Weaner price increase and its effect on Meatco’s sustainability
28 Jul 2017
The current high weaner price paid for by South African agents at auctions locally, continues to affect the amount of live animals (raw material) available for purchase by Meatco’s feedlots and other facilities, as well as on the throughput of slaughterable animals to abattoirs in the next two to three years.
This trend has a negative impact on Meatco’s entire business value-chain.
The sales can be ascribed to the good rains South Africa received in the past rainy season which created a bumper grain harvest, resulting in an oversupply that brought about a decrease in prices. Similarly, in Namibia this led to an increase in the demand for weaners at the South African feedlots which was caused by the recurring drought experienced regionally.
“The biggest challenge for Namibia at the moment is the lack of producing grain/fodder in bulk to retain weaners exported to South Africa,” Goliath Tujendapi, the Meat Board of Namibia’s Manger: Trade & Strategic Marketing, says. “Through this, between 160 000 and 200 000 weaners continue to be exported to that market every year.