The Red Meat Abattoir Association (RMAA) held its conference last week (12 June 2025) at the The Lord Charles Hotel in Somerset-West, where I had the opportunity to give a presentation. The event was warmly opened by Agricultural Minister John Steenhuisen MP, whose active engagement signalled strong government support to the red meat industry in its time of need.
Minister Steenhuizen was joined by Dr. Mpho Maja, who presented the National Department of Agriculture’s focused efforts to combat the FMD outbreaks, and Dr. Mphane Molefe, who outlined how the government regulates and enables Veterinary Public Health (VPH) services in the abattoir industry, ensuring safe food for millions of consumers. The red meat industry undoubtedly remains a cornerstone of food security in South Africa.
At the conference, I had the opportunity to present on the trajectory of the Red Meat Industry (RMI), focusing on the critical role of beef exports in driving competitiveness and long-term sustainability. Currently, less than 5% of South Africa’s beef production is exported, largely due to biosecurity concerns. This limited export place downward pressure on local producer prices, which restricts value chain profitability. South Africa’s export share of beef production has averaged only 4%, a far cry from Australia’s 52.6% and Brazil’s 15.18%. If South Africa were to lose its beef export capacity entirely, the economy could forfeit R11.3 billion between 2025 and 2030, roughly R1.8 billion annually. Animal and public health remain the gateway to industry growth. Effective disease control and traceability are essential to ensure uninterrupted trade.
The past six years have been tough. Input costs have surged, well beyond market returns. Output prices have stagnated: A2 carcass prices grew by just 4.9% annually, and weaner prices by only 2.34%. Meanwhile, yellow maize (the main feed cost driver) rose by 9.66%, and urea prices (for fertiliser and supplements) climbed by 11.53%. These rising costs, coupled with double-digit increases in diesel and electricity prices, have severely eroded producer margins.
The BFAP Baseline, to be presented by Dr Tracy Davids on August the 13th (*save the date and register for the 2025 BFAP Baseline event!), shows that the South African beef industry achieved an average annual growth of 6.69% in Gross Production Value (GPV) from 2013, reaching R43 billion in 2024. However, under current conditions, this growth is projected to slow to 4.97% annually between 2024 and 2035.
Several of the insights shared at last week’s conference underline the urgency of accelerating action to get the red meat sector back onto a more ideal growth trajectory. The beef industry has the potential to be a major catalyst for economic growth and job creation, directly contributing substantially to the trade balance, the fiscus, and national food security.
To meet the AAMP and Red Meat Industry Strategy 2030 target of R71.5 billion GPV by 2030, the industry needs to accelerate to an 8.43% annual growth rate, a tall order considering ongoing animal disease outbreaks. Though ambitious, it’s still achievable, especially in light of the encouraging signs from the Minister’s office and the unwavering dedication of the Red Meat Industry Services (RMIS), supported by the Red Meat Primary Cluster (RMPC). To unlock this potential, we must create a de-risked environment that attracts investment and fosters market expansion.
I’d like to highlight this: the time for a Public-Private Partnership (PPP) is undoubtedly now. We’re facing a crisis, no doubt, but one that offers an opportunity for decisive action through stronger collaboration across industry, government, and trade – ‘let’s not waste a good crisis’.
