Red meat: Margins on carcass prices not abnormal in South Africa

Published Jun 13, 2023

Tridge summary

The article explains the reasons behind the increasing price gap between carcass and weanling calf or lamb prices, as discussed by Prof Frikkie Maré at the Rooivleis Abattoirvereniging (RVAV) congress. He highlights that the margin on a cattle carcass is only 34% throughout the value chain, while it can reach 30% for other products in retail. The widening price gap is due to factors such as high maize prices, economic challenges, and load shedding, which have more significantly impacted weaner calves and lambs. Despite the challenges, Prof Maré stresses the importance of exporting more meat to countries with higher paying currencies to secure better prices, arguing that a national traceability system is crucial for regaining access to export markets and raising the value of the red meat industry.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The factors that determine the margins on carcass and weanling calf or weanling lamb prices are the reason that the gap between these two prices has widened recently. The margins on carcasses are therefore not abnormally high, said Prof Frikkie Maré from the University of the Free State during the Rooivleis Abattoirvereniging (RVAV) congress at the Lord Charles Hotel in Somerset West. "The margin on a cattle carcass is only 34% throughout the value chain, while it is as high as 30% for other products in the retail trade," he says. The theme of his speech was 'The current economic climate and its impact on the red meat industry'. Lots of questions about price gap According to Prof Maré, a lot of questions about the difference between carcase and weaner calf prices, the widening gap between the two prices and the fact that weaner calf prices have fallen much faster than carcase prices, have come up. "If you look at the factors that influence the prices, the trend is understandable. ...
Source: Agriorbit

Would you like more in-depth insights?

Gain access to detailed market analysis tailored to your business needs.
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.