Pork to Maize Ratio
JAN 2019 – JUL 2022
11,00
10,00
9,00
8,00
7,00
6,00
5,00
Source: Calculated from Absa AgriBusiness Data, 2022
Looking Ahead
Due to the shorter production cycle and adjustment to cost pressures in the form of lower supply, pork prices are expected to rebound in 2023. Lower grain costs are also expected to improve profitability and lead to an increase in production towards the outer months of
the outlook period. This is expected to limit the degree of price increases over the coming years. Research has also indicated that pork demand is relatively inelastic to growth in consumer income. As a result, the effect of better economic growth prospects towards 2025 is likely to be more muted for pork than for the red meat industries discussed above.
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