Meat prices decrease

ALTHOUGH Meatco is under enormous pressure to reduce meat prices, as is the case in South Africa, the local meat corporation has warned producers to be aware that there is a limit as to how far the corporation can absorb the prices.

The Red Meat Abattoir Association’s (RMAA) prices for A-grades in the South African market have dropped since the first week of January this year from N$20,50 to N$18,68 – a drop of about N$1,82 per kilogramme. The price for C-grades dropped to N$16,54 per kilogramme.The Marketing Manager at the corporation, Andre Mouton, told Nampa on Wednesday that the low market prices in South Africa caused a strong drop in Meatco’s selling prices in that market.”The current price levels are an over-reaction due to the current re-adjustment period.It should be accepted that price levels might remain at lower levels for the time being,” he explained.Under the conditions of the severe drop in prices, Meatco has no alternative but to follow the downward movement of RMAA prices.Mouton predicted that in the month of April, prices would normalise to lower levels than seen during last year.The main contributing factors for the high beef prices are that South Africa is experiencing economic growth, which has a direct positive impact on per capita income.The country also has a growing middle class that spends more money on consumables such as red meat.The production of beef in the SADC region did not keep track with increasing consumer spending and this resulted in a shortage of beef.Brazil could not export to South Africa and this resulted in a perception of beef shortages.NampaThe price for C-grades dropped to N$16,54 per kilogramme.The Marketing Manager at the corporation, Andre Mouton, told Nampa on Wednesday that the low market prices in South Africa caused a strong drop in Meatco’s selling prices in that market.”The current price levels are an over-reaction due to the current re-adjustment period.It should be accepted that price levels might remain at lower levels for the time being,” he explained.Under the conditions of the severe drop in prices, Meatco has no alternative but to follow the downward movement of RMAA prices.Mouton predicted that in the month of April, prices would normalise to lower levels than seen during last year.The main contributing factors for the high beef prices are that South Africa is experiencing economic growth, which has a direct positive impact on per capita income.The country also has a growing middle class that spends more money on consumables such as red meat.The production of beef in the SADC region did not keep track with increasing consumer spending and this resulted in a shortage of beef.Brazil could not export to South Africa and this resulted in a perception of beef shortages.Nampa