One of these has been the rise in feed prices since 2020, especially for maize and soybeans. This coincided with increased financial strain on consumers due to the damaging effects of the Covid-19 pandemic. Demand for red meat products thus declined as consumers opted for cheaper forms of protein.
The spread of foot-and-mouth disease to six of the nine provinces for the first time yet was another challenge for the industry. This resulted in temporary bans being imposed by certain export markets, extending to auctions and livestock movement, mainly cattle, for part of 2022.
Despite the foot-and-mouth-related export bans, SA beef producers sent big volumes of beef products to markets that did not close import channels. This is evident in last year’s beef export figures, which amounted to 28,422 tonnes, according Trade Map data. Though 12% down on 2021, this is only a little below the 10-year average.
Fresh beef accounted for 54% of overall exports, with the balance frozen. Within the total figure a significant fall was recorded in frozen beef exports, which were down 24% year on year at 12,945 tonnes last year. Meanwhile, fresh beef exports increased 2% to 15,477 tonnes, the key markets being Kuwait (with a market share of 22%), Jordan (16%), Mozambique (13%), United Arab Emirates (12%), Qatar (9%), Netherlands (4%), Lesotho (3%), Canada (3%), Zimbabwe (3%), Mauritius (3%), and Eswatini (2%). These markets accounted for 90% of SA’s fresh beef exports in 2022.
In the case of frozen beef, the top export markets, accounting for 82%, were Lesotho (16%), China (14%), Nigeria (14%), UAE (9%), Mozambique (7%), Kuwait (6%), Egypt (5%), Qatar (4%), UK (3%), Netherlands (3%), and Jordan (2%).
Despite protocol
The foot-and-mouth disease outbreak also had a negative effect on SA’s wool exports. China, which usually accounts for about 70% of SA’s exports in value terms, temporarily suspended trade in the second quarter last year and only reopened the market in the last week of August.
The suspension occurred despite a unique protocol to handle SA wool shipments and avoid contamination during a foot-and-mouth disease outbreak, agreed between the two countries after the 2019 outbreak, which weighed heavily on exports.
South Africa’s agricultural exports to slow amid barriers to wool, beef and citrus
This resulted in a 21% year-on-year decline in the export value of wool in 2022 to $337m, according to Trade Map data. This is significant in the context of SA’s record agricultural export value of $12.8bn last year, amounting to about 3%. Meanwhile, beef exports of $151m were about 1% of agricultural exports.
Apart from the trade dynamics, the wool and beef industries are among the agricultural subsectors with a large share of new-entrant black farmers, who have also come under financial pressure over the past few years of higher input costs and animal disease outbreaks. The National Agricultural Marketing Council estimates that black farmers account for 18%, 13% and 34% of SA’s wool, mohair and cattle production respectively.
Disease outbreaks of the past few years will not be the last. Similar challenges confront the poultry and piggery sectors, which are susceptible to avian influenza and African swine fever. These diseases also place a heavy financial burden on producers. SA’s inability to control the spread of disease in the recent outbreaks signals a failure in the country’s veterinary services and related support services such as laboratories and vaccine production.
Government and organised agriculture bodies need to work more closely together to address biosecurity challenges. Government should lead the way to keep up with the promise of the Agriculture & Agro-processing Master Plan, which seeks to boost collaboration among social partners to improve inclusive growth in agriculture.
• Sihlobo is chief economist at the Agricultural Business Chamber of SA and a senior fellow in Stellenbosch University’s department of agricultural economics.
