News / Local
Beef prices plummet
01 Mar 2012 at 17:24hrs | Views
BEEF prices that soared in December last year have started plummeting in Bulawayo amid revelations that cattle buyers are facing losses because of the new prices. Players in the beef industry yesterday said it was normal for prices to go down at this time of the year.
In the last four weeks, prices have gone down and are now way below the pre-December levels.
The cheapest grade of beef was selling at around $5 per kilogramme in December, while the most expensive grades were about $9 per kg.
The prices had shot up from about $3,40 and $5,50.
However, this time around prices have gone down with some butchers selling the cheapest grade at $3 and the most expensive at about $5.
A number of butchers and farmers in the city have said they expect prices to keep going down until a kilogramme of the cheapest grade is about $2.
Some butchers have started running promotions to lure back customers who had turned to other meat products like chicken, fish and pork.
The sales and marketing manager at Bulawayo Meat Market, Mr Tonderai Chitonho, said prices usually go down at this time of the year as people would be selling their cattle to pay school fees.
"Generally, at this time of the year, cattle are pasture fed because most parts of the country would have received rains. The fatter livestock would fetch better prices and people would be more willing to sell. Besides, most people would be battling to pay school fees so there would be a lot of cattle on the market, forcing prices down," said Mr Chitonho.
He said Bulawayo Meat Market was running a promotion to "celebrate" the reduced prices and lure back customers.
"We are running the Nyama promotion in which anyone who buys beef stands a chance of winning a 32 inch LCD television set, a double door fridge or three plate stove with an oven, on 5 April," he said.
"Anyone who buys any quantity of beef qualifies for the competition."
The director of Arthur Heron Butchery, Mr Stephen Williams, said although prices generally go down at the beginning of the year, this year they were likely to be lower compared to previous years.
"Most people who were 'dealers' before dollarisation are now into cattle buying and selling. We have more people moving cattle from all corners of the country so prices are going down because butchers are spoilt for choice. At this time of the year, we have more sellers as people struggle to recover from excessive spending during the Christmas period," said Mr Williams.
He said beef was not selling very fast as people were concentrating on school fees and had less disposable income.
"This forces wholesalers and butchers to sell at lower prices to move the large quantities of meat and attract customers. The normal trend would be for prices to continue declining until June, and then they start rising around July until December. This year, it will not surprise me if we go down to $2 for the cheapest grade," he said.
A resettled farmer, Ms Nomuhle Nyoni of Sharona Park, about 25 kilometres out of Bulawayo along Gwanda Road, said cattle disease zones in the country contributed to the price reduction.
"Prices traditionally go down at the beginning of every year. However, I think this year red zones have also accelerated the decrease. People flocked to buy cattle from places like Tsholotsho where there is usually foot-and-mouth disease. Such cattle are branded for slaughter and it is an offence to keep the animals after buying them. People who bought cattle from the red zones were forced to cut their losses and sell them at give away prices when they found prices depressed in Bulawayo," said Ms Nyoni.
Mrs Irene Maphenduka, the Zimbabwe Commercial Farmers Union's chairperson for Matabeleland North, could not comment as she said she was travelling.
A butcher, who declined to be named, citing fear of victimisation, said if the Cold Storage Company (CSC) depressed prices like it did last year, there could be a fresh wave of increases.
"What CSC did last year is criminal. They got cheap beef from Botswana and sold it at ridiculously low prices. They made it unprofitable for anyone to buy local beef.
"When their beef ran out, there was a supply vacuum and those who had beasts to sell, took advantage and charged what they liked for their cattle. We hear they are getting more cattle. We hope this time they will be more responsible and avoid actions that destroy the meat industry," said the butcher.
The CSC's chief executive officer, Mr Ngoni Chinogaramombe, could not be reached for comment as his mobile phone rang without being answered.
In the last four weeks, prices have gone down and are now way below the pre-December levels.
The cheapest grade of beef was selling at around $5 per kilogramme in December, while the most expensive grades were about $9 per kg.
The prices had shot up from about $3,40 and $5,50.
However, this time around prices have gone down with some butchers selling the cheapest grade at $3 and the most expensive at about $5.
A number of butchers and farmers in the city have said they expect prices to keep going down until a kilogramme of the cheapest grade is about $2.
Some butchers have started running promotions to lure back customers who had turned to other meat products like chicken, fish and pork.
The sales and marketing manager at Bulawayo Meat Market, Mr Tonderai Chitonho, said prices usually go down at this time of the year as people would be selling their cattle to pay school fees.
"Generally, at this time of the year, cattle are pasture fed because most parts of the country would have received rains. The fatter livestock would fetch better prices and people would be more willing to sell. Besides, most people would be battling to pay school fees so there would be a lot of cattle on the market, forcing prices down," said Mr Chitonho.
He said Bulawayo Meat Market was running a promotion to "celebrate" the reduced prices and lure back customers.
"We are running the Nyama promotion in which anyone who buys beef stands a chance of winning a 32 inch LCD television set, a double door fridge or three plate stove with an oven, on 5 April," he said.
"Anyone who buys any quantity of beef qualifies for the competition."
The director of Arthur Heron Butchery, Mr Stephen Williams, said although prices generally go down at the beginning of the year, this year they were likely to be lower compared to previous years.
"Most people who were 'dealers' before dollarisation are now into cattle buying and selling. We have more people moving cattle from all corners of the country so prices are going down because butchers are spoilt for choice. At this time of the year, we have more sellers as people struggle to recover from excessive spending during the Christmas period," said Mr Williams.
He said beef was not selling very fast as people were concentrating on school fees and had less disposable income.
"This forces wholesalers and butchers to sell at lower prices to move the large quantities of meat and attract customers. The normal trend would be for prices to continue declining until June, and then they start rising around July until December. This year, it will not surprise me if we go down to $2 for the cheapest grade," he said.
A resettled farmer, Ms Nomuhle Nyoni of Sharona Park, about 25 kilometres out of Bulawayo along Gwanda Road, said cattle disease zones in the country contributed to the price reduction.
"Prices traditionally go down at the beginning of every year. However, I think this year red zones have also accelerated the decrease. People flocked to buy cattle from places like Tsholotsho where there is usually foot-and-mouth disease. Such cattle are branded for slaughter and it is an offence to keep the animals after buying them. People who bought cattle from the red zones were forced to cut their losses and sell them at give away prices when they found prices depressed in Bulawayo," said Ms Nyoni.
Mrs Irene Maphenduka, the Zimbabwe Commercial Farmers Union's chairperson for Matabeleland North, could not comment as she said she was travelling.
A butcher, who declined to be named, citing fear of victimisation, said if the Cold Storage Company (CSC) depressed prices like it did last year, there could be a fresh wave of increases.
"What CSC did last year is criminal. They got cheap beef from Botswana and sold it at ridiculously low prices. They made it unprofitable for anyone to buy local beef.
"When their beef ran out, there was a supply vacuum and those who had beasts to sell, took advantage and charged what they liked for their cattle. We hear they are getting more cattle. We hope this time they will be more responsible and avoid actions that destroy the meat industry," said the butcher.
The CSC's chief executive officer, Mr Ngoni Chinogaramombe, could not be reached for comment as his mobile phone rang without being answered.
Source - TC
