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High red meat prices to stabilise
IOL reports that Dawid Snyman, sector intelligence specialist at Absa AgriBusiness, said that inflated meat prices could be attributed to low stocks globally, especially due to the stock-to-use ratios that are lower than expected. Snyman said further that the EU sovereign debt crisis had also had a severe impact on prices.
"During 2012 the prices will stay at high levels, maybe slightly lower than the highs of 2011. Poor or dry weather conditions will play a role in production and as it did in 2011, agriculture/food will be a safe haven for investors during unstable economic conditions," Snyman told Independent Online, adding that local beef prices would continue to decrease in the short term and possibly continue to fall throughout the first quarter due to lower demand. Local lamb prices were expected to increase in the short term with a possible sideways movement in the medium term due to the possibility of higher prices for white meat and feed, especially maize.
An Absa agri trends weekly market analysis in the second week of December last year noted that mutton and lamb prices traded lower during the second week of December than in the first. "The price of lamb closed 5.2 percent lower and traded at R24.81/kg. The landed cost of imported mutton rib from Australia and New Zealand traded the same compared to the previous week at R26.45/kg, and mutton shoulder also traded unchanged at R43.95/kg," said the report.
Read the full article on www.iol.co.za.
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