Foot and Mouth Disease: Impact on the Red Meat Value Chain

Foot and mouth disease (FMD) has once again brought South Africa’s red meat industry under scrutiny, raising concerns about livestock movement, market prices, and international trade.

A recent outbreak at Karan Beef’s Heidelberg feedlot, the world’s largest lot, has intensified the urgency of these concerns, with ripple effects being felt across the country’s value chain.

What is Foot and Mouth Disease?

FMD, endemic to South Africa, is a highly contagious viral disease primarily affecting cloven-hoofed animals like cattle, pigs, sheep, and goats. FMD leads to reduced milk production in dairy cattle, livestock weight loss, and the use of sub-optimal breeds.

Economic impact. How FMD affects production costs and access to markets.

The recent outbreak may have far-reaching consequences for South Africa’s meat industry, especially in terms of export markets.

The disease results in added production costs for farmers, including diagnostic tests, quarantined dip tanks, restricted movement control, culling, but most importantly, denial of access to local and international markets.

International export markets have already reacted, with China, Namibia, and Zimbabwe suspending beef imports from South Africa. What’s more, previous outbreaks of FMD have already cut off other international markets, due to the suspension of South Africa’s FMD-free status by the World Organisation for Animal Health.

Impact on auctions, feedlots, and buyers.

There have already been new challenges to the buying and selling of livestock, carcases, and animal by-products.

• Auctions are continuing but with reduced volume.
• Feedlots aren’t taking in new stock, causing bottlenecks.
• Auction agents face logistical limitations because of movement control.
• Private buyers are still purchasing directly, creating a shift in movement patterns.

Auctioneers and livestock owners should be cautious when purchasing cloven-hoofed animals from provinces with active FMD outbreaks, including KwaZulu-Natal, Eastern Cape, Limpopo, and Mpumalanga Provinces.

What does this mean for meat supply and the everyday consumer?

Consumers are advised that while the disease does not pose a direct risk to human health, its impact on the meat industry could lead to potential increases in meat prices and disruptions in supply.

The disruption comes at a time when meat prices are already under pressure from rising input costs and food inflation.

The role of industry adopting technological innovations.

Digital advancements like SMS-based early warning systems, infrared imaging, and geo-tagging are being considered for development. These could empower farmers with real-time information and help reduce the spread of FMD efficiently.

The Department of Science and Innovation, for example, is funding a start-up that is developing a diagnostic test kit for early detection of FMD in livestock traditionally kept in remote and rural areas.

How Auction Calendar can help to fight the fallout of the disease.

We make it a point to stay well-informed about FMD and are connected to developments in the industry. We believe and play a key role in helping to keep stakeholders informed and connected, especially when auctions can resume fully.

While not directly involved in auction operations, our platform is a valuable partner in helping auctioneers regain momentum once movement restrictions ease.

Looking ahead: Risk, resilience, and future preparedness

FMD’s re-emergence points to a deeper issue: the slow erosion of our veterinary services, biosecurity infrastructure, and governance accountability.

Minister of Agriculture John Steenhuisen emphasises the need to change. “We need a well-resourced, proactive, and decentralised animal health strategy. We need to invest in the capacity and reach of veterinary services in rural and communal areas. Furthermore, the restoration of South Africa’s capacity to produce its own animal vaccines cannot be overemphasised and is more urgent than ever.”

The minister has already taken active measures, confirming that 900,000 vaccine doses, costing R72 million, will be rolled out across affected areas.

Light at the end of the tunnel. Together we can overcome.

We should always remember that FMD is not new to South Africa. We have experienced outbreaks before, and stakeholders have pulled together to meet and overcome obstacles. No doubt, we will do the same with this latest challenge. We would love to hear your thoughts and experiences about the current outbreak, and how the sector can be made more resilient in the face of future ones.

Email us on info@auctioncalendar.co.za