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