Home Business livestock and fisheries subsectors will likely boost the nation’s growth in 2022-...

livestock and fisheries subsectors will likely boost the nation’s growth in 2022- Analyst

897
0

NAMIBIA continues to be a net importer of food, which makes it susceptible to changes in international food prices and exchange rate risks.

Simonis Storm’s analysis indicates that the livestock and fisheries subsectors will likely boost the nation’s growth in 2022.

Cattle marketing climbed by 20,3% during the first half of 2022, sheep marketing increased by 39,8%, goat marketing increased by 8,5%, but pig marketing decreased by 52,1% during the same period in 2021.

“Beef exports drove growth in cattle marketing as local producers responded to a rise in prices offered by export-approved abattoirs. Local pork production only catered for 47% of local market demand, increasing the need for imports,” said Simonis, quoting the latest figures from the Namibia Statistics Agency’s first quarter of 2022 agriculture bulletin.

The analysts said because of price differentials, local sheep producers sent about 73% of their sheep to South Africa, where they fetched higher prices.

Northern Cape abattoirs paid N$6,84/kg more than local abattoirs in Namibia, according to the Meat Board. Beef exports increased by 97,5% during the first half of 2022, compared to the same period last year.

The Katima Mulilo export abattoir resumed operations in the second quarter of 2022 and facilitated exports to Angola, Ghana and Tanzania.

This gave farmers in the northern communal areas, who have always complained of a lack of lucrative markets for their cattle compared to farmers south of the redline, a lifeline.

Although fish landings declined by 16,1% y/y in the first quarter of 2022, inflationary effects and a weak rand exchange rate allowed export earnings to increase by 6,9% y/y in the first quarter of 2022 for the fish fillet, frozen fish, molluscs and crustacean sub-sectors.
Overall, growth in the sector appears to be positive. Fish landings were also positive for hake, monk and horse mackerel companies year to date.
Another opportunity currently being pursued by the local fishing sector is taking advantage of global supply chain disruptions. European countries are looking at alternative options to have fish processed due to supply chain disruptions in China.