Debate A controversy that exists within the South African biltong industry includes the killing of game and its affects on wildlife depletion and food security. The food security issue is based on the perception that wildlife serves as a contribution to the spiritual, cultural and medicinal values of many ethnic groups. Further, because many regions within South Africa are underdeveloped, hundreds of thousands of people suffer from malnutrition. According to CITES, "game meat is often regarded as one of the most accessible and beneficial wildlife resources to them." People then use game meat as a food that provides protien and trade product that serves as cash income. As wildlife recources decline however, the commercial demand for game meat increases. One consequence has been the pressure by hunters on many protected areas. Under the term 'wild life management,' game parks have been forced to allow permit hunting. Those advocating protection perceive the wildlife management issue as one resulting from inappropriate wildlife ownership law and land tenure policies. These have created an environment that is not conducive to sustainable protection and management. CITES states, "the illegal use of wildmeat is perhaps the least documented, but most far-reaching on use of wildlife in Eastern and Southern Africa." As illegal action is exercised, restrictions on the killing of game remain permeable.

Industry The expansion of the biltong industry throughout the years includes various forms of ‘biltong makers,’ and spices sold throughout South Africa and on the Internet. Most South African sellers advertise their biltong on the Internet as the “best in South Africa.” The thousands of shops in South Africa that sell biltong compete on the claim that their product as “most traditional” or “best quality.” Due to the various types of biltong now available and the different types of spices recently introduced, sales have increased in South Africa - with an annual income estimated at 200 million Rand (33 million USD). Increased demand is sought by the South African communities abroad as well, specifically in the United States, Europe and New Zealand. These independent businesses advertise their products as “traditionally South African” and sell ‘biltong gift baskets’ and various types of biltong prepared meat.

Tourism Tourism is the fastest growing economic sector in South Africa, expressing 7.1 percent of its GDP. As the third-largest earner of foreign currency for the country after mining and agricultural, more than 5.8 million foreign tourists visited South Africa in 1999. The main attractions included nature based tourism, such as visiting national parks and private game reserves. Because of this, the environment and tourism sectors are beginning to “brand” South Africa. According to a study conducted by Kuper Research, more than 93 percent of South Africans are proud to be South African and more than 90 percent of the population are willing to do whatever they can to help South Africa become a more emerging market. Products such as biltong are expected to increase in sales as investors begin to market products as inherently South African. Interestingly, African economies “founded on the exportation of raw commodities such as cocoa and coffee, minerals and ores, are having to look for new sources of revenue because such goods have a low and falling value on the world market.” Therefore, Africa tourism and “branding” South Africa is becoming more of a promising foreign-exchange earner and attraction for foreign investment. Biltong will most likely be a product that is marketed "proudly South African."

3. RELATED CASES

4. AUTHOR AND DATE: Anne Sweeney (May 2005)

II. LEGAL CLUSTERS

5. CATEGORY NAME Discourse and Allegation

South Africa is a founding member of the General Agreement on Tariffs and Trade (GATT), participated in the Uruguay Round and signed the Marrakesh Agreement. In addition, South Africa developed an umbrella organization specifically for the red meat industry: The South African Meat Company (SAMC). Due to the effects of deregulation on the environment, its mission advocates for global and domestic enhancement and competion of the meat industry.
The issue of ‘agriculture’ relates to several areas of the Uruguay Round Negotiations. In addition to providing a framework that contains long-term reform on agricultural trade and domestic policies, the Agreement on Agriculture specifically encourages the use of less trade-distorting domestic policies that help sustain and support rural economy. It is also flexible in allowing “actions that ease any adjustment burden and the introduction of tightly prescribed provisions that allow accommodations in the implementation of commitments.” In relation to South Africa and its meat and produce market, this agreement is incredibly important. South African land mass comprises mostly rural area, making trade throughout the country competitive and vital to sustainability. Agriculture only accounts for 9% of South Africa’s physical exports; therefore it is necessary that domestic agricultural trade and policy be maintained for productive long-term growth.
The Agreement on Sanitary and Phytosanitary Measures, which refers to food safety and animals and health regulations, is particularly crucial to the South African agricultural trade. In 1995, the “OIE recognized certain areas of the Republic of South Africa as Foot and Mouth Disease (FMD) free zones without vaccination to the successful containment of FMD in domestic livestock outside the FMD control zone. However, this status was lost in September 2000, when the FMD virus was diagnosed for the first time in South Africa.” In August 2003, South Africa authorities confirmed seven cases of FMD in the area between Limpopo River and Kruger National Park. Further, between January 2002 and April 2003, border inspectors recorded over 400 confiscations of animal products from South Africa, in which 278 meat confiscations were biltong. Due to South Africa’s illegal bushmeat trade with its neighbors, it is imperative that the Agreement on Sanitary and Phytosanitary Measures be adhered to. Since these outbreaks, red meat profits have decreased significantly and therefore necessary that the guidelines recommended for the care of meat and other all other agricultural products are rigorously upheld.
The Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least-Developed and Net Food-Importing Developing Countries also relates to South Africa. Although South Africa is at the forefront of development in Africa, its domestic economy, specifically in the rural areas, is an issue of great concern. The rise of foreign investment had dramatically assisted South Africa in attaining its leading status; however there remains a demand for agricultural aid provisions from IMF and World Bank. Although adhered to in the Decision on Measures Concerning the Possible Negative Effects of the Reform, it is important that these issues be recognized and respected by the other agreements in the Uruguay Round.

WTO Trade Disputes
There were two disputes associated with South Africa; however neither related to agriculture: (1) South Africa – Definitive Anti-dumping Measures on Blanketing from Turkey – Request for Consultations by Turkey and (2) South Africa – Anti-dumping Duties on Certain Pharmaceutical Products from India – Request for Consultations by India. Neither dispute is related to agriculture.
There were several disputes related to agriculture, specifically beef. For instance, “Korea – Measures Affecting Imports of Fresh, Chilled and Frozen Beef - Request for Consultations by Australia and the United States.” The forum for the dispute was the Decision on Rules and Procedures Governing the Settlement of Disputes (DSU). Apparently, Korea did not implement the recommendations and rulings of the DSB, adopted on January 10, 2001. Korea agreed to consult on request with Australia and the United States during the “reasonable period of time with respect to Korea’s implementation.” The principles of behavior that are at stake are Korea’s credibility within the agricultural trade market due to its failure to follow guidelines.
Another WTO trade dispute related to agriculture is “Croatia – Measure Affecting Imports of Live Animals and Meat Products – Request for Consultations by Hungary.” Croatia introduced an import measure without preliminary notification or subsequent notification. The measure is “purported to aim at the prevention of the spread of TSE disease. The measure prohibits imports unless there is a prohibition in the exporting country on feeding animals with feed containing animal protein.” Hungary attempted to disband this measure because it has affected the in major losses to major Hungarian agricultural producers and exporters of meat products. Further, Hungary found this measure unfounded because there was no scientific research or basis for justified implementation of the ban. This dispute relates to the Agreement on Sanitary and Phytosanitary Measures.
In both cases and in others related to beef, the primary principles at stake dealt with inconsistency in following guidelines or rather, failed implementation of guidelines. From my understanding, there are few beef related WTO disputes that pertain to illegal trading or unsanitary packaging of beef, etc. that have directly affected the health of humans and animals. In a hypothetical WTO case such as illegal trading of biltong to neighboring countries that might be infected with Foot and Mouth Disease, it is the responsibility of either county to pursue the suit.

6. FORUM AND SCOPE South Africa and Unilateral

7. DECISON BREADTH 1

8. LEGAL STANDING Law

III. GEOGRAPHIC CLUSTERS

Reference: CIA Factbook

9. GEOGRAPHIC LOCATION Africa

a. Geographic Domain: Africa

b. Geographic Site: Southern Africa

c. Geographic Impact: South Africa

10. SUB-NATIONAL FACTORS None

11. TYPE OF HABITAT Temperate

IV. TRADE CLUSTERS

Despite the years of economic sanctions against South Africa, the country has had an historically 'open economy' in which foreign trade had been between 50% and 60% of its GDP. According to the United Nations Statistics Division's Commodity Trade Statistics Database, South Africa’s meat of bovine (cattle) animals, fresh or chilled was exported at a trade value of $2,718,078 and a trade quantity of 1,505,281 in 2000. In 2003, the export rate of this product increased in trade value to $4,267,410 and a trade quantity of 2,580,691 in 2000. The import rate of this product to South Africa had a trade value of $68,054 and a trade quantity of 33,343 in 2000. Similarly to the export data, the import trade value increased to $442,271 and a trade quantity to 355,808 in 2003. More specific to this case study (see chart below) is the 2003 export of bovine meat salted, dried or smoked. The product was traded at a value of $86,453 and increased to 100,832 in 2003. Note that the statistics do not report the specific country where the product is traded to. The number remained general to indicate the overall trade increase of this specific product. Therefore, the product could be traded to South Africa’s neighboring countries, such as Namibia and Zimbabwe or to Australia, China and elsewhere.

2003 Export of Bovine Meat Salted, Dried or Smoked from South Africa:

According to the World Resources Institute’s Earth Trends Report of 2003, average annual meat production refers to “the total meat production in a given country. This comprises of horse meat, poultry meat and meat from all other domestic or wild animals such as camels, rabbits, reindeer and game animals.” Within the agricultural and food sector in South Africa, the average production of meat from 1991-2001 was 1,554 compared to 8,124 in Sub-Saharan Africa. The World Bank Group totals all 2003 exports at 32,179 million and all imports at 26,021 million.
Although South Africa has been a signatory to CITES since 1973 and entered into force in July 1975, the hunting industry generated “an income in excess of R176 million from day tariffs and trophy fees by the 7,500 foreign hunters and their parties.” The presence of game ranches has expanded as well in which there are currently 9,000 throughout South Africa.
The growing respect for endangered wildlife by foreign trading countries and the increase of requirements placed on trophy hunting, export and import guidelines have grown stricter. The European Union, for instance, allows the import of "biltong type" products that must be subjected to a treatment that achieves a specific 'Ph and Aw" value. According to the United States Department of Agriculture, restrictions are placed on “meat originating from a third country or meat from animals that were not born and raised in the United States, Canada or Mexico.” Further, according to South African Revenue Services, the institution has “Strict control of the importation/exportation of all endangered wild life, live or dead, including all parts thereof as well as articles manufactured there from.” Therefore, the exportation of biltong is limited due to the trade barriers placed by foreign countries. Biltong companies find it easier to create their product in the second country, such as the United States and England. Again, this is due to the export/import restrictions of trading unpackaged meat.

12. TYPE OF MEASURE Intellectual Property

13. DIRECT VS. INDIRECT IMPACTS Direct

14. RELATION OF TRADE MEASURE TO MEASURE TO ENVIORNMENTAL IMPACT

a. Directly Related to Product: Yes, Biltong

b. Indirectly Related to Product: Yes, Meat

c. Not Related to Product: No

d. Related to Process: Yes, Intellectual Property

15. TRADE PRODUCT IDENTIFICATION Meat

16. ECONOMIC DATA

17. IMPACT OF TRADE RESTRICTION Medium

18. INDUSTRY SECTOR Food

19. EXPORTERS AND IMPORTERS South Africa and many

V. ENVIRONMENT CLUSTERS

20. ENVIRONMENTAL AND PROBLEM TYPE Culture
As the demand for biltong increase and more people begin to privately ‘farm’ elephants, giraffes, and springbok for economic opportunity, the contentious issue of game farming arises. Biltong makers have long used wild game to sell their product because they can market the meat as a unique delicacy for greater profit. 130 million acres in Sub-Saharan Africa are reserved for wildlife conservation and in which hunting legislation and fees have been strictly enforced. Consequently, the number of game ranchers that buy farms and breed the animals for profit has increased. For instance, 750 members of the Eastern Cape Game Managers Association support game ranching in the Eastern Cape providence in which they report that the industry has potential for “substantial growth” and the ability to “substantially increase” annual income. Those adverse to game farming claim that it poses a serious threat from both socio-political and economic perspectives. They feel it reduces the overall revenue benefits and negatively impacts regional employment levels and businesses. Game farms further replace the land set aside for agricultural and livestock businesses that in the long term will not help sustain the local population.

These issues, in addition to key policies, are having a significant influence on community based wildlife management in South Africa. CITES discusses the fact that game meat utilization is a significant conservation, economic and cultural issue in the non-forested areas of eastern and southern Africa. It further states that as population grows, depletion of wildlife valued as a source of meat is likely to have a negative impact not only on a huge variety of species, but also on food security and the livelihoods and nutritional status of local communities. In regards to commercial trade, as the number of game near extinction, larger and more diverse ranges of species are being targeted. Further, illegal commercial trade of game meat due to illegal cross-border trading has become an issue of serious concern. Little data is available on this problem because the meat is often already skinned at the border. Consequently, border officers are unable to determine what animal was killed. To amplify the situation, traders often enter and leave South Africa atunofficial border points. From 200-2003, officials confiscated and documented over 400 animal products, including biltong, at the border.
Other issues surrounding commercial trade include South Africans illegally hunting in neighboring countries. The Cape Times reported that Zimbabwe wildlife has reached an alarming depletion point, with illegal biltong hunters, among others, taking advantage of the country’s perilous political state. Although more than 130 million hectares in sub-Saharan Africa have been reserved for wildlife conservation, it has been reported that 80% of the wild animals on Zimbabwe’s wildlife conservancies and approximately 60% in its national parks have been killed. According to the World Wildlife Fund, one of the reasons for this is because people from South Africa often pay small “trophy fees” to those who occupy wildlife properties, enabling them to shoot any animal for meat, hides and trophies.

21. NAME, TYPE AND DIVERSITY OF SPECIES Many

22. RESOURCE IMPACT AND EFFECTS Medium and Scale

23. URGENCY AND LIFETIME Low and Many

24. SUBSTITUTES Other Jerky (United States)

VI. OTHER CLUSTERS

25. CULTURE

Most South Africans declare declare biltong its national love, a national symbol and a national snack. Similar to the hotdog or hamburger in the United States, biltong is associated with culture and pride. Many claim that it is impossible to think of a braii (barbeque), rugby event or cricket tournament without biltong. Because of this reason, the demand for biltong both domestically and abroad has increased significantly throughout the years. On many South African themed discussion boards, expatriates abroad write that when they miss home, they simply eat a piece of biltong and the familiarity of South Africa immediately returns.
According to one specific biltong website, Larry and Janet Susman recognized the biltong demand in England and decided to “supplying the 500,000 expat South Africans in the UK with a taste of home.” The Susman’s store, Susman’s Best Beef Biltong Company, produces approximately 2,000 pounds of biltong and sausages a week and has a mail order business with 16,000 regular customers from New Zealand, Australia and Portugal. Larry, who arrived in Newhaven, England from Johannesburg, South Africa in the 1970’s states, “We sell on nostalgia, people love to buy what they know.” He claims people develop a taste for biltong as babies and with the number of South Africa immigrants immigrating to England, the biltong business is growing more than ever.
The number of biltong businesses within South Africa is increasing as well. An article in the South African Business Report, writes how the biltong shop, Joubert and Mont’s, based in Observatory on the Western Cape, recently celebrated its success as the most profitable store of 200 shops within the shopping center. The general manager, Andrew Billington says that the demand balances the competition. “We look at ideas like chicken biltong and develop them. Flavoring and consistent quality make the business.” He further states, “Holidays and sporting events – we sell a lot there. We supplied a few suites at Newlands during the Cricket World Cup.” When asked why the company’s biltong trade continues to grow, Billington stated, “It’s quality of product, pure and simple.”

26.TRANS-BOUNDARY ISSUES No

27. RIGHTS No

28. RELEVANT LITERATURE

"Biltong Profits Cut and Dried." Business Report, May 23, 2003

Biltong Recipes and Preparation

"Branding South Africa." Engineering News, (2005)

CITES: Bush Meat Utilization - A Critical Issue in East and Southern Africa

Fayo, Sicelo. "What's Next? A Baboon Biltong Industry?" The Herald Online (2005)

Food Safety and Inspection Service: United States Department of Agriculture (Export Requirements for the Republic of South Africa, 2004)

Foot and Mouth Disease: The Experience of South Africa

Gosling, Melanie."Illegal Hungs Wiping Out Zimbabwe's Wildlife." Cape Times Online (2003)

Laycook, Tony. "How One Businessman is Making a Meal out of a Delicacy: The Story of Larry Susman."

More Recipes and Preparation Guidelines

South Africa International Trade Statistics: Country and Product Approach (Exports 1999-2003)

South African Meat Industry Company: Managerial Activities

South Africa's Relationship with the International Community - A Guide to Importing into South Africa

South African Revenue Services: Customs and Excise - Live Animals & Meat

Succeeding in the South African Market: Guide to Importing into South Africa

The Kruger National Park, A Heritage for All South Africans?

"The Meat of the Matter." South Africa.Info. January 2005

United Nations Statistics Division: Commodity Trade Statistics Database (COMTRADE)

Wildlife Management for Rural Development in sub-Saharan Africa

World Trade Organization: Uruguay Round Agreements and Legal Text