SOUTH AFRICA - South Africa's beef industry is on the brink of a potential export boost, following promising trade talks between South Africa and China. 

Beefmaster Group, a key player in the sector, has expressed optimism about the future after discussions in Beijing during President Cyril Ramaphosa's state visit to China. This visit, aimed at strengthening diplomatic and trade ties, saw a delegation of South African business leaders, including the Beefmaster Group, accompany the President.

Louw van Reenen, Executive Chairman of the Beefmaster Group Board, highlighted the importance of the mission, emphasizing the potential benefits for South Africa’s beef industry. “Although South Africa already exports beef to China, the deepening relationship between South Africa and China could unlock an additional 50% more beef exports within the next year,” van 

Reenen stated during a South African business forum in Beijing. The visit was seen as a critical opportunity to enhance beef export opportunities and ensure that primary producers, particularly livestock farmers struggling under current economic conditions, could benefit from improved trade agreements.

South Africa’s Trade, Industry, and Competition Minister Parks Tau was also present at the forum, highlighting the magnitude of these discussions in bolstering the economic ties between the two nations.

A promising outlook for SA beef

The optimism surrounding these trade talks is fueled by the steady growth in South Africa's beef export market. 

Recent data from the Red Meat Producers Organisation reveals that in the first half of 2024, South Africa exported more beef than any corresponding period in the past eight years. By June 2024, 23,295.3 tonnes of beef had been exported, compared to 15,330.88 tonnes during the same period in 2023. 

This rise in exports is attributed to new trade agreements between South Africa and Middle Eastern countries.

With bilateral trade between South Africa and China reaching US$34 billion in 2023, and exports totaling US$12 billion, the ongoing discussions in Beijing could mark a turning point for the beef industry. 

“We are proud to play a vital role in global food security by supplying China with our world-class beef products. We thank the government for its laser focus on building and harnessing trade relationships with China,” Van Reenen emphasized the role of beef exports in stimulating economic growth.

China’s growing appetite for beef

China, the world’s second-largest beef market, continues to show strong demand for the product. 

According to a report from the USDA’s Foreign Agricultural Service (FAS), China produced 7.5 million tonnes of beef in 2023 while importing 11 million tonnes to meet rising consumption needs. 

Although demand growth is projected to slow to 0.4% in 2024, the market remains crucial for global beef suppliers.

Van Reenen noted that even a slight increase in demand would benefit South Africa’s beef industry, which has faced challenges in recent years. 

“We are already seeing signs that there is a turnaround on the demand side from China,” he said. 

The ongoing discussions in Beijing are seen as an opportunity to secure future export deals and potentially lift the South African beef industry from its current economic challenges.

Building on past successes

This visit to China builds on previous successes for Beefmaster Group. In October 2022, South Africa signed a landmark agreement with Saudi Arabia, enabling the export of beef to the Middle Eastern market. 

That deal provided a much-needed boost to the South African beef industry, and the company hopes that the current talks in China will result in similar opportunities.