Beef: The self-distancing protocols that South Africans are currently observing with the aim to reduce the spread of Covid-19, has changed the way consumers spend their money. Consumers are now shifting their money spend on “at-home” meals rather than eating out, caused by the self-distancing efforts coupled with recessionary pressures. A slower economy is negative for all the animal proteins especially beef and lamb as those are considered luxury products in economic terms. Beef is used more in the restaurants and fast food services, of which a significant decline in demand is expected in the short term. Currently weaner calf and feeder lamb prices are on the decline due to the uncertainty caused by the coronavirus. The demand for weaner calves from the feedlots have been lower this week, because no one really knows if the demand will be there a few months from now.
Mutton: The national average Class A carcass lamb price increased by 0.5% at R76.97/kg and the average Class C carcass price increased by 1.4% at R54.44/kg. The price of merino skins remained decreased from R48.89/skin to R48.33/skin this week and the Dorper skin price increased from R35.07/skin to R37.22/skin week on week. Compared to a year ago the price of dorper skins is 14.52% higher and the price of merino skins is 25.08% higher. Lamb remains the most expensive protein alternative, which means consumers are more likely to purchase poultry, pork or beef in these economic tough times.
Pork: The local pork prices traded negatively this week. The average porker price is 3.1% lower from R23.32/kg to R22.59/kg, while the average baconer price declined by 1.4% from R22.93/kg to R22.61/kg. The average cutters prices increased marginally from R22.56/kg to R22.57/kg and the average heavy baconer price was 0.2% lower from R22.19/kg to R22.13/kg. The sausage price was 0.7% higher from R16.87/kg to R16.99/kg. Pork prices were lower this week due to subdued demand.
Poultry: Locally the largest coronavirus related issues will be the potential supply and demand shocks, driven by the national lockdown, logistics and temporary consumer demand trends such as bulk buying and more at home consumption and higher demand for non-perishable products.
Hides: For the coming weeks, a very significant % of the local hides won’t be taken up by the leather industry. According to industry players hide pricing is almost no longer relevant, due to the cost to transport and processing far outweighing the raw material costs.
