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14 December 2020 | Story Leonie Bolleurs
Dr FA Mare
Dr Frikkie Maré believes lucrative trade opportunities do exist for the South African red-meat industry that is thinking about exporting to international markets.

Dr Frikkie Maré, Senior Lecturer in the Department of Agricultural Economics at the University of the Free State (UFS), says lucrative trade opportunities do exist for the South African red-meat industry that is thinking about exporting to international markets.

He, however, believes that there are some important aspects that red-meat producers should consider in order to fully benefit from these opportunities. There are also a number of requirements that producers must identify and then consistently meet in order not to incur considerable financial losses.

Dr Maré, who has in-depth knowledge of the red-meat value chain, delivered a presentation at the 2020 LRF Stockman School, speaking about international markets and international market requirements.

An exporter’s knowledge and understanding of the red-meat trade in terms of fresh and frozen products is important. Dr Maré says that although South Africa is a net importer of bovine meat, there is still opportunity to increase our export thereof, as our high-quality meat is in demand; we can make up the difference by importing meat of lower quality. “With the oversupply of bovine meat, it will also make sense to increase the export of bovine meat,” he says.

Making it profitable

Red-meat producers need to know why they want to export. Dr Maré says that export markets can offer price premiums compared to the less attractive prices received in a domestic market. “However, it is key for red-meat exporters in South Africa to differentiate between working to export to targeted premium-priced markets versus getting rid of excess production.”

“The national animal health status, due to the foot-and-mouth disease outbreaks, does however limit our access to premium-priced markets,” he adds.

It is also important for products to be competitive in terms of either price or quality, and Dr Maré believes that South Africa can be very competitive if one looks at our average red-meat prices compared to the premium-priced export markets, of which some borders are closed to red-meat exports from South Africa. “In countries where the borders are open to export from South Africa, there is an opportunity to sell our red meat at a premium if the quality is better than consumers in those countries are used to. Still, quality and availability must be consistent and reliable if we want to export to these countries,” says Dr Maré.

When considering export, the type of product required by an export market needs to be given thought. These markets are particular about whether the meat is from grain- or grass-fed animals, the fat content of the meat, whether it is safe to eat, whether it was produced conventionally, naturally, or organically, and whether the meat should arrive frozen or chilled.

The market and your product

Dr Maré states that South African exporters of red meat can learn a lot from the Australian red-meat industry in terms of using packaging to differentiate their products from others. “If South Africa starts doing the same with the packaging of its red-meat exports, these products will start to be perceived as special by consumers in export markets, who may then be prepared to pay more for them as a result,” he says.

For both beef and mutton, international consumers indicated the importance of packaging information featuring a picture of what type of animal the meat came from, including the price per kilogram, price per pack, whether or not the meat is naturally produced, whether or not it has a quality grading/product guarantee, and the colour of the meat.

“Constant market research ensures that Australia’s red-meat exports are exactly what consumers in these countries want and can afford. This research also keeps Australia’s red-meat industry informed of whether or not it is profitable for the industry to keep exporting to a particular country,” he says.

In terms of market research, data on aspects such as the population, household number by disposable income, meat consumption per capita, and the amount spend on groceries, is also valuable.

For example, it was found that in Japan, consumers buy according to their family’s preferences, what they find easy to prepare, what they believe are healthy for their children, and what they can use in a number of different meals.

Relationship with your buyer

“It is vital for exporters in the South African red-meat industry to gain the trust of trade partners in the export market, and to understand – and meet – the needs of consumers in that particular market,” says Dr Maré.

Additionally, Dr Maré is convinced that good relationships between the South African producers, government, and the governments of our red-meat export markets are crucial to sustain exports. “To assure these governments of the safety of our red-meat products, the South African government and red-meat sector must work together and improve on-farm and national biosecurity. Implementing an effective and efficient traceability system in our country’s national and international red-meat value chain is also needed,” he says.

Dr Maré says that whatever actions is taken by an exporter in the red-meat industry, it needs to be sustainable. “Should you fail, you will hurt the industry.”

News Archive

UFS Council confirms decision to integrate student residences
2007-09-14

At its quarterly meeting held today (Friday, 14 September 2007) the Council of the University of the Free State (UFS) confirmed the decision taken at its previous meeting that the student residences of the UFS should be racially integrated.

The decision was taken with an overwhelming majority with only one vote against it and will be implemented in January 2008.

The Council tabled and noted the resolution of the Convocation of 11 September 2007 concerning the Council’s initial decision of 8 June 2007 and urged the management to continue to be sensitive, empathetic and inclusive in dealing with the concerns and views of all stakeholders.

The Council also gave all interested parties the assurance that any suggestions that could assist in the successful implementation of its decision would be considered and called once again on all stakeholders to make proposals to the management of the UFS so as to ensure a well-managed process of integration and managing diversity in residences.

In this regard it welcomed the suggestion made by the alumni of the UFS for the introduction of a Diversity Scorecard for residences which would include a multi-dimensional range of indicators and incentives for residences. This could include the diversity profile of a residence, the academic performance of the students in a residence, inter-residence activities and community service projects launched by students.

According to the Rector and Vice-chancellor of the UFS, Prof. Frederick Fourie, the Council hereby also restated the educational motive for the integration of residences, which meant that from an educational point of view, students who had the knowledge and skills to manage diversity would have a distinct advantage in the workplace and in life.

“Today’s decision is a major step forward for the Council and the UFS to achieve a broad consensus around the promotion of diversity at the UFS and in its residences, as the institution has always been committed to giving the best education to students in a diverse and non-racial environment. I would like to call on current students, prospective students, parents, alumni and other stakeholders to make this work in the best interests of the university and its students,” Prof. Fourie said.

He added that the UFS had established several task teams comprising staff and students to implement the Council’s decision of 8 June 2007 and that much work had already been done to identify critical areas and tasks ahead of implementation in January 2008.


Media Release
Issued by: Lacea Loader
Assistant Director: Media Liaison
Tel: 051 401 2584
Cell: 083 645 2454
E-mail: loaderl.stg@ufs.ac.za
14 September 2007
 

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