Livestock prices rising as the festive season approaches

Nkhensani Mashimbyi, agricultural economist at Absa AgriBusiness, considers the dynamics in the livestock industry to explore what price trends could look like over the coming weeks and months.

- Nkhensani Mashimbyi

Livestock prices have largely followed an increasing trend, with the meat complex reflecting broad-based year-on-year (y/y) increases across all major categories. As the festive season approaches, demand for livestock products is expected to increase, likely keeping prices elevated towards the end of the year.

BEEF

Global beef markets are under strain as supply-side challenges continue to drive prices upward. In the US, years of drought have adversely impacted grazing conditions and pushed up feed costs, leading to smaller cattle herds and tighter supply.

With global inventories low and export demand still strong, global beef prices remain elevated, underscoring how climate shocks and animal health risks are converging to reshape the global meat supply landscape.

In South Africa, Class A beef prices lost momentum at the end of September, decreasing by 2,9% month-on-month (m/m) (see Graph 1).

This softening was primarily due to reduced export demand, particularly from China, as a result of restrictions related to foot-and-mouth disease.

On the other hand, Class C carcass prices increased by 4,7% over the same period, supported by steady domestic demand and constrained supply.