According to trade statistics from the South African Revenue Services, currently, five out of the top 10 destinations for South African beef are Middle Eastern countries, as well as the top three importers of South African lamb. Picture: Courtney Africa/Independent Newspapers
Beefmaster Group, a local beef products supplier to the Middle-and Far East, yesterday said South Africa’s red meat industry was poised to capitalise on Algeria’s appetite for high-quality beef and lamb, particularly given its success in other Middle Eastern countries.
With a population of approximately 47 million, Algeria struggles to meet its own beef consumption needs and it imports beef from Brazil, India and Europe, as well as an average of 100 000 live cattle and lamb annually from France and Spain.
Gert Blignaut, CEO of Beefmaster Group, who participated in a recent State visit by President Cyril Ramaphosa to Algeria, said this paved the way for potential exports from South Africa.
Blignaut said in addition to having the capacity to supply Algeria’s demand for red meat, South African prices were also competitive.
“We produce world class beef and lamb products that are very popular within the Middle Eastern markets. We have very good systems, controls and guarantees in place throughout the value chain to ensure a safe product. The markets that have already opened for us is proof of that,” Blignaut said.
The Middle East and North Africa are expected to account for 58% of South African beef exports this year, and 93% of all lamb exports.
According to trade statistics from the South African Revenue Services (Sars), currently, five out of the top 10 destinations for South African beef are Middle Eastern countries, as well as the top three importers of South African lamb.
Jordan and Kuwait were the two top-importers of South African red meat, importing 5 406 tons and 4 797 tons respectively last year. The United Arab Emirates (UAE) came in fourth after Mozambique at 3 311 tons, Qatar fifth with 1 972 tons and Egypt seventh with 1 016 tons. Qatar, the UAE and Kuwait were the three top importers of South African lamb last year, importing 2 439, 1 355 and 1 177 tons respectively.
The South African red meat industry has repeatedly motivated for a growth in exports to ensure the long-term sustainability of the local industry. Beef is one of the big success stories of the agriculture industry.
According to Blignaut, South Africa has now become a net exporter whereas it was a net importer of beef prior to 2014.
With beef being the second fastest growing commodity in the agriculture sector, according to research by the Department of Agriculture, Land Reform and Rural Development, it is vital to open more export markets in order to sustain growth in the local industry.
Although South Africa has existing trade ties with Algeria, beef has yet to feature in the export basket.
Beefmaster Group sees President Ramaphosa’s state visit as a chance to leverage the African Continental Free Trade Area (AfCFTA) framework to enter untapped markets and forge stronger intra-African trade relationships.
“Even if farmers do not have the scale or ability to trade on the African stage, they can seek recognised supply networks or experienced partners to help them reach the scale necessary to take advantage of such opportunities provided by the agreement,” Blignaut said.
According to data from the Red Meat Industry Services, cattle producers have slaughtered on average 2.6 million cattle annually over the past six years, producing an estimated 740 000 tons of beef.
It is expected that this year’s slaughter numbers will exceed all years since 2018, reaching close on 2.8 million cattle slaughtered. Beef exports are also set to top all years since 2018 and is expected to reach close to 37 000 tons.
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