La Niña threatens food production and prices
Farmers must take advantage of improved rangeland conditions
Experts warn it is crucial for Namibia to expedite resource mobilisation towards climate adaptation and resilience projects for farmers.
The anticipated occurrence of a La Niña continues to threaten food production and global food prices.
It is therefore imperative that Namibia expedite resource mobilisation towards climate adaptation and resilience projects for farmers.
This is according to Agribank's November Monthly Market Watch, which says that food and fertiliser costs remain elevated; however, farmers should take advantage of improved rangeland conditions to reduce animal feeding costs.
According to the report, food inflation spiked to 9.2% in October this year from 5.4% recorded in the same period in 2021.
Pricey fruits
The report says that fruit prices increased by 21.6% in October 2022, from 15.4% in the same period last year.
"The main drivers of this sub-category are avocados and citrus fruits, where local supply is low."
According to Agribank, the inflation rate for watermelons increased to 24.7% compared to 3.2% in October 2021.
"Early harvest farmers usually take advantage of the price. In October farm gate prices were ranging at N$60 per watermelon, however this price significantly reduced to N$30 by the end of October to early November when the supply increased.”
Cattle sector
Meanwhile, the total number of cattle marketed stood at 21 991 heads in October 2022, a 36% increase from the 16 164 marketed in September 2022.
Agribank says that the growth in cattle marketed can be attributed to a 60% increase in live exports of 15 667 in October 2022, up from 9 808 recorded in the prior month.
It adds that 99% of these cattle were exported to South Africa, following the ban on cattle movement that was lifted in September this year due to the foot-and-mouth disease (FMD) outbreak in that country.
"We expect livestock marketing to remain on an upward trajectory for the rest of the year, coupled with the anticipated rainy season and the resumption of weaner exports to South Africa."
Small stock marketing
Furthermore, sheep marketing recorded an average decline of 30% from July to September this year.
However, October showed signs of improvement, declining at a slower pace of 9% to 24 043 marketed heads from 26 517 in September.
It says that "remarkable growth" was noted in the marketing of goats, recording a 44% increase to 16 965 heads in October 2022 from 11 745 in September 2022.
The bank says that the growth was driven by an increase in marketing activities for live exports, which spiked by 43% to 16 749 in October from 11 742 the previous month.
Rangeland conditions
The Namibia Rangeland Monitoring Report for November 2022 indicated that the eastern and north-eastern parts of the country are in the process of greening up as a result of a few raindrops received. "This is a better indication of good grazing lands over certain areas in the country. We remain cautious on rainfall expectations for the next rainy season," says Agribank.
It added that disruptions in wheat exports from Ukraine or Russia, both key grain exporters, could once again interrupt global supplies, as they did in the early stages of the war in Ukraine.
"Further increases in energy prices or disruptions in energy supplies, especially in natural gas and coal, which are key inputs to fertilisers, could exert upward pressure on grain and edible oil prices."
It is therefore imperative that Namibia expedite resource mobilisation towards climate adaptation and resilience projects for farmers.
This is according to Agribank's November Monthly Market Watch, which says that food and fertiliser costs remain elevated; however, farmers should take advantage of improved rangeland conditions to reduce animal feeding costs.
According to the report, food inflation spiked to 9.2% in October this year from 5.4% recorded in the same period in 2021.
Pricey fruits
The report says that fruit prices increased by 21.6% in October 2022, from 15.4% in the same period last year.
"The main drivers of this sub-category are avocados and citrus fruits, where local supply is low."
According to Agribank, the inflation rate for watermelons increased to 24.7% compared to 3.2% in October 2021.
"Early harvest farmers usually take advantage of the price. In October farm gate prices were ranging at N$60 per watermelon, however this price significantly reduced to N$30 by the end of October to early November when the supply increased.”
Cattle sector
Meanwhile, the total number of cattle marketed stood at 21 991 heads in October 2022, a 36% increase from the 16 164 marketed in September 2022.
Agribank says that the growth in cattle marketed can be attributed to a 60% increase in live exports of 15 667 in October 2022, up from 9 808 recorded in the prior month.
It adds that 99% of these cattle were exported to South Africa, following the ban on cattle movement that was lifted in September this year due to the foot-and-mouth disease (FMD) outbreak in that country.
"We expect livestock marketing to remain on an upward trajectory for the rest of the year, coupled with the anticipated rainy season and the resumption of weaner exports to South Africa."
Small stock marketing
Furthermore, sheep marketing recorded an average decline of 30% from July to September this year.
However, October showed signs of improvement, declining at a slower pace of 9% to 24 043 marketed heads from 26 517 in September.
It says that "remarkable growth" was noted in the marketing of goats, recording a 44% increase to 16 965 heads in October 2022 from 11 745 in September 2022.
The bank says that the growth was driven by an increase in marketing activities for live exports, which spiked by 43% to 16 749 in October from 11 742 the previous month.
Rangeland conditions
The Namibia Rangeland Monitoring Report for November 2022 indicated that the eastern and north-eastern parts of the country are in the process of greening up as a result of a few raindrops received. "This is a better indication of good grazing lands over certain areas in the country. We remain cautious on rainfall expectations for the next rainy season," says Agribank.
It added that disruptions in wheat exports from Ukraine or Russia, both key grain exporters, could once again interrupt global supplies, as they did in the early stages of the war in Ukraine.
"Further increases in energy prices or disruptions in energy supplies, especially in natural gas and coal, which are key inputs to fertilisers, could exert upward pressure on grain and edible oil prices."
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