South African consumers should prepare to fork out more for their favourite cuts of beef – or go without – as analysts predict that beef prices will soar beyond 30% this year as livestock farmers battle to rebuild their herds after a three-year drought. Read more…
He said recent rains had given farmers some hope. “Rain does not mean that higher prices as a result of a food shortage are automatically over. We are still replanting and livestock just recovering,” said Mathidi.
“A price drop will not happen now. There are fewer suppliers, as very few farmers were producing during drought.” Intense hot weather and dry conditions in 2015 and 2016 ruined crops and left farmers out of production.
Mathidi said if the government did not help farmers start up their operations again, consumers might not see a drop in maize and red meat prices. The majority of farmers were left broke due to the drought, and returning to regular farming would be an uphill battle, he added.
“Most farmers will not recover because they are still struggling to service loans, and they won’t secure additional loans, so the only way for them to recover will be through government intervention,” said Mathidi.