The Red Meat Industry in South Africa 2022

Introduction

The red meat industry has still not completely recovered from droughts in previous years, which led to a red meat shortage. The industry is struggling with significant increases in input prices including fuel and feed.

The slowing economy has seen consumers switch from lamb and beef to cheaper meat products such as pork and poultry, while some people are reducing their red meat intake. Beef and veal production has doubled since 2001, while the production of pork has almost tripled. South Africa had a trade surplus for red meat. However, frequent disease outbreaks, and poor road and port logistics are holding the sector back from expanding exports. The livestock value chain is dominated by big commercial producers that have linked production activities with distribution and processing.

Opportunities

Cultivated meat.

Growing beef exports. The African Continental Free Trade Area. The production and retail of alternative plant-based products for vegans and flexitarians. Use of technology such as online auctions, technology-driven breeding systems and a traceability system.

Outlook

The red meat sector is under pressure from rising input costs driven by the Russia-Ukraine war and lower consumer spending.

The sector is still recovering from drought in previous years, and herd rebuilding is likely to continue throughout 2022. The slow economy and further increases in unemployment as a result of the pandemic, will likely result in markedly slower red meat consumption growth in the coming decade. While the growing trend of veganism remains small in South Africa, there are signs in the US that the alternative meat market may be slowing.

Report Coverage

This report focuses on the production, processing and preservation of red meat and red meat products, with a specific focus on cattle (beef and veal), sheep (lamb and mutton), pigs (pork), game and goats and additional information on meat-alternative vegan products.

It includes comprehensive information on herd sizes, production, producer and consumer prices and consumption, key trends and the latest developments.

There are profiles of 43 companies including large integrated players such as Karan Beef, Sparta Beef, Sernick and Beefmaster, abattoirs including Cavalier and Doornplaat, and processors such as Eskort and Famous BrandsStrengths

Globally-competitive production.

High-throughput abattoirs and meat processing facilities generally compare well with those in developed economies. Meat-eating culture and growing population, despite a growing vegan and flexitarian trend. South Africa’s red meat industry has a strong focus on research and development. The industry is well represented by a wide spectrum of organisations. Well-known brands and quality processing.

Threats

Challenges at Onderstepoort Biological Products which produces vaccines.

Climate change and drought. Disease outbreaks Growing competition in export markets. Increasing stock theft, predation and crime. Land reform, which creates uncertainty for many farmers. Locally red meat consumption is slowing, particularly for lamb and beef. Shortage of veterinarians. The sector’s considerable carbon footprint could result in the imposition of tougher environmental regulations. The slowing economic recovery following the pandemic Trend in vegetarian and vegan alternatives.

Weaknesses

Game meat is dependent on tourism, which fell away and the EU market which cut imports from South Africa because of foot and mouth disease outbreaks. Lack of meat traceability. Limited transformation. Logistics and port challenges limit exports. Reliant on climate. Shortage of skilled personnel. The sector is dominated by a few large players. The sector is one of the primary contributors of greenhouse gas emissions.