SAMPA members, which include both large corporations as well as a number of smaller independent meat processors from both a sourcing and manufacturing point of view across the value chain, have seen a significant financial decline across the industry.
This decline in the industry has already resulted in job losses and could lead to significant unemployment numbers in that sector due to the closing of factories, farms and plants. The estimated direct impact on employment equates to approximately 8000 job losses over the next 12 months if the current situation does not change. This is significant for an industry which employs approx. 20 000 people.
Over the last two months the entire industry has experienced a massive reduction in volumes sold. Polony and vienna sales have gone down by 75% while other processed meats have gone down 50% and fresh pork has gone down by 40%.
Should the situation continue, farmers will sell at a loss and small farmers will lose their farms. The knock-on effect will further create a shortage in the market in the next 12- 18 months. This shortage in supply will push up pork prices to an estimated price of R30 per kg should the demand for pork meat and processed meat have normalised by that time.
Other key players are also being affected with packaging, transport and spice businesses losing close to R100 mil per month. Small butcheries are also adversely affected as consumers are no longer buying processed meat.
With its mandate as an industry body to represent the entire meat processors value chain, SAMPA has focused its efforts to engage and drive collaboration with various priority stakeholders including government, industry bodies, the media and the public.
In response to the critical issue of food safety, we have taken decisive action as an industry to provide the South African public with the assurance that our products adhere to the highest standards of food safety.