NB Nengovhela (Phd; Pr.Sci. Nat) Baldwin@arc.agric.za

www.arc.agric.za

Development and Mentorship: Beef

Profit Partnerships Experiences

Beef Supply Chain

6.67 million Cattle 5.69 million Cattle

Developing Sector

People

Land reform beneficiaries (±15

000)

Emerging farmers (±87 000)

Communal farmers (±3million)

Developed Sector

50000 high-income

producers

2250 elite breeders

150000 to 300000

imported weaners

± 45 million consumers

± Per Capita consumption=13.72 kg/year

± 7 to 13% Agricultural GDP

Affluent Consumers

(Premium markets)

Meat processors (±495Abattoirs)

80% of the animals through

20% abattoir

± 580 000 tons

produced

Poor Consumers

(Cheap cuts market)

Feedlots

(60 to 75 % beef

cattle slaughtered)

Developing sector

markets

Butchers Auctions

Festivities

Restaurants,

Wholesale & Retail

Hides, Skins

±3500 to 35 000

tons exported

±13 000 to 48 000

tons imported

Tanneries for automotive

industry

Export

Integrated

feedlots

Local

National herd of 12.36 million cattle

BEEF PRODUCTION OVERVIEW IN RSA Production Traits Emerging (Poor)

Sector (%)

Commercial (%) Stud or elite (%)

Calving rate 40 65 85

Pre weaning mortality 50 2 2

Post weaning mortality 15 2 2

Market price 50 100 >130

Beef Market off-take 5 28 22

Weaning weight (kg) 150kg 200kg 223kg

Failure Points of RSA Beef Industry

6.67 million

Cattle 5.69 million

Cattle

Failure point: Low herd productivity

due to people issues and capitals

Developing Sector

People

Land reform beneficiaries

(±15 000)

Emerging farmers (±87

000)

Communal farmers (±3m

Developed Sector

50000 high-income

producers 150000 to 300000

imported weaners

Failure point: limited directed access to

feedlots markets due to people issues

± 45 million consumers

± Per Capita consumption=13.72 kg/year

± 7 to 13% Agricultural GDP

Affluent

Consumers

(Premium markets)

Meat processors

(±495Abattoirs)

80% of the animals

± 580 000 tons

produced

Poor Consumers

(Cheap cuts market)

Feedlots

(60 to 70 % beef

cattle slaughtered)

Developing

sector markets

Butchers Auctions

Festivities

Failure point: 5% market off-take

Failure point: limited directed access

to feedlots markets due to animal

issues

Failure point: Limited

Improved Gene Flow due to

limited Knowledge & Capital

Restaurants,

Wholesale &

Retail

Hides, Skins

Failure point: Support

facilitating RSA beef

integration

±3500 to 35 000

tons exported

±13 000 to 48

000 tons imported

Tanneries for

automotive industry

Export

Integrated

feedlots

Local

CULTURE?

CULTURE?

CULTURE?

CULTURE?

CULTURE?

CULTURE?

C

EXTENSION PARADIGMS IN A SPECTRUM

High Technical

know-how

Decre

asin

g p

eople

skill

s

Increasing complexity of the situation

Profit/EnterpriseR/kg/ha/year

Profit/RegionR/Region

Profit/CommunityR/Community

Growth

Kg/hd/yr

Reprod

%

Deaths

%

Throughput

Kg/ha/year

Marketing

Health

Costs

R/kgManagement

Price

R/kg

Profit Income Costs= -

= x - CostsThroughputPriceProfit

Genetics

Nutrition

For Profit- Focus

1. Situation (Tools)Analysing your

situation

FOCUS

Competitiveness

3. Action design Designing your action

2. Impact analysis (Tools) 4. Action

implementation Implementing your action

5. Performance assessment Assessing your performance

Continuous Improvement & Innovation

6. Creation & synthesis Creating & synthesising opportunities for improvement & innovation

1. Situation (Tools)Analysing your

situation

FOCUS

Competitiveness

3. Action design Designing your action

2. Impact analysis (Tools) 4. Action

implementation Implementing your action

5. Performance assessment Assessing your performance

Continuous Improvement & Innovation

6. Creation & synthesis Creating & synthesising opportunities for improvement & innovation

1. Situation (Tools)Analysing your

situation

FOCUS

Competitiveness

3. Action design Designing your action

2. Impact analysis (Tools) 4. Action

implementation Implementing your action

5. Performance assessment Assessing your performance

Continuous Improvement & Innovation

6. Creation & synthesis Creating & synthesising opportunities for improvement & innovation

1. Situation (Tools)Analysing your

situation

FOCUS

Competitiveness

3. Action design Designing your action

2. Impact analysis (Tools) 4. Action

implementation Implementing your action

5. Performance assessment Assessing your performance

Continuous Improvement & Innovation

6. Creation & synthesis Creating & synthesising opportunities for improvement & innovation

Back 50 years Kaonofatso ya Dikgomo

DATA to WISDOM CURVE

Income Drivers Previously

Disadvantaged

Farmers (PDF)

BPP Supported

Farmers

Established

Commercial

Farmers

Elite

Farmers

Average calving percentage 40% 61% 65% 85%

Pre-weaning mortality 50% 3.9% 4% 2%

Post-weaning mortality 15% 3% 2% 2%

Calves weaned /annum 5 14 16 21

Calves available for sale

(after replacement)

2 (5%) 13 15(85%) 20

Average weight 150 180 200 205

Price /kg (market price) R3.50 (8.00) 11.18 (13.23)

equivalent to

R6.76 (8.00)

R8.00 (8.00) R8.25

(8.00)

Potential income lost (%) 57% 16% 0 0

Potential monetary value R1050 R15819.32 R21 600 R33 825

Potential monthly income R88 R1318.28 R1800 R2818

Provide Methods + Tools + Skills for profitable and

sustainable beef businesses

Conclusion

The Value of Collaboration

STIMULATING BUSINESS

TRANSACTIONS

STIMULATING SOCIAL

TRANSACTIONS

STIMULATING KNOWLEDGE

TRANSACTIONS

THE VALUE OFCOLLABORATION

1/07/2003 - v4

REVENUE ENHANCEMENT

COST REDUCTION

ASSET OPTIMISATION

LEAD-TIME REDUCTION

RELIABILITY ENHANCEMENT

RISK REDUCTION

POWER BASE ENHANCEMENT

PERSONAL NETWORK EXPANSION

INTERORGANISATIONAL RISK REDUCTION

UNDERSTANDING BUSINESS

ENVIRONMENT

TESTING IDEAS

MARKET INTELLIGENCE

TECHNOLOGY INTELLIGENCE

OPERATIONAL INTELLIGENCE

RISK REDUCTION

EXERCISE ORGANISATIONAL LEARNING

COMPETENCIES

Acknowledgements

DAFF

DEPARTMENT OF

AGRICULTURE

LIMPOPO

DoACE-

NORTH WEST

Thank you

NOT_MY_JOB_ATTITUDE