Namibian pork sector stable – NAU

A total of 14 961 pigs were slaughtered in Namibia between January and April 2022 compared to 14 752 during the same period in 2023.

This was a 1,4% decrease compared to pigs slaughtered in 2022 and according to the Namibia Agricultural Union (NAU) analysis based on Meat Board statistics, the production of pork by contributing producers has been stable for those months.

NAU said in its latest newsletter, local production still covers between 45 and 50% of consumption in Namibia with the shortfall imported from Europe, with Germany and Spain being the main exporting countries.

The statistics show a decline in slaughter from April 2022 to April this year.

However, seen in the context of the marketing dynamics in the months preceding April to June of 2022, the average ceiling price for February and March 2022 was N$34,48/kg meaning importers could bring in huge amounts of pork at very cheap prices from South Africa, hence the drop in numbers sold locally.

These imports were then sold from April to June, when the pork price in South Africa increased by R2/kg.

The informal sector saw an increase in production, even though this is not included in the statistics recorded by the Meat Board.

Gideon Goosen, the chairperson of the Pork Producers’ Association of Namibia (PPAN) commented: “I can base this on the amount of breeding animals I have sold in the last four months, which increased from four from January to April, to 28 in the same period this year.

“The demand increased since the import ban from South Africa due to the foot-and-mouth disease in August 2022, as it created a bigger than normal shortage of pork in Namibia.

The higher demand increased the price, making it a more profitable option for small scale farmers to diversify their income stream,” he said.

According to NAU, the current price is capped at N$51,03/kg, but this will only be in place until the import ban is lifted. This situation has, however, saved the pork producers in Namibia from financial ruin.

Production costs in Namibia, a net importer of feed, are very high and if the price drops to the normal ceiling price calculation (currently N$41,50/kg), the sector will certainly not be profitable going forward.

Global maize and soya prices, however, have declined due to record harvests in South America, a projected record harvest in the United States of America and a decline in demand for feed from China.

Goosen added: “Combine this with the strain the South African pork sector is experiencing and the fact that South African also reduces sow numbers, hopefully we can see a better producer/ceiling price towards December of this year”.
– matthew@namibian.com.na