3 days ago
Gauteng foot-and-mouth outbreak at world's largest feedlot is a red meat flag
Karan Beef said this week that a case of foot-and-mouth disease (FMD) had been confirmed at its gigantic feedlot facility at Heidelberg in southeastern Gauteng, the latest outbreak of the highly contagious viral infection to hit South Africa's cattle and beef industry.
At 2,330 hectares, Karan Beef's Heidelberg feedlot is the largest in the world. They say everything is bigger in Texas, but this facility outstrips the massive feedlots that are a defining feature of the grassy landscape along Interstate Highway 40 of the Texas Panhandle, the heart of the global beef industry.
Outbreaks elsewhere have already curbed South African beef exports, but concerns raised on social media about local price increases are misplaced, as domestic supplies are expected to increase as a result.
It's still very concerning because Karan Beef is widely regarded as South Africa's top beef brand, supplying most of the country's recognised retailers and premier butchers and restaurants.
That reputation has been built in part on its strict biosecurity measures. In 2007, Karan Beef was South Africa's first beef producer to achieve the Hazard Analysis Critical Control Point (HACCP) food standards accreditation.
This is the gold standard on this front, described by the UN's Food and Agriculture Organization as '… a globally recognised, systematic and science-based approach to food safety that addresses biological, chemical and physical hazards throughout the food chain.'
The bottom line is that if an outbreak can occur at this operation, no South African cattle farm or feedlot is safe from the disease.
This follows in the wake of recent outbreaks of FMD that spread to Mpumalanga and Gauteng.
'As a result of the spread of the KZN outbreaks to Mpumalanga and Gauteng, the People's Republic of China has suspended imports of cloven-hoofed animals and related products,' the Department of Agriculture said last month.
'The department urges all livestock farmers in the whole country to limit animal movement as far as possible … No cloven-hoofed animals should be accepted from areas under restriction for FMD in KwaZulu-Natal, Eastern Cape, Limpopo and Mpumalanga,' it said.
This is a setback for South Africa's blossoming agricultural sector, which grew almost 16% in the first quarter of this year, making it the standout performer on a dismal stage that saw the total economy expand by only 0.1% – and which saw exports rise 10% in the same period.
'The one area that remains a concern (for agriculture) is the livestock industry, primarily due to the recent outbreak of foot-and-mouth disease. We have already seen various trading partners temporarily banning South Africa's beef exports due to the foot-and-mouth disease outbreak,' said Wandile Silhobo, chief economist at the Agricultural Business Chamber.
What this means for you:
While it is a blow for exports, what are the stakes for steak-lovers in South Africa?
If you are a beef lover, you don't have to panic buy to fill your freezer – this ain't toilet paper during the pandemic. Beef prices may actually decline as the domestic market becomes flooded with product destined for export. But animal disease is worrying on a range of fronts and is a setback to South Africa's agricultural sector.
According to Sihlobo, the curbing of exports will increase the domestic supply, and as a result, South African beef prices should 'decrease a bit.'
Cattle destined for exports in feedlots still need to be slaughtered at the usual pace because of the feed costs, and FMD is not generally fatal for adult animals, so there will be no mass die-off even if the disease spreads like a Highveld wildfire in winter.
Several factors are fanning the flames of animal disease worldwide, including climate change. But it is South African cattle farmers and producers who will bear the brunt of export curbs and potentially falling domestic prices. DM
