Thaba Goats Business Plan — The South African Goat Market

Goat meat demand, herd numbers and pricing in South Africa, and where an extensive commercial producer fits against communal and commercial supply.

The South African Goat Market

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  • 2.1 Size and structure
  • 2.2 The structure that defines the opportunity

2.1 Size and structure

Statistics South Africa puts the national flock at approximately 5.1 million goats, of which roughly 1.9 million are in the Eastern Cape. South Africa is the largest goat producer in the SADC region, accounting for about 56 per cent of the region’s goats.

Where South Africa's goats are
Figure 3. Where South Africa's goats are.

Province

Share of the national flock

Comment

Eastern Cape

38%

Approximately 1.9 million head; the centre of both production and informal trade

Limpopo

19%

Indigenous and Boer goat production

KwaZulu-Natal

13%

The largest consuming market; ceremonial demand concentrated here

North West

12%

Boer goat production, marketed largely through traders

Four provinces combined

82%

Production is geographically concentrated

National flock

Approximately 5.1 million head

About 56% of the SADC region’s goats

The gross value of chevon production has averaged in the order of R646 million a year over the past decade and has been rising. That figure understates the trade substantially, because most goats never pass through a formal channel where they can be counted. Production and consumption both grew over the decade to 2021, by 14 per cent and 12 per cent respectively, and South Africa is broadly self-sufficient in chevon, with production exceeding consumption by less than 225 tons.

2.2 The structure that defines the opportunity

Fact

What it means for a new farmer

Most goats in South Africa are sold by private transaction in the informal market, mostly in the Eastern Cape and KwaZulu-Natal

Your customer is a household or a ceremony, not a supermarket. Build relationships, not listings.

Only a very small share of goats are slaughtered in registered abattoirs — estimates range from under 1% to about 5%

The formal chevon value chain barely exists. Do not build a plan around abattoir offtake.

Live goats realise good prices in the informal market, which is precisely why producers choose to supply it

Higher prices and lower compliance cost. The informal channel is the commercially rational choice.

Local cultural demand for live goats currently exceeds supply, and exports and retail supply remain minimal

A new producer is entering a market that is short of animals, not one that must be created.

Goat auctions have lessened in importance in the production areas

Do not assume an auction will absorb your output. Secure trader and community relationships early.

Boer goats are marketed mainly through traders and speculators, with smaller volumes through auctions and abattoirs

Traders are the volume channel. They pay less than direct sales but they take everything, every time.

Namibia is the only recognised exporter of goats to South Africa; unofficial movement from Botswana and Eswatini carries biosecurity risk

Buy replacement stock from known, accredited sources. Section 11 treats this as a health control.

Porter's Five Forces intensity assessment
Figure 4. Porter's Five Forces intensity assessment.

Rivalry in this category is unusually low for an agricultural commodity, because demand exceeds supply and no producer is large enough to set a price. Buyer power sits with traders rather than with the community customer, which is why the channel mix in Section 12 matters more than any negotiating position a single farm can build.