By 2023, South African beef will be exported to Saudi Arabia as part of a historic agreement between the two countries. The CEO of Beefmaster Group, Louw van Reenen, joins this episode of Farmer’s Inside Track to discuss how this agreement is going to alter the playing field for beef producers in Mzansi.
Saudi Arabia is a stable market for South African beef producers, he says.
“The Muslim customer predominantly wants to have leaner meat (less fat), which is healthier. We’re specifically targeting countries in the Middle East and North Africa. On the global stage, they procure meat from the likes of the US and Australia and those products they supply have a higher fat content.”
Halaal endorsement
The process of inspecting the facility to determine whether it is fit for the Halaal market is carried out locally by the authorities. Biosecurity, traceability, animal health and facility hygiene, and abattoir cleanliness procedures are all covered by the auditors, who perform a physical evaluation on the inspection site to ensure it follows the related standards and Islamic guidelines.
“The transaction needs to be formalised and rolled out. What that basically means is that the Saudi Arabians will send out the delegation. They come and inspect the facilities, mainly for Halaal… to make sure that they conform to their practices, and they are happy with that.”
According to Van Reenen, there is a strong chance that the product will be approved for export at the start of 2023. In addition, he notes that Mzansi livestock farmers are doing well with their breeds, as they have a thriving market.
During the podcast, he discusses:
- The impact of high food prices on the market;
- What the beef producing market looks like; and
- Export marketing challenges.
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ALSO READ: Saudi Arabia could order 1 000 tonnes of beef
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