February 2022: Local beef producers are hoping to unlock increased trade volumes for South Africa from key markets like the United Arab Emirates (UAE) in 2022.
“We are positive on international markets this year, given that our beef products continue to be sought-after in destinations like the Middle East. We would like more access to other leading destinations, based on the success SA has had with beef exports, and the excellent reputation South African beef has garnered,” says Louw van Reenen, CEO of Beefmaster Group, a leading specialist producer of quality beef products to South Africa and beyond.
South African beef will take centre stage at the Gulffood 2022 trade fair, taking place between 13 and 17 February, which is the largest annual food and beverage exhibition in the world. More than 120 countries and 4000 companies will be participating, including Beefmaster Group. This will be the company’s sixth year of participation.
“We are hoping to cement our existing relationships at the fair this year, and of course to continue positively showcasing South African beef,” says van Reenen. “Trade fairs like this are critical for our industry because it helps to stimulate the trade and supply of SA beef from global players. It is even more critical for our country coming off the back of COVID-19, where maintaining international relationships by attending events was not possible.”
He adds that the government has made great progress to ensure SA representation at this year’s show, illustrating its commitment to maintaining and progressing international trade between the two nations.
“Re-establishing these international relationships is especially important given that we think the SA consumer market for beef is likely to be negative to flat this year,” says van Reenen, adding that South Africa must take advantage of opportunities like these to open up more exports.
He says that risks contributing to the outlook for 2022 in SA include the skyrocketing cost of raw materials, stock and animal feed, together with the prevailing high price of weaners, and the impact of disasters like fires and floods on cattle farmers and other suppliers, which has a knock-on effect on beef production.
“This means that we must look to global markets and increase exports to mitigate the impact of such events on our industry, which will also have positive spin-offs for our economy,” says van Reenen.
According to the South African Red Meat Producers’ Organisation, South Africa currently exports 4% of its beef production, which, according to van Reenen, clearly indicates that there is an opportunity for the country to grow its beef exports.
The Middle East imports approximately 90% of its beef and lamb, according to reports, making the opportunity for beef exports ideal for South Africa. Van Reenen says South African beef is already loved in markets like these for its premium quality, which includes a leaner taste, with less fat, making it sought after. Beefmaster Group also offers select Middle Eastern countries excellent quality assurances, underpinned by a leading traceability system as well as Halal-certification. Additionally, the Middle East has a rapidly growing population.