Will future powerhouse economies have an appetite for beef?

Design_Miss_C via pixabay

Looking at beef consumption, we find a similar consumption pattern where consumption per capita is expected to grow by 8% in BRICS countries over the next decade. During the same period, beef consumption in Vietnam, Turkey and Pakistan is also expected to increase by 25%, 20% and 16%, respectively.

South Africa exported just over R2bn worth of beef in 2016, making it the 24th largest exporter in world rankings with a global market share of 0.3%. Though the country is a small beef exporter compared to the USA, Netherlands and Australia, it poses a large potential to expand beef exports. More so, when considering smallholder famers’ potential contribution.

South Africa currently exports about 39,000 tonnes of beef of which nearly 56% was exported to the African continent, mainly in the SADC market. The other 44% was exported to the Asian market, particularly Kuwait, Vietnam, United Arab Emirates and Hong Kong. Looking into the future, South Africa’s beef exports are destined to countries that depict a relatively high economic growth and beef consumption. For example, Mozambique’s beef consumption per person is expected to increase by 22% in the next decade and this country already holds 23% of South Africa’s beef exported to Africa.

Similarly, Vietnam currently holds 20% of South Africa’s beef exports destined for Asia. Vietnamese beef consumption is expected to grow by 25.4% to reach 9.6 kg per capita consumption over the next 10 years.