Moving from ‘cheap’ to premium beef

Wagyu South Africa is investing heavily in research and technology to ensure that South African beef can enter the lucrative, high-value beef export markets.

The Farmer’s Weekly article, ‘2020 and beyond: a vision for the South African beef industry’ ( 15 September 2017), explained that if the country’s beef industry wanted to become a serious global player, it needed to export at least 10% of its meat production, as well as focus on high-value cuts, rather than cheap commodity products.

It added that South African beef is, on average, 30% cheaper than that of its international competitors, such as the US and Australia, and that its prices can be compared to Pakistan or other emerging markets in which foot-and-mouth disease (FMD) is the norm.

The industry, it was argued, needed to “take ownership” to fund itself properly through an increased levy, and invest in traceability and research and development projects, such as meat grading in its classification system.

While South Africa has made some gains in the export of beef, much can still be done. Between 2001 and 2010, South Africa exported less than 5 000t of meat (frozen and fresh). In 2012, exports of fresh beef jumped to 10 000t and peaked at 20 000t in 2016. For this trend to continue, interventions are required.

A WORLD STAGE

When a number of Wagyu South Africa’s breeders visited Gulfood in Dubai last month, they received a reality check.

Gulfood is the world’s biggest annual food, beverage and hospitality expo; it is host to over 5 000 exhibitors and attracts more than 100 000 visitors. The large meat-producing countries use Gulfood to exhibit the best that they have to offer. Australia, New Zealand, the UK and Ireland have large pavilions to exhibit their meat and associated meat products. Umbrella bodies, which collectively market the product, draw attention to the high standards they have in their respective countries; these include full traceability (from birth to slaughter), grading systems that measure marbling, and hence juiciness and taste, and significant research and development in their industries and product.

ANIMAL DISEASE

To get into the high-value export markets will require an improved rating of South

offered by competitor countries, and Wagyu South Africa firmly believes that this differentiates South African Wagyu beef from its competitors over the long run.

RESEARCH

Most leading businesses realise that to make progress, one has to be prepared to invest in one’s own industry. Industries as a whole need to get away from the notion that they can always look to government for support. Reports from the Food and Agriculture Organization of the United Nations and World Bank clearly show that governments’ spend on research and development (R&D) has declined markedly all over the world, and industries generally now fund the bulk of R&D spending.

SOUTH AFRICA’S HIGH-VALUE BEEF DESERVES TO DEMAND A PREMIUM PRICE

PHOTOS: SUPPLIED ABOVE: Elandri de Bruyn, financial officer at Wagyu South Africa, demonstrates the Wagyu MIJ camera, which accurately measures the marbling and rib-eye area of a cattle carcass.