South Africa's beef exports expected to rise as demand from China rises

The Beefmaster Group is optimistic about the future of the South African beef industry following promising trade talks with China, the company announced at a South African Business Forum in Beijing. “Although South Africa already exports beef to China, deepening relations between South Africa and China could lead to a further 50% increase in beef exports next year,” said Louw van Reenen, CEO of the Beefmaster Group.

The photo shows Louw van Reenen of the Beefmaster Group and Parks Tau, Minister of Trade, Industry and Competition, during an official state visit to 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 relations.

“This mission was critical for us to increase opportunities for beef exports between the two markets and to ensure that all stakeholders – especially our primary producers – benefit from improved trade agreements during these difficult economic times. Given the current tight economic conditions, cattle farmers are struggling,” said van Reenen.

SA's growing beef export market

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

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

“Exports and market access for South African beef are important levers to stimulate economic growth. We are proud to play an important role in global food security by supplying China with our premium beef products. We thank the government for its relentless focus on building and leveraging trade relationships with China,” said van Reenen, adding that the Beefmaster Group views China as a strategic market.

China's rising demand for beef

Beef consumption in China – the world's second-largest market – is expected to grow moderately in 2025, according to the latest report from the Foreign Agricultural Service (FAS) of the United States Department of Agriculture (USDA). Although the Chinese beef market is growing in terms of both production and consumption (the country produced 7.5 million tonnes of beef in 2023 and increased imports to meet rising demand (11 million tonnes), demand is expected to grow by 0.4% in 2024.

Van Reenen said even a slight increase in demand would be extremely beneficial 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 as we need more exports to pull the South African beef industry out of the doldrums.”

The Beefmaster Group exports products to various regions of the world and said 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 into this Middle Eastern market and providing a welcome boost to the South African beef industry.