By Deon Schlechter
WINDHOEK – The Namibian weaner export industry is still being monitored very carefully after relaxed requirements from South Africa was introduced recently and Namibia’s multi-million industry got back on track again.
But the fear of South Sfrica re-introducing strict animal health requirement still haunts local producers.
The latest media release by the South African ministry of Agriculture in South Africa was positive regarding the trade between Namibia and the neighbouring country with an average of 160 000 weners from Namibia being exported to South Africa annually. A[part from its commercial value, the industry is also the lioveihoofd of communalmers who conteribbute more than seventy percent of the totl weaner exportds.
From the ministry’s report, it is clear that South Africa is now concentrating on getting its own house in order and that the trade between Namibia and that country holds now rsiks for South Africa.
Assistant manager of Operations of the Namibian Agricultural Union Jaco Hanekom told Farmers Forum that the exports of weaners are currently stable. “But the increase in fodder prices because of a shortage in South Africa could have a negative effect on weaner prices together with an expected marketing increase because of the erratic rainfall thusfar this season,” he notes.
He says the the lack of rain in all dry-fed crop areas including the Maize Triangle between Otavi, Grootfontein and Tsumeb and in the Summerdown area means a dismal total harvest for this season. “Some producers might still [pull off reasonable harvests but the majority has made it clear that their crops have been destroyed. Intense heat since December last year was responsible for the damage and the situation worsened when no follow-up rains were received. Peanuts are more drought resistant and producers might still have reasonable yields,” he says.
Regarding the slaugter cattle industry, he says many challenges are waiting for Meatco this year. “The most challenging of these will be the ever weakening economies of South Africa and Europer. “The lower oil prices put pressure on the inflation rates on Europe and deflation is being prevented by the Central European Bank announcing last week that it will install further quantitive relief to strenghten the Euro and to stimulate economic activities in Europe. “South Africa is also experiencing pressure and all these factors mean that Meatcof predicts it would be difficult to maintain producers prices in the second quarter of the year from April to June.
“Meatco has made it clear in a recent report that it is more than geared to face all the challenges waiting and that is another positive,” he stresses.
He also warns that the dairy and chicken industries might be negatively affected by the expected shortage of fodder and increaased transport costs which will push up total productioon costs considerably. “The impact will largely depend on the rest of the rain season. The support and protection for these industries was done away with last year and the industries are constantly under growing pressure from South African competition. It is currently being debated wheter the support and protection measures should be re-installed to aid the struggling industries,”: he explains.
He concludes by saying the drastic reduction in oilLa prices has had a overall positive efffect on the South African and European economies as it in theory increases consumer spending over the medium term. It is also ecxpected that the decreased oil prices will bring about a saving for local farmers in total production costs.