Meat prices push up grocery bills in South Africa
Senior Agricultural Economist at FNB Commercial, Paul Makube, says the increase is due to the countrywide foot and mouth (FMD) disease outbreak.
'The foot and-mouth disease outbreak created a short supply crunch due to the inability to slaughter livestock, mainly cattle, while the earlier ban on Brazilian chicken imports due to bird flu outbreak caused panic in the market as it is the major source of mechanically deboned meat used in manufacturing of products such as polony,' said Makube.
South Africa has since partially lifted the Brazilian chicken import ban, which should ease pressure on prices in the medium term.
'While the FMD situation remains sticky with new outbreaks reported in the Free State and persisting in KZN, recent developments are that slaughtering has resumed in major feedlots with producer prices already 'off the boil' early in July,' added Makube
South Africa's food inflation edged higher to 3% in June 2025, relative to May's 2.8% – underpinned by gains in the core food and non-alcoholic beverages (FNAB) – but still came below expectations of a 3.1% spike.
'Our analysis of the FNAB shows a 0.3 percentage point jump from the May level to 5.1% in June. The food sub-index rose by the same margin from the previous month to 4.7% driven by meat.
'However, monthly food inflation slowed from 1.2% in May to 0.7% in June 2025, led by the fruits and nuts subcategory, which declined for the fourth consecutive month to -2.4%.'
Makube notes that in terms of the food inflation outlook, downside risks include:
– A persistent rand exchange rate appreciation
– Weak international crude oil prices
– Bulging global grains stocks outlook
– The consequent downside pressure on prices
Don't have the ZO app? Download it to your Android or Apple device here:
HAVE YOUR SAY
Like our Facebook page and follow us on Twitter.
For news straight to your phone invite us:
WhatsApp – 060 784 2695
Instagram – zululand_observer
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
8 hours ago
- IOL News
Brazil vows to fight Trump tariff 'injustice'
President Donald Trump holds a chart on reciprocal tariffs during an event titled 'Make America Wealthy Again', at the White House in Washington, DC. Image: Brendan Smialowski/AFP Brazil vowed Thursday to combat US President Donald Trump's tariffs on its exports, saying it intends to lodge appeals if last-ditch negotiations fail. Finance Minister Fernando Haddad said the tariffs announced Wednesday were "more favorable" than expected, with several key export products exempted. Still, there "is a lot of injustice in the measures announced yesterday. Corrections need to be made," he told reporters. Citing a "witch hunt" against his far-right ally Jair Bolsonaro -- Brazil's former president on trial for allegedly plotting a coup -- Trump on Wednesday signed an executive order adding a 40 percent tariff on Brazilian products, bringing total trade duties to 50 percent. The levies affect coffee and meat, two products of which Brazil is the world's top exporter. The order, which takes effect on August 6, listed exemptions for nearly 700 other products including key exports such as planes, orange juice and pulp, Brazil nuts, and some iron, steel and aluminum products. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Leftist President Luiz Inacio Lula da Silva -- the man Bolsonaro is accused of having sought to topple -- has denounced the tariffs as an attack on the "sovereignty" of South America's largest economy. "The negotiation is not over; it starts today," Vice President Geraldo Alckmin, tapped to oversee talks with Washington, told TV Globo. Alckmin said the new tariff will apply to nearly 36 percent of Brazil's exports to the United States, equal to some $14.5 billion last year. Haddad said he would speak with his American counterpart, Treasury Secretary Scott Bessent, and "there will be a cycle of negotiations." He did not give a date. "We are starting from a point that is more favorable than one could have imagined, but still far from the finish line," the minister said. If negotiations fail, Haddad said Brasilia would "file appeals with the appropriate authorities, both in the United States and with international bodies." 'Judge and jury' Trump's Brazil tariff is among the highest imposed on US trading partners. Unlike with other countries, the measures against Brazil have been framed in openly political terms, sweeping aside centuries-old trade ties and a surplus that Brasilia put at $284 million last year. "These are harsh measures that will have a real impact on important sectors of the Brazilian economy," Reginaldo Nogueira, an economist with Brazil's IBMEC business school, told AFP. "The exemptions help mitigate some of the pressure on Brazil but primarily protect strategic goods for the American economy," he added. Haddad said the Brazilian government would put in place protection measures for the most affected companies, and noted that "nothing that was decided yesterday cannot be reviewed." Trump's order was based on the Brazilian government's "politically motivated persecution, intimidation, harassment, censorship, and prosecution of (Bolsonaro) and thousands of his supporters," according to the White House. It also cited Brazil's "unusual and extraordinary policies and actions harming US companies, the free speech rights of US persons, US foreign policy, and the US economy," singling out Supreme Court Justice Alexandre de Moraes. Moraes is the judge presiding over Bolsonaro's coup trial and has clashed repeatedly with the far-right in Brazil, as well as with tech titan Elon Musk, over the spread of online misinformation. The US Treasury announced financial sanctions on Moraes Wednesday, saying he had "taken it upon himself to be judge and jury in an unlawful witch hunt against US and Brazilian citizens and companies." A Supreme Court source told AFP that Moraes "does not have assets in the United States" where the sanctions would have frozen them.
Eyewitness News
11 hours ago
- Eyewitness News
Brazil vows to fight Trump tariff 'injustice'
BRASÍLIA - Brazil vowed Thursday to combat US President Donald Trump's tariffs on its exports, saying it intends to lodge appeals if last-ditch negotiations fail. Finance Minister Fernando Haddad said the tariffs announced Wednesday were "more favourable" than expected, with several key export products exempted. Still, there "is a lot of injustice in the measures announced yesterday. Corrections need to be made," he told reporters. Citing a "witch hunt" against his far-right ally Jair Bolsonaro - Brazil's former president on trial for allegedly plotting a coup - Trump on Wednesday signed an executive order adding a 40% tariff on Brazilian products, bringing total trade duties to 50%. The levies affect coffee and meat, two products of which Brazil is the world's top exporter. The order, which takes effect on 6 August, listed exemptions for nearly 700 other products including key exports such as planes, orange juice and pulp, Brazil nuts, and some iron, steel and aluminum products. Leftist President Luiz Inacio Lula da Silva - the man Bolsonaro is accused of having sought to topple - has denounced the tariffs as an attack on the "sovereignty" of South America's largest economy. "The negotiation is not over; it starts today," Vice President Geraldo Alckmin, tapped to oversee talks with Washington, told TV Globo. Alckmin said the new tariff will apply to nearly 36% of Brazil's exports to the United States, equal to some $14.5 billion last year. Haddad said he would speak with his American counterpart, Treasury Secretary Scott Bessent, and "there will be a cycle of negotiations." He did not give a date. "We are starting from a point that is more favourable than one could have imagined, but still far from the finish line," the minister said. If negotiations fail, Haddad said Brasilia would "file appeals with the appropriate authorities, both in the United States and with international bodies." 'JUDGE AND JURY' Trump's Brazil tariff is among the highest imposed on US trading partners. Unlike with other countries, the measures against Brazil have been framed in openly political terms, sweeping aside centuries-old trade ties and a surplus that Brasilia put at $284 million last year. "These are harsh measures that will have a real impact on important sectors of the Brazilian economy," Reginaldo Nogueira, an economist with Brazil's IBMEC business school, told AFP. "The exemptions help mitigate some of the pressure on Brazil but primarily protect strategic goods for the American economy," he added. Haddad said the Brazilian government would put in place protection measures for the most affected companies and noted that "nothing that was decided yesterday cannot be reviewed." Trump's order was based on the Brazilian government's "politically motivated persecution, intimidation, harassment, censorship, and prosecution of [Bolsonaro] and thousands of his supporters," according to the White House. It also cited Brazil's "unusual and extraordinary policies and actions harming US companies, the free speech rights of US persons, US foreign policy, and the US economy," singling out Supreme Court Justice Alexandre de Moraes. Moraes is the judge presiding over Bolsonaro's coup trial and has clashed repeatedly with the far-right in Brazil, as well as with tech titan Elon Musk, over the spread of online misinformation. The US Treasury announced financial sanctions on Moraes Wednesday, saying he had "taken it upon himself to be judge and jury in an unlawful witch hunt against US and Brazilian citizens and companies." A Supreme Court source told AFP that Moraes "does not have assets in the United States" where the sanctions would have frozen them.
The South African
16 hours ago
- The South African
1 August 2025: ‘Mathematics of starvation – How Israel engineered famine in Gaza' and other world headlines
A bundle of newspapers on the table. Image: The South African/CANVA Here are the stories that made headlines on the front pages of newspapers worldwide on Friday, 1 August 2025. The New York Times front page reported that the Brazilian leader is one of the few standing up to Trump. The Wall Street Journal reported that the President moved to raise tariffs on August 7. The Washington Post reported that 154 000 people are being paid not to take U.S. jobs. The Jerusalem Post's front page reported that Hamas has exited negotiations, making an escalation in Gaza likely. China Daily's front page reported that cultural insight helps chart the path to urbanisation. The Daily Mail's front page reported that Keir Starmer's pledge to 'smash the gangs' was in tatters after a new record was set for Channel crossings. The Guardian's front page reported: 'The mathematics of starvation – How Israel caused famine in Gaza.' REMEMBER If you wish to stay up-to-date – for FREE – on the latest international and South African news, then bookmark The South African website for all that plus the latest in the world of finance, sport, lifestyle – and more. Did we mention it was 100% free to read …? ADVERTISEMENT
