Report Coverage
This report focuses on the farming of animals in South Africa, with a particular focus on the production of livestock. It includes information on the state and size of the sector and focuses on various subsectors, including stud and stock breeding, commercial livestock farming, an emerging commercial sector, communal farmers, speculators and horse and game breeders. There is information on cattle, dairy, pig, sheep, goat and game farming and statistics on consumption, imports and exports, slaughters per province, land use and number of households involved in agriculture, among others, and information on factors that influence the sector such as disease, theft and environmental and land issues. This report does not include profiles of notable industry players.
Introduction
This report focuses on the farming of animals in South Africa, with a particular focus on the production of livestock. Livestock farming is South Africa’s largest agricultural sector, accounting for over 40% of agricultural output’s total value and occupying roughly 80% of available agricultural land. In 2019, agriculture contributed an estimated R81.34bn to GDP. Animal products contribute 44.2% to the total gross value of agricultural production, with red meat accounting for 17.2% of animal products’ contribution. In the year to end-June 2020, the gross production value of animal products increased by 3.7% to R127.89bn. In South Africa’s rural areas, animal husbandry is often the primary income generator. To many South Africans, livestock is also a form of social capital. Although primary agriculture contributes a relatively small share to the country’s GDP, it plays an important role in job creation and earning foreign exchange through exports. The strength of South Africa’s livestock production lies in its well-established private sector, and its support for small and emerging commercial farmers. Many animal farmers have a wealth of institutional knowledge; operating farms that have been in the family for generations. While South Africa faces ongoing disease outbreaks, it has a relatively effective animal health system for mitigating, tracking and responding to disease. The sector is responding to mounting pressure for high standards and transparency with regards to safety, quality, environmental sustainability and welfare. The ongoing drought in many regions of South Africa is severely affecting animal farmers.
Strengths
• Livestock production is appropriate for South Africa’s agricultural land.
• Many generations worth of institutional knowledge in the commercial and communal animal farming sectors.
• South Africa has a reputation for high quality meat.
• South Africa has relatively good animal health and safety regulations.
• South Africa is a net exporter of beef products.
• Strong representation of well-established industry organisations.
• Weak exchange rate benefit exports.
Weaknesses
• Animals’ high susceptibility to disease and illness.
• Feed intensive industry with reliance on favourable crop conditions for price and supply of feed.
• Inadequate enforcement of health and safety regulations and animal welfare legislation.
• Industry’s contribution to environmental degradation, resource depletion, and greenhouse gas emissions.
• Lack of data affects policy design.
• Lack of effective data management and use.
• Lack of substantial transformation in the industry with limited ongoing, effective support for the development of emerging farmers.
• Susceptibility to the adverse effects of climate change and variation.
Opportunities
• Better animal welfare practices can open global markets up to South African producers
• Biodiversity management on animal farms.
• Communal farmers to produce wool.
• Demand for free-range and antibiotic free meat and dairy.
• Diversifying farms to offer recreational activities and tourism.
• High international demand for game meat, notably ostrich meat and products.
• Importing high quality meat (livestock and game).
• Improved genetics that increase animal productivity and resilience.
• Marginal land can be used for game farming.
• New markets for heat-treated ostrich meat and leather.
• Pig farming.
• Public-private partnerships: established commercial farmers to guide support programmes, including capacity building, for emerging farmers.
• Sustainable livestock farming.
• Untapped farming reserves on communal land.
Threats
• Disease and drought.
• Fear of diseases such as bird flu prevent people from eating ostrich.
• High levels of production debt caused by prolonged periods of drought
• Income fluctuation and declining consumer disposable income causing reduced meat consumption.
• Lack of or restricted access to land and water.
• Loss of scarcity of game stock.
• Non-compliance to domestic and international standards.
• Overgrazing.
• Predation and livestock theft.
• Rising input and labour costs.
• Slowing growth rate of meat and dairy products demand.
• The negative effects of climate change on livestock production and grazing land.
Outlook
In the face of climate change’s impact on livestock production, farmers will need to improve their adaptive capacity. There is also a mounting pressure from consumers for livestock production to become more transparent, ethical and environmentally-friendly. The negative effects of climate change and the rising global demand for protein-rich diets may cause sustainability challenges for livestock production. It is anticipated that additional supply of meat will come from developing regions. The growth in demand for animal products is slowing. The Food and Agriculture Organization of the United Nations (FAO) expects South African meat consumption to increase by 12% over the next decade compared to 25% growth over the last decade. The projected annual growth for beef production over the next decade is 1.3%. Since many developed countries have reached saturation in terms of levels of meat consumption, there may be opportunities to export high quality meat. In the short-term, economic recession has reduced global spending power. The economic fallout set off by the coronavirus pandemic is expected to decrease the consumption of animal products and there will likely be low consumption growth rates over the next decade. Milk continues to be an affordable protein source. Despite being susceptible to shocks related to disease, including export bans, and exchange rates, the South African wool market is fairly stable with strong demand from Europe. Over the next ten years, wool production is expected to increase at a lower rate than the previous decade due to predation and livestock theft, amongst other challenges. The industry faces ongoing challenges with rising input costs, drought, disease, livestock theft, predation, policy uncertainty and property rights.
Farming of Animals In South Africa
2020
Full Report
R 1 900.00(ZAR) estimated $106.86 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 74.80 (USD)*
Historical Reports
Farming of Animals In South Africa 2019-03-14
R 1 900.00(ZAR) estimated $106.86 (USD)*
View Report Add to CartFarming of Animals In South Africa 2017-05-09
R 1 900.00(ZAR) estimated $106.86 (USD)*
View Report Add to CartFarming of Animals In South Africa 2015-01-30
R 1 900.00(ZAR) estimated $106.86 (USD)*
View Report Add to CartTable of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 6 |
| 2.2. | Geographic Position | 7 |
| 3. | SIZE OF THE INDUSTRY | 10 |
| 4. | STATE OF THE INDUSTRY | 16 |
| 4.1. | Local | 16 |
| 4.1.1. | Corporate Actions | 20 |
| 4.1.2. | Regulations | 20 |
| 4.1.3. | Enterprise Development and Social Economic Development | 22 |
| 4.2. | Continental | 23 |
| 4.3. | International | 26 |
| 5. | INFLUENCING FACTORS | 29 |
| 5.1. | Coronavirus | 29 |
| 5.2. | Economic Environment | 30 |
| 5.3. | Government Incentives and Support | 31 |
| 5.4. | Drought and Wildfire | 31 |
| 5.5. | Disease | 32 |
| 5.6. | Livestock Theft, Crime and Predators | 33 |
| 5.7. | Land | 34 |
| 5.8. | Input Costs | 35 |
| 5.9. | Research and Development (R&D), Technology and Innovation | 36 |
| 5.10. | Environmental, Health and Animal Welfare Concerns | 37 |
| 5.11. | Cyclicality | 40 |
| 5.12. | Labour | 41 |
| 6. | COMPETITION | 43 |
| 6.1. | Barriers to Entry | 44 |
| 7. | SWOT ANALYSIS | 44 |
| 8. | OUTLOOK | 46 |
| 9. | INDUSTRY ASSOCIATIONS | 47 |
| 10. | REFERENCES | 49 |
| 10.1. | Publications | 49 |
| 10.2. | Websites | 50 |
