Local pork producers still few despite SA ban
Despite the current pork shortage in Namibia due to the import ban from South Africa, the number of formal pork producers remains low, causing retailers and processors to source from overseas markets.
Namibia imported 337 853 kg of pork from five countries in July, with pork tail bones being the top product imported at 75 000 kg.
Meanwhile, it exported 4 990 kg of pork products to two countries, all of which were frozen processed pork.
This is according to the Meat Boards Monthly Market Watch report, which says local pork slaughter recorded an 8.75% increase in the number of pigs slaughtered at local abattoirs from the June level of 3 646 to 3767 in July.
This is also 16.73% higher than July 2022, when 3 227 pigs were slaughtered.
Counter effects
The Namibian pork ceiling price remains fixed at N$51.03/kg, whereas the South African price currently stands at N$30.23/kg.
"The pork ceiling price has been fixed to N$51.03/kg as a mitigation strategy to counter the negative effects of the dwindling Red Meat Abattoir Association (RMMA) pork price, the current benchmark price for Namibia’s pork ceiling price calculation."
The Meat Board said the RMMA price increased by only 3.03% from the June price level of N$29.34/kg.
"The increase in pork producer prices in South Africa is linked to a slight ease in costs due to a reduction in the intensity of load shedding and feed prices, leading to a slight ease in costs throughout the chain."
Record prices
The Meat Board further said it is expected that pork prices will increase slightly in the coming months, paired with the increase in red meat prices.
"European producer prices remain at record high levels, with Poland receiving the highest price in July 2023. Although a slight decline was witnessed in Polish producer prices, the EU still faces continued declines in pigs."
It said not only has the population of pigs been declining all over Europe, but Poland also experienced two new outbreaks of African swine fever during July 2023.
Denmark saw producer prices increase from N$36.29/kg to N$37.26/kg during the month of July. Additionally, Germany also witnessed an increase in producer prices, driven by the decrease in pork supply.
The decline in supply is due to the lack of profitability farmers are facing due to increasing feed and fuel costs and the regulatory pressures from government to maintain better husbandry conditions.
USA prices have increased from the June price level of N$38.60/kg to the July price level of N$41.01/kg due to changes in marketing strategies, where producers are limiting supply by marketing pigs at lighter-than-usual weights in an effort to reduce financial losses.
This, however, is expected to change later in the year.
Furthermore, Canada experienced improved prices for producers, but they are still experiencing high costs that hinder production.
Namibia imported 337 853 kg of pork from five countries in July, with pork tail bones being the top product imported at 75 000 kg.
Meanwhile, it exported 4 990 kg of pork products to two countries, all of which were frozen processed pork.
This is according to the Meat Boards Monthly Market Watch report, which says local pork slaughter recorded an 8.75% increase in the number of pigs slaughtered at local abattoirs from the June level of 3 646 to 3767 in July.
This is also 16.73% higher than July 2022, when 3 227 pigs were slaughtered.
Counter effects
The Namibian pork ceiling price remains fixed at N$51.03/kg, whereas the South African price currently stands at N$30.23/kg.
"The pork ceiling price has been fixed to N$51.03/kg as a mitigation strategy to counter the negative effects of the dwindling Red Meat Abattoir Association (RMMA) pork price, the current benchmark price for Namibia’s pork ceiling price calculation."
The Meat Board said the RMMA price increased by only 3.03% from the June price level of N$29.34/kg.
"The increase in pork producer prices in South Africa is linked to a slight ease in costs due to a reduction in the intensity of load shedding and feed prices, leading to a slight ease in costs throughout the chain."
Record prices
The Meat Board further said it is expected that pork prices will increase slightly in the coming months, paired with the increase in red meat prices.
"European producer prices remain at record high levels, with Poland receiving the highest price in July 2023. Although a slight decline was witnessed in Polish producer prices, the EU still faces continued declines in pigs."
It said not only has the population of pigs been declining all over Europe, but Poland also experienced two new outbreaks of African swine fever during July 2023.
Denmark saw producer prices increase from N$36.29/kg to N$37.26/kg during the month of July. Additionally, Germany also witnessed an increase in producer prices, driven by the decrease in pork supply.
The decline in supply is due to the lack of profitability farmers are facing due to increasing feed and fuel costs and the regulatory pressures from government to maintain better husbandry conditions.
USA prices have increased from the June price level of N$38.60/kg to the July price level of N$41.01/kg due to changes in marketing strategies, where producers are limiting supply by marketing pigs at lighter-than-usual weights in an effort to reduce financial losses.
This, however, is expected to change later in the year.
Furthermore, Canada experienced improved prices for producers, but they are still experiencing high costs that hinder production.
Comments
Namibian Sun
No comments have been left on this article