DStv Channel 403 Friday, 08 November 2024

Decline in beef prices not reaching consumers

JOHANNESBURG - South Africans are still putting less meat on the braai.

This is despite the wholesale price of beef going down.

READ: 6 Million people in SA are food insecure - expert

Retailers have been forced to maintain high prices and this is blamed on increasing interest rates.

The Reserve Bank recently hiked interest rate by 50 basis points, taking it to its the highest level in 14 years.

The Beefmaster Group says this is a blow to consumers and impacts the agricultural and beef value chains.

READ: Blackouts fuelling food inflation: economist

"We're sitting with a consumer that is already in a bad space. Fuel, problems with the European crisis, those effects come down to the consumer.

"We see consumers changing different product lines just to make that rand stretch further," he said.

"Looking at the recent figures from the retail outlets, we can assume that the sector has had costs to keep the doors open."

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