Wolmaransstad Link: Beef industry reaches highest slaughter figures last six years

Wolmaranasstad - The beef industry upbeat about growth in 2025 amidst challenges,
Gert Blignaut said that it was likely that the industry reached the highest slaughter figures of the last six years, with about 2.8 million cattle going to slaughtery

The Beefmaster Group has expressed cautious optimism for the future of beef industry despite challenges faced in 2024.

Gert Blignaut, CEO of Beefmaster Group, on Thursday said that last year was tough for the business and the industry.

“Slaughter prices continued to fall, input prices such as feed prices continued to rise, and farmers' calf prices couldn’t get off the ground,” he said.

“The consumer faced significant financial strain, resulting in low spending. Despite these challenges, production volumes showed remarkable resilience.”

Blignaut said that it was likely that the industry reached the highest slaughter figures of the last six years, with about 2.8 million cattle going to slaughter.

However, he said this increased supply and lower demand due to constrained consumer spending put additional pressure on prices throughout the year.

“A significant bright spot in 2024 was export performance.It is likely that last year we exported the highest volume of beef in the last six years, in the region of approximately 38 000 tons. Exports only represent about 5% of production, indicating substantial room for growth.”

This comes as the PMBEJD have raised concern that beef products still might not be affordable for the middle and lower income.

The PMBEJD’s January food basket data illustrates that most of the 44 essential food items are on an upward price scale in most of the major cities in South Africa.

Mervyn Abrahams, the programme coordinator at the PMBEJD said he had reservations about the consumer being able to spend more in 2025.

“Any talk of strong consumer spending needs to be backed up by data showing more jobs and improved salaries which then puts power in the consumers’ pockets,” he said.

“We hope that the optimism is not misplaced and that indeed there will be an improved spending power for the consumers so that they are able to afford items like beef which is an essential part of a human diet.”

Wandile Sihlobo, chief economist at the Agricultural Business Chamber (Agbiz), said that the livestock industry was vital to agricultural economy, accounting for half of the country’s fortunes.

“Its recovery will likely also boost the farming fortunes. In the past three years we struggled with animal disease, which led to closure of various export markets. We have now made admirable progress in controlling animal disease,” Sihlobo said.

“This has enabled SA to regain various export markets. The recent rains have also helped improve our grazing veld, supportive of the livestock industry. Against this backdrop, we share Beefmaster's optimism.”

Dr Frikkie Mare, CEO Red Meat Producers' Organisation (RPO) said there was a very strong relationship between economic conditions and meat prices.

“The last couple of years the economy was very stagnant with low economic growth and high interest rates, dampening the demand for meat from consumers,” Mare said.

“As we are currently in a decreasing interest rate cycle, we believe the economy will start to pick up pace, and with it the demand for meat. Further, the red meat supply was much higher in 2024 than previous years, contributing to lower prices.”

Mare added that supply had also stabilised and might even decrease a bit in 2025, which together with the higher local demand and increasing exports, will help to positively influence prices.

“Major challenges we faced include Foot Mouth Disease (FMD), high input costs and low producer prices, and the continuing drought in certain regions,” he said.

“I think it is important to realise that FMD is still, and will be, with us. Although FMD remains as State Controlled Disease, there is nowadays better cooperation between government organised agriculture and the private sector to manage and communicate outbreaks.”

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