These are times of uncertainty and many feedlots are not buying the volumes of weaner calves they usually do due to the uncertainty about the overall direction of prices in the coming months. Farmer’s not being able to sell their livestock creates not only a cash flow problem , but also creates a logistical backup as they may not have physical space for new feeder cattle/ weaner calves that were intended to replace the animals that were not sold.
Mutton: This week, lamb and mutton prices traded lower when compared to the previous week. The national average Class A carcass lamb price decreased by 2.4% to R72.45/kg and the average Class C carcass price decreased by 2.5% to R51.82/kg. The price of merino skins decreased from R42.22/skin to R41.25/skin this week and the Dorper skin price increased from R35.63/skin to R39.38/skin week on week. Compared to a year ago the price of dorper skins is 21.17% higher and the price of merino skins is 3.19% lower. Locally, lamb and mutton prices remain subdued due to the availability of cheaper protein alternatives. Prices are expected to trade sideways to lower according to seasonality.
Pork: The local pork prices traded negatively this week. The average porker price is 7.1% lower from at R21.08/kg, while the average baconer price declined by 4.9% at R20.77/kg. Pork prices locally have been declining on end, with some regions recording prices between R15-16/kg for porkers and baconers. The decline in prices is driven by lack of demand during the quiet buying period of the lockdown. Seasonally, April would be a month were prices increased however, this year that is not the case. Unlike other commodities that can simply be stored, animals continuously need to be cared for and fed, creating an ongoing expense for producers, especially with the current higher maize and soybean prices.
Poultry: Poultry stocks are piling up and capacities are tight. Some market players have reported that their stocks are piling up in outside storage, while others are reporting adding some select cuts into IQF products just to keep products moving. Seasonally the March-April months is a high consumption period, which supports prices, in 2020, however that is not the case.
