Meat prices 'should remain stagnant for now'

The Red Meat Producers Association has warned of a price hike of between 10 and 12% at the end of 2016.

FILE. The new estimations were prompted by the dire effects from the drought currently gripping the South Africa. Picture: freeimages.com

JOHANNESBURG - The Red Meat Producers Association says the price of beef and lamb should remain stagnant for the first half of 2016 as farmers are still taking their cattle to abattoirs because they won't survive the winter.

But the association has warned of a price hike of between 10 and 12 percent at the end of the year, because farmers will need to rebuild their herds.

The new estimations were prompted by the dire effects from the drought currently gripping the South Africa.

CEO Gerhard Schutte says, "We think it will be around 12 percent for beef and 10 percent for sheep meat. If we do have good range in the next season, farmers will be in a building phase in terms of their herds and we know where the rand is at this stage, compared to the dollar."