South Africa: Pork industry anticipates growth amid price challenges

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 ...