April 20, 2007

South Africa's demand for Australian meat remains strong

Demand for Australian red meat in South Africa remained strong in early 2007 as mutton imports from Australia for the first quarter of 2007 totalled 4,810 tonnes slaughterweight (swt), a 29 percent increase on the same period last year. Offal rose 44 percent, from 1,848 to 2,265 tonnes swt, and exports of Australian lamb and beef were also higher.

Demand for protein is on the rise in South Africa as the growing number of middle income earners increase their consumption of meat products. The ban on Brazilian and Argentine beef has further increased demand for Australian cattle products and South American poultry in the last 12 months.

The volume of Australian mutton being sent to South Africa is not quite as high as in late 2006, as supply has tightened and a drought in South Africa has increased domestic production. Between September and December 2006, 11,051 tonnes swt of Australian mutton was exported to South Africa as the increase in sheep supply coincided with a seasonally strong demand period. As sheep supply tightens further in the coming months, export volumes to South Africa are expected to fall. This could lead to a shortage of product if Brazilian poultry prices remain high.