The impact of improvement of the red meat industry on the South African economy: policy analysis using a dynamic computable general equilibrium (CGE) model

Mkhanyisi Tyelo and Cecilia Punt

Agrekon, 2025, vol. 64, issue 2, 113-129

Abstract: The Red Meat Industry Strategy 2030 is a recent framework aimed at enhancing the productivity and competitiveness of the livestock industry via fostering inclusive growth, improving market access, and ensuring sustainability to strengthen the industry's role in agriculture and the economy. This study utilized a dynamic CGE model to assess the potential impact of some of these objectives. Results indicate that improved productivity of the red meat livestock industry will stimulate economic growth through greater demand for trade and related services as output in the livestock and agro-processing sectors expands. Improved international competitiveness that leads to increased red meat exports will stimulate production in the primary agricultural sector due to backward linkages. Combining these two strategies is recommended as it indicates a more substantial positive impact on output, household welfare, and income of vulnerable low skilled labour categories. The more general strategy to enhance support services through increasing the availability of skilled labour in the economy, contributed more to overall economic growth, but is less effective in driving growth in the red meat industry specifically. The results underscore the need for careful consideration of funding options and the effective implementation of the adopted initiatives aimed at growing the industry and its contribution to the economy.

Date: 2025
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DOI: 10.1080/03031853.2025.2521497

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