the third quarter in 2023. All market segments posted a negative performance during the quarter under review. This can be attributed to the effect of the drought waning, which is indicative of producers restocking for the next marketing season. Price differentials between Namibia and South Africa remain beyond the industry-agreed nominal benchmark of -N$2.50. It averaged N$6.87 per kg during the period under review.
Production and marketing
- In total 180 668 sheep were marketed through various formal channels during the period under review. This is a 6,7% percent decrease when compared to the same period in 2023 where 193 666 sheep were marketed.
- Sheep marketing recorded a negative performance in the last part of the third quarter of 2024.
- Live exports registered a 4,1% decline during the period under review, recording 180 668 heads of sheep compared to 193 666 in the previous year. The increment was insufficient to cause an overall better performance in the sector due to the severity of declines recorded by export facilities and local butchers.
- Export-approved abattoirs recorded weak activity slaughtering 14 070 sheep compared to 16 920 sheep. This brings the YTD throughput to 59 950 compared to the 72 628 slaughtered in 2023.
- The Namibian A-grade average sheep price averaged N$53.28 per kg. The Namibian A2 sheep price dropped by 6% percent from N$81.79 per kg in the third quarter of 2023 to N$76.86 in 2024. On the other hand, the Northern Cape A2 price increased by 1,2% from N$82.73 per kg to N$83.72 during the same period. This price was N$6.87 per higher on average.
- The price difference of the Namibian A2 sheep prices compared to the Northern Cape prices generally widened from -N$0.99 per kg in the third quarter of 2023 to -N$6.87 observed in 2024. This is due to declining domestic producer carcass prices.
Goat sector
The goat sector witnessed a drop in marketing activities during the third quarter of 2024, relative to the same period in 2023.
Production and marketing
- Total goats marketed during the third quarter of 2024 declined by 2,9% compared to 2023.
- Live exports of goats declined by 0,7% during the third quarter of 2024, recording 45 664 heads compared to 45 966 in same 2023 period.
- From the total number of goats marketed during the third quarter of 2024, 99,7% were live exports while B- and C-class abattoirs accounted for 0,4% of all animals marketed.
Pork sector
Pig slaughtering activities at LL- PBN-registered abattoirs recorded a growth during the period under review.
Production and marketing
- Pig slaughtering for the period under review totalled 12 434 animals, a 12,5% growth compared to the 11 053 pigs slaughtered during the same period in 2023.
- The pork market share remained in favour of imports due to increased pork imports.
- Excluding processed products, the market share of local pork products declined from 57,4% to 36,9% in 2024.
- Local pork production serviced 40,3% of the Namibian consumption requirements (including processed pork) during the period under review.
- The average slaughter mass of pigs during the third quarter averaged 94,34 kg.
- The pork-ceiling price remained fixed at N$51.03 per kg while the benchmark Red Meat Abattoir Association (RMAA) price in South Africa averaged N$31.59 per kg.
Conclusion
The total marketing of livestock generally declined during the third quarter of 2024 as the drought stimulus waned. While producer prices at auctions remained on the downward trajectory, it is expected that prices will slowly climb as marketing activity slows down. The sheep sector experienced a decline due to severe reductions in export abattoir and B- and C-class abattoir activity. The pork market share promotion scheme attempts to safeguard a healthy ratio between local pork production and imports. As RMAA pork prices remain depressed, the LLPBN will continue to maintain consistency in the pork-ceiling price to assist local producers.