The latest weaner calf price dropped by almost 1% over the past week, with the average price currently at R31.95 per kilogram. The price is now 6.25% lower than a year ago. The price in the Northwest decreased to R30.94, while the average price in Limpopo also fell to R33.50. The A2/3 carcass price remains steady at R55.23, while the C-grade price rises to R43.55 per kilogram. Direct sales of weaner calves are currently around R32 per kilogram, while the national average price at auction was closer to R30.50 last week. This is for weaner calves between 200 and 250 kg. Calves under 200 kg were closer to R32, while heavier calves over 250 kg averaged R29. Unfortunately, we are now moving into a time when pasture is scarcer in the interior, so we may see more animals being marketed, which is expected to keep the price at a lower level until around mid-October. However, I don’t think the average direct sales price will drop much below current levels, with good quality animals that will grow in feedlots expected to receive a good premium.
In the sheep industry, we saw that the direct sales feeder lamb price dropped last week to R40.21 per kilogram, which is about 2% lower than the same time last year. The average price in the Northern and Eastern Free State traded at R42.23, while the Central and Southern Free State price fell to R39.50 per kilogram. The average price at the weekly auctions for feeder lambs was R39.83 last week, while slaughter lambs traded lower at R38.11. In the short term, it seems to me that the price might dip just below the R40 mark, but by the beginning of December, we could be closer to R42 per kilogram again. The good news is that the A2/3 price has moved above the R90 mark and is now at R90.15, while the C2/3 price rises to R65.20 per kilogram. We might see slightly lower prices over the next few weeks, but it looks better that we will move further above the R90 mark by November.
Ex-abattoir poultry prices rose slightly again last week, with the frozen price at R34.79, fresh prices rising to R33.50, while the IQF price fell to R29.58. The producer price remains at R18.80. I still feel that the frozen price will be closer to R36 by the beginning of November, while fresh prices could also move sharply upwards, and the IQF price could rise to R32 over the next few months.
The latest baconer price rose last week to R31.32, the porker price also increased to R31.87, while the latest sausage pig price traded higher at R24.59 per kilogram. There is certainly still upward potential for prices until mid-December, but we see this year that price movements are much slower and less than in previous years, which can be attributed to weak consumer demand and lower prices for products like beef. At current price levels and high feed costs, producers are struggling significantly at the moment.
The latest large goat price rose to R40.51, small goat prices increased to R65.61, while goat ewe prices rose to R46.64 last week. Goat prices are expected to remain relatively high for the coming months, but we may start seeing lower prices in the spring.
We provide average prices in the main producing areas, excluding transportation, so prices will vary from area to area depending on distance. Looking at the feed prices, the latest average Grade 1 lucerne price increased to R3700 per ton due to droughts that are now having a greater impact in certain areas, thereby increasing the demand for alfalfa. The first bales of hay are also now coming to the market, with oat hay at R2500 per ton and peanut hay at R2400 per ton. These prices are expected to drop slightly as more becomes available and we possibly start getting rain in certain areas. The average chop price fell to R3950 per ton last week, with a lot of competition in the market currently driving prices down, as well as consumers currently unwilling to pay more for meal. High feed costs are currently putting intensive practices like feedlots and pig farming under tremendous pressure.
