August 28, 2007

South African meat prices seen to increase as drought intensifies

The drought currently hitting Eastern and Southern Cape farmers in South Africa is not only succumbing farmers to their knees, but is threatening to lead to steep rises in prices for mutton, lamb and beef - even if good rains fall soon.

Karoo farmers have not had good rains and have been in the grip of a severe drought since last August.

The severely-hit areas include Graaff-Reinet, Aberdeen and Beaufort West, where farmers say this year's drought was the worst since 1966.

Grim news for consumers is the drought's impact on meat prices.

According to Johan Willemse, chair of agricultural economics at the University of the Free State, mutton, lamb and beef prices will continue to spiral for months, even after good rains have fallen.