Import tariff on maize can have a devastating effect on the livestock industry
Maize consumers and â€“processors are upset because Grain SA requested the Commission of International Trade Administration to increase the import tariff on maize. A higher import tariff will be to nobodyâ€™s benefit, says Prof Johan Willemse of the University of the Free State.
The latest early estimation by the National Crop Estimation Committee on 27 January this year confirmed that about three million tonne maize will be imported in the coming 12 to 18 months to fulfill in the needs of South Africa, Botswana, Lesotho, Swaziland and Namibia. Read more ...
Minimum wage for farm workers increased
In 2015 the Minister of Labour announced a process for the revising of the minimum wage for the next three years in both the agricultural and forestry sectors.
â€œDuring the last few months, the Minister also took note of the effect that the drought had in most parts of the country and subsequently consulted with social partners to understand the effect of the drought on the ability of employers to pay higher wages. An increase in wages has come into effect on 1 March 2016,â€ said Hendrik Ackermann, Chairman of Agri SAâ€™s Labour and Social Committee in a press release. Read more ...
Term contracts for beef carcasses on JSE
The JSEâ€™s commodity market for derived instruments now presents term contracts for beef carcasses.
One contract comprises of 1 000 kg, which makes it possible for smaller role players to also be involved.
The four main hedging months when contracts expires are March, June, September and December. On settlement day, price information as provided by the Red Meat Abattoir Association, will be used. Read more ...
Service fee on Abattoirs imposed
The South African Meat Industry Company (SAMIC) being appointed as assignee, in terms of section 2(3) of the Agricultural Product Standards Act, 1990 (Act No. 119 of 1990), by Government Notice No. 121 of 1998 for the classification and marking of meat, imposed a service fee in respect of abattoirs that participate in these processes (No. R. 55 of 30 January 2015).
These service fees will be valid from 1 January 2016. A service fee of R4,249.12 (VAT excluded) will have to be paid by an abattoir with a high throughput grading, while a service fee of R2,704.39 (VAT excluded) will be paid by an abattoir with a low throughput grading.
Research on Antimicrobial Drugs undertaken
Two undergraduate students at Onderstepoort, Hester and Sabina de Vries, have as part of a small research project supervised by Prof Moritz van Vuuren, compiled an electronic questionnaire dealing with resistance to antimicrobial drugs (AMR).
The questionnaire is not a knowledge test but focuses on awareness and attitude towards AMR. This is a friendly request to farmers to support their research and complete the questionnaire anonymously by clicking on the following link: http://www.thesistools.com/web/?id=493059
Livestock Farming not so profitably anymore
"Livestock is not as profitable anymore as believed to be", is proved in a study undertaken at the University of the Free State under the leadership of Prof Johan Willemse.
Even more than that, there is not any room for increases in production costs or even taxes, without an increase in producer prices.
Livestock farming has become more difficult over the last number of years and due to the fact that farmers are price takers and have relatively no influence over the producer price or the costs of production, farmers are at the mercy of the macro and micro economic drivers as well as political and governmental influences. The difficulty arises that it is not always possible to simulate political and governmental influences on farm level. Read more ...
Sideways movement in local beef prices
Internationally, higher beef prices in the US can have an impact on demand, but the expansion in US meat supplies might add pressure on prices. Locally, prices can follow a sideways to upwards trend due to the impact of the drought, according to ABSA Agri Trends.
Domestic Beef prices traded during the week of 12 February as follows: Class A prices were 2.79% higher at R37.58/kg, Class C prices were 2.37% higher at R30.67/kg. The average weaner prices increased to R21.43/kg. The average hide prices was slightly higher over the past week at R14,35/kg green. Read more ...
Local Mutton prices expected to increase
Internationally, tighter mutton supplies from both New Zealand and Australia and easing production out of China may help reduce supplies, according to ABSA Agri Trends.
Prices remain soft, but are expected to improve as slaughtering numbers are expected to tighten through February in New Zealand and Australia. Locally, mutton prices are expected to increase due to the impact of the drought. Read more ...