EU says ball is in SA court on meat ban

The EU says it is up to SA to show why the bloc, which is the country’s largest trading partner, should lift a decade-long ban on imports of SA’s red meat.

EU ambassador to SA Sandra Kramer told Business Day the EU was open to SA products that met the required standards.

“The EU is always willing to talk and engage. The ball on this is, however, in SA’s court and we are awaiting their feedback. Authorisations for exporting red meat to the EU can only be granted based on guarantees provided by the SA authorities. These will then need to be verified by EU experts, which will include an audit on the spot. We look forward to progress on this matter soonest,” said Kramer.

Despite the agricultural trade surplus growing in 2024, SA’s livestock industry — which, including poultry, accounts for nearly half (48%) of agricultural gross value added — stands to lose out on high-value export markets if it fails to address key biosecurity concerns about animal diseases.

SA’s agricultural trade surplus was $1.4bn in the first quarter, up 20% year on year. The increased surplus came from a decline in imports, down 4% year on year at $1.6bn, as prices cooled for SA’s major imports, such as wheat and rice, after a price rally last year. Additionally, exports increased 6% year on year to $3.1bn.

In the past two years, animal diseases have hit SA’s livestock industries hard, as cases of foot-and-mouth disease, avian influenza, African swine fever and brucellosis continued to emerge.

Wandile Sihlobo, chief economist of the Agricultural Business Chamber, warned that the spread of these diseases led to huge costs for farming businesses. “The damage to the industry is vast in terms of loss of productive animals, earnings [and] high-value export markets,” said Sihlobo.

Red meat industries have been particularly affected, as foot-and-mouth outbreaks forced farmers to limit the movement of their animals and various countries cut off SA beef imports.

In 2022, beef exports fell below the prior five-year average, dropping 16% year on year. They recovered slightly in 2023, up 3%. Concern about foot-and-mouth also led some countries to cut off SA wool exports, most notably China, which accounts for more than two-thirds of SA’s wool exports. China banned SA wool imports intermittently between 2022 and 2023. As a result, these exports fell 19% year on year in 2022.

While China has since reopened these markets, the EU remains unwilling to consider red meat imports until SA authorities give greater consideration to critical questions about veterinary processes and animal disease issues.

“The EU officials are adamant that they still need these critical questions answered before they consider further negotiations on our access to the high-value markets in their region,” said Sihlobo.

The EU regained its position as SA’s second-largest agricultural market in the first quarter of this year, highlighting the important role it plays in growing SA’s agricultural sector.

By comparison, beef, mutton and lamb were among the products leading SA’s agricultural exports to Asia and the Middle East — SA’s third-largest agricultural market as a collective.

“Therefore, SA must seize the opportunity and interest of the EU in our high-quality red meat products and resolve the outstanding regulatory matters that have been formally communicated to our authorities.”

Recent foot-and-mouth outbreaks in the Eastern Cape highlight that more work must be done to improve the systems that are meant to control the spread of animal diseases.

Sihlobo said it might be time to revisit the government’s animal health policies, as “the process of improving the resolution of animal health issues in SA has been dragging on since 2000”.

SA’s inadequate strategy for addressing animal diseases not only threatens high-value export markets but also damages confidence.

“The sector will struggle to attract investment if there is no clear strategy for addressing animal disease,” said Sihlobo.

“Fortunately, the path forward is promising. The export drive and strengthening of the biosecurity system are part of the interventions that provide an environment where this industry could continue to play a vital role in the SA farm economy.”

websterj@businesslive.co.za