Farmers empty kraals as drought looms

Due to unfavourable rainfall conditions experienced in the country thus far this year, many farmers have started to sell their cattle to prevent loss. According to Meat Board of Namibia report for April 2023, live cattle exports, mainly weaners, increased by 49.43% from the 8 337 heads exported in February to 12 458 heads exported in March 2023.

The report added that declining slaughter prices received at abattoirs have also created an added incentive to export to South African feedlots due to reduced profit expectation from mature animals.

“The number of cattle slaughtered at export abattoirs increased by 102.64% from 4 018 heads slaughtered in February to 8 142 reflecting drought expectations. The number of cattle auctioned in March is 9.38% higher than the number of cattle auctioned in February and 184.53% higher than that of January 2023. Historic trends indicate increases in live exports and local slaughter for April,” reads the report.

The all-grade carcass declined by 12.02% to N$54.49/kg in March. The weaner auction prices remain on a rapid decline from N$38.17/kg received in January to N$25.81/kg received in March.

Weaner prices have drastically declined from the December price of N$37.18/kg to N$25.81/kg in March 2023. This decline is due to low rainfall experienced throughout the country causing higher supply at auctions which in turn results in lower prices for farmers.

Furthermore, the Agricultural Bank of Namibia (Agribank) last month said the current high interest rate environment is just adding insult to injury. The bank stated that it is becoming increasingly difficult to source affordable capital to pass on to the agriculture sector at affordable rates.

The bank also encouraged farmers to prepare for the worst-case scenario by ramping up diversification strategies and production technologies to mitigate the impact of climate change, and to unleash opportunities in the food production system.

Prime Minister Saara Kuugongelwa-Amadhila said government is well prepared and has already put in place measures to assist the vulnerable before the expected drought situation reaches crisis levels.