Local Consumption

In addition, wildfires had a devastating impact on red meat production in 2021. The prevention and management of fires must be high on the agenda for 2022. Grain prices would remain high, and strategic feed reserves needed to be considered. Schutte cautioned producers not to “skimp on licks, supplemental feed, and vaccinations, despite the high prices. This was important to ensure top production outcomes. Farming debt needed to be avoided as far as possible in 2022 because of the increase in interest rates.
At the end of 2021, weaner prices exceeded R40/kg, even reaching as high as R45/kg. Breeding animal prices shot through the roof, as the country is in a herd-rebuilding phase following years of drought.
The implementation of a traceability system was one of the biggest challenges for 2022. According to him, South African beef consumers were more and more inclined to buy front quarters due to the weak economy, which reduced consumer expenditure. The only way to prevent a surplus of hindquarters was to increase exports to at least 20% of the national beef supply. Traceability is therefore of vital importance. The private sector is well advanced with the development of a traceability system via the feedlot industry.
The quantity and value of beef exports from 2011 to 2020 are shown in Figure 7.12 below. South Africa exported approximately 37 000 tons of beef in 2020 yielding an export value of R2.5 billion. This represents an increase of 49% and 54% in the quantity and value of beef exported during the period 2020 from the previous year.

The Figure (right) indicates that beef export quantity was low from 2011 to 2013 and then followed by an immense increase from 2014 up to 2016. This was due to South Africa being declared foot and disease-free free in 2014, which opened export market opportunities. Export quantity was at its lowest in 2012 and reached a peak in 2016 during the period under analysis. Again, the lower efforts from 2017 to 2019, following the decline in beef production and the export ban due to the FMD outbreak that occurred in 2019/2020, the South African beef exporters have realised a great deal in export earnings. The increased exports were due to the increased slaughtering and beef production.

International trade is a vital aspect of South Africa’s cattle industry as beef is the second biggest sector in value of the agricultural sector. The main destinations of South African beef in 2020 were Asian countries, China which commanded 33% of South African beef, followed by Kuwait with 14%, Jordan with 12%, Mozambique (10%), UAE and Lesotho with 7% each.
The following six Figures show the locations of the continents (Africa, Europe, Asia, and Oceania) to which South African beef is exported.

The export share of the beef market as a beef destination

Throughout the analysis period, South Africa’s primary exports were beef to the continents of Africa and Asia. From 2011 to 2014, South Africa’s beef exports to Africa were at their highest. Between 2015 and 2019, Asia overtook Africa and took the lead in terms of the percentage of beef that South Africa exported to the continents. The Asian continent accounted for most of the increase in South African beef exports. Asian demand reached a new peak thanks to an 80% increase from the year before.
In that regard, Asia held the largest market share in 2020 (72%), closely followed by Africa (25%). Oceania received the least amount of South African exports during the analysis period.
African nations that are a part of the South African Development Community (SADC) receive 5% of South Africa’s beef exports. Members of the Southern African Customs Union (SACU) export 52% of the beef that is shipped to all SADC nations, while the other members import 48%. The amounts of beef exported to SACU members are shown in Figure 10 below.

Beef export quantities to SACU

South African beef exports to SACU members were mostly going to Eswatini and Lesotho. Both countries were interchanging leading positions for the past decade. In 2011, Eswatini (Swaziland) was leading with over 12 000 tons which accounts for 67% of total South African exports of beef to the world. For the past ten years in total, Eswatini has led by taking up a share of 53% followed by Lesotho with 35% then Namibia and Botswana accounted for 8% and 4% respectively.

Mozambique continues to be the highest importer of South African beef within the SADC region. The figure on the right displays that beef produced in South Africa was mainly exported to Mozambique, which has commanded the highest beef exports throughout the decade. Angola appeared to be the second country to obtain the highest beef exports from South Africa. Mozambique reached a peak of 4 835 tons of beef from South Africa in 2015.
Tanzania was the lowest importer of South African beef within SADC countries in the past decade. In total, Mozambique commanded 64% of South African beef exports followed by distance by Angola with 14%. Mauritius followed with 10% and the Democratic Republic of Congo (DRC) with 12%.

The exports of beef to SADC (excluding SACU)

 In Middle, Northern and Eastern Africa, Egypt commanded the highest share of beef exports by South Africa in the past ten years. Congo commanded the second-highest share of beef exported by South Africa from 2011 to 2014. Egypt, which is from Northern Africa, experienced a sharp increase in exports and reached its peak of 949 tons in 2015. The country experienced a decline of 45% from 2015 to 2019 followed by a sharp increase of 81% in 2020. Kenya, Uganda, and Ethiopia, which are Eastern African countries, imported the lowest quantities of South African beef during the past decade.

The Figure (left) shows beef exported by South Africa to European Union from 2011 to 2020, it is clearly indicated that all reported EU members are not regular importers of South African beef. The EU imports were fluctuating in the period under analysis. The Netherlands was leading in 2019 reaching a new peak demanding 505 697 kg of South African total beef exports. The products were mainly frozen, fresh, or chilled boneless cuts. The United Kingdom (UK) commanded the highest share of imported beef from South Africa in 2011 and 2015 whilst Germany took a lead in 2012 and 2013. France is the lowest importer of South African beef among the EU countries. In 2020, the Netherlands’ imports of beef from South Africa declined by 60%, however, the country still had a 100% share of total imports.

South African beef exports to Asia are shown in the Figure (right). Generally, exports of beef to Asia were very minimal from 2011 to 2012 due to the foot and mouth disease outbreak in South Africa. Following South Africa’s declaration of disease-free Status, beef exports were regularly going to the United Arab Emirates (UAE), China, Hong Kong, and Kuwait from 2014 to 2017. In 2018, China’s beef intake shot up and realised a new peak with 7.5 million kg of beef imports from South Africa. This boom follows the agreement between South Africa and China concerning Inspection, Quarantine and veterinary sanitary protocol that gave South Africa green light for beef exports to China. China continued leading the Asian export market up to 2020. Bahrain and
Qatar is the lowest importer of South African beef within Western and Eastern Asia.

The Middle East kingdom may order up to 1 000 tonnes of beef a year from SA from 2023, SA’s beef industry, reeling in recent times because of foot-and-mouth disease, is set for a major boost after the government and Saudi Arabia signed an export deal that could open a new market for local farmers.
Thanks to the memorandum of understanding concluded during President Cyril Ramaphosa’s recent state visit to Saudi Arabia as part of an investment drive, the Middle East kingdom could order up to 1 000 tonnes of beef a year as soon as 2023. That would make Saudi Arabia one of SA’s largest beef export markets.

Beef export quantities to Western and Eastern Asia

Value of beef exported by Provinces

The Figure (left) indicates that exports of beef in South Africa were mainly from Gauteng. Noteworthy is the fact that the province is one of the main exit points for exports in the country. Furthermore, most exporters of beef are in Gauteng province and the greatest proportion of beef was exported to neighbouring countries. Mpumalanga Province was the second biggest exporter for the period under analysis followed by the Western Cape Province. Eastern Cape and Northern Cape Provinces have recorded irregular exports, which made them to be the lowest exporters during this period. In 2018, Gauteng outstripped Mpumalanga and became the highest exporter of beef with an export share of 45%. The biggest exporters located in Gauteng are the top beneficiaries of the Chinese market, which made Gauteng continue leading the export market.

In the Western Cape Province, exports of beef were recorded largely in the City of Cape Town Metropolitan Municipality. The city recorded the highest export values throughout the period under review with the lowest level of approximately R20 million in 2011 and experienced the highest value of R357 million in 2016. This is because the City of Cape Town is the main exit point in the province. Cape Winelands were the second leading and regular exporter of beef in the province. Fractional exports were also recorded from West Coast and Eden District Municipalities. The City of Cape Town recorded over 80% share of beef exports during the entire period of analysis.

Value of beef exports from Western Cape Province

Value of beef exported from Eastern Cape Province

In the Eastern Cape Province, beef exports were recorded from Buffalo City, Alfred Nzo District Municipalities and Nelson Mandela Bay Metropolitan Municipality. On average, Buffalo City is the highest exporter of beef followed by Nelson Mandela Bay then Alfred Nzo District Municipality. Buffalo City increased its exports from 2013 to 2015 following the FMD-free status then started declining from 2016 to 2018. In 2020, the municipality increased exports immensely by 341% from 2019. Alfred Nzo recorded minimal exports during the period in analysis.

Value of beef exported from Free State Province

The Figure (left) indicates that exports of beef from the Free State province occurred regularly except in Xhariep District Municipality. The Thabo Mofutsanyane was the leading exporter from 2011 to 2019, and then Lejweleputswa took a lead in 2020 with a share of 65%. Thabo Mofutsanyane District has exported beef worth more than R462 million which accounts for 48% of the total share from 2011 to 2020 in the Free State. Mangaung followed with beef exports worth about R271 million and this accounted for 29% of the total share. Lejweleputswa District Municipality recorded a total of R211 million (22%) and Xhariep District Municipality recorded the lowest exports of R12 million (1%).

Value of beef exports from KwaZulu-Natal Province

In KwaZulu–Natal Province, beef exports were mainly from eThekwini Metropolitan Municipality (Durban – Pietermaritzburg). The municipality reached its peak in 2015 and declined to a new trough in 2019 and a slight increase in 2020. Intermittent and minimal export values were recorded in iLembe District Municipalities during the period under review. eThekwini recorded a 100% share of beef exports within the province from 2011 to 2014 and again from 2018 to 2020. In other years, the District Municipality accounted for more than 90% of beef export share.

In North West Province, beef exports were recorded from three District Municipalities. Dr Ruth Segomotsi Mompati District Municipality (Dr Ruth Segomotsi Mompati District Municipality is one of the 4 districts of North West province of South Africa. The seat of Mompati District is Vryburg.) has shown regular beef exports from 2011 to 2020, Dr Kenneth Kaunda District Municipality has recorded minimal exports in the first half of the decade whilst Bojanala’s record minimal exports throughout the period analysed. Dr Kenneth Kaunda District Municipality shot up exports and reached a new peak of R245 million in 2017. The district municipality exports declined until 2019 and picked up by 2020 nevertheless, the district was still leading with a share of over 80%.

Value of beef exported from Gauteng Province

The Figure (left) shows the value of exports by Gauteng Province for the past ten years. The highest values of beef exported in Gauteng Province were mainly from the City of Johannesburg Metropolitan Municipality. Noteworthy is the fact that the biggest abattoir (Karan Beef) in Africa is situated in this Municipality. The City of Johannesburg Metropolitan Municipality commanded the greatest shares for the entire period of analysis.Ekurhuleni, the City of Johannesburg, and the City of Tshwane recorded regular exports of beef while Sedibeng and West Rand recorded intermittent records of beef exports. In 2018, the City of Johannesburg Metropolitan Municipality recorded the highest value of R586 million which marks an increase of 69% from the previous year.This was fuelled by the high demand for beef in China. The City of Johannesburg’s beef exports declined its exports until 2020. Ekurhuleni shot up its beef exports and led with a share of 57% in 2020, followed by the City of Tshwane District Municipality with an export share of 22%. 

The Figure (right) shows the value of exports by Limpopo Province for the past decade. Vhembe District Municipality was a regular exporter of beef in Limpopo Province unlike Capricorn and Waterberg District Municipalities during the period under analysis. The highest export values were recorded from Vhembe in 2016 followed by Waterberg District Municipality. On average Vhembe District Municipality recorded the highest exports followed by Waterberg then Capricorn for the past decade.

The Figure below shows the value of exports by Mpumalanga Province for the past ten years. In Mpumalanga province, Gert Sibande and Ehlanzeni District Municipalities appeared to be the main exporters of beef for the past decade.

Irregular exports were recorded from Nkangala District Municipality. Gert Sibande commanded the highest export shares during the entire period of analysis. This municipality has shown an immense increase in exports from 2014 to 2017. In 2018, Gert Sibande’s exports declined but still led with an export share of 70% followed by Ehlanzeni with 30%. Both districts remained lower and had a slight increase in 2020.

Value of beef exported from Limpopo Province

The imports of beef comprise fresh and frozen meat. The chunk of imports is mostly frozen beef which accounted for 80% and above throughout the period analysed. South Africa imported 2 000 tons of beef worth R106 million in 2020, thus a decline of 77% in value and 82% in quantity from the previous year.
The following shows the South African imports of beef for the past ten years. South African beef imports have been fluctuating in the past decade. The import values and quantities of beef followed the same trend throughout the previous decade. The highest imports of beef were recorded in 2012, since then the beef imports were declining throughout except in 2016. In 2016, imports increased due to the drought experienced in 2015/16. From 2012 to 2019, there was a tremendous decline of 54% which was attributed to the declining consumption of beef in South Africa. The 2020 beef imports recorded the lowest due to the decline from top suppliers, Namibia, and Botswana.

According to the following Figure (left), the African continent has been a leading supplier of beef to South Africa. Followed at a distance by Oceania and the Americas. In 2016, the USA attained access to the South African beef market following the trade agreement in African Growth and Opportunity Act (AGOA) negotiations, hence the imports increased in
Americas continent. In total of beef imported from continents, Africa is leading with 153 million Kg (80%), followed at a distance by Oceania with 20 million kg (10%) and America with 13 million kg (7%). Europe and Asia are the smallest suppliers with 3 million Kg and 1 million Kg respectively.

Beef quantities imported from Africa

The beef imports from Africa continent to South Africa are mainly from Botswana and Namibia. The Figure above clearly indicates that the imports from both countries are moving in a declining trend, especially since 2013. From 2011, beef imports from Namibia were fluctuating between 10 and 12 million kilograms until 2014. South Africa have imposed high standards on Namibia in 2014 hence the huge decrease in imports in 2015. The beef imports from Namibia further declined until 2020, except in 2019. Beef from Botswana have shown an immense increase in 2012 and then started declining until 2020. During the increase in 2012, Botswana became the highest source of beef imports and took a lead again from 2014 to 2018. Namibia increased its imports by 74% in 2019 and took a lead. Both countries have shown a tremendous decrease in beef imports in 2020, beef import market was lost to the livestock sales market in South Africa (feedlots) where a high number of live cattle for beef production were sold in 2019. The South African feedlots market price attracted live cattle farmers in Botswana and Namibia, which lowered their local slaughtering for the beef market in 2020.

Beef quantities imported from the Americas in the past decade

From the Figure (left), Uruguay was the leading import market of beef within the Americas from 2011 to 2017 and lost to Brazil in 2018 and 2019. Brazil’s beef exports to South Africa have significantly dropped by 97% in 2020, this could be due to the increased Brazilian beef market in China. For the period under analysis, Uruguay commanded a 65% share of the South African market, followed by Brazil with 26%, USA, Argentina and Paraguay shared the remaining 9%.

The South African imports from the Oceania continent were mainly coming from Australia and New Zealand. Australia is known to be one of the top producers of beef in the world; the country has been the main import market of beef for South Africa during the period under analysis within Oceania. The Oceania continent’s highest beef exports were attained during 2011 with Australia accounting for 86% share. New Zealand demanded the second and lowest share of the South African beef market for the period under analysis.