BROILER PRODUCER PRICE REPORT FOR JANUARY 2012

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Any and all information, data, know-how, documentation, materials and other communications, written or oral, which are disclosed or provided to SAPA or its designees by a SAPA member shall be regarded as confidential information belonging to that member and will not be disclosed to any other member.

For a definition of the Producer Price and Sundries referred to in this document, see the end of this report.

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MONTHLY BROILER PRODUCER PRICE:

• TOTAL REALISATION

 

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In January 2012 the price decreased by 6.6% to R14.51 per kg, and increased by 8.8% on a yearly basis.  

The average realisation price for the 4Q2011 was R14.78 per kg, an increase of 13.1% in comparison with the previous quarter and an increase of 13.4% in comparison with the same quarter in 2010.  The average realisation price for the 3Q2011 was R13.07 per kg, a decrease of 2.03% in comparison with the previous quarter and an increase of 9.3% in comparison with the same quarter in 2010. 

The average yearly price for net sales realisation for 2011 was R13.63 per kg, a 11.0% increase in comparison with 2010.   The average yearly price for net sales realisation for 2010 was R12.28 per kg, a 10.15% decrease in comparison with 2009.   The average yearly price for net sales realisation for product: fresh and frozen for 2009 was R13.66 per kg. 

Depicted in the graphs below is on the left the quarterly producer price and on the right-hand side the annual producer price for total realisation of broiler meat.

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In the following graph, the yearly average producer price since 2007 is shown as a yearly comparison.

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Depicted in the two graphs that follow, is the TOTAL REALISATION as seen in the first graph above, depicted as:

TOTAL REALISATION OF FRESH PRODUCT and TOTAL REALISATION OF FROZEN PRODUCT.

FRESH PRODUCT 

MONTHLY BROILER PRODUCER: FRESH

In January 2012 the price decreased by 0.5% to R21.74 per kg, in comparison with the previous month, and increased by 7.7% compared on a yearly basis. 

The average realisation price for the 4Q2011 was R20.94 per kg, a increase of 6.7% in comparison with the previous quarter and an increase of 9.8% in comparison with the same quarter in 2010.  The average realisation price for the 3Q2011 was R19.62 per kg, a decrease of 1.4% in comparison with the previous quarter and an increase of 7.1% in comparison with the same quarter in 2010.

The average yearly price for net sales realisation, for product: fresh for 2011 was R20.08 per kg, a 5.9% increase in comparison with 2010.  The average yearly price for net sales realisation, for product: fresh for 2010 was R18.95 per kg, a 2.08% decrease in comparison with 2009.  The average yearly price for net sales realisation, including offal, for product: fresh for 2009 was R19.36 per kg. 

FROZEN PRODUCT

In January 2012 the price decreased to R13.93 per kg (-6.3%), and increased by 9.6% in comparison with the same month in the previous year.   

The average realisation price for the 4Q2011 was R14.22 per kg, an increase of 13.72% in comparison with the previous quarter and an increase of 13.1% in comparison with the same quarter in 2010.  The average realisation price for the 3Q2011 was R12.51 per kg, a decrease of 1.72% in comparison with the previous quarter and an increase of 8.3% in comparison with the same quarter in 2010.

The average yearly price for net sales realisation, including offal, for product: frozen for 2011 was R13.04 per kg, a 10.4% increase in comparison with 2010. The average yearly price for net sales realisation, including offal, for product: frozen for 2010 was R11.81 per kg, a 8.85% decrease in comparison with 2009. The average yearly price for net sales realisation, including offal, for frozen product for 2009 was R12.96/kg.

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PROPORTION OF FROZEN AND FRESH PRODUCT OF PARTICIPANTS IN PRICES

Frozen meat contributed 92.6% of total sales during January 2012 and fresh meat contributed the remaining 7.4%.

During 2011 frozen meat contributed 92% to total sales and fresh meat contributed the remainder 8% to total sales.  

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WEIGHTED AVERAGE PRODUCER PRICE OF IQF MIXED PORTIONS

Producer price for January 2012:  R13.96 per kg

• if compared to previous month: -3.7%
• if compared to same month in previous year:+7.5%

Average producer price for 2011:  R12.75 per kg, a increase of 7.6% in comparison with 2010
Average producer price for 2010:  R11.85 per kg, a decrease of 8.7% in comparison with 2009
Average producer price for 2009:  R12.98 per kg, an increase of 3.5% in comparison with 2008
Average producer price for 2008:  R12.54 per kg, an increase of 7.2% in comparison with 2007
 

 

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WEIGHTED AVERAGE PRODUCER PRICE FOR WHOLE FROZEN FOWL
Average producer price for 2011:  R15.27 per kg, a increase of 15.9% in comparison with 2010.
Average producer price for 2010:  R13.17 per kg, a decrease of 6.69% in comparison with 2009.
Average producer price for 2009:  R14.11 per kg, a decrease of 2.46% in comparison with 2008.
Average producer price for 2008:  R14.47 per kg, an increase of 2.27% in comparison with 2007

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WEIGHTED AVERAGE PRODUCER PRICE FOR FROZEN SUNDRY PRODUCTS
Sundry products include liver, necks, neck skins, hearts, gizzards, heads and feet, and mala

Producer price for January 2012:  R 8.06 per kg

• if compared to previous month : -8.4%
• if compared to same month in previous year:  +12.9%

Average producer price for 2011:  R7.90 per kg, an increase of 22.9% in comparison with 2010.
Average producer price for 2010:  R6.43 per kg, a decrease of 2.4% in comparison with 2009.
 

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FEED PRICE:

R/ton incl distribution	November 2011	December 2011	January 2012
Broiler Feed Price	3 782.30	3 757.98	3 761.51
Broiler Breeder Feed Price	3 193.93	3 171.44	3 323.24

Not all participants contribute to the Feed Price Stats

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MARKET SHARE IN TERMS OF PRODUCT:

The following graph depicts the Quarterly Market share in terms of Volume of broiler meat produced:
 

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DISTRIBUTION OF SALES TO MARKETS:

% of total sales in terms of volume	November 2011	December 2011	January 2012
Wholesale (Independent W/S only)	26.79	28.5	26.2
Retail (incl retail W/S i.e. Makro, Metro etc).	51.58	46.0	46.9
Foodservice (Quick service restaurants – QSR)	13.57	17.8	19.6
Institutional (i.e. Mines, Hospitals etc).	0.01	0.18	0.01
Other, specify	8.04	7.6	7.2

 

ALL PRICES:
The participants that contributed to the All Prices Stats represent 60% to 70% of all respondents according to volume.

	November 2011	December 2011	January 2012	November 2011	December 2011	January 2012
	FROZEN	FROZEN	FRESH	FRESH	FRESH	FRESH
PRODUCT	PRICE (NSV R/KG)	PRICE (NSV R/KG)	PRICE (NSV R/KG)	PRICE (NSV R/KG)	PRICE (NSV R/KG)	PRICE (NSV R/KG)
Soup Pack	6.99	7.02	6.88	TOO FEW TO REPORT	TOO FEW TO REPORT	TOO FEW TO REPORT
IQF:
Mixed portions          (IQF)	14.22	14.49	13.96
Thighs                      (IQF)	13.05	15.6	15.01
Breasts                     (IQF)	13.09	13.8	13.75
Drumsticks                (IQF)	16.43	16.9	16.91
Wings                       (IQF)	16.81	16.97	17.11
Sundry products	8.25	8.80	8.06	TOO FEW TO REPORT	TOO FEW TO REPORT	TOO FEW TO REPORT
VALUE ADDED:
TOTAL REALISATION (VALUE ADDED)	38.81	37.78	37.63	26.38	25.22	25.47
TOTAL REALISATION (EXCL SUNDRIES)	15.59	16.19	15.54	21.08	21.85	21.74
TOTAL REALISATION - NSV	14.36	14.87	13.93	21.08	21.85	21.74

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DEFINITIONS:
Net Sales Value (NSV):

• Invoiced price
• Less Volume discount.
• Less Settlement discount.
• Less Rebates (incl. advertising spent).
• Less any other discounts i.e. direct distribution etc.
• Less Secondary distribution (i.e. from Vector or Cold chain to retail outlets i.e. Shoprite, PnP etc).
• Excl vat.
• The NSV amount must be net, net income to the business.

Sundry Portions:   

• Liver
• Necks
• Neck skin
• Hearts
• Gizzards
• Heads and Feet
• Mala

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