By Alani Janeke
Weaner prices are beginning to rise, A-grade beef prices are showing strong growth, and lamb prices remain at favourable levels. However, ongoing economic uncertainty – particularly its effect on the exchange rate and, in turn, grain prices – could still shift the outlook.
“Meat prices to farmers are improving, with A-grade beef already reaching R75/kg carcass weight in some areas,” says Dewald Olivier, CEO of Red Meat Industry Services (RMIS). By the end of February, A-grade beef was trading at R58/kg carcass weight in parts of Limpopo.
In some regions, weaner calves have recently fetched up to R38/kg live weight. “It all depends on supply and demand in specific areas,” says Prof Johan Willemse, an independent agricultural economist. Elsewhere, prices of R34/kg to R36/kg have been reported.
Olivier says that 180 000 more cattle were slaughtered last year than in previous years. This higher supply was largely driven by farmers being forced to sell off more animals due to limited grazing caused by drought conditions, as well as financial pressure that made it difficult to feed livestock for extended periods.
With the arrival of rains earlier this year, many farmers have begun to retain animals and rebuild their herds, thanks to improved grazing.
A few farmers interviewed by African Farming said they assumed that good rainfall in Namibia and Botswana had reduced the supply of animals from those countries, easing pressure on local prices.
International events
The recent drop in grain prices has eased pressure on livestock farmers, says Prof Willemse. He cautions, however, that this relief may be short-lived, as the weakening rand – driven in part by global uncertainty surrounding US economic policy under President Donald Trump – could reverse the trend. “The uncertainty around the proposed Government of National Unity isn’t helping either.”
Prof Willemse notes that although consumer demand for meat has been steadily increasing this year, rising living costs linked to a weaker rand could limit consumers’ ability to afford high-value meat products. So far this month, international oil prices have declined, and the rand has weakened significantly against the dollar. He says this could lead to lower fuel prices locally, benefiting consumers next month, but the outlook remains highly uncertain.
Slaughter quantities
According to RMIS slaughter figures, 5 007 fewer cattle were slaughtered in January and February this year compared with the same period last year. The total number of cattle slaughtered over the two months was 415 317, representing a year-on-year decline of 1,2%.
Sheep numbers dropped more sharply, with 69 519 fewer animals slaughtered, a 10% decrease. In January and February 2024, 765 557 sheep were slaughtered, compared with 696 038 in the same period in 2025.
Last year, sheep farmers were particularly hard hit, receiving prices comparable to those in 2018 and 2019, while facing input costs that were up to 150% higher than in those earlier years.
Franchwa Batt, chairperson of the Loeriesfontein Farmers’ Union, who last year convened a special meeting with the Red Meat Producers’ Organisation over the low lamb prices, says the situation has improved significantly.
“Farmers in the Northern Cape are working to rebuild their sheep numbers thanks to good rainfall in some areas, which has led to fewer lambs being slaughtered. Prices are also far more stable this year than in the past. Lambs weighing more than 14 kg are fetching between R99 and R105/kg, and those under 14 kg are selling for between R88 and R91/kg.”
By contrast, some farmers in the district were receiving just R80 to R90/kg last year, with prices dropping as low as R74/kg at one point.
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