Glut supply to ease meat prices on Christmas

ABDUEL ELINAZA

THE price of beef during Christmas is projected to rise at a nonalarming rate thanks to increase in supply. The supply, at Pugu market, increased to substantial rate after some cattle keepers seek refuge to sale their stocks following government crackdown to remove livestock at reserved forests.

Also keepers taking advantage of the most celebrated holiday, Christmas, to maximize their investment returns. The Dar es Salaam Traders Association of Livestock and its Products, Chairman, Mr Joel Meshack, said the prices of beef are likely to go up slightly due to sufficient supply.

“The cattle supply side is encouraging. This way we envisage seeing little price movement,” Mr Meshack told ‘Daily News’ yesterday. Currently, at Vingunguti abattoir beef prices for grade one meat range between 4,800/- and 5,000/- a kilo while for grade two and three are around 3,500/-and 4,000/-.

“I see price going up to between 500/- and 1,500/- for all grades. Also people’s purchasing power is still low compared to last Christmas.” “This time last year, four to five days before Christmas, some individual were buying around 20 to 30 kilos…but up to today many are coming but buying two to three kilos,” Mr Meshack said.

A wholesale and retail trader, Christopher Mika, also said this year retail prices will not cross 8,000/-a kilo. “I am from an auction in Dumila, Kilosa top price for a head of cow is still around 800,000/- and 1.0m/-,” Mr Mika said, adding for low grade was between 600,000/- and 700,000/-. He said if was not for high transport costs, the retail price could sticks to the current levels of between 4,500/- and 7,000/- .

Mr Mika said business at this Christmas was envisaging to drop compared to last year as people purchasing power seem low. “Meat demand is still low this time around compared to last year…this is despite prices being low…” Mr Mika said.

Last year meat prices at Christmas were between 7,000/-and 8,000/-, which is likely to be the same in this year. Some butchers said despite rising costs, especially transport, they cannot hike price up further beyond 8,000/- for a kilo as many won’t afford to buy.

In 2015, wholesale price for meat was 6,500/- and in 2016 was 5,500/- per kilogramme. The three abattoirs in Dar es Salaam slaughter between 500 and 1,000 cows and around 700 goats and sheep a day. The number increased depending with a type of festival, especially the religious ones.