The year 2019 will be a challenging one for South African beef cattle farmers. One challenge that became apparent by the end of 2018 was environmental related, as grain and oilseed producing areas of the country experienced dryness which led to delays in plantings, and thus leading to an increase in agricultural commodity prices, particularly maize.
The latest AWI report examines China and explains the spectacular growth in wealth across its burgeoning middle class, and how this relates to wool demand. It also examines the current prices offered into the future, to understand the rapid acceleration of wool consumption within mainland China.
Recycling or taking the bus rather than driving to work has its place, but scientists are increasingly pointing to a deeper lifestyle change that would be the single biggest way to help the planet: eating far less meat.
In Africa, having the largest cattle herd is not always a predictor of being the biggest beef or milk producer. Ethiopia, Sudan, Tanzania, Nigeria, Kenya are the top five countries with the largest cattle herds in Africa.
The total poultry imports from Brazil are estimated at R3,2 billion for 2017. During the first 10 months of 2018 Brazilian imports already exceeded R2,9 billion.
The expected imports for 2018 can be estimated at R3,6 billion. From the world, South Africa imported until October an estimated R5,14 billion broiler meat products. The total imports from the world for 2018 are estimated at R6,2 billion. Keep in mind that the average exchange rate for the Rand to the $ were R13.32 in 2017 and R13.16 in 2018. The import value of poultry products increased by 20% year on year. The profitability of local poultry production is challenged by the increased competitive imports from the world. South African exports of poultry declined year on year by 16,3%. The impact of imports on the poultry industry and the consequent substitution of local production impacts also on other industries such as the grain and oilseeds industry. Growth in the domestic market for locally produced feedstock such as maize and soybean are impacted negatively as well.
Highlights
South African poultry imports increased by 20% year on year. The value of poultry imports is estimated at R6,2 billion for 2018. The Poultry Association applied for an adjustment in the import tariff to protect the local industry from cheaper imports.
Livestock
The combination of the unusual increase in supply by primary producers of cattle to meet cash flow needs and the seasonal increase of supply by feedlots at abattoirs to meet demand during the festive season weigh on local beef prices.
The tightening supply in Australia and a strong export demand will support mutton prices in 2019
At current prices US pork producers will be producing pork at break-even levels during Q1 in 2019. Producers will incur losses with further declines in pork prices.
ABSA AGRI TRENDS- Wessel Lemmer.
As the first China International Import Expo (CIIE) held in Shanghai this last week comes to an end, attention turns to the South African beef industry, one of the clear winners of increased favourable relations between China and South Africa.
