Stricter export regulations cause weaner prices to drop
The prices offered at auctions for weaners has significantly decreased due to the renewed enforcement of current regulations for export to the South African market.
“The current regulations for export to South Africa affects the buying power at the auctions, which has an effect on the price. Export buyers are not buying,” said Agra Senior Manager, Marketing, Abelene Boer.
Boer explained to the Economist that due to the imposed regulations, auctions are forced to accept low prices as they do not have purchasing power due to the fact that the “export buyers are not buying” hence a decline in income for the producers.
The latest two Agra auctions achieved an average for tollies of N$14,36’kg (at Wittklipp) and N$14,79’kg (at Grootfontein) and for heifers N$14,35’kg (Wittklipp) and N$13,35’kg at Grootfontein which is almsot 30% lower than the previous averages at the auctions.
Boer said, “The future prices will be affected by the conditions for exportation of livestock and the period of time it will be enforced.”
“It is expected that the prices will recover if and when an amicable solution can be found for the veterinary import conditions” she said.
“Livestock prices are volatile and affected by the market. Average prices are communicated through various media to inform producers and prospective buyers of current average tendencies” said Boer.