March 28, 2006

South Africa presents an opportunity for beef exporters

Rising demand for red meat in South Africa has resulted in producer prices for cattle and sheep increasing between 75 percent and 116 percent respectively over the past seven years, according to a MLA (Meat and Livestock Australia) report.

The analysis found that South African poultry and pig prices have also risen, largely due to rising incomes from the middle class fueling meat consumption.

South African livestock numbers have not kept up with increased demand as numbers over the last decade have only expanded by 7 percent, to 13.5 million head.

The result of improved consumer demand for meat products has been an increase in meat imports from the Southern African Customs Union (SACU) and other major suppliers, like Australia.

South Africa is a member of SACU, a regional union of African countries. Due to falling supplies, MLA believes that meat exports from SACU will not be rising for the next few years, creating an opportunity for other countries.