Norwegian beef surplus may affect exports to Namibia

Norwegian beef producers and authorities said the market is dealing with a surplus of beef could negatively affect Namibia's application for an increased beef export quota to Norway.

However, Meatco CEO Kobus du Plessis takes a different point of view, saying that the oversupply issue meant that there is room to increase the quota, but added that it all depends on the Norwegian authorities.

Du Plessis explained that the stock of 2,000 tonnes of beef in storage in Norway since the beginning of the year was now down to 800 tonnes – this indicates a good demand for beef in Norway, he said.

He said Namibia's application for a higher beef export quota of 4,000 tonnes a year is dependent on what space is available in the market.

According to him, the issue is related in part to the Norwegians trying to protect local production by trying to balance local products with imports.

Du Plessis also referred to a recent proposal by Norway that 1,000 tonnes of the 2,700-tonne beef export quota currently shared between Namibia and Botswana could be auctioned in future.

Earlier this year, Meatco indicated Namibia and Botswana could incur losses of at least NAD20 million (US$2.71 million) if 1,000 tonnes of the 2,700-tonne quota is converted into an auction quota.

Meanwhile, global meat consumption had dropped since 2008 due to the global financial downturn, he noted, adding that there was also a move away from beef to pork in the international markets, due to pork's lower prices.