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Livestock market update | The Herald March 10, 2016

The Livestock and Meat Advisory Council (LMAC) was inaugurated at a meeting held at the Ministry of Lands, Agriculture and Water Development on December 2, 1994 and meets bi-monthly to discuss and deliberate upon issues that affect the livestock industry.

It draws together representatives of its allied associations to create partnerships for lobbying and advocacy to ensure a viable and sound livestock and meat industry.

LMAC is proud to provide this livestock market update for the benefit of all stakeholders in the agricultural industry.

Stockfeeds

Maize imports increased by 99 percent from 283 900t in 2014 to 566 000t in 2015 and the average price per tonne was 22 percent lower at $295/t.

The country is projected to continue importing maize and the volumes are expected to be much higher in 2016 as the maize harvest is forecast to be significantly reduced as a result of the El Nino weather phenomenon being experienced throughout the Sadc region.

It is estimated that the region will need to import 18 million tonnes over the next 18 months and the bulk of these imports will be via deep sea.

This will put pressure on transport logistics as the major ports have never been tested to handle such large volumes of grain.

The expected soya-meal harvest will be way below the requirements of the chicken, pig and fish feed manufacturing needs.

Zambia is still the key supplier of GMO free soya-meal and it is likely that there will be a price increase in 2016 due to high demand as other regional countries are also forecasting below normal harvests.

Maize and wheat bran are in short supply and imported product is landing at $185-$205/t.

The livestock industry has been advocating for a reduction in the imports of processed wheat flour and maize meal and an increase in wheat and maize grain imports to ensure that local millers operate at capacity and feed manufacturers have access to cheap wheat and maize bran by products.

Due to the current drought, there will be a significant increase in the demand for cattle feed in which molasses and cotton cake are key ingredients.

Despite decreased production in 2014 /15, there is enough cotton cake to last until the 2016 harvest.

However, the projected low harvest for the 2015 /16 season will create shortages later in the year.

Equally, molasses is in short supply due to the annual shut down of sugarcane plants.

The current low rainfall will most likely negatively impact upon sugarcane production and molasses output in the coming season.

Stockfeeds produced in 2015 averaged 44 351t/month, an increase of 14 percent over 2014. While the average price of feed raw materials procured in 2015 were 10 percent lower than prices in 2014, the prices of a number of raw materials had increased.

The softening poultry feed sales in the last six months of 2015 were partly offset by a 35 percent increase in cattle feeds and fourth quarter cattle feed production was 61 percent up on the same period in 2014, led by demand for maintenance cubes.

Beef Sector

There is a glut on the beef market as farmers have been encouraged to destock to salvage some income from their cattle before they succumb to the drought.

As a result,average auction prices softened by 17 percent in December 2015 while wholesale prices started falling from December into January.

Commercial and economy gradeshave dominated the slaughters for the last two years and total cattle slaughters in 2015 were 257 525, an increase of 4 percent compared to 2014.

Statistics show a declining trend in imports in 2015 and the volume dropped by 8 percent to 783t.

By the third week of January, approximately 14 000 cattle had died due to the effects of the drought.

Matabeleland North and South, Midlands, Masvingo and Manicaland recorded most cattle deaths.

A partnership has been proposed between government, abattoir operators and cattle producers experiencing drought stress which facilitates the establishment of feedlots, the procurement of raw materials for feed manufacture and the distribution of survival feeds to preserve core breeding animals.

The spread of foot-and-mouth disease has significantly reduced through vaccination efforts.

Stakeholders are concerned that the outbreak may resurface as cattle are being moved in search of grazing pastures, increasing the risk of contact with buffaloes, the host of the FMD virus.

Trade in hides and skins on the domestic market has been minimal as the price has significantly declined to between $0,50-$0,60/kg.

While the export market is offering competitive prices of $0,70- $0,85/kg, the current $0,75 cents/kg surtax on exported hides effectively acts as an export ban on unprocessed hides.

The Beef Carcass Classification and Grading System has been reviewed to ensure that it does not discriminate against carcasses from smaller cattle breeds such as the Mashona.

It is envisaged that the new classification system will also be applied to goat and sheep meat classification.

Poultry Sector

The broiler industry continues to contract and in 2105, day old chick sales and retentions were 74,5 million, 4 percent lower than 2014.

Similarly, chick prices declined from $74 per 100 chicks in June to $64 in December.

The number of birds slaughtered and total dressed weight of broiler meat in the large scale chicken abattoirs in 2015 were 1,85 million birds and 2,960mt per month, respectively.

However, the stockholding in 2015 was 26 percent higher than 2014 and averaged 868mt/month.

The average producer price was 4 percent lower than 2014 and declined to $2,55/kg.

Imports drastically reduced since November 2015 but concerns have been raised once again regarding the resurgence of imports, driven by the weakening rand and the AGOA agreement between South Africa and USA which includes beef, pork and poultry products.

The Division of Veterinary Services has reassured stakeholders that no permits are being issued for the importation of beef, pork and chicken.

This policy needs support from all industry stakeholders for it to be effective and to minimise the inflow of illegal imports by reporting such malpractices to relevant government authorities.

Production of table eggs in the large scale sector continues to decline and averaged 1,6 million dozen eggs per month in 2015, being 19 percent lower than that of 2014.

However, production in the small to medium scale sector based on sexed pullet sales is estimated to have peaked at 3,5 million dozen in December.

This increase in egg production is thought to be the main reason for the collapse in the table egg producer price which was 10 percent lower than 2014 and averaged $3,21 per tray in the last quarter of 2015.

Incidence of Newcastle Disease has been quiet due to reduced live bird market activity at Mbare Msika.

Quail producers are forming an association to promote production and to ensure that their activities are regularised for the good of their industry.

Pork Sector

A total of 140,445 pigs were slaughtered in 2015, an increase of 4 percent over 2014.

Predominant grades slaughtered were porkers and baconers and prices have continued to decline as demand for pork is being affected by depressed buying power due to low household incomes and fall in the price of alternative meat products. The producer price is currently $2,45-2,50.

Meat Processing Sector

Imports of mechanically deboned meat, a key raw material in making processed meats, was 12 percent lower in 2015 compared to the same period during 2014.

Processed meat sales have declined and December sales were the poorest in recent years.

Dairy Sector

The dairy industry continues to record a gradual increase in raw milk production and the year on year comparison shows an increase of 4 percent from 55,5 million litres in 2014 to 57,5 million litres in 2015.

The increase is partly attributable to the Dairy Revitalisation Programme which seeks to revive the dairy sector.

However, production still falls short of the national raw milk requirement of 120 million litres.

Fish Sector

Fish trade in Zimbabwe has been dominated by imports and Namibia is the major source.

Zimbabwe has the potential to be a net fish exporter if the right policies are put in place such as the promotion of aquaculture to complement catch fisheries and concerted efforts are made to promote a fish eating culture among Zimbabweans.

The Zimbabwe Fish Producers Association will be formally launched on March 17 with the primary objective of promoting fish production in Zimbabwe.

Livestock market update May 2016 | The Herald May 6, 2016

Farmers, agricultural service providers and livestock experts will converge at the Agricultural Trust Farm, Pomona, on Thursday May 19 for Symposium 2016 – the annual technical and networking forum for livestock farmers. This year, the Symposium focuses on health and bio-security in pigs and chickens, which together make up some 80 percent of the meat market in Zimbabwe.Now firmly established on the farming calendar, Symposium 2016 combines educative technical sessions with the Annual General Meetings of the Zimbabwe Poultry Association (ZPA) and the Pig Producers’ Association of Zimbabwe (PPAZ). An added attraction is the many exhibitor stands mounted by livestock industry service providers, to showcase their products and services to the growing livestock sector.

Animal health is the foundation of successful livestock production and Symposium 2016 will equip poultry and pig producers with the management tools to maintain healthy, disease-free stock. Livestock that are healthy and not subjected to unnecessary stresses are more productive and less susceptible to diseases and other conditions that undermine animal health, performance and profit margins in farming. Prevention is better than cure and bio-security is a key part of the programme.

The Symposium will examine how small and medium scale livestock farmers in Zimbabwe can use global strategies to firmly take control of the management of virulent animal diseases endemic in the country. Bio-security – how to effectively “disease-proof” a livestock enterprise from contagious and decimating animal diseases – is the farmer’s first line of defence against incursion of disease. Any livestock enterprise can be made bio-secure with strict adherence to simple, but stringent control measures.

Worldwide, the control of contagious animal diseases no longer just focuses on quarantining affected livestock enterprises to contain the spread of disease; but also on ring fencing other livestock operations to ensure that they remain disease-free. Bio-security is now an integral part of large, successful livestock operations globally. It is a requirement for ISO certification and other quality control processes. Many countries which import animal products will only import from producers who observe strict bio-security procedures.

Bio-security is especially important in the control of highly contagious and notifiable diseases, such as Newcastle Disease in poultry and African Swine Fever in pigs.

Climate Change also comes under the spotlight at Symposium 2016 which will examine the effects of climate change on poultry and pig production and explore what farmers can do to mitigate this.

The Symposium 2016 programme starts at 8.00am on Thursday May 19 with tea and registration. This will be followed by the review of the poultry and pig industries and stockfeed update. Honourable Paddy Zhanda will officially open the event and the first talk will be at 10.00am on the background to chick production/Maitirwoemabasa pa Hukuru (Video). A presentation on hygiene in broiler production/Kugezwakwematangaehuku and Biosecurity in pig and poultry production/Utsananahwakanakanekudzivirirazvirweremuhukunenguruve will also be discussed.

The Annual General Meetings of ZPA and PPAZ will be held both before and after a hot lunch and Dr Doug Bruce will then make a presentation on temperature control in pigs. The Symposium will finish with a discussion about the impact on climate change on pig and poultry production/Kushandukakwekunzezvazvinorevapamachengeterwoenguruvenehuku.

Tickets for the event cost $20 and includes teas, a hot lunch and an information pack.

Proudly Self-Sufficient in Stockfeed

Production

To ensure that Zimbabwe remains self-sufficient in stockfeed production, the stockfeeds industry has made contingency plans to secure yellow maize for stockfeed production this year. So that white maize is reserved for human consumption in the drought affected SADC region, local stockfeed manufacturers are importing yellow maize for stockfeed. This maize has not been genetically modified and it is estimated that some 200 000 metric tonnes of non-GM maize will be required for stockfeed production in 2016. Yellow maize is being imported from as far afield as the Ukraine.

“To supply livestock farmers with stockfeed, as well as keep the wheels of local industry turning and play our part in value addition, we are switching to yellow maize this year”, reports Israel Muchuchu, chairman of the Stockfeed Manufacturers’ Association (SMA).

“Zimbabwe has not imported finished stockfeed since 2011,” notes Muchuchu. “By importing yellow maize this year, we remain proudly self-sufficient in stockfeeds and continue to offer farmers a consistent supply of specialised animal feeds across the range.”

The stockfeed manufacturer is a vital cog in Zimbabwe’s agro-economy, generating growth both upstream and downstream. The industry aims to procure the bulk of raw ingredients locally, providing a market for maize and soya farmers through agro-processing. Stockfeed production also generates growth downstream by supporting agricultural development and further value addition in the production and processing of meat products, as well as employment creation in the agricultural input supply sector.

Maize, the regional staple grain, is a key ingredient in stockfeed production and primary source of energy in livestock nutrition. Together with soya beans, the other major stockfeed ingredient and protein component, they constitute 63 percent of the tonnage of ingredients used by Zimbabwe’s stockfeed industry and 76 percent of expenditure on raw materials.

Since 2009, local stockfeed manufacturers have strived to recapitalise and supply the growing and diversified livestock industry with stockfeeds formulated for their specific needs and the different growth stages during animal rearing. Recapitalisation and increased capacity utilisation to reduce the unit cost of production and remain competitive are challenges across Zimbabwean industry today. Stockfeed manufacturers are upgrading production technologies to keep abreast of global stockfeed production processes and standards.

Imported yellow maize is currently going into the manufacture of a wide range of Proudly Zimbabwean stockfeeds rolling off the local production line. Yellow maize derives its colour from the high beta carotene content of the grain. When yellow maize is fed to livestock, beta carotene is absorbed by the animal and this can be seen in bright yellow egg yolks and the golden colour to chicken skin and shanks, as well as golden pork fat and healthy yellow animal livers. This is an indication that these primary proteins are a good source of beta carotene for the consumer too. The human body can synthesize beta carotene into Vitamin A, which many Zimbabweans are deficient in.

Beef Sector

Due to the prolonged drought, which experts say is the worst in 35 years, the cattle death toll has continued to rise since October 2015. Under these challenging circumstances, cattle producers are continually being urged to destock, leading to glut of beef on an unresponsive market and further squeezing prices. Due to the supply glut, prices at auction sales are depressed.

Grade Wholesale ($/kg CDM) Producer ($/kg CDM)

April 2016 Dec 2015 April 2016

Super 3.90-4.10 4.20 – 4.40 3.55 – 365

Commercial 3.10-3.25 3.70 – 3.90 2.40 – 2.50

Economy 2.60-2.80 3.20 – 3.40 2.10 – 2.20

Manufacturing 2.20-2.35 2.90 1.70 – 1.80

Dairy Sector

Milk production has been increasing year-on-year with a growth of 19 percent for the months January to March 2016. Production was 16 million litres compared to 13,4 million litres during the same period in 2015.

Production started off on a relative high of 5,5 million litres in January, dipped by 8 percent to 5,1 million litres before rebounding to 5,4 million litres in March.

Poultry Sector

As with the rest of the economy, operations in the poultry industry have been impacted upon by the cash crunch and dire economic situation as discussed at the Zimbabwe Poultry Association Council meeting held on April 13. However, the broiler and day old chick markets are reasonably firm and low to zero stock holdings were reported. Nevertheless, there is a build-up of offal at most chicken abattoirs which may be due to an influx of grey imports.

The egg market remains over traded and the market is soft. A tray of eggs is wholesaling at $3,20-$3,30 yet the break-even price is $3,50/tray.

Cases of Newcastle Disease were reported from Harare in Highfield and Greendale (backyard flock), Chivhu (on small scale farms), Mashonaland East (Seke) and in a 2 300 broiler operation in Domboshava. Cases of necrotic enteritis have also been diagnosed, possibly due to unhygienic conditions. Feeding birds on only bran precipitates the condition and symptoms include low weight gain, high mortality and stunted growth.

Pork Sector

The pork sector has not been spared from the economic challenges which have also been exacerbated by the drought. Pig producers are destocking as the constant access to good quality feed is becoming more difficult. Pork prices have remained depressed and concerns are being raised about on the continued viability of the pig industry

The outbreak of African Swine Fever has been under control since the last report of pig deaths in November 2015. In order to verify that the disease is no longer prevalent, the Pig Industry Board has donated Mukota pigs, an indigenous breed, to producers in Mukumbura to monitor the disease.

Meat Processing Sector

The Meat Processors Association of Zimbabwe continues to lobby to regulate trade in mechanically deboned meat (MDM).The sector recommends that all consignments of MDM be sealed on entry into Zimbabwe and then unsealed and inspected by ZIMRA and officials from Veterinary Public Health upon arrival at the final destination.

The price of MDM has increased and are forecast to continue increasing for the next three months by a margin of $30-50 each month, attributed to a shortage in Brazil as a result of high demand from Mexico. There is a shortage of sausage casings and the price of protein concentrates has increased by 30 percent.

A ban has been proposed on styrofoam packaging for meat products which will impact on packaging costs.

Fish Sector

While demand for fish is reasonable, the market remains flat and bream is retailing at $3,30-3,50/kg. However, fish producers have expressed concern regarding reports that Mutare is still receiving Chinese bream fillets estimated at occupying 20–30 percent of market share in the region. The introduction of duty on imported tilapia has had a positive impact on the market as evidenced by the prevailing stability in prices.