January 2025 – Despite economic headwinds in 2024, South African beef producers are looking ahead to 2025 with cautious optimism. Industry resilience, strong export performance, and potential improvements in consumer spending could drive recovery in the year ahead.

According to Beefmaster Group CEO Gert Blignaut, the past year posed significant challenges, with falling slaughter prices, rising input costs – particularly feed prices – and constrained consumer spending. However, beef production volumes remained strong, with South Africa recording its highest slaughter figures in six years, estimated at 2.8 million cattle.

Exports: A Key Growth Driver for SA Beef Industry

One of the biggest success stories in 2024 was South Africa’s beef exports, which reached an estimated 38,000 tonnes – the highest in six years. Despite this, exports still only account for about 5% of total production, highlighting significant growth potential in international markets.

The Department of Agriculture, Land Reform and Rural Development (DALRRD) reports that beef is the second-fastest-growing commodity in South African agriculture, reinforcing the importance of expanding global market access. Blignaut believes that collaborating with industry stakeholders and the government could push export figures beyond the 5% mark in 2025.

Key Market Developments for 2025

  • Saudi Arabian market opens: A major milestone for SA beef exports.
  • Political and economic shifts: The formation of the Government of National Unity (GNU) and a possible interest rate cut cycle could boost consumer spending.
  • Reduced load-shedding: Eskom reported 300 days without power cuts, saving R16.42 billion in diesel costs—positive news for businesses affected by past energy instability.

Challenges: Disease Control & Climate Uncertainty

While the outlook for 2025 is encouraging, Foot-and-mouth disease (FMD) management remains a significant challenge. The highly contagious virus affecting cloven-hoofed animals has continued to impact the industry.

Additionally, climate concerns loom large. Agricultural economist Wandile Sihlobo from Agbiz warns that the mid-summer drought in 2024 led to widespread crop losses, making rainfall forecasting for 2025 difficult.

Blignaut urges farmers and beef producers to stay resilient: “Primary producers, keep doing what you are doing. Tenacity is a superpower. Hang on, the rain will come.”

Looking Ahead: A Mixed but Promising Outlook

With potential economic recovery, stronger exports, and improving local demand, the South African beef industry has reasons to be hopeful in 2025. However, success will depend on expanding global market access, effective disease management, and favourable weather conditions.

For more updates on the SA beef industry, exports, and market trends, stay tuned.