Expect high beef prices come December
Your favourite steak price shot up and the trend is not expected to abate.
FNB Business released its weekly agricultural highlights, this time on livestock and fibre markets. Among some of its outlook analysis has been the continued drought experienced in some parts of the country affecting livestock production.
“The yearly trend in livestock prices shows weakness across most categories except for the poultry market whose prices remain elevated relative to last year” said FNB agricultural economist Paul Makube.
Beef prices were worst affected. The Class A of beef went beyond the average price of R50/kg which was also compounded by the weak disposal income and economic conditions.
The situation is expected to exacerbate through to December considering the shortage of rain. This poses a growing concern of imports into South Africa’s red meat markets.
“The Botswana authorities have announced permission for export of 30% of cattle herd to South Africa” said Makube. Added pressure at both retail and producer level is significantly expected.
For the red meat industry, the outlook does not look favourable altogether. Seasonal demand of beef is expected to grow this festive season but the gains will be limited ‘’should herd liquidation continue and imports come in higher than anticipated” said Makube.