Consumers fork out more for pork

(Shutterstock)
(Shutterstock)
Johannesburg - Hot on the heels of a tariff increase on imported chicken, the price of pork has gone up.

Trade and Industry Minister Rob Davies hiked poultry import tariffs by an average 8.75% in September, saying the higher duties were necessary to raise local production and save jobs in the industry.

Simon Streicher, CEO of the SA Pig Producers Organization (Sappo), is of the opinion that retailers should have seen the warning signs at an earlier stage, reported Sake24.

A number of pig farmers became insolvent because of losses they incurred during the first nine months of 2013. During this period pig farmers suffered a loss of about R33m, according to Streicher.

Abattoirs set the prices they are willing to pay producers according to what retailers are willing to fork out. The market price abattoirs paid pig farmers between January and September was R17/kg, whereas the production costs of the farmers were R18.50/kg.

According to Streicher retailers claimed that consumers did not want to pay more for pork.

Currently, however, pig farmers can get R21/kg, mainly due to the increased demand for pork during the festive season.

Feathers flying

In September Georg Southey of the Association of Meat Importers and Exporters (Amie) said one of the net effects of the increase in poultry import tariffs would be rising food prices.

He accused local producers of being "addicted to protection".

At the same time the SA Poultry Association said imports were devastating local producers and 110 000 jobs could be lost.

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