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We take a look at data supplied by Statistics South Africa in which we compare the inflation rate of various types of chicken both fresh and frozen, and investigate whether fresh chicken prices tend to increase faster than frozen chicken prices, or is it the other way around and frozen chicken prices increasing faster than fresh chicken prices? We take a look below.
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Fresh chicken vs Frozen Chicken
The line chart below shows the inflation rate of various types of chicken, both fresh and frozen with an index level in December 2016 being 100. Thus anything above 100 shows that prices increased compared to December 2016, and anything below 100 shows that prices decreased compared to the prices in December 2016.
In one of our articles yesterday we took a look at the average price per kilogram of beef fillet per province, and today we focusing on the inflation rate experienced by various types of South Africa's most loved white meat, Chicken. A quick note IQF stands for individually quick frozen.
So how does one interpret the graphic above? The top red line (Chicken portions frozen - Non IQF), the price of this type of chicken increased by 20.7% compared to the price of it in December 2016. Below a summary of the inflation rate of the various types of chicken since December 2016:
So excluding the Chicken Giblets, which includes harts, livers, necks etc, the frozen chicken portions, both IQF and NON-IQF had price increases above fresh chicken. So while frozen chicken might be more convenient and last a while longer, perhaps consumers should buy fresh portions and freeze them themselves, as the inflation rates are substantially different. And the impact of it will be felt the most by the poorest of the poor.
When looking at the price movements of the various chicken types over the last 12 months (from January 2018 to January 2019 we find the following):
We continued to be fascinated by the pricing behaviour or retailers and wholesalers and we will continue to track price changes and average prices of goods consumed often by South African consumers.
- Chicken Portions Frozen - Non IQF: 20.7%
- Chicken Giblets: 16.2%
- IQF Chicken Portions: 15.2%
- Chicken Portions - Fresh: 12.6%
- Whole Chicken- Fresh: 10.6%
So excluding the Chicken Giblets, which includes harts, livers, necks etc, the frozen chicken portions, both IQF and NON-IQF had price increases above fresh chicken. So while frozen chicken might be more convenient and last a while longer, perhaps consumers should buy fresh portions and freeze them themselves, as the inflation rates are substantially different. And the impact of it will be felt the most by the poorest of the poor.
When looking at the price movements of the various chicken types over the last 12 months (from January 2018 to January 2019 we find the following):
- IQF chicken portions: -3.36%
- Chicken portions frozen - non IQF : -2.43%
- Chicken giblets : -1.44%
- Whole chicken - fresh: 0.45%
- Chicken portions - fresh: 3.40%
We continued to be fascinated by the pricing behaviour or retailers and wholesalers and we will continue to track price changes and average prices of goods consumed often by South African consumers.