By 2025, small and medium-scale farmers in South Africa have a clear roadmap to profitability, thanks to the latest NAMC Farm-to-Retail Price Spread (FTRPS) report. The report tracks how much of the retail price of food actually reaches the farmer—a crucial insight for anyone looking to maximize returns from their farm.
The Big Winners: Poultry, Lamb, and Beef
According to NAMC’s data for April 2025:
- Poultry (fresh whole chicken) leads the pack, with 60.8% of the retail price reaching farmers. That’s the highest share of any major food product, making chicken farming highly profitable. The farm value share has grown nearly 10% year-on-year, reflecting strong demand and better margins for producers.
- Lamb (class A2/A3) follows closely with a 54.5% farm value share, up 14.1% from last year. Lamb is increasingly lucrative for farmers who can manage production efficiently, offering strong returns in the red meat market.
- Beef (class A2/A3) is also promising, with a 53.25% farm value share, showing steady growth. Despite retail price fluctuations, farmers are capturing more value from each kilo sold.
The Mid-Tier Players: Pork and Milk
- Pork has a lower farm value share of 35.26%, meaning farmers earn less per kilogram sold compared to poultry or lamb. Profitability depends on careful cost management and efficient operations.
- Milk comes in at roughly 35% farm value share, with minimal year-on-year growth. Volume production is key to making dairy profitable, particularly for small-scale farms.
What This Means for Small and Medium Farmers
- Focus on High-Value Products – Poultry, lamb, and beef are the top earners. Allocating resources to these can maximize income.
- Watch Market Trends – Price spreads fluctuate due to international trade, competition, and processing costs. Smart farmers track these trends to sell at the right time.
- Consider Scale and Efficiency – Pork and milk are viable but require volume production and low-cost operations to be profitable.
- Direct-to-Consumer Can Boost Margins – Capturing more of the retail price through farmer’s markets or local supply chains can increase profitability, especially for products with lower farm value shares.
Bottom Line
For 2025, poultry is king, lamb is catching up, and beef remains a reliable performer. Small and medium-scale farmers who focus on high farm value products, monitor market trends, and optimize production can significantly improve their bottom line.
The NAMC FTRPS report shows that knowing which products pay off the most isn’t just nice-to-know—it’s essential for survival and growth in South African agriculture.
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