Beefmaster Group is optimistic for the future of the SA beef industry, following favourable trade discussions with China, the company said today at a South African State business forum event in Beijing, China.
“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,” said Louw van Reenen, Executive Chairman of the Beefmaster Group Board, out of China.
The company, part of the South African business delegation and a guest of the SA government, is accompanying President Cyril Ramaphosa on an official state visit to China to strengthen economic ties between the nations.
“This mission was crucial for us to assist in increasing beef export opportunities between the two markets, ensuring that all role players — especially our primary producers — benefit from enhanced trade agreements during these challenging economic times. Livestock farmers are struggling given present constrained economic conditions,” said van Reenen.
In 2023, South Africa’s bilateral trade reached $34 billion, with exports totalling $12 billion. Thanks to increased global market access, in the first six months of 2024, the South African beef industry exported more beef than any corresponding period in the past eight years, according to recent data by the Red Meat Producers Organisation. By June 2024, 23 295.3 tonnes of beef had left South African shores, compared with only 15 330.88 tonnes in the same period in 2023 and 16 109.64 tonnes the year before. The increase in beef exports was thanks to new trade agreements reached between the Middle East and South Africa recently.
“Exports and market access for SA beef are key levers to stimulate economic growth. 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,” said van Reenen, adding that Beefmaster Group views China as a strategic market.
Beef consumption in China – the world’s No 2 market – is set to rise moderately in 2025, according to the latest report from the USDA’s Foreign Agricultural Service (FAS). Although China’s beef market has been growing in both output and consumption, with the country producing 7.5 million tonnes of beef in 2023 and increasing imports to match the rising demand (11 million tonnes), demand is expected to grow by 0.4% in 2024.
Van Reenen said even a slight uptick in demand would be extremely favourable for South Africa.
“We are already seeing signs that there is a turnaround on the demand-side from China,” said van Reenen. “The current discussions bode well for unlocking future opportunities, given that we need more exports to lift the SA beef industry out of the doldrums.”
Beefmaster Group exports products to various areas throughout the world, and said that this visit builds on the success of similar deals announced in recent years. In October 2022 a landmark deal was signed between South Africa and Saudi Arabia, allowing the import of beef to this Middle Eastern market, and giving the SA beef industry a welcomed boost.
