Share

Foot-and-mouth outbreak hits red meat industry

accreditation
Signs and yellow tape around a farm where foot-and-mouth disease was confirmed. Picture: AP Photo/ Kirsty Wigglesworth
Signs and yellow tape around a farm where foot-and-mouth disease was confirmed. Picture: AP Photo/ Kirsty Wigglesworth

The discovery of foot-and-mouth disease in Limpopo is a double whammy for red meat producers that were already feeling the effects of higher livestock feed costs due to dry conditions, which have boosted the price of maize and soya beans – both key ingredients in the making of animal feed.

South Africa’s red meat and related products, such as hides and wool, have been banned by the World Organisation for Animal Health (OIE) since the disease – which affects cloven-hoofed animals – was detected in Sundani in Vhembe district, which borders Zimbabwe, Mozambique and Botswana, on January 7.

Botswana, Namibia, eSwatini and, lately, Zambia and Mozambique, are the Southern African Development Community (SADC) countries that have announced a ban on South African red meat due to the outbreak of foot-and-mouth disease.

However, eSwatini this week said it would partially lift the ban on some meat and dairy products after the South African government provided assurances about products that come from areas free of foot-and-mouth disease.

In a boon for South African consumers, this ban will mean no exports and that local red meat will be restricted to this country only, thus increasing supply and bringing down the price of this product.

Only 50 of the approximately 15 000 cattle examined had been found to be infected, due to contact with buffaloes from the nearby Kruger National Park.

A study conducted in 2017 found that if the country lost its foot-and-mouth disease-free status, the economy would lose about R6 billion a year, according to Business Day.

The country lost its foot-and-mouth disease-free status in 2011 and only regained it in 2014, at a cost of R4 billion to the economy, the report added.

The beef market exports 4% of its products while only 0.6% of sheep products are exported, according to the Red Meat Producers’ Organisation (RPO).

The 4% beef export brought the red meat industry just over R2 billion last year while mutton brought in R39 million.

RPO chief executive officer, Gerhard Schutte, said that no jobs were going to be lost as a result of the ban.

Following assurances that the situation was under control and only a few cattle were infected, there was hope that some countries, which haven’t banned South African red meat due to the outbreak, would still buy local red meat, he added.

“We’re on top of the foot-and-mouth disease, but it’s bad news for us because we have been experiencing a drought so the price of cattle feed is rising,” Schutte said.

foot-and-mouth disease found in Limpopo

He said that the impact of the OIE ban was that meat would be cheap locally.

“Fortunately, we have a high red meat demand locally. The ban means that local production will be 4% higher for beef and this will lower the meat price,” Schutte said.

The ban, said Schutte, will at worst last a year.

“It’s not only meat exports that are affected but also other products such as hides and wool. We could, however, have bi-lateral agreements with the individual countries and continue to sell our products,” he added.

Foot-and-mouth disease is a severe, highly contagious viral disease which affects livestock such as cattle, pigs, sheep and goats.

The disease does not affect human beings.

Signs of the disease may include depressed animals; sores in the mouth of animals, causing reluctance to eat; and lameness.

Agricultural economist, Wandile Sihlobo, said that 2019 would be a challenging year for beef producers.

“One challenge, that became clear by the end of 2018, was environmentally related, as grain- and oilseed-producing areas of the country experienced dryness which led to delays in plantings, thus leading to an increase in agricultural commodity prices, particularly maize.

“Maize and soybeans are key inputs in the livestock sector, hence I viewed an increase in prices as a possible upside risk in the industry. The drier conditions also negatively affected the grazing veld in the western parts of the country, particularly the western Free State and North West.”

Sihlobo said that it was only in the last few days of December 2018 and early January that the affected areas received a bit of rainfall that enabled some farmers to start planting.

“Aside from the weather-related dynamics …the ban will present a challenge for the industry that has taken years to grow its export footprint. The South African beef industry has seen enormous growth in exports over the past couple of years, generating an estimated $144 million (R2 billion) in 2017, according to data from [trade statistics organisation] Trade Map,” he said.

“In terms of volumes, medium-term trends show a sharp increase in overall beef exports, from 8 292 tons in 2001 to 31 888 tons in 2017. Frozen beef exports trebled from 4 740 tons in 2001 to 13 808 tons in 2017. Meanwhile, fresh/chilled beef exports increased fivefold over the same period to 18 080 tons,” Sihlobo explained.

However, he said that the overall financial impact on the industry was still unclear.

Agriculture, forestry and fisheries department spokesperson, Khaye Nkwanyana, said the affected area remained quarantined while a massive vaccination programme had been embarked on.

“The situation is under control and we’re engaging with the markets. We’re telling them that this has no effect on the export market because those cattle belong to subsistence farmers and their meat won’t find its way into the export market,” Nkwanyana said.

South Africa exports red meat to 42 countries in regions such as the SADC, the Middle East, the Far East and Europe.

Included in the top ten destinations for South African frozen beef exports are Lesotho, Mozambique, Angola, Mauritius, eSwatini and Egypt.

In the Far East region, the country exports to Hong Kong, China and Vietnam.

Chilled or fresh beef goes to continental markets such as eSwatini, Mozambique, Lesotho, Namibia and Mauritius, followed by the United Arab Emirates, Kuwait, Jordan, Qatar and China.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Voting Booth
Do you believe that the various planned marches against load shedding will prompt government to bring solutions and resolve the power crisis?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes
21% - 103 votes
No
79% - 390 votes
Vote