Wheat

Formula A

A 5-year average, of the actual SAFEX spot price, inflation adjusted, plus:

  • 30 % import parity ex Upington landed in Windhoek and,
  •  70 % of the average wheat price for Hard Red Winter (HRW) ex USA, via Walvis Bay, landed in Windhoek

Or

Formula B

The average of the actual SAFEX spot price for the whole of October, plus:

  • 30 % import parity ex Upington landed in Windhoek and,
  •  70 % of the average wheat price for Hard Red Winter (HRW) ex USA, via Walvis Bay, landed in Windhoek

 

The higher of the two prices of formulae A or B will serve as the floor price for wheat marketed that season.

Wheat producer floor price

The floor price for wheat is determined by the following principles as agreed upon by way of a signed marketing agreement between millers and producers:

The formulae are:

Wheat

In Namibia, wheat is a winter crop and can only be produced under irrigation. As a result, this crop is not affected by Namibia’s erratic rainfall. Wheat is normally planted during June/July and harvested between mid-November and early December every year.

Wheat is produced at the Hardap Irrigation Project near Mariental in the south, and along the Kavango River in the north at the following projects:

  • Shadikongoro;
  • Musese;
  • Mashare;
  • Uvungu-Vungu;
  • Sikondo

The Etunda Irrigation Project in the Omusati Region also plants wheat for its own milling purposes.

Smaller quantities of wheat are produced by individual irrigation producers in the Otavi, Kombat, Tsumeb and Abenab areas.

Wheat Production and Marketing: 2014/2015

Production areas Planted (h) Expected harvest (t) Actual Harvest (t) Retained (t) Marketed (t)
Hardap & environs 1,300 7,700 8,639 0 8,639
Maize triangle & environs 95 520 611 24 587
NCRs 637 3,173 2,901 527 2,374
TOTAL 2,032 11,393 12,151 551 11,600


Production + marketing: Domestic consumption + price

Financial Year Area planted (ha) Local production marketed (t) Grain imported (t) Flour exports (t) Flour exports: equivalent of grain (t) Netto domestic consumption (t) Floor Price (N$)
2005/6 2,435 12,987 73,411 3,065 2,759 83,639 1,851.00
2006/7 2,136 12,312 58,227 85 77 70,462 1,855.18
2007/8 2,369 12,113 61,665 4,623 4,161 69,617 3,065.90
2008/9 2,734 11,626 51,014 5,543 4,989 57,651 3,466.07
2009/10 1,852 12,448 64,661 500 450 76,659 2,716.35
2010/11 2,389 10,038 69,519 0 0 79,557 2,699.74
2011/12 2,136 11,930 84,543 11,100 9,990 86,483 3,138.49
2012/13 2,314 14,819 87,726 1,000 900 101,654 3,947.95
2013/14 2,198 11,312 85,257 2,644 1,983 94,586 4,197.02
2014/15 2,032 9,788 - - - - 3,923.11

Marketing Mechanism

The importation of wheat is monitored by AMTA during the marketing period. Import permits are only issued once all the grain is accommodated. Producers have until 31 January to market their grain against the floor price after which date a normal import parity price will be applicable. The Marketing Agreement, as mutually agreed between the millers and producers, provides the necessary marketing guidelines.

Wheat SAFEX
Go to the Wheat SAFEX graph for the latest Wheat prices
White Maize SAFEX
Go to the White Maize SAFEX graph for the latest White Maize prices

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