The positive growth in South Africa’s red meat exports has been marred by continuing foot-and-mouth disease (FMD) outbreaks and the fact that the country cannot get a coherent traceability system going.
This is the view of industry body Red Meat Industry Services, and was emphasised at the Western Cape Red Meat Producers Organisation annual general meeting at last week’s NAMPO Cape held in Bredasdorp.
“The reason why Australia and New Zealand are ahead of us (in terms of price) is because traceability is legislated in those countries, and over many years they have used that system to obtain export markets. And today they are getting among the best prices in the world because of that,” said Louw van Reenen, executive chairman of the Beefmaster Group, at the RPO Western Cape meeting.
“Unless (South African) producers take part in traceability, we simply won’t get those good opportunities.”
The RMIS and Bureau for Food and Agriculture Policy point out in the latest Red Meat Industry Report, Australia achieved in a 13,69% increase in prices it realised in the export market, and the United States a 7,09% increase.
“In contrast, Brazil and South Africa experienced reductions of 3,60% and 2,24%, respectively.”
In the premium market for fresh or chilled boneless cuts in the United Arab Emirates, South Africa only managed to realise an average price of US$6 684/tonne in 2024, compared to Argentina’s US$7 604 and Australia’s $14 183/tonne.
“Only Brazil received a lower price in the UAE market when compared to South Africa,” according to the Red Meat Industry Report. “The same trend appears for almost all export markets and competing exporters, with Australia receiving a significant price premium, followed by Argentina and South Africa.”
According to BFAP and the RMIS Australian exporters also maximise returns “by directing processed or high-value meat into premium markets, while other exporters often supply commodity beef to lower-paying destinations”.
“By maintaining a disease-free status and advanced grading system, Australia ensures stable market access and premium pricing, outperforming South Africa, Brazil, and Argentina. It is worth noting that towards the end of 2024, the Argentinian government adopted a new official grading system for beef and beef carcasses, which is expected to better position Argentinian beef in global export markets,” according to the RMIS report.
