Even a 2% shortage of pork can drive price increase of around 10%.
Eskort has warned pork-eaters that the price of their favourite source of protein could increase over the coming months due to disease outbreaks.
Arnold Prinsloo, CEO of Eskort, said the outbreaks of African swine fever (ASF) and foot-and-mouth disease (FMD) have tightened supply across the formal market.
This follows recent communication to the trade from the South African Pork Producers’ Organisation (SAPPO) detailing the extent of disease outbreaks affecting commercial piggeries in the Free State, North West, KwaZulu-Natal and north-east of Pretoria.
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Pork supply disrupted by diseases
He said the formal sector has lost more than 5 000 pigs weekly due to the diseases. ASF is a highly contagious viral disease that affects pigs, causing severe illness and often death, but it does not infect humans.
“South Africa slaughters roughly 72 000 pigs per week across the formal and informal sectors. The formal market has lost approximately 7 000 pigs due to the combined impact of ASF and FMD outbreaks,” said Prinsloo.
“While this represents a relatively small percentage of total supply, even a 2% shortage can drive price increases of around 10%. This is the reality of pork’s price elasticity.”
New price of pork
He added that the price of pork has increased significantly in recent weeks, with wholesale prices rising from about R32 per kilogramme to R40.
But he anticipates that this is not the end of the price increases because the effects of disease outbreaks work through the supply chain.
“Until recently, we were able to hold prices stable because the industry had surplus stock that served as a buffer. That buffer has now been depleted, and we’re seeing the same supply-and-demand dynamics that recently affected the beef industry.”
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No outbreaks among Eskort farmers
Prinsloo assured that Eskort’s farmers have had no cases of ASF or FMD. Eskort accounts for about 10% of the country’s pork market.
“The company attributes this to its world-class biosecurity protocols and antibiotic-free farming practices. However, no producer is immune to market-wide pricing pressures,” he said.
“While our biosecurity measures have protected our operations to date, we remain vigilant. More importantly, even though Eskort has not lost animals to these diseases, we operate in a broader market where supply and demand determine pricing. When the overall supply contracts, it affects pricing across the board.”
Safe to eat
“SAPPO has confirmed that all pork entering the market through formal channels remains safe for consumption, as ASF and FMD are animal health diseases that pose no risk to human health,” he added.
“Strict veterinary oversight and inspection protocols under the Meat Safety Act continue to ensure food safety.
“The organisation is working closely with producers, abattoirs and state veterinary services to manage the outbreaks while maintaining market stability and consumer confidence.”
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