Table: Beef and Weaner Producer Prices

1. PRICE TREND OF BEEF.

Table and Figure below illustrate the quarterly prices of beef and weaners.

Table: Beef and Weaner Producer Prices.

Period (Quarters) / Beef (Rand per kg) / Weaners (200 - 240 kg) (Rand per kg) /
Q1 '10 / 22.56 / 15.26
Q2 '10 / 23.49 / 15.07
Q3 '10 / 22.10 / 15.60
Q4 '10 / 22.74 / 16.15
Q1 '11 / 26.10 / 18.05

Source: Agricultural Statistics and Feedlot Association.

Figure 2 above indicates that beef and weaner prices are following the same trend but beef prices has been higher than weaners’ prices during the period under review. Beef and weaners received high producer prices of R 26.10/Kg and R 18.05 respectively during quarter 1 of 2011 This might be due to the increased beef production in quarter 4 of 2010 and low price of yellow maize, which made it possible for the feedlots to pay high prices for the weaner calves.

There is an increase of R 3.54/Kg on beef producer prices in quarter 1 of 2011 compared to quarter 1 of 2010 and during the same period weaners’ producer price has increased by R 2.79/Kg.

2. PRICE TREND OF BROILER MEAT.

Table and Figure below illustrate the average quarterly prices of broiler meat.

Table: Broiler Meat Prices.

Period(Quarters) / Broiler meat (Rand per kg) /
Q1 '10 / 12.20
Q2 '10 / 11.91
Q3 '10 / 11.96
Q4 '10 / 13.03
Q1 '11 / 12.28

Source: SAPA.

The broiler meat market consists of 90% of frozen meat and 10% of fresh meat. Therefore the average broiler meat prices are calculated from both frozen and fresh broiler meat. The average producer price of broiler meat has been fluctuating with a decreasing trend during the period of analysis. High prices were recorded during quarter 4 of 2009 due to the decreased broiler meat production and the increased demand over the festive season. The broiler meat producer price decreased dramatically during quarter 2 of 2010 due to the low consumer demand.

Although figure 2 shows a decrease of broiler meat producer price during quarter 1 of 2011, there is still an increase of R 0.08 compared to the same time last year.

3. PRICE TREND OF EGG.

Table and figure below illustrate the quarterly producer prices of shelled eggs.

Table: Egg Prices.

Period (Quarters) / Producer egg Prices (Rand per dozen) /
Q1 '10 / 9.60
Q2 '10 / 9.46
Q3 '10 / 9.23
Q4 '10 / 8.93
Q1 '11 / 9.15

Source: SAPA.

The average producer price of eggs started high (R9.60/Kg) during quarter 1 of 2010 and continued at a decreasing trend from quarter 2 to quarter 4 of 2010. The decreasing of the producer price might have been due to the over supply of egg within the country. Although figure 2 shows an increase of egg producer price during quarter 1 of 2011 as compared to quarter 4 of 2010, there is still a decrease of R 0.45/Kg compared to the first quarter in 2010.

4. PRICE TREND OF MILK.

Table and Figure below, illustrates the average producer price for milk.

Table: Average producer price for milk (Rands per liter)

Period / Milk Producer Prices
Q1 '10 / 3.12
Q2 '10 / 3.19
Q3 '10 / 3.00
Q4 '10 / 2.94
Q1 '11 / 2.94

Source: Statistics and Economic Analysis.

Figure 2 above shows the continuous decrease of milk producer prices from quarter 3 of 2010 to quarter 1 of 2011. The producer price of milk has been relatively low throughout the period under analysis with an average price of R3.04/ℓ. Producers are hoping for a better future because the milk buyers promised to increase prices. Producer prices will increase by 5 cents/ℓ to 25 cents/ℓ depending on different milk buyers. There is a decrease of R 0.25 of milk price in quarter 1 of 2011 compared to quarter 2 of 2010 which was the highest and a decrease of R 0.18/ℓ relative to quarter 1 of 2010.

5. PRICE TREND OF MUTTON.

Table and Figure below illustrate the quarterly prices of mutton.

Table: Mutton Prices.

Period (Quarters) / Mutton (Rand per kg) /
Q1 '10 / 32.56
Q2 '10 / 33.88
Q3 '10 / 37.06
Q4 '10 / 40.72
Q1 '11 / 40.51

Source: Agricultural Statistics.

Figure 2 above shows that the producer prices of mutton has been moving at an increasing trend throughout from quarter 1 to quarter 4 of 2010 and decreased slightly during quarter 1 of 2011. There is an increase of R 7.95 per kg of mutton producer prices in quarter 1 of 2011 compared to the same time in 2010 and a slight decrease of R0.21/Kg in quarter 1 of 2011 relative to quarter 4 of 2010 which was the peak. The continuous increase from quarter 1 to quarter 4 of 2010 might be due to the increased demand of mutton which exceeds the supply.

6. PRICE TREND OF PORK.

Table and Figure below illustrate the quarterly prices of pork.

Table: Pork Prices.

Period (Quarters) / Pork Prices (Rand per kg) /
Q1 '10 / 15.30
Q2 '10 / 14.47
Q3 '10 / 14.30
Q4 '10 / 15.13
Q1 '11 / 15.75

Source: Agricultural Statistics.

The average producer price of pork moved on a downward trend from quarter 1 to quarter 3 of 2010 before increasing in quarter 4 of 2010 to quarter 1 of 2011. The downward movement during might have been due to an increased supply of pork. There was a drastic increase of R 1.45/kg of pork in quarter 1 of 2011 compared to quarter 3 of 2010, which was the lowest and experienced an increase of R 0.45/Kg compared to quarter 1 of 2010. The high prices during quarter 4 of 2010 to quarter 1 of 2011 might be the response of the growing meat market and the increased price of yellow maize.

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