The current drought might be some good news to local red-meat lovers, but the longer it continues, the harder the impact will be on their pockets.
The ongoing drought already led to rising animal feed costs, resulting in farmers having to reduce their herds. This meant a drop in red meat product prices. FNB’s agricultural unit expects that the drop might be as big as 8% to 15% over the festive season.
Lardus van Zyl, Chairman of the Red Meat Producers’ Organisation, expects savings made by consumers to quickly reverse, the longer the drought persist.
“In the long term, supply will seriously be under pressure with prices rising above the inflation rate. The consumer price of red meat will increase because of more expensive grain and feed prices and the impact of the lower supply of slaughter stock from farms. Grain and feed prices as well as input costs will drastically increase,” said van Zyl.
Food prices are expected to spike in the upcoming months as the price of white maize continues to climb.
Read the Farming Portal article here.