Boost in SA beef exports expected as China demand rises

Pictured here are Louw van Reenen from Beefmaster Group, alongside Trade, Industry and Competition Minister Parks Tau, at the official state visit taking place in Beijing, China, to strengthen diplomatic and trade relations between the two countries.

The company is part of a business delegation accompanying President Cyril Ramaphosa on his state visit to China to strengthen economic ties.

"This mission was crucial for us to assist in increasing beef export opportunities between the two markets, ensuring that all role players — especially our primary producers — benefit from enhanced trade agreements during these challenging economic times. Livestock farmers are struggling given present constrained economic conditions," said van Reenen.

SA’s growing beef export market

In 2023, South Africa’s bilateral trade reached $34 billion, with exports totalling $12bn. Thanks to increased global market access, in the first six months of 2024, the South African beef industry exported more beef than any corresponding period in the past eight years, according to recent data by the Red Meat Producers Organisation.

By June 2024, 23,295.3 tonnes of beef had left South African shores, compared with only 15,330.88 tonnes in the same period in 2023 and 16,109.64 tonnes the year before. The increase in beef exports was due to new trade agreements reached between the Middle East and South Africa recently.

"Exports and market access for SA beef are key levers to stimulate economic growth. We are proud to play a vital role in global food security by supplying China with our world-class beef products. We thank the government for its laser focus on building and harnessing trade relationships with China," said van Reenen, adding that Beefmaster Group views China as a strategic market.

China’s rising beef demand

Beef consumption in China – the world’s number 2 market – is set to rise moderately in 2025, according to the latest report from the USDA’s Foreign Agricultural Service (FAS). Although China's beef market has been growing in both output and consumption, with the country producing 7.5 million tonnes of beef in 2023 and increasing imports to match the rising demand (11 million tonnes), demand is expected to grow by 0.4% in 2024.

Van Reenen said even a slight uptick in demand would be extremely favourable for South Africa.

"We are already seeing signs that there is a turnaround on the demand side from China," said van Reenen. "The current discussions bode well for unlocking future opportunities, given that we need more exports to lift the SA beef industry out of the doldrums."

Beefmaster Group exports products to various areas throughout the world, and said that this visit builds on the success of similar deals announced in recent years. In October 2022 a landmark deal was signed between South Africa and Saudi Arabia, allowing the import of beef to this Middle Eastern market, and giving the SA beef industry a welcomed boost.