Beef prices in marginal increase

14 Dec, 2014 - 04:12 0 Views
Beef prices in marginal increase

The Sunday News

Ngonidzashe Chiutsi/Nqobizitha Dhlamini
THE price of beef has marginally gone up, a move that is set to financially strain the already suffering consumers in the country and dampen the holiday spirit.
The Abattoirs Association of Zimbabwe (AAZ) vice chairperson for Matabeleland, Mr Roger Tavares, confirmed the new prices to Sunday Business last week which he said had been necessitated by a plethora of reasons among them increasing costs of inputs.

According to statistics given to this paper, the wholesale price for super beef grade, which was pegged at US$4,45/kg, has slightly gone up to US$4,85/kg  with effect from December this year while choice grade which was US$4,20/kg also increased to US$4,45/kg and commercial beef grade is now US$4,50 up from  US$4/kg.

The prices of economy and manufacture grade however remain unchanged at US$3,90 and US$3,10/kg respectively.

“The price of beef peaks every year at this time,” said Mr Tavares.
He said the steer price also increased to $2-54/kg from $2-42/kg.

Mr Tavares attributed the increases to the high costs of cattle which he said were because of the small number of the animals on the market as well as high costs of stock feed which together have been pushing up the price of beef on the market.

“Steer prices, stock feed prices and demand are among the factors for the higher prices of the feed lot supers,” he said.

He said the steer prices were above the price of stock feed which costs $250/tonne excluding transport.
“It costs approximately $4-50/kg to gain 1kg of beef that is before vet cost, transport mortalities and other costs,” he said.

A snap survey carried by this paper revealed that most butcheries had also adjusted the price of beef.
A butchery visited in Tshabalala was now selling super beef grade for US$4,95/kg.

Former Zimbabwe Commercial Farmers Union (ZCFU) president, Mr Donald Khumalo, said the prices of cattle could have slightly gone up due to improved quality.

“We are in the summer season and it is much easier for farmers to manage their cattle in terms of feeding and making the quality of the cattle improve, leading to the appreciation of the value,” said Mr Khumalo.

He also said the anticipated demand during the festive season, could have also forced the beef suppliers to raise the prices.

“Naturally the coming of the festive season results in demand for beef and the suppliers will try to capitalise by increasing the prices to get more profits,” said Mr Khumalo.

He defended the increase of the beef price saying this would go a long way in improving the quality of the beef.

“The appreciating value of the cattle produced by farmers will not only create competition but motivate them into setting high standards for the cattle they produce,” said Mr Khumalo.

However, consumers spoken to in Bulawayo said the new prices were not justified especially at a time when Government had proposed to zero rate sales of livestock for Value Added Tax (VAT) purposes.

“It’s unfair for the butcheries to suddenly raise the price at a time when we are struggling to make ends meet. Most businesses are lowering the price of their goods but surprisingly the beef suppliers are doing the opposite,” said Mr James Ncube from Tshabalala.

He added that his festive mood had already been dampened by the new beef price.

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