Agri Trends – 07 May 2018 – Livestock

Is listeriosis under control?

Since the recall of affected products on 4 March from shop shelves the incidence of listeriosis dropped significantly. Compared to the level of occurrences under normal circumstances in the USA the reported cases of listeriosis in South Africa dropped to similar levels in the latest report of the National Listeria Incident Management Team. It is therefore expected that this crucial statistics should be shared with consumers. It may just be that the listeriosis outbreak is under control and that the ready to eat products can be consumed with increased consumer confidence. Currently, these products sell at a fair discount and it is expected, as consumer confidence recovered, the price of these products will follow suit. An announcement in this regard is due.

Highlights

Livestock

• The lower feed price together with the lack of weaner calfs to rebuild the national herd in the medium term may result in carcass prices to remain elevated for a long time period to come.
• Declines in available supplies after the weaner calf season may add a bullish tone to prices.
• Normally, the increased supply for weaner calves during the weaner season from March until May weigh on weaner calf prices. This will improve the price margin for feedlots.
• Lower pork prices may weigh on the beef market.
• Marketing and promotion campaigns by the pork industry drive increased pork sales.
• The current low prices of pork may increase consumer uptake of fresh pork cuts.
  Better weather around the US during the month of May allow for more outdoor grilling, this may improve uptake.

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