AGRICULTURAL NEWS - Consumers should see a drop in the price of red meat within the next two weeks.

The producer price of lamb decreased in the past nine weeks with 30%. Year-on-year the producer price for lamb meat is now 5,8 % lower than in 2015. The producer price of beef also decreased in the past four weeks with 8% and year-on-year the producer price of beef is now 4% higher than in 2015.

Beef and mutton producer prices have increased considerably less than in the March year-on- year food inflation index, which has been 9,8%.

When the producer price decreases, it takes a while to be reflected in retail prices, however, but this should not be more than 14 days. Currently, major differences are noted in the retail in terms of red meat prices. Consumers are therefore encouraged to compare prices and quality.

Producers get in the region of R56/kg for lamb and R39/kg for A-grade beef, but the Red Meat Producers' Organisation (RPO) stresses that the public must realise that these are average prices for the whole animal and the producer price for cuts like steak and chops would fetch the farmer much more should he or she have sold these separately.

The RPO thanked those retailers and retail groups who have already passed the advantage of the lower producer price through to the consumer.

The RPO advises consumers to buy bulk beef and whole or half lamb/mutton carcasses, which can then be cut to specific preferences.

The norm should be for the consumer price for whole and half lamb/mutton carcasses to be approximately 30% higher than the producer price, plus VAT. The countrywide drought is given as reason why beef and sheep/lamb meat prices should be disproportionately high at this stage. It is however not the case at this point in time.

 It seems that supply is now exceeding demand - also due to imports from neighbouring countries. It is anticipated that the lower producer price could continue at least into the spring season.

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