Discover How Export Opportunities are Rescuing the South African Beef Industry from Crisis: Insights from Beefmaster Group
27 February 2024: Beefmaster Group is proud to announce the introduction of South African beef into the retail landscape of the Kingdom of Saudi Arabia (KSA). This accomplishment comes after a landmark agreement between South Africa and the KSA in October 2022, which sparked a 15-month contract negotiation period that ended successfully.
“We are delighted to potentially become the first South African beef company to establish official trade with the nation in over 21 years,” stated Gert Blignaut, CEO of Beefmaster Group. “With only 4% of South Africa’s beef currently exported, there’s immense potential to boost this figure to between 7% and 8%, which would significantly benefit the agricultural industry. We believe that the Saudi market holds the key to achieving this growth.”
Blignaut emphasised Beefmaster Group’s commitment to offering a diverse range of products, with plans to refine offerings based on consumer preferences over time. “We are confident that the quality of our product will drive demand. By aligning quality with competitive pricing, we foresee substantial opportunities for increased exports to the country.”
Based on industry reports, approximately 62% of Saudi Arabia’s beef imports are comprised of frozen products, while the remaining portion includes chilled or fresh meat varieties. Among the prominent suppliers to the Saudi beef market are Brazil, Australia, Pakistan, the US, New Zealand, and Canada. With an estimated value of about R38 billion, the Saudi beef industry represents a significant segment of the global market. “Since commencing our exports in 2008, we’ve witnessed South African beef become a staple on shelves in every market we’ve entered, thanks to our commitment to quality, service assurances, and competitive pricing,” added Blignaut.
Due to the country’s investments intended to diversify its economy beyond oil, Beefmaster Group views the KSA as a strategic market. According to reports, Saudi Arabia plans to invest over $1 trillion over the next ten years in a variety of mega projects and industries, as Goldman Sachs has highlighted. “Our primary objective is to strengthen our presence in the Middle Eastern market and beyond, leveraging opportunities for growth,” remarked Blignaut.
To further this objective, Beefmaster Group recently participated in the Gulfood Trade Show in Dubai, renowned as the world’s largest and most reputable food and beverage event, held from February 19 to 23, 2024. “We are thrilled to have once again showcased our products at Gulfood, providing us with valuable opportunities to expand our market reach.”
Despite the South African beef industry’s significant strides in expanding into new export markets, recent conflicts in the Middle East have posed logistical challenges, impacting both airfreight and shipping routes. Consequently, prices have surged, affecting the sector’s outlook. These disruptions in logistics and pricing underscore the importance of adaptability and resilience in navigating volatile global markets. “We urgently need to ramp up exports to rejuvenate the South African beef industry, which is currently grappling with oversupply issues,” emphasised Blignaut. He underscored the importance of government and industry collaboration in opening new markets to drive growth.
In conclusion, the successful introduction of South African beef into the Saudi Arabian market marks a monumental achievement for Beefmaster Group, highlighting the company’s capacity for international expansion. This milestone not only signifies immediate growth opportunities but also serves as a springboard for Beefmaster Group to explore additional global markets. With a commitment to quality, innovation, and customer satisfaction, Beefmaster Group is well-positioned to capitalise on these opportunities and solidify its presence on the global stage.
To discover more about Beefmaster Group’s premium beef products and their expansion into new markets, explore our website or shop online at iBeef today. Experience the excellence of South African beef firsthand, and join us on our journey towards global success!
