Website Display
Search Website
News & Articles
GAME INDUSTRY TRENDS ANALYSIS 2024
.jpg)
Red Meat Industry Report Offers Key Insights On Global, Domestic Trends
Red meat industry report offers key insights on global, domestic trends
By Octavia Avesca Spandiel / 8 January 2025 | 1:00 pm
The Red Meat Industry Services (RMIS) has released its first-ever Red Meat Industry Report, providing a detailed analysis of the trends shaping supply, demand, and prices.
The global red meat industry is undergoing significant shifts. According to the RMIS report, “China’s beef consumption grew by 5,1% annually over the past decade, driving substantial growth in global demand.” However, economic headwinds in China are expected to slow growth through 2025, impacting global consumption patterns.
Herd rebuilding efforts in the United States and Australia reveal regional contrasts. In the US, “prolonged droughts have reduced cattle inventories to their lowest since the 1960s”, whereas improved rainfall in Australia has bolstered herds and increased production.
Sheep meat dynamics mirror this variability. The report states, “In 2023, Australian lamb and mutton production surged by 12% and 42%, respectively, driven by genetic improvements and a shift towards meat production over wool.”
South Africa’s red meat industry
South Africa’s red meat sector has shown resilience, with beef production reaching 777 706t in 2024, reflecting a 7,3% increase from 2023. This growth has been attributed to higher slaughter volumes and “live imports from Namibia and Botswana by the feedlot industry”.
Sheep meat production is also forecasted to rise, with slaughter volumes projected to exceed five million heads by 2025. However, the report notes that domestic prices remain sluggish.
Challenges facing the industry
The report identifies several pressing challenges that could undermine the growth and sustainability of South Africa’s red meat sector:
•
Sporadic outbreaks of foot-and-mouth disease (FMD) have been a major issue since 2021. According to the report, “Since 2021, there have been 288 outbreaks of FMD in South Africa’s previously FMD-free zone, significantly impacting cattle, beef, sheep and wool exports.” These outbreaks have not only reduced livestock numbers, but have also damaged South Africa’s reputation as a reliable exporter of high-quality red meat. Preventing and managing such diseases effectively will be critical to regaining access to lucrative export markets.
•
High feed costs are a significant burden for South African producers. According to the report, “High feed costs, exacerbated by drought and global grain market volatility, weigh heavily on profitability.” Drought conditions in critical grazing areas, coupled with volatile global grain prices and a weaker local currency, have increased production expenses. These rising costs continue to erode margins for farmers, particularly those relying on feedlots for production.
•
Economic pressures on consumers have led to a decline in domestic demand for red meat. The report notes, “Real disposable incomes fell by 1,2% in 2023,” which has driven many South African households to shift from red meat to more affordable protein sources like poultry. This trend poses a challenge for the industry, which relies on a strong domestic market to support overall demand.
•
Livestock theft remains a persistent and costly problem for South African farmers. The report highlights, “Between April and June 2024, there were 6 321 cases of livestock theft, reflecting a 0,4% rise from the same quarter in 2023.” These thefts not only reduce the financial security of farmers but also undermine herd-rebuilding efforts.
Opportunities and recommendations
Despite these challenges, the report mentions the growth opportunities, particularly in expanding exports. To capitalise on these opportunities, South Africa must:
•
Maintain its disease-free status.
•
Address infrastructural inefficiencies, such as “cold chain limitations”, to improve competitiveness in premium markets.
•
Invest in sustainable grazing practices and herd rebuilding initiatives to mitigate climate and economic risks.
•
Diversify marketing strategies to target premium markets, as Middle Eastern countries pay less for high-quality cuts of beef than US, Mexican and Korean counterparts. Focusing on premium markets could yield better returns for South African producers.
The full report can be accessed here.
Contact Us
