The producer prices of beef, mutton and lamb are expected to move sideways in 2022, unless the industry increases exports. According to Gerhard Schutte, CEO of the South African Red Meat Producers’ Organisation, South Africa currently exported 4% of its beef production, 1% of its mutton and lamb, and less than 1% of live small-stock for slaughter.
“South Africa’s red meat producers are in an ideal position, given that local red meat trades for considerably less than the global prices. This creates ideal opportunities for exports. While only [4%] of South African beef is exported, there’s scope to push it up to 20%.
“Over time, the exporting of live sheep can also be pushed up to 5% of local production. In 2021, we exported beef to 33 countries, including China, Jordan and Norway, while mutton and lamb were exported to the United Arab Emirates and Hong Kong,” he said.
HIGH LOCAL DEMAND
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