Meat price hikes to leave consumers hungry

Meat price hikes to leave consumers hungry

Farmers without water storage tanks have been left devastated by the drought. And as a result of the lack of water, the prices of red meat is about to skyrocket leaving the already struggling consumers left to consider red meat as a delicacy rather than a staple part of their diet. The experts are warning all South Africans to start preparing themselves for the biggest meat price hike that we have ever seen.

Without water, farmers have not been able to feed their stock properly. And with less stock, less meat will soon be available for the hungry market. The recent spike in inflation has also not helped the situation, and those who have not been able to afford red meat before will continue to have empty plates.

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Drought in South Africa

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Drought in South Africa

 

While the red meat price is stable for now, consumers are going to be seeing a 50 – 60% increase according to Dawie Roodt, chief economist at the Efficient Group. According to Roodt’s, “The prolonged drought is the major factor, but there are also other factors at play, such as the massive increase in the price of maize, which is the staple food for fattening beef before going to market.”

This increase in the meat prices is going to come at a time when the petrol prices will also to be increasing, the latest fuel increase will be by a further 18 cents. Fuel increases will have a further effect on the price of meat as well as on the prices of all other products that we find in the shops. The poorest of the poor are going to be the hardest hit, but those in the middle class are going to take an equally big knock. While famine is not going to be a possibility, there will still be many people going hungry in the coming months.

There are two reasons for the increase in the prices of red meat and for other food product prices soaring; the drought and the inflation. South Africa is set to see abnormally high prices for all food types, and Cliff Johnston, the vice-chairman of SANCU (the National Consumer Union) has started encouraging consumers to pay off as much of their debt as possible in preparation for the coming price hikes.

The actual price of meat is going to depend on the supply and demand which according to the executive director of SA Feedlot Association Dave Ford, there is no way to accurately predict how much consumers will be paying.

Although times are getting tough, now is the time to be investing in a water storage tank if you are a farmer.

There are some farms that have not been as hard hit by the drought, and many of these belong to the farmers who have invested in water storage tanks. South Africa has not been completely dried up, with rainfall being experienced over many parts of the country. And of course with the right water storage tanks, water could be stored for years in anticipation for the possibility of there being another drought like situation.

Rainbow Tanks has been at the forefront of supplying water storage tanks to farms throughout South Africa. And while the coming meat price increases are something that cannot be ignored, you can always be prepared for next time.

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Agricultural Water Storage Tanks

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Agricultural Water Storage Tanks

 

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