Last week, the average weaner calf price moved below the R30 mark for the first time since July 2020, trading at R29.82 per kilogram. However, lighter calves can still fetch up to R32 in the market, and prices depend on quality, demand, and weight. Nevertheless, I still believe that we are nearing a low point, and given the increased input costs since 2020, calves are currently undervalued. This could lead to lower supply in the market and potentially drive prices up again.
The A2/3 carcass price dropped to R53.58, while the C-grade price decreased to R44.92 last week, indicating limited demand from end consumers. The producers’ milk price remained at R7.41 per litre last week.
The average feeder lamb price decreased by approximately 0.5% to R41.42, with demand still very low. However, the A2/3 carcass price increased to R84.86, while the C2/3 price dropped to R56.55 last week. It is still expected that we may see significantly higher C-grade prices in August, with A-grade prices already reaching as high as R87 per kilogram in certain areas. However, I believe that higher interest rates could directly impact the demand for sheep and beef, which may keep prices under pressure despite lower supply. Cheap imports from Namibia are also putting pressure on the sheep market, counteracting the upward sentiment.
There was no good news for our wool farmers as both local and international prices came under significant pressure, especially due to the weaker Rand. The non-RWS price decreased to R164.85, while the RWS price dropped to R180.15, 5% lower week on week. Australian prices fell by 4% last week, and the overall market sentiment was negative. However, purchases were not too bad, but buyers were more price-sensitive, and it remains uncertain how the pressure on consumers worldwide will unfold.
Undoubtedly, the biggest movement in the poultry industry last week was the sharp increase in prices (Brazil imports also a issue). The frozen chicken price rose by 5% to R35.55, the fresh chicken price increased to R34.94, and the IQF (Individually Quick Frozen) price slightly higher at R33.34 per kilogram. The weaker Rand forced the IQF price higher and also pushed local prices up. However, I believe that prices may start to decline from here, at least for June and July, but it all depends on the exchange rate. If the Rand strengthens slightly, we may see significant downward price movements.
Pork prices decreased slightly week on week, with the average pork price at R29.48, the baconer price dropping to R29.42, the porker price decreasing to R30.07, and the latest sausage pig price declining to R24.58 per kilogram.
Goat prices dropped to R40.79 last week, but small goats increased to R55.19, with the latest goat ewe price down to R38.71 per kilogram. The prices should remain at a high level, with Qurbani in June potentially stimulating additional demand.