Sheep Sector Faces Strain Despite Notable Rise in Producer Prices

Sheep Sector Faces Strain Despite Notable Rise in Producer Prices. Producer prices for lamb and sheep recorded strong increases in 2025, yet many farmers continue to face financial pressure as higher earnings have not kept pace with rising production costs.

According to the Namibia Agricultural Union’s 2026 Outlook, lamb producer prices rose by 22.92 percent, while sheep prices climbed by 27.43 percent during the year. However, the Union cautioned that these gains were not linked to higher production volumes. Instead, sheep marketing and exports declined, highlighting deeper challenges within the sector.

The NAU reported that Namibia’s sheep industry remained under considerable strain throughout 2024 and 2025. Drought related destocking and weak external demand significantly reduced throughput. In 2024, the total value of sheep production contracted by 6.61 percent. This decline was attributed to reduced slaughter availability and fewer export opportunities to South Africa and other markets.

Pressure intensified in 2025. During the first half of the year, sheep marketing dropped by 40.85 percent. Export abattoirs recorded a 40.57 percent decline in slaughter numbers. At the same time, live sheep exports to South Africa, Namibia’s primary market for small stock, fell by nearly half.

Despite the downturn, the NAU expects conditions to begin improving. The Union indicated that slaughter availability is likely to recover as farmers shift focus toward rebuilding their flocks. Sheep herds generally recover faster than cattle, which could help ease supply constraints more quickly.

Looking ahead to 2026, the NAU projects that supply could return to around 80 percent of normal levels as flock rebuilding gains momentum. This recovery is expected to support a gradual stabilization of market conditions, even as producers continue to navigate ongoing cost pressures within the sector.