South Africa’s red meat industry does more than feed the nation; it drives the farming economy. In this article, powered by the Red Meat Producers’ Organisation, agricultural economist Dr WA Lombard unpacks how the industry supports families, boosts exports, and could unlock more jobs by empowering small-scale farmers.
The red meat industry in South Africa is far more than a contributor to agricultural GDP; it is the lifeblood of many rural economies and a critical pillar for thousands of households. Agricultural economist Dr WA Lombard highlights the sector’s importance in sustaining both communal and commercial farming livelihoods, while also driving export earnings and holding untapped potential for rural economic transformation.
“The red meat industry is crucial for South Africa as a large number of households are part of the value chain,” says Lombard.
In many rural areas, families rely on livestock farming as their primary or supplementary income source. While some farmers operate within the formal sector, many others engage in informal markets, raising livestock for household consumption or to sell during financially difficult times.
In these communities, livestock represents more than food: it is a store of wealth, a symbol of social status, and a safety net against poverty.
Economic engine with export potential
“In terms of beef production and consumption, SA became a net exporter of beef around 2014,” Lombard notes. This shift signalled South Africa’s ability to not only meet domestic demand but to generate foreign income through international trade.
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However, the journey towards establishing and maintaining export markets is complex. “It takes time and trust to put in place and maintain these export agreements,” he says.
Recent outbreaks of foot-and-mouth disease (FMD) highlight the vulnerability of these markets. “Other countries want to protect their own industries and would prevent SA from exporting red meat to their countries before SA is declared FMD-free again,” Lombard explains.
When exports are halted, it can take years to rebuild the trust and market share lost in the process.
South African red meat producers, particularly in rural and semi-arid areas, have faced mounting challenges. “The price of their outputs (weaner calves and lambs) did not keep pace with the price increases seen in the price of inputs,” says Lombard.
Climatic extremes like drought further reduce productivity and profitability, while outbreaks like FMD have disrupted operations even at the country’s largest feedlots. “We’ve seen how FMD has affected the largest feedlot in the country,” he adds, noting the resulting carcass shortages.
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Hidden potential in small-scale farming
A key opportunity lies in harnessing the capacity of small-scale and communal farmers. “In some small-scale and communal farming operations, livestock is seen as wealth,” Lombard explains. These animals are rarely sold regularly, but rather reserved for significant life expenses, such as education.
To unlock economic growth, Lombard stresses the need to integrate these producers into the broader red meat value chain.
“It is no secret that these small-scale and communal producers could assist in increasing the number of animals produced in SA,” he says. However, he cautions, “If this increase in supply is not matched by an increase in demand, it will likely lead to reduced prices. A situation of lower prices cannot be afforded by producers.
“The adoption of commercial farming practices by emerging and communal producers could be a game-changer.” These farmers already own a substantial share of the national herd.
By improving access to markets, training, and infrastructure, they could become a powerful engine of rural job creation and inclusive economic development.
However, this vision comes with a caveat. “This additional supply needs to be met by additional demand, otherwise these farmers, along with some of the current commercial farmers, will be forced out of the sector,” he warns.
Despite its challenges, the red meat industry offers accessible entry points for rural farmers. “These farmers all have the opportunity to market their animals through auction houses and livestock agents,” says Lombard.
To secure payments and reduce risk, he advises, “Local producers could reduce their risk of being paid for the animals sold by ensuring that the marketers they use are registered by APAC.”
He also stresses the importance of compliance and documentation, including proof of ownership and veterinary health records, to participate effectively in formal markets.
Reviving local demand amid economic strain
On the consumer side, demand for red meat has dipped due to reduced household purchasing power.
“We’ve seen in the past three to four years how the disposable income of households has come under pressure,” Lombard observes, pointing to rising input costs and high inflation as contributing factors.
However, there is some hope on the horizon. “Since late last year, the interest rate has been reduced slightly,” he notes, offering a glimmer of relief that may improve consumer spending and help revitalise local demand for red meat.
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