South Africa: Pork industry anticipates growth amid price challenges

Published 2022년 12월 26일

Tridge summary

Pork production in South Africa has seen a 9.2% increase in 2022, but producers are under profit pressure due to high feed prices. Pork prices have remained at about six times the price of maize since March 2022, 33% below the long-term average. The South African Pork Producers' Organization (SAPPO) is implementing a sustainability framework with PwC Southern Africa to achieve long-term systemic change. SAPPO is also expanding its developmental impact through mentorships, farmers' days, and educating digital communications. They have signed an MOU with the Western Cape Department of Agriculture on farmer development and are revising marketing campaigns to increase the perceived value of pork.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Over the course of 2022, pork production has increased by 9.2%. However, pork producers remain under profit pressure due to high feed prices. Since March 2022, pork prices have remained at approximately six times that of the price of maize, 33% below the long-term average. "Between 2015 and 2022, the average market price of pork increased by 10%. However, in real terms it has decreased by 24%. This highlights the all-time low point in profitability that pig producers experienced in 2022", says Nico Scheltema, head of business intelligence at the South African Pork Producers' Organization (SAPPO). Moreover, it became evident that the pig industry's license to operate will be a subscription to a dual strategy that compensates for the variance in the nature and magnitude of risk across the primary production landscape. "This twofold strategy will consist of a portfolio of interventions which is pinned on the existing sustainability practices embedded in Pork 360 and the developmental ...

Source: Agriorbit