Photo Unsplash
Photo Unsplash

Net investments in the fishing sector declining

PHILLEPUS UUSIKU
The decline in net investments in the fishing sector could be explained by how quotas are allocated, according to Simonis Storm.

To support their argument, for example, Simonis said some industry players have three boats but receive quota from government which only needs one boat. This follows after quotas have been allocated amongst an increasing number of right holders without an increase in the Total Allowable Catch (TAC).

“As a result, we could continue to see net investment in new vessels decrease in the fishing sector and drag overall industry net investment lower if policy does not reallocate resources in a better way,” Simonis pointed out.

Quotas in the open market have become very expensive due to delayed quota allocation in prior years and the industry is sceptical of securing sufficient quota for their processing facilities. This has shifted investment away from new vessels into land-based operations for additional value adding activities to be pursued, SS added.

On a positive note, during May 2022, cattle, sheep, goats and pig slaughtering increased by 3.4%, 12%,90% and 12.8% year-on-year, respectively.

In addition, exports of live cattle, sheep and goats increased by 35.9%, 47.5% and 9.8% year-on-year, respectively.

South Africa was the only export destination for live cattle during May 2022, whereas 99% of both live sheep and live goat exports going to South Africa, Simonis pointed out.

With regards to processed products, beef meat product exports increased by 76.9% year-on-year in May and were mainly sold to Europe (61.1%), China and the US (23.9%) and Africa (15.1%). Sheep meat product exports increased by 96.3% year-on-year in May 2022 and were sold only to South Africa, whereas pork meat product exports were recorded at eight tonnes in May 2022, compared to zero tonne in May 2021.

Regarding horticulture products, Simonis observed a trend of farmgate prices are declining, while retail prices are increasing.

“This could be indicative of market power – or the abuse thereof – resting with retailers in forcing stock prices down whilst increasing profit margins. We expect profit margins for local crop farmers to remain under pressure owing to rising input costs such as higher diesel and fertiliser prices amongst other,” SS said.

The outlook for horticulture products looks bright given the improved rainfall during the first few months of 2022.

“A surplus in local harvests of most horticulture products is expected between May and September 2022, only two products – potatoes and gem squash – harvests are forecasted to fall short of local demand,” SS [email protected]

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Katima Mulilo: 19° | 37° Rundu: 17° | 33° Eenhana: 18° | 33° Oshakati: 20° | 31° Ruacana: 19° | 33° Tsumeb: 17° | 29° Otjiwarongo: 16° | 28° Omaruru: 18° | 31° Windhoek: 17° | 28° Gobabis: 17° | 28° Henties Bay: 16° | 19° Wind speed: 24km/h, Wind direction: S, Low tide: 10:54, High tide: 04:57, Low Tide: 22:58, High tide: 17:16 Swakopmund: 15° | 17° Wind speed: 29km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:55, Low Tide: 22:56, High tide: 17:14 Walvis Bay: 16° | 22° Wind speed: 33km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:54, Low Tide: 22:56, High tide: 17:13 Rehoboth: 18° | 29° Mariental: 22° | 32° Keetmanshoop: 21° | 34° Aranos: 21° | 31° Lüderitz: 15° | 29° Ariamsvlei: 23° | 34° Oranjemund: 15° | 21° Luanda: 27° | 30° Gaborone: 20° | 32° Lubumbashi: 17° | 24° Mbabane: 15° | 23° Maseru: 12° | 28° Antananarivo: 16° | 27° Lilongwe: 17° | 29° Maputo: 20° | 28° Windhoek: 17° | 28° Cape Town: 17° | 23° Durban: 21° | 25° Johannesburg: 18° | 28° Dar es Salaam: 26° | 32° Lusaka: 18° | 30° Harare: 15° | 31° Currency: GBP to NAD 23.93 | EUR to NAD 20.5 | CNY to NAD 2.62 | USD to NAD 18.98 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.33 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.74 | ZWL to NAD 0.04 | BRL to NAD 3.8 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 134.25 | USD to AOA 832.63 | USD to BWP 13.71 | USD to EGP 47.35 | USD to KES 130.98 | USD to NGN 1415.13 | USD to ZAR 18.99 | USD to ZMW 24.97 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 73909.5 Up +0.41% | Namibian Stock Exchange (NSX) Overall Index 1516.02 Down -0.13% | Casablanca Stock Exchange (CSE) MASI 12981.98 Up +0.34% | Egyptian Exchange (EGX) 30 Index 28224.37 Down -2.87% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - 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Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 212.04/OZ UP +0.97% | Copper US$ 3.98/lb DOWN -0.0007 | Zinc US$ 2 449.90/T DOWN -0.27% | Brent Crude Oil US$ 87.11/BBP UP +0.84% | Platinum US$ 901.49/OZ UP +0.74%