By: Vida Booysen
“Many farmers ask me why we focus so much on exports and if we are considering the local market. But our local market will continue to exist, and as long as there are people who want to eat red meat it will not die out,” said Olivier.
However, he said South African consumers are struggling to afford meat, especially more expensive cuts. “If we want to put money in the pockets of producers, the entire industry needs to export more – also to create space for new entrants into the local red meat industry.”
In response to a question from the audience about the country in which producers will be paid for their export product, Olivier said this forms part of negotiations with buyers.
“I know it’s a problem in China because the seller is paid there, but we will have to negotiate to get the money on this side.”
A market like China has its place in the export market, he said. “It’s incredibly important to choose the right markets to which we can send the high-value cuts, but also markets, like China, where we can export the rest of the carcass.”
The South African ambassador to Saudi Arabia, Mogobo Magabe, said this week that it is the right time for meat producers to export their products to the kingdom.
He spoke at a virtual session jointly hosted by the South African government, the Saudi Food and Drug Authority and South African entities such as the Red Meat Producers Organisation. The session aimed to explore trade opportunities between South Africa and Saudi Arabia.
Magabe said the lifting of the 21-year ban on the import of South African meat products to Saudi Arabia has opened a lucrative market. The Middle Eastern country is a net importer of beef.
“The lifting of the ban was one of the strategic outcomes of President Cyril Ramaphosa’s state visit to the Kingdom of Saudi Arabia, which led to the signing of 15 agreements between the president and Crown Prince Mohammed bin Salman, including cooperation in agriculture.”
Twelve South African companies have already been approved to export beef to Saudi Arabia, while seven are exporting lamb and sheep products, said Zanele Sanni, chief director of export promotion and marketing at the Department of Trade, Industry and Competition (DTIC), at the same event.
“This demonstrates the high standard that South African companies maintain and also proves that the meat-producing sector in South Africa is highly developed and strategically positioned to handle the demand from the Saudi Arabian market,” Sanni said.
Saudi Arabia offers a high-potential market for South African exporters of chilled and frozen meat products, said Dr Botlhe Modisane, chief director of animal production and health at the Department of Agriculture.
“Currently, about 1% of South Africa’s agricultural exports are destined for Saudi Arabia, and after the recent signing of bilateral trade agreements South Africa hopes to increase this figure.”
