The South African government, through the department of trade, industry and competition, has pledged support for farmers and exporters interested in exporting meat products to Saudi Arabia. This commitment follows the lifting of a 21-year ban, which is expected to significantly boost the economies of both countries.
Speaking during the recent gathering of exporters, farmers, government officials, and meat producers, the South African Ambassador to Saudi Arabia, Mogobo Magabane, said local farmers need to grab the lucrative market with both hands.
“The lifting of the ban was one of the strategic outcomes of President Cyril Ramaphosa’s state visit to the Kingdom of Saudi Arabia where he held constructive and fruitful engagements with the crown prince and prime minister of the Kingdom of Saudi Arabia, Mohammed bin Salman. The two leaders signed fifteen agreements that included collaboration in agriculture, mining and tourism.
Halaal-certification essential
“It is an opportune time for the South African meat producers to take advantage of the lifting of the ban and export their products to the Kingdom. This can contribute in growing our economy, and strengthening our bilateral economic relations with Saudi Arabia,” Magabane said.
Hammid Mulla from the South African Halaal Authority said veterinarian approval is critical to ensure that the meat is certified to go to Saudi Arabia.
“Importantly, the products that are meant to go to Saudi Arabia in the category of halaal must get the halaal certification… other than that the products will not pass through the boarder.
“It is also important to highlight that this certification takes time, so the earlier the process starts the better,” he said.
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Market for fresh and frozen meat
More than 250 people attended the session, whose theme was “Unlocking trade opportunities through collaboration”.
Meanwhile, the chief director of export promotion and marketing at the department of trade, industry and competition, Zanele Sanni, encouraged South African companies to utilise the opportunity for sustainable export contracts that would increase trade between the two countries.
“As government, we are mandated to support local industries to enhance their manufacturing capacity and find suitable export markets for their products through strategic mechanisms like these. We are committed to enhancing bilateral economic ties with Saudi Arabia,” she said.
The chief director of animal production and health at the department of agriculture, Dr Botlhe Modisane, said Saudi Arabia provides a high-potential market for South African exporters to tap into, in terms of both fresh or chilled beef meat, as well as frozen beef products.
Lucrative deal
“Saudi Arabia currently accounts for about one percent of agricultural exports from South Africa. South Africa anticipates to expand its export market share with Saudi Arabia given the signing of the recent trade agreements. Saudi Arabia is a net importer of beef. Its imports of frozen beef and fresh or chilled meat imports recorded approximately 71% and 90% growth rates respectively,” said Modisane.
According to the deputy director-general of exports at the department of trade, industry and competition, Lerato Mataboge, the lifting of the ban provides a good opportunity for South African meat producers to tap into the $5-billion Saudi market.
“Soon after the lifting of the ban, numerous companies worked hard to ensure that they seized the export opportunity that was created by the decision of the Saudi government, which was the result of the state visit to Saudi Arabia by President Cyril Ramaphosa in October 2022,” she said.
She adds that meat exports from bovine animals increased to R3.6 million in 2023 from R0 in 2022.
“Saudi Arabia continues to be a key strategic partner for South Africa in the Middle East. It is South Africa’s second-largest trading partner and the biggest source of imports from the Middle East. Bilateral trade between the two countries totalled R66 billion in 2023,” notes Mataboge.
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