The healthy 21.49% growth of the Namibian cattle market during the first 11 months of 2024 is evidence of a survival strategy that has caused much discontent in the South African red meat sector over the past two years.
These statistics – the latest available from the Namibian Agriculture Union (NAU), reflect a continuation of the Namibian sector’s 2023 export strategy to counter drought by increased marketing of live cattle and sheep as well as meat for export.
For cattle, the NAU said: “This growth was mostly attributed to an increase in live exports, which grew by 19.20% while export abattoir slaughter grew by 30.03%. This was due to herd liquidation based on drought conditions.
“The effects of drought are further seen in the increase of cattle at auctions, where slaughter cattle increased by 77.10%, with a total of 75 081 slaughter cattle being auctioned during the first 11 months of 2024.”
Most live sheep exports were destined for abattoirs in the Northern Cape, which were on average offering higher prices compared with Namibian abattoirs. The rest were exported to other neighbouring SADC countries.
However, slaughter activities declined by 17.48% at export abattoirs and 3.33% at B- and C-class abattoirs. “Despite the fact that farmers want to support local abattoirs, limited slaughter opportunities were available, as local markets were over-supplied. This has forced farmers to export more sheep on the hoof,” says the NAU.
In South Africa, the Red Meat Producers Organisation has in the past pointed out that the Namibian imports were generally of lower quality than those slaughtered locally due to the animals being raised in drought conditions. However, both the South African and Namibian industries have pointed to the deteriorating market for red meat in South Africa.
The NAU notes: “Due to the current economic climate in South Africa, consumers are leaning towards alternative (more affordable) protein sources, like chicken and pork.
“This decline in demand from our main market is reflected in the current price trends.”
The report notes that some B2-grade red meat was trading at real prices similar to those of 2006.
