MBABANE – Eswatini’s beef industry is characterised by low productivity, limited investment, weak price transparency and structural constraints despite having numerous participants across its value chain.
A competition commission inquiry has found. The findings are contained in the Eswatini Competition Commission’s (ESCC) Beef Value Chain Market Inquiry Report, which examined the structure, conduct and competitiveness of the industry, from cattle production and slaughtering to processing, wholesaling and retailing.
The inquiry found that although most segments of the industry are unconcentrated, with no single business exercising clear dominance, the sector continues to face challenges that affect its efficiency, competitiveness and ability to meet domestic demand.
The inquiry was conducted using a mixed-methods approach involving questionnaires and interviews with participants across the value chain. It covered 63 cattle farmers, comprising 43 feedlot operators and 20 communal farmers, 16 abattoirs, 12 wholesalers, eight processors and 46 retailers.
Among the concerns identified are the shortage of commercially preferred cattle breeds, high production costs, limited access to finance, unequal bargaining power between farmers and buyers, delayed payments to farmers, vertical integration and restrictions affecting the movement of beef products through the value chain.
These findings were presented by the commission, led by Chief Executive Officer Siboniselizulu Simelane and her team, during a media engagement held at Mountain View Hotel yesterday morning.
According to figures cited in the report, animal production contributed approximately 2 per cent of the country’s gross domestic product and more than 24 per cent of agricultural GDP in 2024.
The beef value chain supports over 60 000 people, including farmers, feedlot operators, abattoir employees, wholesalers and retailers.
The national cattle herd increased from approximately 528 000 in 2019 to more than 636 647 in 2022.
However, the inquiry found that this growth in the national herd has not translated into sufficient domestic production to satisfy consumption.
In 2024, national beef production was estimated at approximately 16 000 metric tonnes, against consumption of about 19 000 metric tonnes, leaving a supply gap of roughly 3 000 metric tonnes.
Imports of approximately 2 000 metric tonnes helped reduce the shortfall, but were not enough to fully meet domestic demand.
