Supply chain disruptions drive 12% meat inflation ahead of Christmas

There appears to be no reprieve for households preparing Christmas meals this festive season after meat prices recorded a 12% hike in the 12 months to November. This represents the highest annual rate since January 2018.

The uptick in meat prices persists despite a drop in overall annual consumer price inflation, which came in at an unexpected 3.5% for November. However, annual inflation for food and non-alcoholic beverages recorded its first increase in four months, quickening to 4.4% in November from 3.9% in October.

Beef products have experienced high inflation rates for several months. This is partly a result of the impact caused by Foot and Mouth Disease, which put the livestock sector under significant pressure. The outbreak earlier this year disrupted the supply chain and restricted red meat availability, driving prices upward.

Patrick Kelly, Chief Director for Price Statistics at Stats SA, notes that the trend is broadening across the sector:

“Other meat products have now joined the fray, with pork, mutton & lamb, and sausage prices rising faster. On the other hand, milk, other dairy products & eggs category recorded its sixth successive month of deflation.”

Current market prices reflect these pressures. Depending on the retailer, a kilogram of stewing beef currently costs upwards of R150, while a kilogram of steak can retail for up to R350, depending on the cut.