Improved cattle marketing recorded

AGRIBANK says higher livestock marketing and increased livestock prices are favourable for farmers to return to profitable margins.

In a monthly market watch for April, the bank credits better grazing conditions for spurring hope for low feeding costs during the restocking period, and farmers are thus encouraged to honour their repayment obligations during the periods of positive cash flow.

In a report released last week, Agribank says a total of 17 493 cattle were marketed in March 2022 – a slight decrease of 1% from 17 711 recorded in February 2022.

“Beef prices per kilogramme averaged at N$60,3 for the first quarter of 2022, but world beef prices are expected to remain on an upward trajectory for the rest of the year, on the back of high input costs and low supply amid the robust demand from China,” Agribank says.

The report says small stock marketed recorded double digits, with sheep marketing standing at 56 163 in March 2022, recording a 74% increase from the 32 243 in February 2022.

“The increase is mainly driven by live sheep exports to South Africa, due to a lack of competitive prices in the local market,” the bank's researchers state in the report.

The report says a total of 9 401 goats were marketed in March 2022, a 29% increase compared to the prior month.

The marketing in this sector is traditionally dominated by live exports to the KwaZulu-Natal province in South Africa, as local abattoirs are not offering competitive prices.

The bank observed that anticipated rainfall for January to March 2022 was finally received in most parts of the country, recording two to three times more than the usual amount.

“However, the rainfall received to date did not normalise the situation in the Omusati, Oshana and western Ohangwena regions. Therefore, the risk of crop failure and water availability remains a major concern,” the report states.

It says vegetation growth was above average in most parts of the country at the end of March 2022, although it remains below average in the north-eastern regions.

“As a result of the long-term drought situation and poor rainfall, measures and solutions need to be put in place to support farmers in these regions,” the bank says.

It says food inflation slowed down in March this year to 4,7% from 7,1% recorded in the same period last year.

The decline results from meat prices which dropped to 4,4% from 13,3% in 2021.

“Last year, meat products were expensive due to supply shortages. Improved livestock marketed as a result of good rains and better grazing land has contributed to the slowdown in meat prices in 2022,” the report says.

The price of oils and fats increased by 15,6% in March 2022, compared to 9,4% in March 2021.

The increase is backed by notable increases in cooking fats, which increased to 36,6% from -2,7%.

Cooking oil increased to 20,3% from 15,8%, and margarine spreads increased with -1,7% from 12,3% in March 2021.

“This accelerationist effect is mainly driven by the shortages in sunflower oil supplies from Ukraine.

Prices are expected to remain on an upward trajectory for the remainder of 2022, and local substitutes are encouraged to soften the impact of this on the consumer.

Vegetable prices decreased to 4,6% in March 2021 from 7,3% recorded in the same period in 2021.

The slowdown resulted from decreases observed in cabbage, sweet potatoes, cucumber and spinach due to sufficient local supply.