Beef prices in South Africa rising as shortages hit

A local commercial trader of beef snacks, like biltong, alerted clients that its prices for all beef products would increase by 15% due to supply constraints.

“Due to the recent outbreak of Foot and Mouth in the country, there is a limited supply of beef. Because of this, our suppliers have increased their prices, and as a result, we too need to increase our prices,” it said.

This is in line with warnings from analysts and the beef industry itself, which warned that there could be a short-term increase in beef prices because of the FMD outbreak.

The Bureau for Food and Agricultural Policy (BFAP) warned last week that the outbreak of FMD at South Africa’s largest feedlot, Karan Beef, would have an impact on pricing.

It added that beef pricing for the rest of the year will be determined by how quickly and successfully the outbreak can be contained.

The outbreak was first reported in May 2025 and has since spread to the North-West Province, according to the BFAP.

“With impacted facilities currently implementing movement restrictions, prices have increased,” it said.

The Karan Beef feedlot in Heidelberg is the largest facility of its kind in Africa. It covers an area of 2,330 hectares and accommodates 145,000 cattle.

It is the most important feedlot in South Africa and plays a crucial role in providing South African retailers, butcheries, and restaurants with beef.

The group said that by the end of June, FMD had been discovered at three of its feedlots, impacting approximately 160,000 cattle.

The outbreak’s impact is already being felt, with Stats SA recently reporting notable increases for beef in May.

In May, price inflation for beef was up across various products, including beef steak, up 4.5%, stewing beef, up 2.5% and beef mince, up 1.7%.

This was on top of increases seen in April, where inflation for beef products ranged from 6.2% to 11.9%.

“A widespread outbreak of foot-and-mouth disease, combined with higher feed prices, contributed to the rise in beef inflation,” said Stats SA.

Relief should be on the way

The BFAP said the rise in prices is likely to be only temporary. The trend could reverse and prices move lower once protocols have been completed and deliveries resume.

The analysts added that the ongoing FMD outbreaks also pose a risk to weaner calf demand and could exert downward pressure on prices.

“The success of current efforts to contain the spread of FMD will be crucial to price levels for the remainder of the year, particularly with exports constrained due to the current outbreak,” it said.

Countries like China, Namibia, and Zimbabwe have suspended beef imports from South Africa.

Speaking to Farmer’s Weekly, Karan Beef said that all animal movement has been suspended and will remain so until the relevant authorities grant slaughter approvals.

It confirmed that it is part of the vaccination drive launched by the Department of Agriculture, and it was working closely with authorities to mitigate the crisis.

Internationally, beef, pig, and sheep meat prices have been declining, and once South Africa has returned to a more normalised situation, local pricing should reflect the same, the BFAP said.

The group added that a stronger rand relative to the US dollar over the past two months has also provided some cushioning.

Issued on BusinessTech by Staff Writer | https://businesstech.co.za/news/business/830131/beef-prices-in-south-africa-rising-as-shortages-hit/