The impact of live sheep export trade on the South Africa economy

Abstract

The study assesses the impact of the live sheep export trade on the South African economy. The study used a recent South African Social Accounting Matrix and a partial equilibrium model. The results are mixed. On a positive note, the higher the demand for live sheep exports, the higher the prices and the more significant the economic impact. On the other hand, South Africa loses value-adding opportunities such as output from abattoirs, including hides and skin, offal, head, and consumable internal organs, and employment when live lambs are exported and slaughtered in destination markets. These findings help policymakers to develop appropriate mitigation strategies to balance the advantages and disadvantages of live sheep export. A nationwide analysis may miss some of the local costs and benefits of live sheep exports. Future research can also be done in selected major areas that produce sheep in South Africa.