Meat inflation, down slightly from 9,4% in July to 9,2% in August, continues to be a notable contributor to food inflation in South Africa. Although official inflation figures for September and October were not available at the time of writing, inflationary pressures were likely to have continued into these months, with supplies remaining subdued and cost pressures affecting prices.
BEEF
In September, profitability in the beef sector, as measured by the beef-tomaize price ratio, decreased by 3,4% month-on-month (see Graph 1).
This was the result of rising grain prices persistently outpacing growth in carcass prices, with the price of maize increasing by 5,5% monthon-month (m/m), compared with an increase of only 1,9% m/m in the price of Class A carcasses.
Profitability fell 17,3% year-onyear (y/y), despite an almost 17% increase…
