The August market saw a decrease in the number of cattle due to South Africa’s foot-and-mouth epidemic.
Agribank Monthly Market Watch reports that this fell by 30% to 16 952 August, due to the ripple effect of a 21-day ban on South African cattle movement.
“The ban on cattle movement was aimed at curbing the spread of the foot-and-mouth disease. The cattle marketed in September 2022 dropped further to 15 840 due to a slow pick-up in cattle marketing after SA lifted the ban in most parts of the country,” Agribank says in the report released by spokesperson Fillemon Nangonya.
The bank claims that the movement ban also affected sheep industries, as 70% are marketed to South Africa.
The average beef producer price was also higher than in 2021, at N$59,5 per kilogram.
The bank, whose primary mission is to support farmers’ interests, reports that weaner auctions prices have fallen to N$37.4/kg year-to-date ending September 2022. This compares to N$39.9/kg recorded in 2021.
“The decline in prices can be attributed to the increase in the number of live exports,” the report says.
According to the bank, the industry is optimistic due to the positive outlook for next season and the increase in pasture thanks to good rainfall in 2022.
According to Agribank Agri SA, a federation involving agricultural organisations, has forecasted potentially devastating brown locust outbreaks in the coming summer season.
In parts of the Northern Cape and Western Cape, brown locust outbreaks were reported.
These swarms were created by above-normal rainfall. It is predicted that this phenomenon will continue into the summer.
Agribank states that production efficiency, innovation, as well as agile strategies, will be crucial in the current business cycle, as well, to ensure that the future is viable.
RANGELAND
The October Namibia rangeland monitoring report shows that rangelands are greener than the previous year thanks to the good rainfalls of the 2021/22 rainy period.
Some parts of the Kunene region are still dry, as they have not received much or any rainfall.
Farmers were advised to be cautious about veld fires.
INFLATION
According to the bank, inflationary pressure is still a concern for consumers and investors as well as corporates.
“Inflation is eroding real returns on investments, however, subsequent interest rate increases will continue to encourage domestic investments in fixed income and money market instruments.”
Due to improved rainfall for crops and better rangeland conditions for livestock farmers, the agriculture sector will be resilient in 2023.
“Farmers are encouraged to continue diversifying farming operations to minimise the risk of climatic, sectoral or/and economic shocks on production output and sales,” Nangonya says.
Source: namibian
