As a result of maize prices increasing to import parity price levels and carcass prices declining due to the suspension of beef exports as a result of SA’s loss of its free Foot-and-mouth disease status, feedlots are near break-even cost levels.

A number of factors played together to create the perfect storm leading to the sharp decline in livestock prices during the past week. Consumers are under pressure due to our weak economic growth and relatively high energy prices and cannot pay more for protein.

Speaking at the annual VinPro day in Cape Town yesterday (17 January), Smuts told around 900 representatives of the South African industry that “14% of our bulk white wine sells for under R4.50, while water sells between R5-R6.”

The issue of confidence comes up over and over when talking about investment in the agricultural sector, says agricultural economist Wandile Sihlobo of the Agricultural Business Chamber of SA (Agbiz).

President Cyril Ramaphosa took on the thorny issue of land that is likely to raise a number of uncomfortable questions at the World Economic Forum in Davos next week.

Experts say there’s no reason to fear eating meat now, and there may even be a positive spinoff for the consumer.