In its Food Inflation Brief for January 2024, the BFAP said slaughter rates are normal and supply is being maintained through imports of fertile eggs. Prices might rise again closer to the Easter period of high demand.
Food inflation had dropped to levels last seen in April and May 2022, the report said. Year-on-year inflation on food and non-alcoholic beverages had dropped from 9% in November 2023 to 7.2% in January 2024.
The gap between food inflation and general inflation has narrowed, with consumer price inflation (CPI) rising to 5.3% in January.
International meat prices declined for the seventh consecutive month, reflecting lower prices for poultry (-4.4%), pork (-0.9%) and beef (-0.2%). The poultry market was under pressure given weak demand and ample export supply in the global market.
“South African meat prices were in line with global prices across all meat types. The prices for poultry (using Individual Quick Frozen (IQF) as benchmark) were down by -1.3%, beef (the average price for an A2/A3 carcass) down by 1.5% and pork (-10.3%) were lower in January 2024 compared to December 2023 as demand weakened following the festive season although we may see a rebound in local demand and prices as Easter approaches.
“Poultry prices reflect sufficient domestic supply of meat despite the impact of Avian Influenza through the latter half of 2023, with weekly slaughters now back to normal and additional supply through imports. Ample imports of fertile eggs to keep day old chick supply consistent aided in achieving sufficient supply,” the BFAP report said.
