Beef producers who have recently returned from the National Australia Bank (NAB) South African Beef Tour, report that South Africa is no threat to our beef markets, but could provide opportunities for processors.
Also, South Africa remains of major interest to cattle breeders, being home to some of the world's leading beef genetics.
NAB’s general manager of agribusiness, Khan Horne – who went on the tour along with 24 of Queensland’s top beef producers – said the South Africans had great genetics, but were looking for a different type of beast.
“The producers in southern Africa are breeding for small boned females with a higher calving rate," he says.
"They are looking for an animal they can sell into their market which is generally a younger beast at a lighter weight – at about one year old.
“This is very different from our market for northern cattle, which is for larger beasts that are generally put over the hook at a heavier weight at around 18 months to two years of age.”
With the majority of demand in Africa for cheaper, forequarter cuts, this could provide an opportunity for Australian manufacturers and exporters.
“South Africa is a net importer of beef," he says.
"There is considerable demand for bone-in forequarter cuts.
"In Australia, this is a cheaper part of the carcase, so this could be an export opportunity - provided the higher Australian dollar and cost of production don’t price us out of the market.
“Currently, most of their imported beef is sourced from South America.
"This is mostly bone out, due to their foot and mouth disease (FMD) status.
“With Australia’s clean FMD free status, we could supply the preferred bone-in cuts.
“For producers, the breeds out of southern Africa provide the opportunity to expand our genetic pool, including Bonsmara and Beefmaster.
"In addition, there are the traditional Bos indicus breeds, which may add benefits to our herd as they are well adapted for drier conditions.
“In terms of stud cattle, the South Africans have a strict bull testing regime across both statistical and visual scores.
“This strict quality assurance system means that, if they don’t weigh up against criteria such as weight gain, feed conversions and birth weights, they are cut," Mr Horne said.