May 29, 2014

Namibia beef exports to EU falls, Zimbabwe eyes EU market

Namibia's beef exports to the European Union (EU) and Norwegian markets during the first quarter of 2014 fell 48%, according to recent statistics released by the Meat Board of Namibia.

In the first quarter, a total of 1,621 tonnes of chilled and frozen deboned cuts were exported to the EU and Norwegian markets, compared to 2,164 tonnes in the same period in 2013.

Namibia's only EU approved export abattoirs, Meatco (Windhoek and Okahandja plants) and Witvlei Meat reported a total slaughter figure of 16,682 head by the end of the first quarter, a decrease of 35.86% on-year. Of the total number of cattle slaughtered, 91% were slaughtered at the Meatco plant in Windhoek.

Meatco paid the highest ever average producer price during the month of April, NAD31/kg (US$2.96/kg) across all grades. However, the meat producer said there is great uncertainty over whether it will be able continue paying high average prices to livestock producers in the coming months. Chief financial officer Nico Weck said the meat marketing company's market price for beef products is under pressure in most of its markets, and it is slowly but steadily declining as a result of the stronger rand with the expectation that it will remain strong in the medium term.

In contrast, Meatco's producer price remains stable. Weck warned that if the rand continues to strengthen, there may be a possible decline in the producer price to protect the business margins.

Meanwhile, Zimbabwe is planning to resume beef exports to the lucrative European Union market, with negotiations to that effect already underway, Agriculture, Mechanisation and Irrigation Development Minister Dr. Joseph Made said. Zimbabwe last sold its beef to Europe in 2001 before the exports were suspended because of an outbreak of foot and mouth disease.

"It is not a secret as ruled by the World Trade Organisation that all beef entering the European market must be labelled GMO-free or GMO-fed beef," Dr. Made said. "So, we are mindful of the fact that there is a niche market that relates to our own beef and we would want to participate in that sector because we are GMO-free in terms of our stock-feeds and this we have indicated in the sense that we have remained firm in terms of the content as it relates to GMO material.