A decline in production and a drop in producer prices affected the income value of the agricultural sector which signifies a general decline in most agricultural sectors over the past year.
According to the Namibia Agricultural Union, the income value of the pig industry dropped by 6.2% year-on-year due to decreased marketing, whereas that of goats decreased by 1.5% because of a decrease in producer price.
The Swakara industry experienced a whopping decline in production value of about 32%, meaning income value decreased from N$45.5 million in 2017 to N$30.7 million in 2018.
The decline is a consequence of a decrease in price and quantity marketed.
The agronomic and grape industries did not do well either, as income value reduced by 21.7% and -17.8%, respectively.
The NAU however stated that despite all the challenges faced by the agriculture sector, some industries had a positive income value.
Cattle, sheep, and poultry had an estimated year on year income value of 4.3%, 9.1%, and 6.8% respectively.
The positive value on cattle is attributable to a slight increase in weaner and slaughter prices in the fourth quarter of 2018, and that on sheep is due to an increase in live export marketing and better producer prices.
The poultry industry saw a few more SME poultry producers entering the market making a significant contribution to the sector.
The union however stated that the dairy industry is highly dependent on feed to increase milk production, and for 2018 feed cost increased by 72.9%, and on top of that producers had to deal with two price cuts, which made dairy producers more vulnerable.
The NAU however states that before the end of 2018 dairy producers received a 10 cent increase, causing the income value to increase by 0.8%.
This shows how much of a positive difference a 10 cent increase can have on dairy producers’ income.
The charcoal industry performed really well in 2018 with the income value increasing from N$184.8 million in 2017 to N$306.7 million in 2018. It increased by a massive 66% and this was mainly due to increased production and better producer prices received.