A PROFILE OF THE SOUTH AFRICAN BEEF MARKET VALUE CHAIN

Transcription

1 A PROFILE OF THE SOUTH AFRICAN BEEF MARKET VALUE CHAIN 2011 Directorate Marketing Private Bag X 15 Arcadia 0007 Tel: /6 Fax: MorokoloB@daff.gov.za 1

2 1. DESCRIPTION OF THE INDUSTRY Production Areas Production Trends 1.3. Local Consumption 1.4. Employment 2. MARKET STRUCTURE 2.1. Domestic Market 2.2. Import Export Analysis Exports Share Analysis Imports. 3. BEEF MARKET VALUE CHAIN 4. MARKET INTELLIGENCE Export tariffs Import tariffs. 5. PERFORMANCE OF SOUTH AFRICAN BEEF INDUSTRY IN Exports Imports. 6. ACKNOWLEDGEMENTS/ REFERENCES

3 1. DESCRIPTION OF THE INDUSTRY The livestock sector is one of the best growing parts of the agricultural economy, driven by income growth and supported technological and structural change. This sector contributes 40 percent of global value of agricultural output and supports the livelihoods and food security of almost billion people. Beyond their role in generating food and income, livestock are a valuable asset, serving as a store of wealth, collateral for credit an essential security net during calamitous times. Globally, livestock contribute 15 percent of total food energy and 25 percent of dietary protein. In South Africa, stock farming is the only viable agricultural activity in a large part of the country. Approximately 69% of South African agricultural land is used for extensive grazing. Cattle production have increased by nearly 1 million heads from 12.6 million in 1994 to 13.5 million in 2004 and areas for grazing declined owing to expanding human settlements and other activities such as mining, crops, forestry and conservation. Beef cattle producers vary from highly sophisticated commercial (who rely on high technology) to communal subsistence producers (who rely on indigenous knowledge and appropriate technology). Three major groups of beef cattle farmers co-exist in South Africa. The commercial beef producer (mostly white farmers) where production is relatively high and comparable to developed countries. Their production is generally based on synthetic breeds and/or crossbreeding, using Indicus / Sanga types and their crosses as dams. The emerging black beef cattle farmer who own or lease land (LRAD beneficiaries). Their cattle generally consist of indigenous crossbred or exotic type of animals. The communal beef cattle farmer who farm on communal grazing land. Their cattle are mostly of indigenous types. 60% of the 14.1 million cattle available in South Africa are owned by commercial farmers and 40% by emerging and communal farmers. The gross value of beef production is dependent on the number of cattle slaughtered and the prices received by producers from abattoirs. The average gross value of beef produced during the period 2000/01 until 2009/10 amounted to R 8, 880,844. Figure 1 below show the gross value of cattle and calves slaughtered during the period 2000/01 until 2009/10. 3

4 R'000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Figure 1: Gross Value of cattle and calves slaughtered 2000/ / / / / / / / / /10 Years Source: Statistics and Economic Analysis Production Areas Beef is produced throughout South Africa. The amount of beef produced depends on the infrastructure such as feedlots and abattoirs, not necessarily by the number of cattle available in those areas. South Africa has highly developed transport infrastructure that allows movement of cattle and calves from one area to another, even from other countries such as Namibia. For these reasons, Mpumalanga commands the greatest share of beef production in South Africa accounting for 22% of the beef produced in 2010 followed by Free State, Gauteng and North West accounting for 19%, 13% and 12% respectively. Figure 2 below shows the beef production per province during 2010 production year. Figure 2: Beef Production per Province 2010 Mpumalanga 22% Eastern Cape 6% Gauteng 13% Kwazulu-Natal 11% Free State 19% Western Cape 5% Limpopo 6% North West 12% Northern Cape 6% Source: Red Meat Levy Admin 4

5 1.2. Production Trends South Africa has approximately 495 abattoirs. Approximately 40% of all slaughtering are performed by abattoirs that may slaughter an unlimited number of animals (Class A) and approximately 60% of cattle are slaughtered by highly regulated abattoirs (Class A & B). Most of these abattoirs have linkages with feedlots. Over the past ten years the number of cattle slaughtered has significantly increased by 26% leading to 59% increase in beef production. This may be due to increasing demand. Figure 3 below show the slaughtering of cattle and production of beef during the period 2000/01 until 2009/10. 1,000,000,000 Figure 3: Cattle slaughtering and beef production 4,000,000 Kilograms 800,000, ,000, ,000, ,000,000 3,000,000 2,000,000 1,000,000 Cattle per head / / / / / /06 Years 2006/ / / /10 Production Slaughtering Source: Statistics and Economic Analysis. Figure 3 above shows that slaughtering and production of beef follows the same trend. Both increased significantly in 2005/06 to 2006/07 but declined in 2007/08 and increased again during 2009/10. This decline might have been caused by global economic meltdown. An increase of 59% in production and 589,000 of number of cattle slaughtered was experienced in 2009/10 compared to 2000/ Local Consumption Figure 4 shows the local consumption of beef comparing it to total production for each year to determine if the country is self-sufficient in terms of beef production. 5

6 1,000,000,000 Figure 4: Beef production vs consumption 800,000,000 Kilograms 600,000, ,000, ,000, / / / / /05 Years 2005/ / / / /10 Production Consumption Source: Statistics and Economic Analysis. Figure 4 indicates that South Africa is not self- sufficient because beef consumption was higher than beef production throughout the period under analysis. Both production and consumption followed the same trend, they moved on an increasing trend from 2000/01 to 2006/07 and decreased during 2007/08. The declined during 2007/08 to 2008/09 was due to the global economic meltdown which led to a decreased disposable income of larger number of consumers. During 2009/10 beef production and consumption experienced some increases because the global economic meltdown started to ease and it is also due to the FIFA world cup which was hosted in South Africa. There was an increase of 54% in consumption during 2009/10 compared to 2000/01. Table 1 below shows that South Africa does not produce enough beef for the domestic market even if the number of cattle slaughtered has increased considerably from 2000/01 to 2009/10. Table 1: Total cattle slaughtering, production and consumption of beef Cattle Slaughtering Production Consumption Year Head Kilograms Kilograms 2000/01 2,302, ,000, ,000, /02 2,510, ,000, ,000, /03 2,535, ,000, ,000, /04 2,599, ,000, ,000, /05 2,671, ,000, ,000, /06 2,972, ,500, ,000, /07 3,077, ,700, ,000, /08 2,781, ,600, ,000, /09 2,910, ,800, ,000, /10 2,891, ,200, ,000,000 Source: Statistics and Economic Analysis. 6

7 1.4. Employment Commercial farmers are estimated at , emerging farmers at and communal farmers 3 million. There are approximately 70 feedlots in South Africa and 495 abattoirs. Beef industry is a major employer with people employed and dependent on the livestock industry for their livelihood. 2. MARKET STRUCTURE 2.1. Domestic Market The red meat industry evolved from a highly regulated environment to one that is totally deregulated today. Various policies, such as the distinction between controlled and uncontrolled areas, compulsory levies payable by producers, restrictions on the establishment of abattoirs, the compulsory auctioning of carcasses according to grade and mass in controlled areas, the supply control via permits and quotas, the setting of floor prices, removal scheme, etc., characterised the red meat industry before deregulation commenced in the early 1990s. Since the deregulation of the agricultural marketing dispensation in 1997, the prices in the red meat industry are determined by demand and supply forces. Average producer prices of beef from 2000/01 to 2009/10 are illustrated in Figure Figure 5: Average beef producer prices Rands/kg / / / / /05 Years 2005/ / / / /10 Source: Statistics and Economic Analysis. Figure 5 shows that prices of beef increased significantly from 2000/01 to 2009/10 mainly due to increased consumption caused by rising living standards of larger number of consumers and low domestic production. There was an increase of R13.79/Kg in 2009/10 compared to 2000/01. The market players in the beef industry are vertically integrated. They have their own feedlots, abattoirs, processors and distributors. Figure 6 below is a graphical representation of the market players. 7

8 SMMES's / Emerging / Subsistence 23% Figure 6: M arket share in the beef industry Chalmar 5% SIS 8% Karan Beef 25% Bull Brand 12% Beefcor 4% Beef Master 10% Sparta Beef 7% EAC Group 6% Source: SAMIC The chart shows that 77% of the beef market share is in the hands of 8 suppliers. The remaining 23% is owned by small, medium and micro enterprises. Karan Beef is the largest supplier commanding 25% of the total market share and Bull Brand is second with 12% market share Import Export Analysis Figure 7 compares volumes of imports and exports for beef from 2001 to ,000,000 Figure 7: Beef exports and imports quantities 20,000,000 Kilograms 15,000,000 10,000,000 5,000, Years Export quantities Import quantities Source: Quantec EasyData. 8

9 Figure 7 indicates that South Africa s exports of beef were higher than imports in 2001 and This was due to weaker Rand that stimulated exports of beef from South Africa and neighboring countries to the European Union and Asia. There was a decrease of 59% in the year 2010 compared to From 2003 to 2010 imports of beef were far greater than exports. This was triggered by the increased domestic demand Exports South Africa exported 3,986,948 million kilograms of beef in 2010 yielding an export value of R 156 million. There was a decrease of 59% of quantity of beef exported and an increase of 54% of export value in 2010 compared to The quantity and the value for exports of beef are shown in Figure 8 below. Figure 8: Beef exports Quantity (Kg) 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, ,000, ,000, ,000, ,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Value (Rands) Years Export Quantity Export Value Source: Quantec EasyData. Figure 8 indicates that the beef exports quantity increased significantly in 2002 and continued decreasing in a fluctuating trend and reached its deep decrease in The export value of beef fluctuated from 2001 to 2005 before moving in an increasing trend from 2006 to Figure 9 below shows the main export market to different continents. 9

10 8,000,000 Figure 9: Beef export quantities to the continents Kilograms 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, Years Africa Americas Asia Europe Source: Quantec EasyData. South Africa was mainly exporting to Africa, mainly SADC and European Union (EU) throughout the period under analysis. EU commanded the highest exports of beef from South Africa from the year 2001 to 2004 and from 2005 to 2010 Africa commanded the highest beef exports quantity. Americas commanded the lowest beef exports quantity during the period under analysis. The following figure 10 to 14 gives an indication of where within the continents (Africa, Europe, Asia and Oceania) is beef from South Africa obtained. 10

11 Kilograms 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , Source: Quantec EasyData Figure 10: Beef export quantities to SADC Angola Mauritius Mozambique United Republic of Tanzania Zimbabwe Years Democratic Republic of the Congo Malawi Seychelles Zambia Figure 10 displays that beef produced in South Africa was mainly exported to Mozambique which has commanded the highest beef exports throughout the decade except in 2002 and 2008 only. During those periods (2002 & 2008) Angola took the lead, which made it the second country to obtain the highest beef exports from South Africa. 180,000 Figure 11: Beef export quantities to Western Africa 160, ,000 Kilograms 120, ,000 80,000 60,000 40,000 20, Years Côte d'ivoire Ghana Nigeria Saint Helena Source: Quantec EasyData. It is clearly indicated from figure 11 above that South African beef is exported to Nigeria in the western Africa followed by Ghana and Saint Helena throughout the decade. In 2003 both Nigeria and Ghana reached a peak of Kg and Kg of South African beef respectively. 11

12 350,000 Figure 12: Beef export quantities to Middle and North Africa 300,000 Kilograms 250, , , ,000 50, Years Congo Egypt Gabon Source: Quantec EasyData. In the Middle and Eastern Africa, Gabon commanded the highest beef from South Africa from 2000 to 2008 and its quantity exported was depreciating. During the same periods Congo commanded the second highest of beef exported from South Africa. Egypt which is from Northern Africa experienced a sharp increase and became the highest commander of beef exports quantity from South Africa during 2009 to Kilograms 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 0 Figure 13: Beef export quantities to EU Years Belgium Germany Netherlands Source: Quantec EasyData. It is clearly indicated from figure 13 above that, from 2001 to 2004 and also in 2007 to 2008 beef from South Africa was mainly exported to Germany in the European Union countries. Netherlands commanded the highest exports during 2009 to There were some intermittent exports to Belgium during the period under analysis 12

13 Kilograms 500, , , , , , , , ,000 50,000 0 Figure 14: Beef export quantities to Asia Years United Arab Emirates Bahrain Hong Kong Kuw ait Qatar Source: Quantec EasyData. Kuwait commanded the highest share during the periods 2001 to 2003 and 2009 followed by United Arab Emirates which commanded the highest beef exports from 2004 to There were some intermittent beef exports among Bahrain, Hong Kong and Qatar throughout the period under analysis and Qatar experienced the highest commander during Generally, exports of beef to Asia were very minimal during Figure 15: Beef exports destinations in 2010 Mozam bique 36% Nigeria 4% Ghana 3% Gabon 3% Egypt 8% Source: Quantec EasyData. Democratic Republic of the Congo 12% Angola 18% Netherlands 5% Zimbabwe 4% Not allocated 7% The main destination of South African beef is in Mozambique which commanded 36% of South African beef during 2010 followed by Angola with 18% then Democratic Republic of Congo with 12%. The three SADC countries are the net importers because together they constitute 66%, the other six countries share 27% and 7% is unallocated. Values of beef exports from various provinces of South Africa are presented in Figure

14 Figure 16: Value of beef exports by Provinces 180, ,000 Thousand Rands 140, , ,000 80,000 60,000 40,000 20, Years Western Cape Eastern Cape Northern Cape Free State Kwazulu-Natal North West Gauteng Mpumalanga Limpopo Source: Quantec EasyData. Figure 16 indicates that Gauteng have recorded high export values of beef between the periods 2001 and This is mainly due to the fact that most exporters of beef are situated in Gauteng Province and the greatest proportion of beef was exported to neighboring countries and Gauteng Province is the main exit point. Exports of beef were also recorded in Western Cape, Northern Cape, Mpumalanga, Mpumalanga and Northern Cape provinces. The following figures (Figures 17-25) show the value of beef exports from the various district municipalities in the nine provinces of South Africa. Rands Figure 17: Value of beef exports from Western Cape Province 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 Years City of Cape Tow n 38,836,192 30,710,406 25,770,894 20,038,961 11,916,499 34,190,690 23,908,967 57,692,806 81,773,297 38,121,020 West Coast , , Cape Winelands , Eden 5,533,776 2,075,610 5,628 2, ,488, Source: Quantec EasyData. 14

15 In the Western Cape, regular exports of beef were recorded mainly in the City of Cape Town metropolitan municipalities. City of Cape Town metropolitan municipality recorded high export values throughout the period under analysis with the lowest level of approximately R 12 Million in 2005 and experienced the highest value of R 82 million during This is due to the fact that the City of Cape Town is the main exit point in the province. Rands Figure 18: Value of beef exports from Eastern Cape 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Years Cacadu 1,459,724 7,467, , , Nelson Mandela 3,029, ,026 2,297,462 8,539,123 1,992,090 1, , Source: Quantec EasyData. In the Eastern Cape Province, beef exports were recorded from Cacadu district municipality and Nelson Mandela metropolitan municipality. The highest export value was recorded in Cacadu district municipality during 2002 and from Nelson Mandela metropolitan municipality during 2003 to 2007 and experienced the peak during ,000,000 Figure 19: Value of beef exports from Northern Cape Province 60,000,000 50,000,000 Rands 40,000,000 30,000,000 20,000,000 10,000,000 0 Years Pixley ka Seme 4,253,909 25,178,94 12,326,77 59,176,14 779,864 5,976,317 17,059,11 6,351,411 65,420,84 10,463,22 Siyanda 68, ,138 13, Source: Quantec EasyData. 15

16 The Northern Cape Province has recorded beef exports from two district municipalities namely, the Pixley ka Seme and Siyanda. Pixley ka Seme district municipality dominated the export values of beef from 2001 to ,000 Figure 20: Value of beef exports from Free State Province 700, ,000 Rands 500, , , , ,000 0 Years Lejw eleputsw a , ,394 Thabo Mofutsanyane 0 18, Source: Quantec EasyData Figure 20 indicates that exports of beef from the Free State Province occurred in Lejweleputswa district municipality in 2006 and 2010 while in Thabo Mofutsanyane district municipality exports were recorded only in ,000,000 Figure 21: Value of beef exports from KwaZulu-Natal Province 25,000,000 20,000,000 Rands 15,000,000 10,000,000 5,000,000 0 Years Ugu 0 461,540 1,187, , ,306 1, Uthukela 67,197 20, Uthungulu ,898 1, ethekw ini 2,850,051 8,787,344 12,759,71 1,392,410 7,364,043 14,049,40 21,419,73 6,322,718 7,285,145 27,609,56 Source: Quantec EasyData In the KwaZulu Natal Province, beef exports were mainly from ethekwini metropolitan municipality showing increases in a fluctuation mode from 2001 until 2010 Its lowest exports value was experienced in 2004 and its peak in Ugu district municipality recorded beef export values from 2002 to Tiny export values were recorded in Uthukela and Uthungulu district municipalities during 2001 to

17 Rands 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Years Figure 22: Value of beef exports from North West Province Bojanala 11, , Bophirima ,377,271 16,672,268 Southern , ,407 Source: Quantec EasyData In North West Province beef exports recorded through Bojanala, Bophirima and Southern district municipalities. Bojanala district municipality recorded the beef exports value during 2001 to 2002, while Bophirima and Southern district municipalities recorded their beef exports values during 2009 to 2010 and during those periods Bophirima district commanded the highest shares. There were no exports value of beef recorded from North West province from 2003 to Rands 160,000, ,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Years Figure 23: Value of beef exports from Gauteng Province Sedibeng 0 97,870 10,828,590 18,031,243 5,980,048 2,241,123 1,990, ,394,482 63,085 Metsw eding ,319 West Rand 21,404,982 30,172,922 30,598,166 1,591,145 56,613,765 49,627,197 45,411,449 1,325,623 5,732,873 10,564,589 Ekurhuleni 13,732,923 7,009,957 11,723,514 14,501,768 7,486,148 21,258,608 31,061,511 26,830,641 26,315,823 27,517,368 City of Johannesburg 51,571,381 48,458,351 32,033,894 63,993,951 43,111,236 42,340,732 64,007, ,780,93 114,888,37 80,420,608 City of Tshw ane 34,167,946 82,935,171 20,703,686 41, , ,808 1,494, ,427,949 7,877,535 Source: Quantec EasyData Exports of beef in Gauteng Province were fluctuating among City of Johannesburg, City of Tshwane, West Rand, Ekurhuleni and Sedibeng district municipalities. From 2001 to 2010, all the districts experienced fluctuations in the value of beef exports with City of Johannesburg, City of Tshwane and West Rand competing for dominance. 17

18 Figure 24: Value of beef exports from Mpumalanga Province 80,000,000 70,000,000 60,000,000 Rands 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 Years Gert Sibande 24,033,14318,369,72437,514,88769,552,434 3,411,820 3,828,349 2,889,031 33,128,92342,504,03835,017,217 Nkangala 8,910 19, , , ,998 1,630,903 Ehlanzeni 990, ,618 10,405,712 3,386,427 6,061, ,088 2,459, ,401,618 54,371,061 Source: Quantec EasyData. In Mpumalanga Province, Gert Sibande, Nkangala and Ehlanzeni district municipalities have played an important role in the export of beef during the period under review. Gert Sibande commanded the highest market shares during the periods 2001 to 2004, 2005 and 2008 to Ehlanzeni district commanded the highest market shares during 2005 and Irregular exports were recorded from Nkangala district municipality. 300,000 Figure 25: Value of beef exports from Limpopo Province Rands 250, , , ,000 50,000 0 Years Mopani , , Vhembe ,615 42,862 Capricorn ,928 Waterberg 0 250, , Source: Quantec EasyData. Irregular exports of beef in the Limpopo Province fluctuated among Mopani, Vhembe, Capricorn and Waterberg district municipalities from 2001 to The highest export values were recorded from Waterberg district municipality during the period 2002 to There were no exports of beef recorded from Limpopo province during the periods 2001, 2004 and 2006 to

19 Share Analysis. Table 2: Share of provincial beef exports by South Africa (%) Year Province Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal North West Gauteng Mpumalanga Limpopo Total Source: Calculated from Quantec EasyData. From Table 2 above, Gauteng Province commands the greatest share of South Africa s beef exports followed by Western Cape Province. This is mainly due to the fact that most exporters of beef are situated in Gauteng Province and the greatest proportion of beef was exported to neighboring countries and Gauteng Province is the main exit point. Northern Cape, KwaZulu Natal, Eastern Cape and Mpumalanga provinces were regular exporters while Free State, North West and Limpopo registered fractional exports of beef. The following Tables 3 to 11 shows a share of the various district municipalities beef exports to the various provincial beef exports. Table 3: Share of district beef exports to the total Western Cape provincial beef exports (%) Year District City of Cape Town West Coast Cape Winelands Eden Total Source: Calculated from Quantec EasyData. City of Cape Town district municipality has commanded the greatest share of beef exports in Western Cape Province during the period 2001 and During the same period, Eden, West Coast and Cape Winelands district municipalities recorded intermittent exports of beef. Table 4: Share of district beef exports to the total Eastern Cape provincial beef exports (%) Year District Cacadu Nelson Mandela Total Source: Calculated from Quantec EasyData. 19

20 In Eastern Cape Province exports of beef were recorded from Cacadu district municipality and Nelson Mandela metropolitan municipality. There were no exports reported from Eastern Cape during the periods 2008 and Table 5: Share of district beef exports to Northern Cape provincial beef exports (%) Year District Pixley ka Seme Siyanda Total Source: Calculated from Quantec EasyData. From Northern Cape Province, Pixley ka Seme district municipality commanded the greatest shares of beef exports. From 2005 to 2010 it commanded 100%. Siyanda recorded some beef exports during the periods 2001 and 2003 to 2004 and diminished thereafter. Table 6: Share of district beef exports to the total Free State provincial beef exports (%) Year District Lejweleputswa Thabo Mofutsanyane Total Source: Calculated from Quantec EasyData. Table 6 shows that exports of beef in Free State Province occurred from the Lejweleputswa district municipality in 2006 & 2010 and Thabo Mofutsanyane district municipality in 2002 only. Table 7: Share of district beef exports to the total KwaZulu Natal provincial beef exports (%) Year District Ugu Uthukela Uthungulu ethekwini Total Source: Calculated from Quantec EasyData From KwaZulu-Natal province, ethekwini district municipality has commanded the greatest share of beef exports from 2001 to Intermittent beef exports also occurred in Ugu district municipality in 2002 to 2006 and in Uthukela district from 2001 to Uthungulu district municipality exported beef from 2004 to 2005 and diminished thereafter. Table 8: Share of district beef exports to the total North West provincial beef exports (%) Year District Bojanala Southern Bophirima Total Source: Calculated from Quantec EasyData. 20

21 Bojanala district municipality in the North West Province commanded 100% share of all beef exports from 2001 to From 2003 to 2008 exports of beef diminished entirely from the North West Province and were recorded again in 2009 to 2010 from Southern and Bophirima district municipalities. Table 9: Share of district beef exports to the total Gauteng provincial beef exports (%) Year District Sedibeng Metsweding West Rand Ekurhuleni City of Johannesburg City of Tshwane Total Source: Calculated from Quantec EasyData. In Gauteng Province beef exports occurred mainly through the City of Johannesburg, Ekurhuleni, West Rand and City of Tshwane district municipalities. Fractional exports were recorded from Metsweding and Sedibeng district municipalities. City of Johannesburg commanded more than 50% during the periods 2004 and 2008 to Table 10: Share of district beef exports to the total Mpumalanga provincial beef exports (%) Year District Gert Sibande Nkangala Ehlanzeni Total Source: Calculated from Quantec EasyData. From Mpumalanga Province, Gert Sibande district municipality has commanded the greatest share of beef exports from 2001 to 2010 followed by the Ehlanzeni district municipality. Fractional exports of beef were recorded from Nkangala district municipality during the year 2001 to 2002 and 2007 to Table 11: Share of district beef exports to the total Limpopo provincial beef exports (%) Year District Mopani Vhembe Capricorn Waterberg Total Source: Calculated from Quantec EasyData. From Limpopo Province, exports of beef occurred during the periods 2002 to 2003 from Mopani and Waterberg district municipalities, 2005 from Mopani district municipality and from the Vhembe and Capricorn district municipalities. 21

22 Imports. South Africa imported approximately 6 million kilograms of beef in 2010 at an estimated value of R 87 million. The import quantity showed a significant decline of 39% in 2010 compared to These declines might have been caused by global economic meltdown that occurred from August Figure 26 below show the imports of beef from 2001 to ,000,000 Figure 26: Beef imports 250,000,000 20,000, ,000,000 Kilograms 15,000,000 10,000,000 5,000, ,000, ,000,000 50,000,000 Rands Years Quantity Value Source: Quantec EasyData. The imports value and quantity of beef followed the same trend throughout the previous decade. Both reached the lowest level in 2001 and 2002 before increasing steadily from 2003 to In general beef imports increased by 10% in 2010 compared to Figure 27 below show the main suppliers of beef from other continents during the period 2001 to

23 25,000,000 Figure 27: Quantity of beef imported from Continents 20,000,000 Kilograms 15,000,000 10,000,000 5,000, Years Africa Americas Asia Europe Oceania Source: Quantec EasyData. Figure 27 above indicates that the main supplier of beef to South Africa is America from 2002 to The beef quantity from America has been increasing from the year 2002 to 2005; it remained the main supplier though it decreased from 2006 to There were some recorded intermittent imports of beef among Asia, Oceania, Europe, and Africa during the period under review. The following Figures 28 to 29 indicate the origins of beef in America and Oceania. 12,000,000 Figure 28: Quantity of beef imported from South America 10,000,000 Kilograms 8,000,000 6,000,000 4,000,000 2,000, Years Argentina Brazil Paraguay Uruguay Source: Quantec EasyData. Figure 28 clearly indicates that the highest quantities of beef imports in South America originated from Brazil, Uruguay, Argentina and Paraguay and have been competing for dominance throughout the period under analysis. Brazil reached the peak in 2005, Uruguay in 2006 and Paraguay in

24 3,500,000 Figure 29: Quantity of beef imported from Oceania 3,000,000 Kilograms 2,500,000 2,000,000 1,500,000 1,000, , Years Australia New Zealand Source: Quantec EasyData. In Oceania, Australia has been the main importer of beef to South Africa during the period under analysis and it reached its peak of 3 million kg during New Zealand commanded the second highest level of beef imports from 2001 to Figure 30: Countries of origin for beef imports in 2010 Uruguay 36% Argentina 4% Australia 38% Paraguay 9% New Zealand 6% Ireland 7% Source: Quantec EasyData. Figure 30 above shows the share of various suppliers of beef to South Africa in Australia commanded 38% share of South Africa s import market of beef followed by Uruguay commanding up to 36%, Paraguay 9%, Ireland 6%, New Zealand 6% and Argentina 4%. 24

25 3. BEEF MARKET VALUE CHAIN Beef market value chain is illustrated on Figure 31. Figure 31: South African Beef Market Value Chain 48.6 million Consumers Per capita consumption = kg / year Affluent consumers (Premium beef markets) million kg produced 46 million kg imported 4 million kg exported Under Privileged Consumers Meat Processors (495 Abattoirs) Feedlot sector (65 to 70% of cattle slaughtered) Sanga types - 29% Zebu types - 11% British types - 26% European types - 27% Dairy / other - 7% Commercial Producers 11 million cattle with potential to commercialize Local Markets Butchers - 18% Auctions - 41% Festivities - 35% Previously Disadvantaged Groups emerging farmers 3 million subsistence farmers 5, 69 million cattle Source: ARC and Statistics & Economic Analysis It is estimated that there are approximately commercial farmers currently farming with livestock. This includes producers that keep livestock as their main enterprise and those that keep livestock as a secondary 25

26 enterprise. They own around 8.2 million cattle. There are small-scale farmers and 3 million subsistence farmers that own around 5.69 million cattle. The beef supply chain has become increasingly vertically integrated. This integration is mainly fuelled by the feedlot industry where most of the large feedlots own their own abattoirs, or at least have some business interest in certain abattoirs. In addition, some feedlots have integrated further down the value chain and sell directly to consumers through their own retail outlets. Some abattoirs have also started to integrate vertically towards the wholesale level. Under the previous marketing regime, wholesalers mostly bought carcasses through the auction system. Currently, many wholesalers source live slaughter animals (not weaners) directly from farmers or feedlots on a bid and offer basis, i.e. they take ownership of the animal before the animal is slaughtered. The animal is then slaughtered at an abattoir of the wholesaler s choice, where after the carcass is distributed to retailers. In some instances, the public can also buy carcasses directly from wholesalers. The abattoir industry has expanded tremendously in number and in capacity. In this regard, it is important to note that this industry can be divided into those abattoirs that (i) are linked to the feedlot sector and the wholesale sector, or are owned by municipalities and (ii) those that are mainly owned by farmers and SMME s. The former abattoirs are mainly class A and B abattoirs, whereas the latter are usually classified as C, D and E class abattoirs. The beef industry produces around tons of meat and imports around tons while exporting tons. Per capita consumption is around kg and number of consumers is around 48.6 million. Table 12 below shows the industry role players. 26

27 Table 12: Industry role players No. Name Description Contact Details 1 AUSTIN EVANS FEEDLOT Feedlot P O Box 397, Somerset East, 5850 T : (042) F : (042) ADAM AGRI Feedlot PO Box 75, Colesberg, 9795 T: (051) F: (051) BEEFCOR It is situated east of Pretoria. It owns and operates the Bayview Feedlot, Boskop Ranch and Beefcor Wholesale. The feedlot carries head and markets between and head annually, most of which are distributed in Gauteng. The company also has a 20% share in Hidskin Processors and a 25% share in Chamdor Abattoir. 4 BEEFMASTER It is a private, family owned business situated 10 km from Christiana, in the North-West province. The feedlot carry around cattle standing at any given time. It currently supplies approximately 10% of the country s beef and with its geographic position delivers to all nine provinces within 24 hours. 5 Bull Brand It is owned by Bull Brand - integrated Meat Company situated in Krugersdorp. It has fresh meat production process-abattoir, deboning, added value department and canning. They own two feedlots in Potchefstroom and Magaliesberg and they both carry heads of cattle at any point in time. 6 BRAAMS VOERKRALE BK P O Box 187, Bronkhorstspruit, 1020 T : (013) F : (013) P O Box 425, Christiana, 2680 T : (053) F : (053) Feedlot P O Box 158, Durbanville, 7551 T : (021) F : (021) CB FEEDLOT Feedlot P O Box 44, Reitz, 9810 T: (058) F : (058) CHALMAR BEEF It is situated in Bronkhorspruit. Its feedlot carries head of cattle standing at any given time. When the new abattoir and de-boning facility opened for business in 2003, Chalmar beef became fully integrated. P O Box , Wingate Park, 0153 T : (011) F : (011)

28 No. Name Description Contact Details 9 D C LOUW FEEDLOT Feedlot P O Box 56, Adelaide, 5760 T : (046) F : (046) DOORNBULT VOERKRALE (Pty) Ltd Feedlot P O Box 13, Ladanna, 0704 T : (015) F : (015) EAC Group Started by Claassen 40 years back. In 1986, joined the force with two shareholders and started Midland meat factory. They have distribution network in Kwazulu Natal. Four modern abattoirs operate from Wolwehoek, Harrismith, Vereeniging and Frankfort. All three feedlots are situated in the calf weaner and lamb weaner producing areas and they carry cattle at any specific time. The feedlots thus form an ideal marketing channel for weaner producers. 12 FORTRESS BONSMARAS It is situated 12 km north-west of Frankfort, Free State. It is a beautiful farm (2.925 ha) and the capacity of the feedlot is about 6000 weaners of Bonsmara or Bonsmara-cross per annum. 13 KAMEELDRIFT VOERKRAAL Feedlot 28 P O Box 630, Frankfort, 9830 T : (011) F : (011) F : PO Box 15648, Kameeldrift Oos T: F: KANHYM ESTATES LTD. Feedlot P O Box 89, Middelburg, 1050 T : (013) /3 F : (013) Karan Beef It is a family business situated at Heidelberg, south of Johannesburg. It operates feedlot, feed mill, abattoir and meat processing. The feedlot accommodates over head of cattle - making the Karan Beef feedlot the largest in Africa. The abattoir has the capacity to process up to head of cattle every day. PO Box 53, Heidelberg, 1438, RSA Tel: Fax: feedlot@karanbeef.com 16 KELLERMAN BOERDERY Feedlot P O Box 74,Koringberg,7312 T : F: (021) KLEYNFAAN FEEDLOT Feedlot P O Box 169, Vryheid, 3100

29 No. Name Description Contact Details T : (034) F : KOODOOLAKE Feedlot P O Box 275, Stella, 8650 T : F : KOREM FARM Feedlot PO Box 58893, Karenpark, 0118 T : F : LIEBENBERGSTROOM VOERKRAAL BPK Feedlot P O Box 130, Edenville, 9535 T : (056) F : (056) MANJOH RANCH Feedlot P O Box 1052, Nigel, 1490 T : (011) F : (011) /3/4 F : (011) MADIKOR Feedlot P O Box 1050,Louis Trichardt,0920 T : (015) F : (015) / MIKRON BOERDERY Feedlot PO Box 357, Bultfontein, 9670 T: F: MLEKI`S BEEF Feedlot Postnet Suite 327, Private Bag x 2020 Isando, 1600 T: F: C: MUSHLENDOW Feedlot P O Box 357, Koster, 0348 T : (014) F : (014) MVB FEEDERS Feedlot P O Box 848, Louis Trichardt, 0920 T : (015) F : (015)

30 No. Name Description Contact Details 27 PIET WARREN PLASE Feedlot P O Box 1, Gravelotte, 0895 T : (015) F : (015) POPPIELAND TRUST Feedlot P O Box 9, Bultfontein, 9670 T : (051) F : (051) RANCH ESTATES Feedlot P O Box 1270, Delmas, 2210 T : (013) F : (013) R : (011) SIS FARMING Is located in the Bethal/Ermelo region of the Mpumalanga escarpment. It purchases weaners from other farmers to fatten for subsequent sale and delivery to the Witbank Abattoir. It has cattle standing at any given time. 30 P O Box 201, Bethal, 2310 T (013) F : (013) SKS BOERDERY Feedlot P O Box 348, Middelburg, 1050 T : (013) F : (013) SPARTA BEEF It is a family-owned and operated cattle feedlot and farming concern. The feedlot has around cattle standing at any time. The present operation was established on the farm "Sparta", a sub-division of the farm "Middel " in the Marquard district, during the 1960's. The farm "Middel", has been in the family for over 100 years and since inception, farmed as a family business. Originally mixed farming - cattle, sheep, pigs, plus various crops, such as maize (corn), wheat, oats and potatoes - was practiced on the farm. Sparta Beef expanded its horizons by entering into a joint venture where it tans cattle hides in Butterworth, Eastern Cape. Later, in January 1999, it acquired a large abattoir in Welkom, Northern Free State, with Black Empowerment and other local business interests now known as Sparta Foods (Pty) Ltd. At the beginning of 2001, it started a wholesale department called Sparta Foods in Benoni (Gauteng). P O Box 64, Marquard, 9610 T : (051) F : (051) R : (051) TAAIBOSCHBULT Owned by Bull Brand P O Box 2092, Potchefstroom, 2520

31 No. Name Description Contact Details Pty Ltd T : (018) F : (018) THERON BOERDERY Feedlot Elsonstraat 84, Pretoriawes, 0183 T : (012) F : (012) TRIPLE C FEEDLOT feedlot P O Box 1723, Dundee, 3000 T: (034) F: (034) C: VENCOR Feedlot P O Box 749, Ladanna, 0704 T : (015) F : (015) C : VERCUIEL Feedlot PO Box 245,Stella,8650 T: F: WINDHOEK BOERDERY 39 VERGEZIGHT FEEDLOT Source: SA feedlot Association. Feedlot Feedlot PO Box 387,Pietersburg,0700 T: F: PO Box 1034, Heilbron,9650 T: /2/3 F:

32 4. MARKET INTELLIGENCE Export tariffs. Tariffs that different importing countries applied to beef originating from South Africa in 2010 are shown in Table 13 and 14. Table 13: Export tariffs of beef (fresh or chilled) Country Product Code Trade Regime 2010 Description Applied Total Ad valorem Tariffs Equivalent Tariff (estimated) Angola MFN duties Applied 10.00% 10.00% (Carcasses or half-carcasses of bovine animals, fresh or chilled) MFN duties Applied 0.00% 0.00% Egypt (Carcasses or half-carcasses of bovine animals, fresh or chilled) Gabon MFN duties Applied 20.00% 20.00% (Carcasses or half-carcasses of bovine animals, fresh or chilled) Mozambique Preferential tariff for 15.00% 15.00% (Carcasses or South Africa half-carcasses of bovine animals, fresh or chilled) Nigeria MFN duties Applied 20.00% 20.00% (Carcasses or half-carcasses of bovine animals, fresh or chilled) Source: Market Access Map Table 13 indicates that Gabon from Middle Africa and Nigeria from Western Africa applies the highest tariff rate of 20.00% on beef, fresh or chilled originating from South Africa followed by Mozambique with 15%, Angola with 10% and Egypt which is situated in the North of Africa is the lowest with 0%. 32

33 Table 14: Export tariffs of frozen beef Country Product Code Trade Regime Description Angola Democratic Republic Congo Egypt Ghana Mozambique of (Frozen carcasses and half carcasses) (Frozen carcasses and half carcasses) (Frozen carcasses and half carcasses) (Frozen carcasses and half carcasses) (Frozen carcasses and half carcasses) MFN duties Applied MFN duties Applied MFN duties Applied MFN duties Applied Preferential tariff for South Africa 2010 Applied Total Tariffs valorem Equivalent Tariff (estimated) 10.00% 10.00% 10.00% 10.00% 0.00% 0.00% 20.00% 20.00% 15.00% 15.00% Ad Source: Market Access Map MFN duties Applied 20.00% 20.00% Table 14 above shows that Ghana and Mozambique applies the highest tariff rate of 20.00% on frozen beef of South Africa followed by Mozambique with 15%, Angola and Democratic Republic of Congo with 10%. Egypt does not apply any tariff rate for South African frozen beef. Tables 13 and 14 show that Western Africa s beef market is highly protected relative to other neighboring countries Import tariffs. South Africa applies the MFN import tariff of 40.00% or $ /ton whichever is the greater to all imports of beef excluding Namibia which is a member of SADC. Namibia receives an Intra SACU tariff rate of 0.00% when exporting fresh or chilled beef carcasses and half carcasses to South Africa. South Africa also applies a preferential tariff rate of 0.00% to SADC. Table 15 and 16 below has details. Table 15: Import tariffs of beef, fresh or chilled Country Product Code Trade Regime 2010 Description Applied Tariffs Total Ad valorem Equivalent Tariff (estimated) Argentina (Carcasses or MFN duties 40.00% or 40.00% half-carcasses of bovine Applied $/Ton animals, fresh or chilled) whichever is the Australia Austria (Carcasses or half-carcasses of bovine animals, fresh or chilled) (Carcasses or half-carcasses of bovine MFN duties Applied MFN duties Applied greater 40.00% or $/Ton whichever is the greater 40.00% or $/Ton 40.00% 40.00% 33

34 Country Product Code Trade Regime 2010 Description Applied Tariffs Total Ad valorem Equivalent Tariff (estimated) animals, fresh or chilled) whichever is the greater Namibia (Carcasses or half-carcasses of bovine animals, fresh or chilled) Intra SACU rate 0.00% 0.00% Netherlands (Carcasses or MFN duties 40.00% or 40.00% half-carcasses of bovine Applied $/Ton animals, fresh or chilled) whichever is the greater Source: Market Access Map Table 16: Import tariffs of beef, frozen Country Product Code Trade Regime Description Argentina Australia Ireland New Zealand Paraguay Uruguay & Source: Market Access Map (Frozen carcasses and half carcasses) (Frozen carcasses and half carcasses) (Frozen carcasses and half carcasses) (Frozen carcasses and half carcasses) (Frozen carcasses and half carcasses) MFN duties Applied MFN duties Applied MFN duties Applied MFN duties Applied MFN duties Applied 2010 Applied Total Tariffs valorem Equivalent Tariff (estimated) 40.00% or 40.00% $/Ton whichever is the greater 40.00% or 40.00% $/Ton whichever is the greater 40.00% or 40.00% $/Ton whichever is the greater 40.00% or 40.00% $/Ton whichever is the greater 40.00% or 40.00% $/Ton whichever is the greater Ad Table 16 above shows the import tariffs applied by South Africa to the exporting countries of frozen beef. Argentina, Australia, Ireland, New Zealand, Paraguay and Uruguay receive the applied tariff of 40% or $/ton whichever is the greater. Most of South Africa s frozen beef is from South America and Oceania and the same rate applies. 34

35 Importers 5. PERFORMANCE OF SOUTH AFRICAN BEEF INDUSTRY IN Exports. Table 17: List of importing markets for Beef (fresh or chilled) exported by South Africa in 2010 South Africa s export represents 0.07% of world export for the Beef (fresh or chilled); its ranking in world exports is 37. Trade Indicators Exported value 2010 (USD thousand) Trade balance 2010 (USD thousand) Share in South Africa's exports (%) Exported quantity 2010 Quantity unit Unit value (USD/unit) Exported growth in value between (%, p.a.) Exported growth in quantity between (%, p.a.) Exported growth in value between (%, p.a.) Ranking of partner countries in world imports Share of partner countries in world imports (%) Total import growth in value of partner countries between (%, p.a.) Tariff (estimated) faced by South Africa (%) World Tons Mozambique Tons Angola Tons Nigeria Tons Egypt Tons Gabon Tons Ship stores and bunkers Tons Netherlands Tons Source: ITC calculations based on COMTRADE statistics. 35

36 Table 17 shows that during 2010 South Africa exported a total of tons of beef (fresh or chilled) at an average value of US$ 5 543/unit. The major export destinations for beef (fresh or chilled) originating from South Africa during 2010 were Mozambique, Angola, Nigeria and Egypt. Mozambique and Angola are the leading markets for beef (fresh or chilled), accounting for 30.3% and 25.2% respectively of South Africa s export market. On average, during the period 2006 and 2010 South Africa s exports for beef (fresh or chilled) to Mozambique experienced a 70% and 25% increase in value and quantity respectively per annum. During the period 2009 and 2010 its value increased by 113%. Similarly those to Angola increased by 34% in value and 26% in quantity during the period 2006 and South Africa s exports for beef (fresh or chilled) to the world increased in value and in quantity by 10% and 9% respectively during the period 2006 to 2010 and increased by 11% in value between 2009 and

37 37

38 The above chart illustrates that between 2006 and 2010 South Africa s beef (fresh or chilled) exports to United Republic of Tanzania, Gabon, Mauritius and Congo were growing at a rate that is less than their import growth from the rest of the world. Congo and Mauritius represents losses in the declining market with an annual South African export growth of -1% and -10% respectively. Their import growth is -1% and 2% respectively. Republic of Tanzania and Gabon represent gains in the dynamic markets of South Africa fresh or chilled beef exports. South Africa s beef (fresh or chilled) exports to Netherlands, Mozambique, Democratic Republic of Congo (DRC), Angola, Kuwait, Seychelles and Ghana were growing at a rate that is greater than their imports from the rest of the world during the periods 2006 and Netherlands, DRC, Mozambique, Kuwait and Angola represent gains in dynamic markets and Seychelles & Ghana represent gains in the declining market of South African fresh or chilled beef exports. Generally Netherlands is the most growing in demand of South African fresh or chilled beef with an annual growth of 306% 38

39 39

40 The chart above indicates that South Africa s fresh or chilled beef has been mainly exported to Netherlands with a share of 3.27% during If South Africa wishes to diversify its exports of fresh or chilled beef exports, Zimbabwe due to its annual import growth of 233% and DRC with 103% are the alternative markets. South Africa can glance in penetrating these markets because their shares of South African beef exports are both not impressive with 0.53% for Zimbabwe and 2.93% for DRC. 40

41 Table 18: List of importing markets for the Beef (frozen) exported by South Africa in South Africa s export represents 0.07% of world export for frozen beef; its ranking in world exports is 36. Trade Indicators Importers Exported value 2010 (USD thousand) Trade balance 2010 (USD thousand) Share in South Africa's exports (%) Exported quantity 2010 Quantity unit Unit value (USD/unit) Exported growth in value between (%, p.a.) Exported growth in quantity between (%, p.a.) Exported growth in value between (%, p.a.) Ranking of partner countries in world imports Share of partner countries in world imports (%) Total import growth in value of partner countries between (%, p.a.) World Tons Mozambique Tons Democratic Republic of the Congo Tons Angola Tons Ship stores and bunkers Tons Egypt Tons Ghana Tons Germany Tons Mauritius Tons Nigeria Tons Netherlands Tons Zimbabwe Tons Italy Tons Seychelles Tons Congo Tons Gabon Tons Source: ITC calculations based on COMTRADE statistics. 41

42 Table 18 shows that during 2010 South Africa exported a total of tons of frozen beef at an average value of US$ 4 975/unit. The major export destinations for frozen beef originating from South Africa during 2010 were Mozambique with a share of 18.4% followed by DRC with a share of 14.4%. Exports of frozen beef exported by South Africa during the periods 2006 and 2010 experienced an increase of 20% in value and 0% in quantity. During the same periods exports to Mozambique also increased by 20% in value but decreased by 16% in quantity. Between the period 2009 and 2010, South Africa s exports of frozen beef decreased by 17% in value and Mozambique increased by 70%. 42

43 43

44 The chart illustrates that between 2006 and 2010 South Africa s frozen beef exports to Angola was growing at a rate that is less than its import growth from the world. Angola also represents losses in declining market of South African frozen beef. During the same period, South Africa s frozen beef exports to Zambia, Democratic Republic of Congo (DRC), Saint Helena, Mauritius, Gabon, Seychelles, Ghana and Mozambique were growing at a rate that is greater than their imports from the rest of the world. Gabon experienced the highest growing demand of South African frozen beef at a 255% rate followed by Zambia with 193%. 44

45 45

46 The figure shows the prospects for market diversification for beef (frozen) exports by South Africa in South African s frozen beef was mostly exported to Mozambique which commanded market share of 18.53%. If South Africa is to diversify its frozen beef exports, the most attractive market exists in Malawi and Zimbabwe which are the smallest markets in the world but its annual growths are the highest at a rate of 323% and 167% respectively. 46

47 5.2. Imports. Table 19: List of supplying markets for the beef (fresh or chilled) imported by South Africa in 2010 South Africa represents 0% of world imports for beef (fresh or chilled); its ranking in world imports is 115. Trade Indicators Exporters Imported value 2010 (USD thousand ) Trade balance 2010 (USD thousand ) Share in South Africa's import s (%) Importe d quantity 2010 Quantit y unit Unit value (USD/unit ) Importe d growth in value between (%, p.a.) Importe d growth in quantity between (%, p.a.) Importe d growth in value between (%, p.a.) Ranking of partner countrie s in world exports Share of partner countrie s in world exports (%) Total export growth in value of partner countrie s between (%, p.a.) Tariff (estimated ) applied by South Africa (%) World Tons Australia Tons Namibia Tons Netherland s Tons Argentina Austria Belgium Brazil Canada Denmark France Ireland Italy Source: ITC Trade Map. 47

48 Table 19 shows that during 2010 South Africa imported a total of 78 tons of beef (fresh or chilled) at an average value of US$ 5 551/unit. The major origin for beef (fresh or chilled) imported by South Africa during 2010 was Australia which commanded 60% share of the total imports followed by Namibia with a market share of 53%. South Africa s beef (fresh or chilled) imports decreased by 5% in value and 21% in quantity between the periods 2006 and 2010 and increased by 5% between the periods 2009 and 2010 in value. 48

49 49

50 The figure above shows the prospects for diversification of suppliers for fresh or chilled beef imports by South Africa in The analysis shows that Australia commanded the greatest market share of South Africa s fresh or chilled beef imports followed by Namibia during the year If South Africa is to diversify its imports, the most attractive supplier exists in Paraguay and United Kingdom due to their export growth of 38% and 30% respectively. This means South Africa can develop a market in this country because currently South Africa does not export fresh or chilled beef from it. 50

51 Exporters Table 20: List of supplying markets for the beef (frozen); imported by South Africa in South Africa's imports represent 0.09% of world imports for beef (frozen); its ranking in world imports is 70. Trade Indicators Imported value 2010 (USD thousand) Trade balance 2010 (USD thousand) Share in South Africa's imports (%) Imported quantity 2010 Quantity unit Unit value (USD/unit) Imported growth in value between (%, p.a.) Imported growth in quantity between (%, p.a.) Imported growth in value between (%, p.a.) Ranking of partner countries in world exports Share of partner countries in world exports (%) Total export growth in value of partner countries between (%, p.a.) Tariff (estimated) applied by South Africa (%) World Tons Uruguay Tons Australia Tons Paraguay Tons Ireland Tons New Zealand Tons Argentina Tons United Kingdom Tons Brazil Tons India United States of America Angola Bahrain Source: ITC calculations based on COMTRADE statistics. 51

52 Table 20 shows that during 2010 South Africa imported a total of tons of frozen beef at an average value of US$ 1 917/unit. The major origins for frozen beef imported by South Africa during 2010 were Uruguay, Australia and Paraguay. The greatest share of South African frozen beef imports were from Uruguay which commanded 38.8% during the year 2010 followed by Australia which commanded 33.1% and together they constitute 71.9% of South African frozen beef imports. South Africa s frozen beef imports decreased by 22% in value and 25% in quantity between the periods 2006 and During the same period, imports of frozen beef from Uruguay also decreased by 24% in value and 28% in quantity. South Africa s imports for frozen beef decreased by 29% per annum in value during 2009 and Frozen beef imported from Uruguay decreased by 34% while those from Australia increased by 63% in value during the period 2009 and United Kingdom experienced the highest frozen beef import growth of 1100% during 2009 and

53 53