It’s a good time to braai in South Africa – BusinessTech

South Africans have even more to celebrate this month, with the cost of hosting a braai continuing to fall.

This is according to the latest Braai index, conceptualised by Bloomberg and compiled using the latest data from the Pietermaritzburg Equity Justice and Dignity (PMGEJD).

The index looks at the food items used in the preparation of braai, and tracks the movement in prices of this specific basket month-on-month and year-on-year.

This includes the meat (Beef, worse, chicken portions), vegetables (spinach, carrots, tomatoes, potatoes, onions, green pepper) and others (samp, maize, curry powder, salt).

To compile its survey, the PMBEJD’s data collectors track food prices on the shelves of 47 supermarkets and 32 butcheries that target the low-income market in the greater areas of Johannesburg, Durban, Cape Town, Pietermaritzburg, Springbok in the far northwest and the far northeastern town of Mtubatuba.

The month-on-month index showed prices for a braai coming down by 0.8%. Year-on-year, prices were down 3.2%. This is a continued declining trend in pricing, meaning more affordable braais.

This is also broadly in line with the latest consumer inflation numbers from Stats SA, which showed that the Food and Non-Alcoholic Beverages (Food NAB) segment has been experiencing a slowing inflation trend since its recent high of 9.0% in November 2023.

The annual rate for Food NAB was 4.5% in July, down from 4.6% in June. It is at its lowest level since September 2020 (3.8%).

Month-on-month index change [-0.8%]

Year-on-year index change [-3.2%]

Food prices in South Africa

Looking at the PMBEJD’s full data—its full basket comprising 44 food items across the country—food inflation has been muted year-on-year, increasing only 2%, while month-on-month, prices have come down.

The average cost of the Household Food Basket decreased by R25.01 (-0.5%), from R5,252.15 in July 2024 to R5,227.14 in August 2024. The basket increased by R102.80 (2.0%) from R5,124.34 in August 2023.

Foods in the basket which increased in price in August 2024 by 2% or more, include: potatoes (7%), green pepper (12%), and apples (7%), salt (2%), Maas (2%), butternut (4%), canned beans (2%), peanut butter (2%), and apricot jam (4%).

Foods in the basket which decreased in price in August 2024, by 2% or more, include: onions (-5%), carrots (-8%), and spinach (-6%), rice (-2%), white sugar (-3%), samp (-2%), cooking oil (-2%), stock cubes (-2%), chicken gizzards (-2%), beef liver (-2%), beef (-2%), tomatoes (-3%), and polony (-3%).

Meaty issue

One of the costliest items in any braai is the meat.

Stats SA noted that “meat is the most heavily weighed food group in the inflation basket, accounting for just over a third of household food spending”.

The price index for meat recorded a monthly decline of 0.4% and an annual rise of 1.0%, said Stats SA.

According to the Bureau for Food and Agricultural Policy (BFAP), its data also reflects this, with the caveat that the local meat market is also experiencing some pricing pressure due to exports.

Beef carcass prices experienced a slight drop of 0.1% (MoM) in July, though remaining 9.7% higher compared to the same period last year, the group said.

Cattle slaughters in June 2024 were down by 5% compared to June 2023. However, the year-to-date (January to June) figures show an 8% increase in slaughters compared to 2023.

“This suggests that the YoY price gains are likely driven by a boost in export activity, which has supported overall market stability,” the BFAP said.

Meanwhile, the pork market experienced modest growth, with prices rising by 2% (MoM) and 7.8% (YoY). In contrast, poultry prices, particularly Individually Quick Frozen (IQF) pieces, continued to decline.

After the spike in late 2023 caused by the Highly Pathogenic Avian Influenza (HPAI) outbreak, prices have been falling consistently as production levels return to normal.

IQF prices dropped by 11.9% YoY, decreasing from R33.47/kg in July 2023 to R29.50/kg in July 2024. While production is recovering, the decline also reflects subdued consumer demand.

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