JOHANNESBURG - Pork supplier Eskort said pork prices are due to go down, rather than up.
This brings a sigh of relief to consumers after concerns earlier in the year that pork prices would rise due to stock losses to African Swine Fever.
But according to Eskort CEO, Arnold Prinsloo, the situation has swung in a different direction due to a surplus on the market.
Explaining the strain over South Africa’s pork market in recent months, Prinsloo said in March prices shot up from R30 to R40.
This was due to the outbreaks of African Swine Fever (ASF) and Foot-and-Mouth Disease (FMD), which temporarily disrupted supply and triggered precautionary imports.
According to the Food and Agriculture Organisation of the United Nations, ASF is a highly contagious and deadly viral disease that affects both domestic and wild pigs.
It spreads through direct contact with pigs and contaminated materials, including feed, farm equipment, clothing and vehicles.
While it does not pose a risk to human health, it has a devastating impact on animal health, food security and the global pork industry.
READ | Pork and bacon prices expected to fall
This is the kind of ripple effect that was witnessed recently.
Prinsloo said when the outbreak happened, it sparked fears that there would not be enough pork supply, which prompted processors to secure imported pork to avoid potential shortages.
But because it takes between eight and ten weeks for imported meat to arrive, those shipments entered the market just as local farms emerged from mandatory disease control restrictions and resumed normal operations.
That meant the anticipated shortage took a turn when imports arrived at the same time as the local supply recovered, creating a significant surplus of pork.
Ordinarily, excess supply would usually force businesses to lower prices to clear stock; this is where the country is now.
Prinsloo expects that the market will stabilise closer to its historical average of around R32/KG as supply and demand gradually rebalances.
The significant drop can also be witnessed in Eskort products, including:
- Pork chips being reduced from R120/KG to approximately R80/KG
- Boerawors being reduced from R120/kg to approximately R100/kg
- Three packs of bacon, which retailed at R130 to selling for approximately R100
With market conditions looking positive, there are questions as to how long this surplus will last.
Prinsloo anticipates that the surplus might last until December, until things get back to normal.
This, he said, is due to the foot and mouth disease.
“The regulations have changed. The minister has recently published Article 9, which makes provision for the pig farmers to send their pigs back to the abattoirs sooner than previously. So, the farmers can send their affected pigs to the abattoirs within 42 days, whereas it used to be 90 days previously," he said.