By: Nghiinomenwa Erastus
For the first four months of the year, producers have sold more of their cattle as live export compared to the throughput at slaughtering abattoirs and butchers for a bit of value addition.
The Villager Business Desk’s analysis of the latest cattle marketing statistics from the Meat Board of Namibia revealed this.
For the four months, local producers sold/exported 5 167 more live head of cattle than it sold to local slaughterhouses (for beef export and local consumption).
The April 2022 statistics show that domestic slaughtering (for export and consumption) received 33 901 head of cattle in the space of four months, while live export received 39 067 head of cattle for the period.
As the country battles the value addition issues, the producers search for better pricing for their cattle. The choice also involves the cost of raising a ready-to-slaughter animal and a weaner, which mostly influences live export for mostly weaners and selling ready to slaughter.
Month on month observation shows that every month the country exports 500- 2 445 live head of cattle, mostly to stock up the South African market.
However, for April, live export reduced substantially, as the difference between what was offered to domestic slaughterhouses and sold live to SA was just 175 head of cattle.
The reduction in live export has also come when the Weaner/B2 ratio went down from 81.73 per cent to 66.17 per cent edging closer to the national industry balance of 64 per cent.
The ratio indicates if it is profitable to venture into ready-to-slaughter cattle or if one will just sell weaners.
For producers to consider raising slaughter-ready animals, the gap/price difference between wearner and slaughter-ready cattle must be at least 36 per cent or more.
Regarding local slaughtering, the 9 921 head of cattle that were supplied were divided among export abattoirs (8 432) and local butchers (1 489).
Within export abattoirs, Meatco received 5 832 of the head of cattle. Of this, 2 144 were sold to Beefcor, while Hartlief received 248 of the ready-to-slaughter animals. These are all abattoirs on the south of the redline.
On the northern side of the redline, the only exporting abattoir there, Zamco did not slaughter for the first three months of the year. However, in April 2022, it slaughtered 207 head of cattle.
Slaughtering at export abattoirs is up by 76.74 per cent (23 679 cattle slaughtered by A-class abattoirs) for the four months observed,
As a result, April 2022 recorded 944 tons of beef exports, bringing the year-to-date exports to 2 988 tons.
However, Meat Board analysis shows that export abattoirs are still operating way below capacity but are 67.81 per cent better off than in 2021 (Jan-Apr).
The distribution of head of cattle supplied to local butchers is also skewed more to the south of the redline, as out of 1 489 head of cattle butchered for the local formal market, only 345 were slaughtered north of the redline in April 2022.
Overall, total cattle marketing increased by 18.95 per cent from 61 344 cattle during the first four months of 2021 to 72 968 cattle from January to April 2022.
Email: erastus@villager.com.na
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