Meat consumption in South Africa continues to surge

The livestock sector in South Africa has experienced growth, largely due to a significant increase in local meat consumption, particularly chicken meat, following economic growth and higher disposable incomes after the country's first democratic elections in 1994. However, meat consumption growth has slowed due to slower economic growth, lower disposable incomes, and high unemployment rates. The country's Gross Domestic Product growth is expected to remain low in the medium term, which could impact the expansion of the animal feed industry. Despite some success in exporting to neighboring African markets, South Africa has had limited success in accessing markets abroad due to challenges such as animal diseases, which affect domestic protein production.

Expansion of the livestock sector in South Africa has been driven primarily by a surge in local meat consumption, particularly chicken meat, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report. From South Africa’s first democratic elections in 1994 until the financial crisis in 2009, steady economic growth and higher disposable incomes pushed large numbers of consumers towards protein-filled diets, and as a result, meat consumption levels skyrocketed. In 1994, per capita consumption was 38 kilograms (kg) of meat a year, while 15 years later in 2009, that figure increased to 64kg of meat a year – an increase of almost 70% over the period. However, over the next 15 years slower economic growth and lower disposable income dampened the meat consumption surge. Relatively high inflation and interest rates, coupled with an unemployment rate of more than 30%, put growing pressure on consumer spending. As a result, the growth in ...