Roadshow 2019

Dr Michael BradfieldCEO Wagyu SA

We will cover

Wagyu in South Africa

▪ What is Wagyu?

▪ Status quo in South Africa

▪ Is Wagyu sustainable in RSA?

Wagyu global and national demand

Principally due to high marbling, low fat melting temperature and flavour

Wagyu in the U.S., only about 5 percent of normal U.S. beef

production from cattle such as Black Angus grades as Prime,

while 90 percent of Wagyu beef grades as Prime.

https://www.houstonchronicle.com

In Australia, 25% of Wagyu grades

in top 1% of MLA. The other 75%

grades in top 5%

https://www.mla.com.au

Wagyu genetic distribution

30,500 reg’n pa

600Members38 000 reg

Others: 1000’s reg’n pa

Global Estimated Wagyu-content cattle numbers

Japan

Asia-Pacific

South America

North America

Europe

Africa

World cattle population: 1.47 billion

Total: 2.44 million or 0.2% of World Cattle Population

HOW LONG WILL IT LAST?

2944

105

200

300

400

518

16/17 17/18 18/19 19/20 20/21 21/22 22/23

CWB Licensees

Red Meat Industry in SA - Beef

±14 million head of cattle in SA

▪ Estimated 40% in communal areas

Consumption

▪ 3.0 million pa

▪ 5% of current market – 150 000 pa

▪ 1% of current market – 30 000

▪ Wagyu – current supply 1 000 pa

Good growth potential

Background

South African Wagyu Exports

Long-Term Study of Fatty Acid Composition of Wagyu Beef

Oleic Acid is the big positive

▪ Oleic acid is most abundant fatty acid in Wagyu beef

▪ It is a mono-unsaturated fatty acid and decreases levels of LDL, the bad cholesterol, and increases HDL, the good cholesterol

The Avocado

Wagyu will replicate growth in Avocado.

Initially also shunned because of its “fat” but this has changed

Mainly because of understanding of its high oleic acid (60%) and health benefits

(Smith et al 2016) Wagyu beef represents

a potential gold mine. – Marbling provides

the flavour and juiciness beef eaters crave.

– Oleic acid provides proven health benefits.

Conclusion

Prospects: Great market (local and international)

Challenge: produce a product with integrity at a good price

Challenge: work as a team – there’s more than enough for all