Stock theft, adverse weather conditions, animal diseases, and the economic outlook of South Africa have harmed the red meat industry for years and are likely to continue on the same trend if no drastic decisions are taken. This was revealed in a recent report released by the Red Meat Industry Services (RMIS).
The report covers global and domestic perspectives, highlighting the continuous challenges South Africa’s agricultural sector faces. With the red meat industry particularly affected by one crisis after another, the report emphasises what needs to be done to secure this vital commodity and safeguard jobs.
According to the report, between April and June 2024, over 6 000 cases of stock theft were opened. This is an increase of 0.4% from the same period in 2023, adding to the challenges farmers face in their operations.
Impact of animal diseases
Above-average post-drought rainfall shows gradual herd-rebuilding although numbers are not yet recovering to 2013/14 levels. High input costs, stagnating weaner prices, and the ongoing need for sustainable grazing practices are also slowing the pace of recovery.
Foot-and-mouth disease (FMD) also has an impact on the industry. “There have been severe and sporadic outbreaks of FMD since 2019, with South Africa losing its official FMD-free status from the OIE, negatively affecting cattle, beef, sheep, and wool exports. Since 2021, there have been 288 outbreaks of FMD in South Africa’s previously FMD-free zone, with KwaZulu-Natal contributing to 154 of these outbreaks,” the RMIS report stated.
The most recent outbreaks happened in the Eastern Cape, mostly in dairy cattle. The latest outbreak started on 9 July 2024.
“It is crucial for South Africa to effectively prevent and control the outbreak of animal diseases to safeguard the profitability of the livestock sector. This will not only prevent the loss of livestock but also maintain productivity level.”
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Low municipal service delivery, high feed costs
While industry-related concerns continue to grow, the report highlighted the reduced delivery of municipal services, including water, dilapidated infrastructure and electricity, leading to numerous inefficiencies.
“Farmers face increased operational costs due to the need for private solutions. This situation threatens the economic viability of farms, as the added
burdens discourage investment in agricultural practices and technologies, ultimately affecting productivity and sustainability.”
Farmers continue digging deep into their pockets for feed. Feed prices have remained relatively high in 2024, mostly owing to a weaker exchange rate during most of 2023 and the beginning of 2024, and reduced summer grain production as a result of drought.
“Driving export promotion in the red meat sector will enable the sector to receive higher prices and to an extent negate poor domestic demand for meat. The risk with this approach is the threat of FMD (and other animal diseases) outbreaks which can lead to ‘overnight’ export market closure.
“As a result, the industry is generally continuing to uphold a diversified marketing portfolio with domestic consumers being a key component,” the report stated.
Consumers hit hard
With the tough economic situation in the country, the report indicated that consumer spending is still under pressure from weak economic growth, persistent inflation, and monetary tightening aimed at inflation control.
“Incomes remain constrained, with many consumers moving from upper to lower middle-income groups, making affordability a key factor in spending decisions. [It] shows the increased share of low-income consumers in South Africa, the stagnation in the share of middle-income consumers, and a reduction in the share of affluent consumers in recent years.
“The South African red meat industry is currently facing challenges such as high feed prices and reduced consumer spending power,” the report stated.
Daniel Masagoa, a cattle and sheep farmer based in Randfontein in Gauteng, said he agreed with the report as the commodity is battling with successive crises.
“This boils down to joining hands together to see how we can assist one another. What really bothers me is stock theft because communities know these people [and] at times assist them to do these acts, not realising that they are actually taking us out of business. Losing one’s cattle because of stock theft is more painful than losing it through sickness.
“No operation can work on zero return on investment. Our police cannot do it alone, we need to strengthen our community participation more than ever,” he said.
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