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    The 155MW first phase of Ummbila Emoyeni forms part of a planned 900MW renewable energy programme. Photo. ummbilaemoyeni.com

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  • Agriculture
    Mems Ramaila is making waves in the beekeeping sector

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    Carmen Stevens launched Carmen Stevens Wines in 2011. Today the business is recognised as South Africa’s first 100% Black-owned and woman-owned winery.

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Photo:wandilesihlobo.com

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    Setšong Tea Crafters was able to overcome barriers that often keep rural enterprises out of mainstream retail channels. Photo. Lucas Ledwaba\Mukurukuru Media

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    New Stats SA data shows more than 750 business insolvencies were recorded in South Africa during the first half of 2026. 

Photo: OLIVIER LE MOAL

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    R2.7bn loan deal brings relief but SMEs remain under pressure

    SME funding has improved access to finance through the partnership between Ozow and Lula.

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    Limpopo is positioning tourism infrastructure as part of a broader economic development strategy aimed at attracting investors. Photo. Lucas Ledwaba\Mukurukuru Media

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    Leane Hendricks is proving that South Africans can also run successful spaza shop businesses by starting small and serving their communities. Phone: supplied

    Woman entrepreneur proves locals can crack it in spaza sector

    A spaza owner sits outside his supermarket in Kliptown, Soweto. Photo: Nhlanhla Phillips

    Step-by-step guide on how to apply for Spaza Shop Support Fund

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    Naledzani Mosomane, Head of Enterprise and Supplier Development at Standard Bank South Africa, says the expanded Export Readiness Programme will help more SMEs become export-ready.
Photo: Supplied

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SMEs and consumers feeling the heat over red meat prices

by Azwidohwi Mamphiswana
May 2, 2025
in Business, Top story
Reading Time: 3 mins read
A A
Read meat prices too high

Read meat prices too high

By Azwidohwi Mamphiswana

Red meat lovers across South Africa are feeling the heat — not from the grill, but from the butcher’s bill. Beef and lamb prices have surged in recent months, leaving price-sensitive consumers tightening their grocery budgets and farmers questioning the sustainability of their operations.

Prices have risen sharply in 2025, placing pressure on both ends of the supply chain — from struggling farmers and butchers to households already grappling with food inflation.

Experts warn that this cost surge could have a lasting impact on food security and the viability of small businesses in the meat industry.

According to the Standard Bank Livestock Biweekly Insights Report (Q1 2025), A-grade beef rose by 2.5%, lamb increased by 17.5% and pork climbed by 9.3% compared to Q1 2024.

Stats SA also confirms that red meat prices have surged over 10% year-on-year. It centres on rising input costs, climate shocks and supply shortages.

Beef South Africa CEO Mike Gcabo said the price surge was driven by a combination of rising input costs and supply shortages.

“One of the cost of inputs is cost of feed, which is attributable to the rising cost of soybean as well as maize,” he explained.

“We have just emerged from foot-and-mouth disease. There is a shortage of slaughter-ready cattle from feedlots into abattoirs. As we know with supply and demand, when you’ve got fewer cattle to slaughter, the price goes up. So those factors cumulatively explain the increase in the cost of beef.”

Gcabo warned that the approaching winter season may push prices even higher.

“In winter you find lower grazing and you can’t expect too many cattle in the marketplace. The demand for feed rises, which increases costs for producers. Farmers have to feed out of their pockets,” he said.

Small-scale players are among the hardest hit.

Peet Marais, who owns of Vleismark butchery, said he has had to absorb rising costs to retain his customers.

“I’ve had to keep my prices the same because if I charge more, my customers won’t buy from me. But that means my profit is much smaller. We are making less money than before, even though our costs have gone up. By the end of the month, when I do my books, the difference is clear — we’re struggling.”

On the production side, smallholder farmers face rising costs of feed, transport and veterinary services — without the safety nets available to large-scale commercial operations.

“Rising beef prices are squeezing both ends of the chain,” said Mpho Mence an agricultural analyst at Green Cape.

“For smallholder and emerging farmers, input costs are undermining already thin profit margins. Climate shocks like droughts and erratic rainfall have worsened pasture conditions, pushing farmers to rely on expensive supplemental feed,” Mence said.

She added that many small farmers lacked access to financing and long-term contracts, making them particularly vulnerable in a volatile market.

Consumers are also being forced to adjust their plates.

Nandi Ngubeni, a Soweto mother of three, said beef is now a “special occasion” item.

“We used to have beef stew every Sunday. Now it’s maybe once a month. It’s just too expensive nowadays,” said Ngubeni.

Mence suggests that short-term solutions include cooperative models and bulk buying schemes for farmers, while consumers may need to diversify protein sources.

“Long-term, we need investment in climate-resilient farming practices, local feed production and stronger support systems for small producers to weather these cycles,” Mence said

Azwi@vutivibusiness.co.za

Tags: Beef South AfricaButcher's billRead meat priceSMMEs and red meatStandard Bank Livestock
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Azwidohwi Mamphiswana

Azwidohwi Mamphiswana

A seasoned professional with extensive experience in the field. Her studies stem from Geomatics, certified in mining and skilled in industry practices. She holds a Cum Laude degree, while specialities are in economics, mining, engineering, finance, business, science, innovation and technology.

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