Dewald Olivier, CEO of Red Meat Industry Services (RMIS), delivered a key address at the GCCA Africa Conference, where he outlined the critical role RMIS plays in managing the red meat value chain in South Africa. This is part two of a five-part series.
The ongoing challenge of FMD
One of the biggest challenges currently facing South Africa’s red meat industry is Foot and Mouth Disease (FMD). While FMD is not new to Africa or the world, the spotlight has intensified on how South Africa handles outbreaks. Since losing its FMD-free status in 2019, the industry has been under increasing pressure both domestically and internationally.
Olivier was candid in his critique of how the industry and government interact on this issue: “This is not the government’s industry: it’s ours. Government should be an enabler, not the sole decision-maker. But too often, we pass the ball to government and then complain about their solutions.”
He called for industry leadership and accountability, urging farmers and stakeholders to stop expecting government alone to develop solutions. Instead, he advocated for practical collaboration: “We must bring government workable plans, not just expect them to sort it out for us.”
The cost of inaction
The consequences of FMD are severe. Movement restrictions and delayed diagnostics create huge bottlenecks in the supply chain. Olivier highlighted the case of Karan Beef, one of South Africa’s largest feedlots, which halted intake for nearly 10 weeks – removing over 80 000 animals from the system in that time. The ripple effects will likely be felt later in the year, with potential shortages and rising red meat prices.
One of the primary bottlenecks is laboratory testing delays. With only one lab processing FMD tests nationally, results can take up to a month, during which time farms or feedlots are quarantined – effectively shutting down operations. Olivier revealed that Karan Beef’s daily feed cost during such a shutdown was R5-million, multiplied over several weeks without any incoming revenue.
A call for out-of-the-box thinking
To restore trade and manage disease risks, Olivier emphasised the need for innovative, context-specific strategies that work for South Africa and the broader African continent. This includes implementing traceability systems, securing vaccine supply chains and introducing reliable biosecurity protocols that instill confidence in trade partners.
He also pointed out the risk of non-tariff barriers, where diseases like FMD are used as justification to restrict imports. However, despite challenges, many countries continue to trust South Africa’s red meat systems. China may be an exception, but most global markets have not imposed new bans.
Competing globally
South Africa is also under increasing competitive pressure particularly from India, which is the world’s largest exporter of what it calls “beef”. Olivier clarified, “It’s not beef. It’s water buffalo, which is not the same, but that’s what we’re up against on price.” India, due to religious and legal restrictions, doesn’t slaughter cattle, but water buffalo meat is exported globally as beef.
This adds urgency to restoring South Africa’s international competitiveness. “We’re not exporting nearly as much as we should be. We need to fix this.”