Cost of red meat set to soar

RED meat prices were expected to increase by as much as 15% in the lead-up to the festive season owing to the ongoing drought in the country.

Paul Makube, the senior agriculture economist at FNB, said while red meat prices were relatively stable now, by December consumers could expect to pay between R3.40 and R5.70 more for a kilogram of Class A beef.

The increased price of Class A lamb was expected to rise by between R5.60 and R9.40 a kg, while pork was also expected to be affected by a price increase.

The price of poultry would remain stable owing to increased imports, Makube said.

He said while slaughtering was substantially higher compared with the past three years as a result of the drought, it had not translated into an over-supply of meat on supermarket shelves.

Stable

The cumulative sheep slaughter number was 111% and 69% higher than the 2015 and 2014 numbers,” he said.

“The red meat prices are relatively stable now because farmers are holding on to their livestock in the hope that their pastures will improve should the spring rains materialise as forecast,” he said.

Despite the continued pressure on disposable income, consumers could absorb a slight price increase, Makube said.

“Even during tough economic conditions, we have picked up a trend where consumers will usually cut back on luxuries and spend more on food and meat during the festive season.”

However, he warned that prices would have to return to normal levels in January to avoid resistance from consumers.