Consumers to pay more while farmers get less
By Lindi van Rooyen

Consumers can expect to pay between 12% and 15% more for their food in the coming months, but this does not translate to more money for the farmer.

“There are huge surplus stocks of chicken and producers will have to start emptying their freezers at some point. This will lead to a big price reduction in frozen chicken. The profitability of chicken farming is gone which will result in a severe cut in production,” said Ernst Janovsky, head of Absa Agribusiness.
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opulence says:
09:15 (GMT+2), Sat, 11 August 2012
it is high time that the farmers are taken afflictive,the so called middle man who generates income out of nothing must be called into order.how much money does farmers inject in the production?does the middle man put that into cognizance how much the farmers earn as a result of their offer?the solution here is that our government must resume to subsidize our farmers at primary level because thy are the one's affected the most.
bd says:
16:31 (GMT+2), Sat, 11 August 2012
The explanation of declining producer share is more straightforward- processing, marketing and distribution costs, incurred in consuming countries, have tended to increase over time while production costs at origin have declined.
bd says:
09:11 (GMT+2), Thu, 16 August 2012
As long as many persons believed that margins represented extreme profits and that in order to eliminate them it was necessary only to “get at the real facts about marketing costs” and thus expose the middleman, consideration of practical steps to improve marketing efficiency and reduce marketing costs could not be expected.

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