ABSA Agri Trends: Livestock and Hide Report

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A slowdown in the economy could affect all animal proteins

Beef: The self-distancing protocols that South Africans are currently observing with the aim to reduce the spread of Covid-19, has changed the way consumers spend their money. Consumers are now shifting their money spend on “at-home” meals rather than eating out, caused by the self-distancing efforts coupled with recessionary pressures. A slower economy is negative for all the animal proteins especially beef and lamb as those are considered luxury products in economic terms. Beef is used more in the restaurants and fast food services, of which a significant decline in demand is expected in the short term. Currently weaner calf and feeder lamb prices are on the decline due to the uncertainty caused by the coronavirus. The demand for weaner calves from the feedlots have been lower this week, because no one really knows if the demand will be there a few months from now.

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