ONE year on from a painful crash, Max Verstappen returns to Silverstone as clear favourite to register his first British Grand Prix win and increase his lead in the title race.
THE Meat Board of Namibia says it expects beef prices to start increasing, as farmers factor in the increased cost of inputs like diesel and animal feed.
According to the board, this increase would have beef slaughterhouse prices averaging at around N$60 per kilogramme.
Despite this, the marketing of livestock, which has shown some growth, is expected to help the economy's continued recovery efforts from the devastating Covid-19 lockdown-induced recession.
According to the board, this effort will be helped by Namibian farmers reaping the benefits of restocking initiatives in the past two years.
Cattle slaughtering increased marginally by 3,4% year on year in May 2022, while sheep dropped by 12%, goats are down by 90,7%, but pigs rose with 12,8%.
A Simonis Storm Securities analysis of Meat Board data says live cattle exports increased by 35,9% year on year, and that of sheep went up by 47,5% year on year, but the sale of goats dropped 9,8% year on year in May 2022.
“South Africa was the only export destination for Namibian live cattle during May 2022, whereas 99% of both live sheep and live goat exports went to South Africa,” Simonis says.
The analysis says the export of processed beef products increased by 76,9% year on year in May, and were mainly sent to Europe with 61,1%, China and the United States taking 23,9%, and Africa 15,1%.
“Exports of processed sheep products increased by 96,3% year on year in May 2022, and were only sent to South Africa, whereas processed pork exports were recorded at eight tonnes in May 2022, compared to zero tonnes in May 2021,” the analysis reads.
Year to date, average auction prices decreased from N$32,19/kg to N$29,34/kg, an 8,9% drop for cattle, and decreased from N$35,22/kg to N$34,39/kg – a 2,4% drop for sheep.
However, the prices increased by 3,2% from N$37,04/kg to N$38,21/kg for goats, and increased from N$36,76/kg to N$36,95/kg for pigs – a rise of 0,5%, according to the Meat Board.
The board expects beef prices to be just above N$60/kg by the end of this year, reflective of increased costs of inputs like diesel and animal feed.
There has been an observed decline in investments in the fishing sector according to a Simonis Storm report, which reflects mainly on fishing quota allocations.
Some stakeholders, for example, have three boats but receive a quota enough for one boat only.
This is because quotas are allocated to an increasing number of rights holders although there is no increase in the total allowable catch, Simonis says.
“As a result, we could continue to see net investment in new vessels in the fishing sector decreasing and dragging overall industry net investment down if the resource allocation is not improved.”
Quotas in the open market have become very expensive due to delayed quota allocation in prior years, and the industry is sceptical of securing sufficient quota for their processing facilities.
This has shifted investment away from new vessels into land-based operations for value-addition activities to be pursued.
Namibia initially closed its borders to the importation of 11 horticulture products during May 2022, but this list was revised to nine products later in May 2022, according to the Namibian Agronomic Board (NAB).
Tomatoes and green peppers were removed from the list, owing to lower production locally.
Average farmgate prices of various horticulture products decreased by 2,7% year on year in May 2022, whereas the average retail price for the same products have increased by 6,3%.
During May 2022, cabbage prices dropped 28,6% year on year, sweet potatoes dropped 28,1% year on year, lettuce 20,6% year on year, and tomatoes fell 20,5% year on year, recording the largest annual drops in farmgate prices.
On the other hand, beetroot prices shot up 42,7% year on year, cucumbers were 29,8% up year on year, sweet potatoes were up 26,1% yea on year, and green peppers shot up by 25,2% year on year, recording the largest annual retail price increases in May 2022.
That farmgate prices are declining, yet retail prices are increasing, could be indicative of market power – or the abuse thereof – resting with retailers in forcing stock prices down, while increasing profit margins.
“We expect profit margins for local crop farmers to remain under pressure owing to rising input costs, such as higher diesel and fertiliser prices, among others,” Simonis says.
Matthew is a sub-editor at The Namibian.