NOMQHELE DUBE: SA’s meat industry re-emerges from cold storage

After years of facing market closures and trade restrictions, SA’s meat export industry is once again enjoying a notable increase in exports.

SA has long been recognised for its high-quality meat products, encompassing beef, poultry, lamb and pork, and exports of those products are crucial for the agricultural sector and the economy as a whole. The value of such exports increased from R455.1m in the first quarter of 2023 to R507.3m in the second quarter. That’s an increase of more than 10% and amounts to almost R1bn  in the six-month period, a welcome boost to SA’s export-orientated the economy.

One of the most significant developments for the SA meat industry was the reopening of the Chinese market. In 2019 China imposed a ban on SA beef imports due to concerns about foot-and-mouth disease. However, after a rigorous inspection process and the implementation of strict biosecurity measures, China lifted the ban in 2022, paving the way for a renewed export relationship.

China’s market represents a colossal opportunity for SA’s beef sector. The demand for high-quality protein in the world’s second-biggest economy aligns perfectly with SA's reputation for producing premium-grade beef. In addition, a trade agreement between SA and China signed after the recent Brics summit will drive further growth in the export of SA agricultural products, including beef, grains and avocados to China. By October both countries had announced 20 deals to buy meat, vegetables and energy products worth R41.1bn.

Another important development is the lifting of Saudi Arabia’s decades-long ban on SA mutton and lamb on concerns about blue tongue, a virus that primarily affects domestic and wild ruminants. The Saudi Food & Drug Authority lifted the 21-year ban on red and white meat imports after successful inspections of SA abattoirs and feedlots in June this year. 

The lifting of these bans has been met with great enthusiasm by the SA meat industry. The increased access to these markets is expected to create new jobs, stimulate investment and boost economic growth in rural areas. Furthermore, SA is exploring opportunities to expand its meat exports to other markets, including the US, Japan and the Middle East. The country’s favourable climate and stringent biosecurity measures (animal health management, import and export controls) make it an attractive supplier for these markets.

Joint effort 

The surge in SA food exports, including meat products, is not solely attributed to the lifting of bans, though. Industry collaboration has been pivotal in improving logistical processes. Streamlining logistics reduces export bottlenecks, ensuring smoother and more efficient movement of goods, benefiting various sectors.

Furthermore, SA's commitment to upholding stringent quality control measures and adhering to international standards has reinforced its credibility in global markets. This dedication has been instrumental in regaining market access and instilling trust among trade partners. 

The resurgence of meat exports, coupled with regained market access to China and Saudi Arabia, holds promising implications for SA’s economy. The renewed trade relationships are expected to contribute substantially to the agricultural sector’s growth, bolstering employment opportunities and fostering economic stability.

As SA navigates a post-pandemic world, the diversification and expansion of export markets for all produce has become increasingly urgent. With a commitment to sustainability, innovation, and maintaining the highest quality standards, SA’s meat export industry is poised for sustained growth and global competitiveness. 

As the industry continues to thrive it remains poised to make significant contributions to the nation's economic landscape and its place in the global economy.

Dube is an analyst at Birguid.