The flames of SA’s celebrated pastime of braaiing — especially over the festive season — have been partially doused by record-high meat prices for December.
Beef, poultry, lamb and mutton prices have reached a historical high, above 2020 levels for this time of the year.
Paul Makube, senior agricultural economist at FNB agribusiness, said during a time of year when braais are synonymous with gatherings of family and friends, budgets are expected to come under pressure as meat prices have surged, underpinned by resilient seasonal consumer demand and supply contraction.
“Beef prices have now reached a historical high above R56/kg and R49/kg for class A and class C grades respectively, which is almost 9% and 11% higher than the 2020 levels. The lamb and mutton categories strengthened to more than R89/kg and R71/kg respectively and further retained their premium above all other meat types.”
Makube said there was also an upswing in poultry prices due to strong seasonal demand and the spill-over strength from the red meat market.
“The relatively tighter domestic and import supplies underpin the current strength in poultry prices which are currently at double-digit percentages above 2020 levels for this time of the year.”
Pork lovers, however, have reason to celebrate as the average producer prices of pork and baconers for the first two weeks of December were 6% and 15% lower year on year respectively at just above R29/kg.
According to Stats SA’s November 2021 Consumer Price Index (CPI), chicken and beef products registered the largest annual increases in November.
Makube said globally the meat price index showed a deceleration with a fourth consecutive decline of 0.9% month on month in November.
“The dynamics that informed the recent deceleration in global meat prices include slow Chinese import demand that slashed the international prices of pork, while the increased availability from Oceania, largely Australia, weighed heavily on the sheep-meat category.”
The beef category, however, was reportedly stable with decreases in values from Brazil more than offset by stronger Australian prices due to supply tightness.
Poultry values also steadied as heavy supplies were balanced out by a combination of logistical challenges and avian flu outbreaks.
Makube said FNB agribusiness expected a short-term breather for consumers early in the new year as lower seasonal demand post the December holidays amid higher food, electricity, and transport costs might place downward pressure on meat prices.
TimesLIVE
Expensive braai season looms as meat prices hit record high for December
Image: Andrik Langfield on Unsplash
The flames of SA’s celebrated pastime of braaiing — especially over the festive season — have been partially doused by record-high meat prices for December.
Beef, poultry, lamb and mutton prices have reached a historical high, above 2020 levels for this time of the year.
Paul Makube, senior agricultural economist at FNB agribusiness, said during a time of year when braais are synonymous with gatherings of family and friends, budgets are expected to come under pressure as meat prices have surged, underpinned by resilient seasonal consumer demand and supply contraction.
“Beef prices have now reached a historical high above R56/kg and R49/kg for class A and class C grades respectively, which is almost 9% and 11% higher than the 2020 levels. The lamb and mutton categories strengthened to more than R89/kg and R71/kg respectively and further retained their premium above all other meat types.”
Makube said there was also an upswing in poultry prices due to strong seasonal demand and the spill-over strength from the red meat market.
“The relatively tighter domestic and import supplies underpin the current strength in poultry prices which are currently at double-digit percentages above 2020 levels for this time of the year.”
Pork lovers, however, have reason to celebrate as the average producer prices of pork and baconers for the first two weeks of December were 6% and 15% lower year on year respectively at just above R29/kg.
According to Stats SA’s November 2021 Consumer Price Index (CPI), chicken and beef products registered the largest annual increases in November.
Makube said globally the meat price index showed a deceleration with a fourth consecutive decline of 0.9% month on month in November.
“The dynamics that informed the recent deceleration in global meat prices include slow Chinese import demand that slashed the international prices of pork, while the increased availability from Oceania, largely Australia, weighed heavily on the sheep-meat category.”
The beef category, however, was reportedly stable with decreases in values from Brazil more than offset by stronger Australian prices due to supply tightness.
Poultry values also steadied as heavy supplies were balanced out by a combination of logistical challenges and avian flu outbreaks.
Makube said FNB agribusiness expected a short-term breather for consumers early in the new year as lower seasonal demand post the December holidays amid higher food, electricity, and transport costs might place downward pressure on meat prices.
TimesLIVE
READ MORE:
SA inflation reaches 5.5%, highest in almost five years
Bird flu is raging, adding to the risks for food inflation
Global food prices climb closer to record, boosting inflation angst
Latest deployment of soldiers costing SA R95m for just a month
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos