Prices for all categories of meat held firm during June, albeit for different reasons. The price of poultry meat, for example, increased due to global supply issues and disease outbreaks in key production areas (e.g. Avian flu in China). This, combined with a weaker exchange rate and broad-based input cost pressures, allowed room for local price increases. In the case of red meat, beef carcass prices remained above R60.00 per kg in June for A2/A3 grades, but seem to have stabilised at these levels.
The ongoing foot-and-mouth disease (FMD) issues around the country are also likely at play in the current price dynamics. Weaner calf prices have already declined substantially since the start of the year on the back of softer demand, but for carcass prices, FMD issues combined with high feed prices are increasing production risk, which is likely to weigh on supply. This would support prices and offset, at least to some degree, the economic pressures faced by consumers that impact demand negatively.
