In the meat industry this week, the average weaner calf price stabilized at R34.21 per kilogram. Calves under 200kg traded at R35.75, calves between 200kg and 250kg at R33.69, while calves over 250kg traded at R32.95. The average A2/3 carcass price mostly traded sideways at R52.60, while the C-grade price dropped to R46.13. Compared to the same time last year, the A2/3 price is currently 17% lower, while weaner calf prices are 6% lower. I believe we may start to see better prices now, with slaughter prices potentially rising and weaner calf prices picking up as well, but the increase might be gradual over the next two months.
The average lamb price dropped to R39.52 per kilogram, with lower prices particularly in the Southern Cape. Wool-type feeder lambs are currently at R41.89, dual-purpose type feeder lambs at R40.93, while meat-type feeder lambs trade on average at R40.68. The A2/3 carcass price continues to drop, trading at R86.30 last week, while the C2/3 price drops to R63.50. The A2/3 price is about 13% lower than the same time last year, while lambs are 16% lower. All indications suggest that slaughter prices could further decrease, while lamb prices might stabilize now and then potentially decrease again from early October.
International wool prices decreased by about 3% last week due to low demand and price-sensitive buyers. There were no local auctions, so prices remained unchanged. Notably from the comments at the Australian auctions is that sellers are more willing to accept the low prices. This might indicate that producers are under cash flow pressure, and it’s not only our local sheep and cattle farmers facing challenges. Costs are simply too high given the lower prices we’re seeing.
The frozen poultry price traded higher at R35.23, the fresh price increased to R34.74, and the IQF price is higher at R32.46 per kilogram. These prices are on average 10% higher compared to last year. I still believe that these prices could trend strongly upward over the next two months, but if the Rand strengthens, the increase might be less significant.
Pork prices continued to rise last week and are expected to rise further as we enter the warmer months. The herd is also significantly smaller, which could provide an additional boost as we move towards the end of the year. However, remember that as noted last week, lower cattle and sheep prices, as well as lower demand compared to the previous two years, could limit this upward potential, despite reduced supply. The average baconer price is currently at R32.06, porker prices at R33.01, while the latest sausage price increased to R24.68 per kilogram.
Large goat prices increased to R47.26 per kilogram last week, while small goat prices dropped to R56.08 and goat ewe prices were higher at R41.36 last week. The expectation is still that we will move into a downward price trend from September onwards.
