FMD: We're Paying The Cost Of Complacency

The chances of South Africa suffering future foot-and-mouth disease outbreaks are high. Without the implementation of better management and control measures, including a traceability system, the red meat industry will continue to be at risk of suffering huge losses.

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At the beginning of 2019, a case of foot-and-mouth disease (FMD) in Limpopo was discovered. Within just four weeks, the live price of finisher cattle dropped from R27/ kg to just less than R23,50/kg. Finisher cattle weigh about 480kg on average.

At the end of 2018, feedlots were realising R12 926/head of cattle; four weeks later, the price hit a low of R11 131/head. This represented an almost 14% gross income loss per head of cattle within the period.

The estimated weekly gross income loss over the next 15-week period averaged R1 050/head of cattle. This was equal to an average price decline of 9%, or R2,20/kg. Note that this was only the loss incurred by the feedlot industry. The backward and forward linkages to the rest of the supply chains are not taken into account. Neither is the harm done to the industry’s export markets and its efforts to develop a larger export market for South African beef.

If FMD had not occurred, feedlots would probably have realised an average price of R26,64/kg instead of R24,43/ kg over the period (