New deal to unlock opportunities for SA beef sector
The announcement was made on Monday, 17 October, off the back of an official state visit to the nation by President Ramaphosa, Minister of Agriculture, Land Reform and Rural Development Thoko Didiza, and others, as part of an investment drive.
“We expect the deal to see Saudi Arabia order between 500 to 1,000 tonnes of beef per year, which would make it one of the largest beef export markets to date for South Africa. We congratulate government for their swift action on opening this market for the country,” says Louw van Reenen, CEO of Beefmaster Group, one of the leading suppliers of specialist beef products to local and international markets.
The company accompanied the South African envoy to KSA as a guest of the government.
Van Reenan adds that the deal is extremely positive for the SA beef sector, especially given the many challenges the industry has faced this year following outbreaks of Foot-and-Mouth Disease, as well as against an uncertain economic backdrop. “We are very excited about the deal, and it could not have come at a better time. Besides unlocking new trade, it will also help us maintain job security of the sector over the next year.”
“The Saudi Food and Drug Authority will be visiting South African producers to ensure products conform to their strict specifications. We are looking forward to hosting delegates at our facilities in Kimberley and Christiana before the end of 2022,” says van Reenen.
Growing opportunity for food producers
Van Reenen says that there is already a presence of South African produce and well-known brands on the shelves in KSA, and because the nation is a water-scarce country, the opportunity is for food producers in South Africa to export their fresh products to the nation. Total bilateral trade between South Africa and Saudi Arabia amounted to R66bn in 2021, and the beef sector is expected to favourably contribute to this in 2023.
He adds that KSA has been impressed by the quality and service assurances of SA’s beef products.
“We are well positioned to offer a product that is affordable, known for quality, and has less fat content. We compete very favourably with other beef nations like Australia and the USA precisely because of these characteristics.
Courtesy of Bizcommunity – read full article here.