Sustainable red meat production during challenging economic times Dr Frikkie Maré Department of Agricultural Economics October 14, 2019.

Slides:



Advertisements
Similar presentations
The Closed Economy How the real interest rate keeps the goods market in equilibrium Y = C + I(r) + G.
Advertisements

Demand And Supply Demand
Livestock & Meat outlook China February 25, 2008 Prepared by Shiyao Investment Ltd Shanghai, ATO Oklahoma Agricultural Leadership Program.
Outlook for the U.S. Meat Sector in 2011 Presented By Shayle D. Shagam World Agricultural Outlook Board U.S. Department of Agriculture Outlook 2011 Canberra,
 What is the gestation period for a cow? -The gestation period for a cow is 9 months.  When is a calf weaned? -The calf is weaned at 6-8.
Outlook for the U.S. Livestock and Poultry Sectors in 2011 Presented By Shayle D. Shagam World Agricultural Outlook Board, USDA USDA Outlook Forum Washington,
Dr. Darren Hudson Larry Combest Chair of Agricultural Competitiveness x272, 206 AGSCI.
Economics Chapter 7 Supply and Demand.
The Structure of the REMI - Model. Output Market Shares Labor & Capital Demand Population & Labor Supply Wages, Prices, & Profits REMI Model Structure.
Aggregate Supply, Aggregate Demand and Unemployment Week 4 Professor Dermot McAleese.
Structure of the Food & Fiber Industry Linkages to the Farm Business Sector LESE 306 Fall 2008.
Chapter 7 Supply & Demand
The U.S. Food & Fiber Industry Linkages to the Farm Business Sector Spring 2010.
Aggregate Supply, Aggregate Demand and Unemployment Week 4 Professor Dermot McAleese.
Demand and Supply. Demand  Consumers influence the price of goods in a market economy.  Demand : the amount of a good or service that consumers are.
Commodity Marketing Activity Chapter #2. Supply and Demand n Supply: quantity of a commodity the producers are willing to provide at a given price n If.
1. absolute advantage 2. capital 3. command economy.
Demand Definitions: Reprise In economics, –A change in quantity demanded occurs when a change in the price of the good itself causes a consumer to buy.
Basic Economics Concepts Leo Koo, Chris Mendoza, Daniel Ye Period 4 Mr. Lohman.
Meat Industry Ireland Presentation by Joint Oireachtas Committee on Agriculture 4 th March,
Prospects for Sheep Farming Presentation by IFA National Sheep Chairman James Murphy Lismullin Farming Conference Monday January 30 th 2012.
Begin Yennifer Castellon Period 2 Macro $100 $200 $300 $400 $500 Unit 1 Unit2 All Around GraphsSummerWork Unit 3.
Begin $100 $200 $300 $400 $500 C1-$100 - $100 - $100 What is the MPS? MPS is the marginal propensity to save when disposable income has been increased.
1 Australian dairy industry overview Presentation by David Basham, dairy farmer to CIPLE Congreso, September 2011.
Australian Association of Agricultural Consultants Cameron Hall – CEO LiveCorp 27 November 2009.
Fiscal Policy and the Multiplier. Unemployment Economic Growth.
Begin $100 $200 $300 $400 $500 Graphs Unit 1 Unit 2 Unit 3 Random Key Terms.
Standard: b. Define Gross Domestic Product (GDP), economic growth, unemployment, Consumer Price Index (CPI), inflation, stagflation, and aggregate supply.
Building Local Markets Through Sustainable Agriculture. Allen Kilback Choice Family Meats, Processor & Retailer.
Outlook for the U.S. Livestock and Poultry Sectors in 2012 Presented By Shayle D. Shagam World Agricultural Outlook Board, USDA USDA Outlook Forum Washington,
Supply and Demand. The Law of Demand The law of demand holds that other things equal, as the price of a good or service rises, its quantity demanded falls.
Meat Industry Overview South African Feedlot Association Annual General Meeting 9 March 2010 David Spies.
The Beef Industry. Beef Products What products can you think of? What products can you think of?
Beef Farming in Ireland
Begin $100 $200 $300 $400 $500 C1-$100 - $100 What are the factors of production? land, labor, capital, & entrepreneurship.
Notes MEASURES OF ECONOMIC ACTIVITY.  3 Main Measures of Economic Activity  Gross Domestic Product  Labor Activities  Consumer Spending HOW IS ECONOMIC.
Demand A Schedule Showing the Consumers are Willing and Able to Purchase At a Specified Set of Prices During A Specified Period of Time Amounts of a Good.
Business Administration & Management Mr. Bernstein Managing An Economy, pp February 24, 2015.
Created by Tad Mueller Northeast Iowa Community College.
Created by Tad Mueller Northeast Iowa Community College.
Begin $100 $200 $300 $400 $500 Supply Demand Key Terms Unit 3 Unit 2 Unit 1.
2014 State Farm Management Non- Math Problems. 7. How many pounds are in a metric ton? A. 2,000.0 B. 2,204.6 C. 3,666.7 D. 4,012.5 E. None of the above.
ECOWAS Model Structure and Training Jim Hansen, Nancy Cochrane, and Getachew Nigatu USDA, Economic Research Service.
Chapter 10 Aggregate Demand & Supply
Chapter 7 Demand and Supply.
Business Cycle Essential Questions: Which indicators should members of the government look at when making economic policies? Why? How do we know how.
11 C H A P T E R Aggregate Demand and Aggregate Supply.
Aggregate Demand and Supply
Economies of scale Average total costs changes as the output of a firm changes Increasing, decreasing or constant economies of scale. Short run cost curve.
Aggregate Demand and Supply
11 C H A P T E R Aggregate Demand and Aggregate Supply.
The Beef Industry.
Major Functions of Economic, Agricultural and Food System
Business Cycle Essential Questions: Which indicators should members of the government look at when making economic policies? Why? How do we know how.
Economics and Business
Macroeconomics Intro to GDP.
Chapter 7 Supply & Demand
Aggregate Supply and Demand
Is meat in danger of becoming a niche product in the EU?
Chapter 3 Supply and Demand © OnlineTexts.com p. 1.
Business Administration & Management
Chapter 3 Supply and Demand © OnlineTexts.com p. 1.
Chapter 3 Supply and Demand © OnlineTexts.com p. 1.
2 Economic Activity 2-1 Measuring Economic Activity
Commodity Marketing Activity
Aggregate demand and aggregate supply
Chapter 3 Supply and Demand © OnlineTexts.com p. 1.
Chapter 4 and 5 Supply and Demand © OnlineTexts.com p. 1.
AGED 570: Teaching H.S. Agricultural Economics
Section 2: Changes in Demand
Presentation transcript:

Sustainable red meat production during challenging economic times Dr Frikkie Maré Department of Agricultural Economics October 14, 2019

The good, the bad and the ugly

The good, the bad and the ugly: Beef 20% Increase 2018: The Bad 2% Increase 2019: The Ugly Decrease?

The good, the bad and the ugly: Lamb 23% Increase 2018: The Bad 1% Increase 2019: The Ugly Decrease?

Price determination

Demand, supply and equilibrium ≠ Static Demand Shifters P of complimentary goods P of substitute goods Income levels Tastes and preferences Expectations Population Supply Shifters P of factors of production P of other goods Technology Taxation Expectations Number of firms

Shifters: Slaughter Numbers Source: RMLA (2018)

Shifters: Feed prices Source: Grain SA (2019)

Shifters: Substitute products (pork) Source: RMAA (2019)

Shifters: Economic Growth (GDP) Source: STATS SA (2019)

Shifters: Economic Indicators (CPI, PPI & Prime) Source: STATS SA (2019)

Shifters: unemployment Source: STATS SA (2019)

Shifters: Meat consumption

Shifters: FMD

Shifters: exports Beef Exports = 3 000 t /month = 3 000 000 kilogram / month = 15 000 000 Steaks / month (200g) Mutton/Lamb Exports = 400 t /month = 400 000 kilogram / month = 4 000 000 Chops / month (100g) Why Export  Domestic Market Small Topside Exports to Kuwait: 24 ton container $4.55/kg = R66/kg Shipping cost on exporter Profitable?

Price determination: Market

Market participants Supply Producers Feedlots Market Abattoir Demand Wholesalers Retailers Consumers

Abattoir prices: a spanner in the works

price: beef

price: mutton

- Cambridge Dictionary - challenge “The situation of being faced with something that needs great mental or physical effort in order to be done successfully and therefore tests a person’s ability.” - Cambridge Dictionary -

Playing the profitability game

Optimal input use – concept of marginality

Optimal input use – concept of marginality

Output planning What to produce? When to produce? For whom to produce? Where to produce? The concept of value adding… Vertical integration Innovation Coordination

Concept and influence of opportunity cost Opportunity cost is the value of an item in its highest alternative use: Feed calf vs. Sell calf Buy cattle/land vs. Other investments and returns Land for own production vs. Land rental income Farmer’s farm labour vs. Alternative work 10 Bulls for breeding vs. 1 Bull for AI vs. Semen straws Holding back replacement heifers vs. Buying pregnant heifers vs. Contract Heifer Growing

The future

Thank You Dankie Dr Frikkie Maré (PhD) Academic Department Head Department of Agricultural Economics MareFA@ufs.ac.za T: +27(0)84 446 6787