Since the highs experienced at the start of 2021, pork prices have however returned to lower levels, comparable to those in the months leading up to the pandemic, and have not experienced the elevated price levels apparent in red
meat products. Since pork production is an intensive industry with a short production cycle, relatively high returns up until 2020 (see pork to maize ratio in Figure 3.5) induced expansion. This increase in production drove prices down. In addition to this, high feed costs have required producers to reduce the size of their sow units, which also added to increased production and contributed to downward pressure on prices. The local
Despite a recent rebound in pork prices, profitability remains under pressure
market for pork is notably smaller than markets for other meat protein products. In the context of a smaller demand base, an expansion in production can easily lead to a rapid reduction in prices as was apparent since the start of 2022. Since the third quarter of 2022, pork prices have strated to gain momentum, breaching R30.00 per kg, on the back of lower supply. Despite this, profitability indicators are still under pressure due to high input costs
Porker and Baconer Prices
JAN 2019 – JUL 2022
Porker
Baconer
35 33 31 29 27 25 23 21 19 17 15
Source: Absa AgriBusiness, 2022
25
Made with FlippingBook interactive PDF creator