VIEWPOINT-SOUTH AFRICA'S RED-MEAT MARKET IS CHANGING— And South Africa Is No Exception

VIEWPOINT-SOUTH AFRICA'S RED-MEAT MARKET IS CHANGING— And South Africa Is No Exception

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The South African meat market is going through an important period of change.

Beef and lamb remain highly valued by South African consumers, but both markets are facing pressure from supply, disease, production costs, consumer affordability and changing buying habits.

At the same time, pork is trying to strengthen its position as an alternative when consumers start looking for better value.

But this is not simply a story about one meat replacing another.

It is a much bigger story about what South African consumers can afford, what farmers can produce profitably and what the market is prepared to pay.

The latest figures show just how significant the movement has been. The South African Reserve Bank reported that consumer beef prices had increased substantially, while lamb prices had also risen, although by considerably less than beef. The Bank linked the pressure in livestock prices to supply constraints associated with foot-and-mouth disease.

BEEF IS UNDER PRESSURE FROM BOTH SIDES

Beef is probably the most visible part of the current red-meat story.

South Africa has experienced serious disruption in the cattle industry as a result of foot-and-mouth disease. Lower slaughter activity and restrictions on animal movement have affected the availability of cattle in parts of the market.

The South African Reserve Bank reported that producer price inflation for agricultural live animals reached 31.5% in December 2025, with supply constraints linked to the continuing effects of FMD contributing to the increase. It also reported persistently low cattle slaughter activity during the second half of 2025.

This eventually reaches the consumer.

When fewer animals enter the formal slaughter system, the supply of beef becomes tighter. At the same time, farmers face increasing costs for feed, fuel, labour, veterinary care, infrastructure and general farm operations.

The result is a difficult equation.

The farmer needs a sustainable price, but the consumer still has a limited budget.

CATTLE PRICES HAVE MOVED SIGNIFICANTLY

The movement in the cattle market can be seen in the producer prices.

RPO market information for 2026 shows substantial movement in weaner and carcass prices compared with the previous year. By July 2026, the RPO reported a weaner price of R48.56/kg, 32% higher than the same period a year earlier, while the A2 beef carcass price was R69.51/kg.

These figures tell an important story.

Higher cattle prices may be positive for producers who have animals available to sell, but they also increase the cost of replacing breeding stock and ultimately contribute to higher prices further down the value chain.

A high producer price is therefore not automatically a sign that the entire industry is doing well.

The farmer still has to look at the cost of producing that animal.

LAMB IS A DIFFERENT STORY

The lamb and mutton market has its own challenges.

Sheep numbers, grazing conditions, input costs, seasonal supply and consumer demand all influence the market.

Lamb is also a meat with strong cultural and seasonal demand in South Africa. Easter, religious celebrations, weddings, family gatherings and traditional events can all influence demand.

But lamb is not an everyday meat for every household.

When household budgets become tighter, consumers may reduce the frequency with which they purchase more expensive cuts of lamb.

At producer level, however, the market can move quickly when available supply becomes tight.

The RPO reported in July 2026 that feeder-lamb prices were 21% higher than the same period a year earlier, while the A2 lamb carcass price was 5.9% higher year-on-year. The organisation attributed the higher feeder-lamb price partly to declining supply, while noting weaker winter demand for lamb carcasses.

That tells us something important about lamb.

A strong producer price does not necessarily mean unlimited consumer demand.

SOUTH AFRICA EATS LESS SHEEP MEAT THAN IT USED TO

There is also a longer-term structural issue.

Research by the Bureau for Food and Agricultural Policy found that South African per-capita sheep-meat consumption declined significantly between 2015 and 2024, while beef consumption also declined, although at a slower rate. Pork consumption, by contrast, increased over the same period.

This is important because the red-meat industry cannot only look at today's price.

It must also look at what South Africans are choosing to eat over time.

Population growth, income levels, urbanisation, changing lifestyles, convenience and food prices are all influencing the meat basket.

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THE CONSUMER IS AT THE CENTRE OF THE PROBLEM

The farmer sees the market differently from the consumer.

The farmer sees rising input costs and asks whether the price received for an animal covers production costs and provides an acceptable return.

The processor looks at carcass utilisation, operating costs and what retailers and consumers are prepared to pay.

The retailer looks at turnover, margins and what moves off the shelf.

The consumer simply looks at the price and asks:

“What can I afford for dinner?”

That difference in perspective is becoming increasingly important.

BEEF CANNOT SIMPLY KEEP GETTING MORE EXPENSIVE

Beef has a powerful position in South African food culture.

It is part of the braai, the family gathering, the restaurant meal and the traditional South African diet.

But there is a limit to what many households can spend.

When beef becomes too expensive, consumers do not necessarily move directly to pork.

Some move to chicken.

Some buy less meat.

Some buy cheaper cuts.

Others wait for promotions.

And some may substitute beef with pork or lamb depending on the meal they are preparing.

That means the relationship between beef, lamb, pork and poultry is much more complicated than simply saying one meat will replace another.

LAMB HAS TO PROTECT ITS MARKET

For the sheep industry, maintaining consumer demand is just as important as maintaining production.

Lamb has a strong reputation for quality and flavour, but it is often associated with special occasions rather than everyday meals.

That creates an opportunity for the industry to communicate better with consumers.

Consumers need to know which cuts are economical, how to prepare them and how lamb can be used in ordinary family meals.

If lamb remains something people only buy for special occasions, the market is naturally smaller.

AND THEN THERE IS PORK

Pork enters this picture as the alternative that can potentially benefit from pressure on beef and lamb.

But pork should not assume that consumers will automatically switch.

Pork has to compete for the same household food budget.

It also has to compete with chicken, which has a major advantage in convenience and familiarity.

The opportunity for pork is therefore to show consumers that it can provide good value while offering a wide range of meals and cuts.

But the main story remains the red-meat market.

THE BIGGER ISSUE IS PRODUCTION

Behind all of this is the South African farmer.

Beef and sheep farmers are operating in an environment where disease, weather, feed availability, land management, transport, labour, fuel and other input costs can change the economics of production very quickly.

FMD has added another layer of uncertainty.

It is not only about the disease itself.

It is about animal movement, slaughter numbers, market access, trade opportunities and confidence throughout the value chain.

The Reserve Bank's data shows how strongly animal-supply constraints have already affected agricultural prices.

EXPORTS WILL BECOME MORE IMPORTANT

South Africa cannot depend entirely on domestic consumption to solve the industry's long-term challenges.

The BFAP assessment of the red-meat industry highlights weak domestic demand as one reason why expanding beef and sheep-meat exports is important. It also identifies animal disease and international trade conditions as major risks.

That makes animal health, traceability and market access increasingly important.

South Africa has producers capable of producing high-quality beef and lamb.

The question is whether the country can consistently produce, process and market that meat in a way that meets the requirements of both domestic and international consumers.

THE FARMER CANNOT CARRY THE WHOLE MARKET

There is a tendency to look at high meat prices and assume that farmers are automatically benefiting.

That is not necessarily the case.

A farmer may receive a higher price for an animal while simultaneously facing higher costs and greater production risk.

The same applies to sheep.

If replacing breeding stock becomes more expensive, if feed costs rise or if disease restricts movement and marketing, the higher selling price does not tell the whole story.

The price of the animal is only one part of the farming equation.

SOUTH AFRICA NEEDS A STRONGER RED-MEAT VALUE CHAIN

The future of beef and lamb will depend on more than what happens at the farm gate.

It will depend on animal health, efficient abattoirs, reliable logistics, consumer affordability, export markets, product quality and the ability of the industry to build confidence from the farmer all the way to the consumer.

And this is where the discussion about pork becomes relevant.

Pork does not have to destroy the beef or lamb market to grow.

It simply needs to convince consumers that it offers value.

Beef and lamb, meanwhile, need to protect their position by offering quality, consistency and products that justify their place in the consumer's shopping basket.

THIS IS NOT A WAR BETWEEN MEATS

The future should not be about declaring one meat the winner.

South Africa has a strong livestock sector with cattle, sheep and pigs all playing important roles.

The real challenge is creating a market where farmers can produce profitably, processors can operate sustainably and consumers can still afford quality protein.

Beef has a supply and affordability challenge.

Lamb faces supply constraints as well as a longer-term challenge of maintaining and growing consumption.

Pork has an opportunity to compete on value and convenience.

And chicken remains a powerful competitor for the everyday consumer.

The industry therefore needs to stop looking only at price per kilogram.

The bigger question is:

What will South Africans want to eat, what will they be able to afford, and can our farmers produce it profitably?

That is the real future of South Africa's meat industry.

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