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While role-players in South Africa’s red meat industry are more united and willing to work together, a lack of funding remains one of the industry’s main stumbling blocks. This emerged during an industry stakeholder meeting held prior to the start of the 2024 LRF Stockman School’s at the Aldam Holiday Resort and Conference Centre in the Free State.
Kobus Bester, session convener, said it was important to remember that South Africa operated within Southern Africa, and the entire region’s beef industry therefore needed to be uplifted if the country wanted to improve its own situation.
“I recently visited several feedlots that are the main clients of weaner producers, and the reality is that they are struggling and really cannot afford to pay more for calves. That is why we need to actively address the issues holding the industry back,” Bester said.
The meeting then highlighted traceability, diseases, price volatility, a potential grading system, the role of veterinarians, and funding as the main issues that needed to be addressed to unlock success.
Traceability in the spotlight
Dewald Olivier, CEO of Red Meat Industry Services (RMIS), said while there was still a lot to be done to ensure complete traceability, one of the key issues – the identification of farms – was gaining traction.
From 1 November producers will be able to identify their farms on a website and receive a global location number or GLN. This will be linked to a producer number through which a farmer will then be able to do business anywhere around the world, as it is a global system (GS 1).
“This won’t cost a producer anything, since RMIS has already paid for it with levy income,” Olivier said. However, he added that it was crucial for producers to register for this as soon as possible, because the authorities are planning to have a fully functional traceability platform in place by November 2025.
“For now, it is important that producers tag their animals and get onto their own system,” Olivier said. The strategy is for producers to be able to link their current traceability system with that platform, which should be able to accommodate various operating systems.
Disease issues
Foot-and-mouth disease (FMD) and contagious abortion (CA or brucellosis) are the two diseases currently of most concern to the industry. Thys Meyer, vice chairperson of the LRF, said every new outbreak coincided with a drop in prices and a devastating impact on the industry.
“The Eastern Cape’s situation shows that someone is moving animals with no regard for the rest of South Africa,” Olivier said, reaffirming the need for proper traceability. He added that vaccination was not truly the answer, because meat animals could not be sold for up to six months after vaccination. “We need to explain to the world that the local strains of FMD (SAT 1, 2 and 3) are different from the exotic types of FMD.”
“South Africa’s borders were open for cattle to cross and that was not an issue that the South African government would address, because they were not in the business of cattle production,” Olivier added.
Dr Johnny van der Merwe, managing director of Agri Market Trends (AMT), said it was important to note that while weaner prices dropped when exports were halted, there were other market forces that are currently driving the relatively low weaner prices. “The entire supply chain is struggling. White maize prices have increased, while feedlots and livestock producers continue to struggle.” Van der Merwe said this trend was going to last for longer due to the underlying market drivers.
With regards to CA, an audience member remarked that brucellosis might have an even greater impact on producers as it can a farming enterprise financially overnight. “We’ve recently seen an instance where CA infected a stud producer’s herd. It forced him to sell his stud animals at commercial value.”
Grading system
Olivier remarked that RMIS, along with several role-players, were in the process of writing draft protocols for a grading system.
“Three years ago Dr Phillip Strydom wrote a document based on the Meat Standards Australia (MSA) grading system, which showed that the system was sufficient, but not ideal, for South Africa. It was then decided that we needed our own system,” Olivier said, adding that a Master’s student was currently doing research on the matter on the industry’s behalf.
Prof Frikkie Neser, head of the Department of Animal Sciences at the University of the Free State, said it was important not to reject functional systems, such as the MSA – which was lauded as a top tier system globally – just for the sake of reinventing the wheel.
Olivier answered by saying that MSA was a good system, but that South Africa would need to pay millions in affiliation fees. Uncertainty remains as to how a South African beef grading system would be funded.
Role of veterinarians
The meeting expressed concern over veterinarians leaving the industry and country. Prof Esté van Marle-Köster, head of the Animal Science Department at the Faculty of Natural and Agricultural Sciences at the University of Pretoria, said all veterinarians were obliged to complete a community service year and the agricultural industry needed to utilise that opportunity.
“The South African Veterinarian Association, Onderstepoort and government could work together to ensure that more of those vets end up in agricultural roles. Many of them are not very productive in that year and gain very little experience. They should be on farms vaccinating animals. They are already being paid well; they might as well be utilised.”
Funding of the industry
Johan Styger, chairperson of the LRF, said the current red meat levy was inadequate for the ambitious goals the industry wanted to achieve. “We have the lowest levy of any industry. The RMIS collects only R42 million per annum and we expect them to change the world with that.”
Styger said a levy increase was needed to ensure adequate re-investment in the industry. “We have incredible plans, but we aren’t boycotting ourselves by paying a low levy?”
Olivier said the Buro of Food and Agricultural Policy (BFAP) was reviewing the industry to see where it stood in this regard. Their findings will provide guidance for the future application for a new levy. The application needs to be submitted by March 2026.
However, Dr Jaco de Villiers, a producer representing SA Red Meat, said it was important to keep in mind that producers were struggling to make ends meet and a levy increase would be devastating. “First start by giving producers hope through results. Only when somebody has hope, a levy increase can be discussed.” – Susan Marais, Plaas Media
