The Beefmaster Group predicts that Saudi Arabia will order between 500 and 1 000 tonnes of beef per year from South Africa. This, after a landmark deal between the two countries which could see red meat exports to the second-largest country in the Arab world begin early in 2023.
Earlier this month, Louw van Reenen, the Beefmaster Group’s chief executive, was part of the delegation that accompanied President Cyril Ramaphosa on a state visit to Saudi Arabia. Also present was agriculture, land reform and rural development minister Thoko Didiza.
“We expect the deal to see Saudi Arabia order between 500 to 1000 tonnes of beef per year, which would make it one of the largest beef export markets to date for South Africa,” says Van Reenen. “We congratulate government for their swift action on opening this market for the country.”
The Beefmaster Group is already known as a leading supplier of specialist beef products to local and international markets. Van Reenen believes that a deal with Saudi Arabia would be a big win for South Africa’s beef sector, especially given the many challenges the industry has faced this year following outbreaks of foot-and-mouth disease.
“We are very excited about the deal, and it could not have come at a better time. Besides unlocking new trade, it will also help us maintain job security of the sector over the next year,” believes Van Reenen.
Abdulrahman Al-Fadhli, the Saudi minister of environment, water and agriculture, earlier confirmed that the Saudi Arabia Food and Drug Authority will visit South Africa soon to assess animal health and meat safety systems that would facilitate the export of red meat to Saudi Arabia.
According to Van Reenen, the Beefmaster Group will host Saudi delegates at its facilities in Kimberley in the Northern Cape and Christiana in North West before the end of the year.
Speaking after the signing of a memorandum of understanding between Saudi Arabia and South Africa in Jeddah, agriculture, land reform and rural development minister Thoko Didiza said, “We are interested in opening up the meat market – particularly for beef, lamb and goat. We have halal standards in South Africa, and we hope to finalise with the halal standard setting in Saudi to facilitate our meat products into the Saudi market.”
Big boost to red meat industry
Total bilateral trade between South Africa and Saudi Arabia amounted to R66 billion in 2021, and the beef sector is expected to favourably contribute to this in 2023.
“We are well positioned to offer a product that is affordable, known for quality, and has less fat content. We compete very favourably with other beef nations like Australia and the USA precisely because of these characteristics,” adds Van Reenen.
Mzansi’s beef industry has made some inroads into new export markets over the recent past, with the country’s beef sought after in the Far and Middle East. Beefmaster Group exports products to nations like the United Arab Emirates, Kuwait, Jordan, Oman and Qatar, amongst others.
According to the South African Red Meat Producers’ Organisation, South Africa currently exports 4% of its beef production.
“The opportunity in our export markets is also made clear by Agriculture and Agro-Processing Master Plan (AAMP), read in conjunction with the Red Meat Industry Strategy 2030 prepared by the Bureau for Food and Agricultural Policy (BFAP). This means we must move now to open ourselves to export markets and capitalise on the opportunities inherent in the plan,” says Van Reenen.
According to these strategies, the red meat sector is expected to contribute more than R12 billion to South Africa’s agricultural GDP per annum by 2030, and add 3 200 jobs to the sector.
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