Farmer’s Weekly – 02 August 2019

Weekly neWs Wrap

ABOVE:

Consumers are

increasingly opting

for cheaper red

meat cuts as they

feel the pinch

of economic

pressure, according

to the Red Meat

Producers’

Organisation.

FW ARCHIVE

16 farmer’sweekly 2 August 2019

It would take approximately two

weeks to clear a backlog at the

Ngqura Container Terminal in

the Kouga Local Municipality

near Port Elizabeth after workers

embarked on an unprotected

strike, according to Transnet.

The strike took place as the citrus

industry in the region was in the

middle of its annual harvest.

The Citrus Growers’ Association

of Southern Africa (CGA) confirmed

earlier this month that citrus export

production in the Eastern Cape was at

its highest level. Justin Chadwick, CEO

of the CGA, said that production of late

navels, clementines, novas and lemons

was peaking well above average.

Transnet spokesperson Molatwane

Likhethe said 13 employees

had been suspended for

misconduct during the strike.

“Following a court order,

productivity is returning to normal.”

Likhethe added that the illegal

action had had a negative impact on

clients, especially in the agriculture

and automotive industries.

“To this end, Transnet is

continually engaging with

customers to address backlogs.”

The manager of logistics

development at the CGA, Mitchell

Brookes, confirmed to Farmer’s

Weekly that the situation had not

changed much yet, with only about

50% of the fruit in the region being

loaded at the Ngqura terminal.

“The rest is still being

[transported] to the Durban and

Cape Town harbours,” he said.

Brookes said that the association was

scheduled to meet stakeholders from

Transnet and the cargo terminal to get a

better idea of the extent of the impact of

the strike and discuss the way forward.

Transnet earlier reported that workers

at the Ngqura terminal had been

involved in a “protracted go-slow”,

with operations at the Durban harbour

affected due to absenteeism.

A decline in performance levels

at the Cape Town terminal was

also noted. – Sabrina Dean

labour

Harbour backlog could take a fortnight to clear - Transnet

The decline in the disposable

income of South African

consumers is evident in the

changing purchasing patterns of

red meat in the retail sector, as

well as the supply and demand

volatility in the primary red

meat production industry.

This was according to Koos van

der Ryst, chairperson of the Red

Meat Producers’ Organisation.

“For example, the increase

in lamb and mutton supplies

because of the drought in

Namibia, the Northern Cape

and North West has, against

all odds, not resulted in a

considerable increase in demand.

“This is because the South

African consumer is in a tight

spot financially,” he said.

The drought was having a

devastating effect on the South

African red meat economy, and

would continue to do so in the

coming months, Van der Ryst

told Farmer’s Weekly.

Thousands of animals were

being slaughtered in the drought-

affected areas, and the majority

of farmers were left with herds

that had been cut to the core.

“The retail demand did show

a slight increase in the second

quarter of 2019 compared with the

first quarter. This can be ascribed

to the effect of load-shedding

in the first quarter and the

[impact] it had on the disposable

income of consumers,” he said.

Weaner prices currently

hovered between R27/kg

r ed Meat

Shrinking

consumer

income severely

affecting meat

producers

and R29/ kg, compared with

between R30/kg and R32/ kg

a year ago. Grade-A beef

carcasses sold for between

R44/kg and R45/kg, he said.

Issie Liebenberg, a butcher in

Bothaville, said he had bought

lamb carcasses for R76/ kg in

the last week of July, compared

with R62/ kg two months

previously, while Grade-A

beef carcasses had sold for less

than R40/kg at that time.

Liebenberg said that consumers

were increasingly becoming

aware of meat prices and quality,

and there had been a shift from

purchasing more expensive cuts

to buying less expensive beef cuts.

“Less expensive cuts, such

as chuck and stewing beef,

are becoming more popular,

while the demand for more

expensive cuts, such as steak,

is dwindling. Consumers

are budget-conscious, but

do not compromise on

quality, in my experience,”

he said. – Annelie Coleman

farmers have

cut their herds

due to drought