The festive season is usually marked by various cultural and religious celebrations where red meat is needed for eating or slaughtering, so this time of the year could be a make or break period for livestock producers across Mzansi.
While consumers could be looking forward to a meatier season, they will have to dig deep into their pockets as prices have skyrocketed in the past months because of operational costs for farmers and the struggling economy in South Africa.
Affordability poses challenge
Dewald Olivier, chief executive officer of Red Meat Industry Services (RMIS), said as festivities would be picking up in the coming weeks, there is a common concern shared in the industry that not many consumers would be able to afford to purchase meat products because of the country’s high cost of living.
“I understand that there are things we cannot manage, but what we are seeing is that our consumers are depleted and the biggest worry is that previously there was an uptake or demand for meat in the festive season, but at the moment, we are not sure if we should expect it,” he explained.
Olivier said the local market is starting to shrink due to several reasons, but there is light at the end of the tunnel with the possibility of South Africa exporting its red meat to other countries.
Looking further afield
“We are not entirely sure if we will see an increase in the demand this festive season and that is why at this stage we are looking forward to opening relationships with the Saudi Arabian market, but we are still busy with documentation. It will bring relief to us as an industry,” he said.
He added that the interest rate is a concern and consumers cannot afford the standard of living. This ultimately leads to them scratching meat products off their shopping lists.
“We are worried about this December and there is a concern with the volumes. In the meantime, retailers should be able to predict what can happen because if there are no food specials, then I think we will have a quiet December in our industry.”
He believes that farmers are stuck at the moment because most of them have sold their weaning calves to feedlots and the farmers who have directly slaughtered their cows, might receive cheaper payments from abattoirs because of the waning demand.
The right time for better sales
Meanwhile, Heidelberg-based cattle farmer Hlobisile Yende said she remains hopeful that the festive season is going to be good for many farmers as the need for livestock and red meat is high.
Yende said despite the many challenges farmers and the industry are facing, farmers needed to seize the opportunity of the demand for red meat especially in rural communities.
“The demand for meat is usually very high during this time. Many farmers started getting orders from September to ensure availability in December to avoid disappointment.
“My advice for farmers will be always plan ahead of time, hence we encourage early orders. Planning well eliminates the pressure and demand,” she said.
Yende said from her side she had been busy even before the festive season. “Our biggest orders were five cows and thirty-two sheep for one stokvel. Easter and December are our best and busiest times, so we always ensure we have enough stock to meet the demand.”
Egg availability is not a problem
General manager of the South African Poultry Association’s (Sapa) Egg Organisation, Dr Abongile Balarane, said while egg production is low because of bird flu, eggs will be available on the shelves for consumption.
He explained that imported liquid and powdered eggs were available, which are safe for human consumption. However, consumers need to be aware that prices will still be higher than usual.
“There will be eggs available for this festive season and while we are trying to rebuild, for the time being, we will have a shortage and the prices will be high considering the situation we are in.
“Unfortunately, December is one of our busiest seasons but we can assure the public that we do have eggs available for purchase and they are safe for human consumption. The only challenge for the consumer is affordability driven by supply and demand,” he said.
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