Red meat imports expected to rise

SA red meat producers have BEEN warned that it is highly likely that imports of red meat into the country will increase during the course of 2007, adding pressure to the profitability of local red meat producers. CEO of the Red Meat Producers’ Organisation (RPO) Gerhard Schutte told a KwaZulu-Natal RPO regional meeting in Mooi River recently that the high price that producers received in late 2006 was partly attributable to a lack of pressure from red meat imports at the time because the main supplying countries were having problems in their respective red meat industries. “Australia’s worst drought in living memory has resulted in cuts in their livestock exports, as have livestock diseases in the US, Brazil and Argentina. However, if Australia’s drought breaks soon they will begin sending products our way again, and the Americas are already nearly over their diseases and are setting their sights on resuming exports to SA as well,” explained Schutte. SA’s hard-won 40% ad valorem tariff on imported red meat was a valuable support mechanism for protecting the local industry. However, stronger policing of the implementation of this tariff was still required, Schutte added. The organisation was already working on establishing a Compliance Committee to handle this policing, and was seeking a service provider to supplement government inspection teams at import arrival facilities.