Business News Select | Fast-Facts | Link from bio | SMPostStory

South African retailers have maintained flat margins on lamb and seen declining margins on beef

9 Jul 2015

South African retailers have maintained flat margins on lamb and seen declining margins on beef

  • Beef producers’ share of retail prices has increased from 43% to 45% from 2000 to 2013 while lamb producers’ share has decreased from 55% to 53%
  • Lamb prices have escalated above other meat prices as producers have passed on supplier increases
    • Retailers have been unwilling to cushion these increases
  • Retailers have cushioned an increase in beef producer prices and taken smaller margins
    • Retail prices of beef have risen at a slower rate than producer prices
  • Beef consumption is growing with the rise of the middle class while lamb consumption is declining
  • Demand for beef is higher than lamb due to affordability
    • Retailers are willing to take less margin on beef in order to maintain foot traffic through their stores

Download brochure

Introduction brochure

What we do, case studies and profiles of some of our amazing team.

Download

Global Advisors | Quantified Strategy Consulting