By Katlego Sekhu
According to the Bureau for Food and Agricultural Policy, retail prices for beef could start dropping in the coming months as demand eases due to economic pressures.
Nonetheless, there is a slight catch – Chief Economist of the Agricultural Business Chamber of South Africa, Wandile Sihlobo, joined 959 Breakfast with Dineo and Sol to break it down.
Sihlobo says there are two factors at play. The first is the ‘foot and mouth disease‘ that has impacted the livestock industry.
“When the outbreak happens in a particular country, that country cannot export its meat to the outside market and that creates an increase in supply,” explained Sihlobo.
He adds that all standards need to be adhered to when it comes to the exportation of food. “The ones you buy at the store don’t kill,” he said.
The second factor is the current economic state.
“It is a difficult time so they go into alternatives like buying more chickens or not getting red meat at all,” said Sihlobo. “We see both of those factors, leading to a situation at a farm level where cattle prices are going down.”
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