Foot and mouth outbreak costs livestock sector R5.6bn in lost export revenue

Minister says key markets remain closed as producers receive no compensation support

The department says the disease management area in KwaZulu-Natal will remain in place as there are still signs of active foot and mouth disease virus circulation in the area. Stock photo.
The outbreak of foot and mouth disease has led to billions in revenue losses. (Aurélie Le Moigne/123rf.com)

Minister of agriculture John Steenhuisen has confirmed the livestock industry is facing significant export restrictions and revenue losses as a result of the foot and mouth (FMD) disease outbreak.

The reply was issued in response to written questions from Freedom Front Plus MP Dr Wynand Boshoff.

Boshoff asked which red meat and livestock export markets remain fully or partially closed due to the FMD status, the estimated annual revenue loss in each market, and what interim compensation or insurance mechanisms exist for affected producers.

In reply the minister said since January markets fully closed to South African exports include China, Eswatini, Mozambique, Zimbabwe and Namibia. The UK has fully closed its market to mohair as a product from cloven‑hoofed animals.

Partial restrictions remain in place in Middle Eastern countries such as Jordan, Lebanon and Saudi Arabia, which require guarantees that FMD will not be transmitted through imports. The minister said products of cloven‑hoofed animals may be exported only if the virus has been sufficiently inactivated or treated to eliminate risk.

Steenhuisen said the average annual loss of revenue is estimated at R3.7bn for fresh and frozen beef, R1.4bn for goat and sheep meat, and R502.4m for live cattle, sheep and goats.

Together, the category estimates amount to a total of R5.6bn based on last year’s export statistics.

The reply situated the losses within the broader trade context, with Asia, the Middle East and African markets identified as the main destinations for affected products.

Goat and sheep meat exports are similarly concentrated in Asia and the Middle East, while the bulk of the revenue loss from live cattle, sheep and goats is to African and Asian markets.

Steenhuisen said there is no compensation method available for producers. He said the department of agriculture is procuring vaccines to assist in stopping the spread of the disease.

The minister noted foot and mouth disease does not necessarily kill cattle and, where possible, the animals may be salvaged.

Business Day


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