Agriculture
Question by:
Hon Andricus van der Westhuizen
Answered by:
Hon Ivan Meyer
Question Number:
6
Question Body:
- How do the current (i) producer prices and (ii) consumer prices of red meat in the Western Cape compare to the prices at this time last year and (b) if there is any deviation, what is the reason?
Answer Body:
- (i) The Producer Prices for meat increased by 14% in October 2022 year-on-year (y/y). Over the past 12-18 months, the global livestock and meat average prices have increased drastically as the world emerged from Covid-19 and its associated lockdown restrictions (ABSA, 2022). Furthermore, animal diseases continue to impact negatively the livestock industry, and as a consequence putting pressure on the producer prices.
- The South African beef carcass prices have been holding firm since the start of 2022, due to low slaughter numbers, and high input and feed costs underpinned by high grain prices. Meat prices in South Africa including the Western Cape have been driving food inflation in 2022, mixed with domestic and international playing a significant role in food price hikes. (BusinessTech, 2022).
(b) Lower slaughter numbers (at 1% over the past nine months), high input and feed costs underpinned by grain prices, herd rebuilding costs, the ongoing Food and Mouth Disease (FMD) outbreaks and dry conditions in the Western side of the country put production at risk and all contribute to the high red meat prices in South Africa, including the Western Cape.
Date:
Friday, December 2, 2022
