Namibian weaner prices on the decline

The decline in Namibian weaner prices can be ascribed to, among other reasons, high supply levels and declining demand. This was according to Harald Marggraff, commodities manager at the Namibia Agricultural Union. He said prices fell from R37,26/kg at the beginning of 2018 to an average of R29,47 at present.

Nonetheless, prices fluctuated markedly and weaners could still fetch as much as R37/kg at auction, he said.

lower demand puts pressure on prices

“However, it seems that feedlots in South Africa are relatively [overstocked] and that played a major role in the lower prices. The majority of Namibian weaners are exported to South Africa,” Marggraff added.

South Africa was Namibia’s main trading partner in terms of livestock, with about half of that country’s annual weaner production being exported to South Africa. Namibian red meat prices were also closely linked to South African maize prices, as Namibia mainly imported maize for animal feed from South Africa. The rest of Namibia’s weaners were slaughtered for other export markets such as those in Scandinavian countries, as well as for local consumption.

Marggraff also said that resistance from consumers when red meat prices reached unaffordable levels in that country also played a role in Namibian weaner price movements.

According to the red meat cost index, labour constituted 22% of input costs, fuel 17% and licks and animal feed 16%. – Annelie Coleman