Saudi market now open to South African meat producers

29 Aug 2024

Saudi Arabia has lifted a 21-year ban on imports of South African meat products, opening up a lucrative market for South African producers, according to Ambassador Mogobo Magabe. Speaking during a virtual Outward Selling Mission to Saudi Arabia, hosted by the Department of Trade, Industry and Competition (dtic), Magabe emphasised the significance of this development. The event, themed "Unlocking Trade Opportunities through Collaboration," was attended by over 250 participants and involved key stakeholders, including the South African Embassy, the Saudi Food and Drug Authority, the South African National Halaal Authority, and the Red Meat Producers Organisation.

Source: Robert Gerhardt via 123RF.com

“The lifting of the ban was one of the strategic outcomes of President Cyril Ramaphosa’s State Visit to the Kingdom of Saudi Arabia where he held constructive and fruitful engagements with the Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, Mohammed bin Salman. The two leaders signed fifteen agreements that included collaboration in agriculture, mining and tourism," said Magabe.

He added: "It is an opportune time for the South African meat producers to take advantage of the lifting of the ban and export their products to the Kingdom. This can contribute in growing our economy, and strengthening our bilateral economic relations with Saudi Arabia."

Zanele Sanni, chief director of export promotion and marketing at the dtic, encouraged South African companies to utilise the virtual session to market their respective products to potential Saudi buyers with the aim of concluding sustainable export contracts that would increase trade between the two countries.

Government support for local industries

“As government, we are mandated to support local industries to enhance their manufacturing capacity and find suitable export markets for their products through strategic mechanisms like these. We are committed to enhancing bilateral economic ties with Saudi Arabia.

"In recent years, both countries have had high-level political and business exchanges, leading to lifting the 21-year ban on South African meat exports to Saudi Arabia. This has opened the substantial Saudi Arabian market to South African producers,” said Sanni.

She expressed South Africa’s appreciation to the Saudi Arabian authorities for having already approved twelve South African companies to export beef meat to Saudi Arabia, and seven companies for lamb and mutton meat products.

“This demonstrates the high standards met by South African companies. It also confirms that the meat-producing sector in South Africa is highly developed and strategically positioned to meet the demand of the Saudi Arabian market,” noted Sanni.

Dr Botlhe Modisane, chief director of animal production and health at the Department of Agriculture, said Saudi Arabia provided a high potential market for South African exporters to tap into, in terms of fresh or chilled beef meat and frozen beef products.

Growing export market share

"Saudi Arabia currently accounts for about 1% of agricultural exports from South Africa. South Africa anticipates expanding its export market share with Saudi Arabia given the signing of the recent trade agreements. Saudi Arabia is a net importer of beef. Its imports of frozen beef and fresh or chilled meat imports recorded approximately 71% and 90% growth rates respectively," said Modisane.

The session was also addressed by the representatives of the South African National Halaal Authority (SANHA), Hammid Mulla and of the Red Meat Abattoir Association, Dr Gerhard Neethling.