South African beef and dairy farmers are under increasing pressure from low farm-gate prices and rising production costs. While many large-scale farming businesses improve profitability by diversifying into export-oriented enterprises such as blueberries, apples or pecan nuts, there is another opportunity that aligns far more closely with livestock production – Wagyu beef.
By Dr Balwin Nengovhela, Scientist Manager: Department of Agriculture and Board Member responsible for social development at Wagyu Society of South Africa
One of the greatest advantages of producing export commodities is access to stronger foreign currencies. Markets in the Middle East and Asia, for example, offer significant exchange rate benefits. The Saudi riyal and UAE dirham trade at around R5 to one unit, the Singapore dollar at approximately R14.50, the Chinese yuan at about R2.67, while the British pound, euro and US dollar remain considerably stronger than the rand. Exporting even a portion of production can therefore improve farm profitability and reduce dependence on local market prices.
For cattle producers, Wagyu presents an attractive diversification option because it builds on existing livestock skills, infrastructure and management systems, unlike many high-value horticultural crops that require specialised knowledge and substantial capital investment.
Also read: Regular ‘pedicures’ save dairy cattle in soggy Southern Cape
Addressing low returns from conventional cattle production
South African dairy and beef producers have long struggled with relatively low producer prices. Dairy farmers receive only a fraction of the retail value of milk, while beef producers often face weaner prices as low as R25/kg.
Introducing Wagyu genetics into a herd offers producers the opportunity to participate in the premium beef market while continuing with their existing production systems.
What makes Wagyu unique?
Wagyu refers to Japanese beef cattle, with Wa meaning Japanese and gyu meaning cow. Originally bred as draft animals, these cattle were selected over centuries for endurance and the ability to store energy as intramuscular fat.
This unique characteristic produces the famous marbling – fine streaks of fat distributed throughout the muscle – which gives Wagyu beef its exceptional tenderness, juiciness and flavour. Unlike external fat, marbling melts during cooking, naturally basting the meat from within.
Marbling generally begins developing at around 12 months of age and reaches its optimum between 24 and 36 months, depending on genetics and management.
A valuable genetic advantage
Marbling is highly heritable, with heritability estimated at approximately 45%. This means the trait is readily passed from parent to offspring, making Wagyu particularly valuable in crossbreeding programmes.
Crossing Wagyu sires with either beef or dairy cows significantly improves marbling in the offspring. While many conventional breeds rarely achieve marbling scores above two, Wagyu crossbred progeny can reach much higher scores, producing beef suitable for premium markets.
Also read: Wagyu meat increasingly in high demand
Growth of the Wagyu industry in South Africa
The South African Wagyu industry traces its origins to 1998 when Brian Angus of Woodview Wagyu imported embryos from Australia’s Takada Farm. Since then, the breed has expanded rapidly, with more than 100 registered breeders and over 140 Certified Wagyu Beef (CWB) producers operating nationwide.
The Wagyu Society of South Africa was officially registered in September 2014 following an impact study conducted under the Animal Improvement Act. The study confirmed the exceptional quality of Wagyu beef produced under South African conditions.
Building an export-ready value chain
To protect product integrity and build consumer confidence, Wagyu SA established the Certified Wagyu Beef (CWB) non-profit company, which oversees certification, traceability and product authentication.
South African producers have developed systems covering breeding, feeding, traceability, grading, slaughter and export. The certification programme handled an average of approximately 400 certified carcasses per month during 2024, demonstrating growing industry capacity.
Prime cuts and whole carcasses are now exported to premium international markets through established logistics and certified processing facilities.
A practical diversification strategy
The proposed business model encourages conventional beef and dairy farmers to allocate approximately 30% of their herd to Wagyu production.
Farmers can begin by using fullblood Wagyu bulls or artificial insemination with Wagyu semen on existing cows. Commercial benefits begin with first-generation (F1) crosses, while marbling and carcass quality continue improving in F2, F3 and later generations.
Even breeds traditionally regarded as producing lower-quality beef can benefit substantially from Wagyu genetics.
Also read: You can’t improve what you don’t record: The hidden power of recordkeeping in the genomics era
Production and finishing
Certified Wagyu animals are generally slaughtered between 24 and 40 months of age, allowing sufficient time for marbling to fully develop.
Cold carcass weights average around 400 kg and typically yield a higher proportion of premium cuts than conventional beef carcasses. Even the fat from Wagyu cattle has significant commercial value.
Many producers use one of the country’s Certified Wagyu Beef feedlots for finishing before slaughter at approved export abattoirs, although on-farm finishing is also possible under the required protocols.
Diverse bloodlines available
South African breeders have access to several internationally recognised Wagyu bloodlines, including the black Tajiri (Tajima), Fujiyoshi (Shimane) and Tottori (Kedaka) lines.
The country also has access to the red Wagyu bloodline, known as Kumamoto Red, Japanese Brown or Akaushi, originating from Japan’s Kumamoto region.
An opportunity for farmers of all sizes
Wagyu SA’s strategy for 2024-2028 focuses on expanding both local and international markets while supporting members throughout the value chain.
Demand for certified Wagyu beef continues to outpace supply, creating opportunities for commercial and smallholder farmers alike. By integrating Wagyu into existing beef or dairy enterprises, South African producers can diversify their income streams, participate in premium export markets and earn stronger foreign currencies, helping improve long-term farm profitability.
*This article was first published in the Agricultural Research Council’s Beef Bulletin 2026
Disclaimer: The opinions expressed in this article are those of the author and do not necessarily reflect the views of African Farming.
Also read
‘Why we paid a record-breaking R5.5 million for Omega’
Backgrounding – how to prepare calves for feedlots
The long road to the market for Lesotho’s wool farmers
