Are current meat prices in South Africa a long-term trend?

Published 2023년 6월 19일

Tridge summary

The article highlights the struggles of livestock producers in South Africa, as they face falling prices for their products despite expectations following droughts. Dr Johan van der Merwe of AMT explains the fluctuation in prices, linking it to factors such as drought, Covid-19, and maize production. Rising input costs and the end of the herd building phase have further impacted prices. Despite these challenges, van der Merwe believes that sustainable farming is possible for red meat producers, particularly for those in areas less prone to theft and with suitable conditions for sheep. He also suggests that mutton may become a niche product, with lower prices needed to increase market share. Overall, he advises producers to prepare for a difficult season but to keep long-term planning in mind for future opportunities.

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

Original content

"The prices that livestock producers receive are not as good as expected. After the drought, many producers thought they would be able to farm themselves out of trouble. Prices rose nicely, but soon after they started to fall and now prices are struggling to recover." This was the message at the recent Red Meat Producers Organization (RPO) Northern Cape congress in Kimberley. According to Dr Johan van der Merwe from AMT, there are several reasons why prices rose quickly and fell again. After the drought, South Africa and Namibia had smaller herds and had to build herds again. As a result, fewer animals were offered for slaughter and the prices were good. When it started to rain after the drought, Covid-19 hit South Africa which again caused uncertainty and also affected the prices. Maize production was good and at that time the meat prices were at a higher level. Read more about Gerhard van den Bergh's talks during the congress here. Unfortunately, input costs also rose during ...

Source: Agriorbit