THE LIVESTOCK DEVELOPMENT STRATEGY (LDS) AND ITS POTENTIAL IMPACT ON
THE RED MEAT MARKETING AND DEVELOPMENT IN SOUTH AFRICA
K A Ramsay, M Hlatshwayo & M J Mamabolo
Directorate Animal and Aquaculture Production
Department of Agriculture. South Africa
1.
INTRODUCTION
Almost 80% of the land available for agriculture in South Africa is semi arid – with an average
rainfall that is neither sufficient nor reliable enough for the production of staple crops. To add
to this, the interaction of climatic and ecological factors has created a number of biomes with
natural Veld types that can and should only support some form of animal production.
It is therefore not surprising that the Livestock sector contributes more than 40% of the total
value of agricultural output.
While this sector includes milk and fibre producing animals, the largest contribution comes
from red meat producing species that include cattle, sheep, goats, wildlife and ostriches.
Those owning and keeping these species use resources that include large to medium
commercial farms, smallholdings, and communal grazing to produce red meat for both own
consumption and for the local, regional and international market
The success of this sector in terms of the gross domestic product (GDP) is largely due to
commercialization and intensification that has increased turnover and off take. Intensive
systems are comparable to the best in the world and significant foreign earnings result from
the export of a range of animal products. Neighboring countries also benefit from the
stabilizing import market of South Africa
Many of the previously disadvantaged and developing areas of the country are situated in
biomes that are largely suitable for animal production but, in contrast with the established
producer sector in similar production environments, these have been characterized by a
relatively low off take and minimal commercial activity.
Animal agriculture is a major factor in household food production and food security in these
areas and there is vast potential for increased production efficiency and economic activity.
This can, however, only be achieved by providing an integrated support infrastructure that
includes improved animal husbandry, access to markets, technology transfer and appropriate
financial support
It has been estimated that a 50% improvement in Veld and herd management will
double the production from the developing and communal areas.
This is the challenge facing the entire livestock sector as all will benefit in the process.
These are the realities that led to the development of the livestock development
strategy
Matching animals to both the environment and the production system is a key factor in
sustainable animal agriculture and by integrating information on the production environment
with information on species and breeds; stock owners will be able to make a more informed
choice on the breed and combination best suited to individual production inputs.
Linking this to services that include access to financial resources, breeding material, breeding
and AI services, animal health programs, animal recording and evaluation programs and
marketing channels for animals and animal products will enable stockowners to improve their
own skills and to generate income on a more regular basis. Processing and marketing
services will also create secondary employment opportunities as some products could be
processed on site or nearby.
2.
THE LIVESTOCK DEVELOPMENT STRATEGY
The LDS was developed within the framework of Presidential Imperatives and the Strategic
Plan for South Africa with regard to the need to enhance equitable access to - and
participation in agriculture, improve global competitiveness and profitability, and ensure
sustainable resource management.
Central to this strategy is the vision of a united and prosperous agricultural sector with three
core goals:
To enhance access and participation by previously disadvantaged groups
To maintain and increase international competitiveness and profitability
To ensure the sustainable use and management of the natural resource
base
Actions included an in depth review of both the livestock sector as well as the resource base and sector working groups were established to use information on current stratus, constraints
and challenges as a framework to develop strategies to rectify problems and to mobilize the
respective sectors towards more equable and sustainable production.
As this strategy is largely aimed at increasing productivity from the available natural
resources, it was appropriate to use this as a framework to review the impact of planned and
partially implemented interventions on red meat research, development and marketing in
South Africa
In reviewing and discussing the above – attention will be given to the following:
Key elements and interventions
Current support structures in the red meat industry
Critical success issues and the impact of the LDS
Expected outcomes
3. 1
KEY ELEMENTS AND INTERVENTIONS
As a number of sub sectors are involved, the LDS is fairly extensive as far as detailed sector
specific plans of action are concerned. In addition to this, however, a sizeable part of the
document deals with common issues that are of critical importance to the entire sector. These
have been divided into the enabling environment (Policy, legislation, etc) and industry
involvement and have been tabulated for easy reference with regard to this paper.
A.
THE ENABLING ENVIRONMENT
1.
Policy / Legal / Regulatory Framework
Element
Strategic interventions
Market Development and
Trade
Meat industry Involvement in the Free Trade Agreement (FTA) with MERCOSUR to ensure
that there is no adverse impact to livestock industry
A flexible tariff system to deal with dumping and subsidized imports
A functional National traceability system and an independent audit system
Safety and Security
( Stock theft )
Reduction in stock theft as a result of the implementation of the Animal Identification Act,
improved policing and support structures for more effective law enforcement
Animal Health
( A healthy national herd)
Breed Conservation
( Conservation through
sustainable use )
A Functional Animal health database
Effective control and monitoring of highly contagious notifiable zoonotic diseases including the
monitoring of cattle versus game farming in the context of endemic diseases and effective
border control
Financial support for vaccine production and research and regular vaccination programmes
Regular and representative sampling and analysis to support FMD and BSE free status
An economically sustainable National database using INTERGIS - linked to declared and
Economically sustainable National Livestock Recording and Improvement Schemes
Implementation of policies and regulations to support the conservation and sustainable use of
indigenous and adapted livestock breeds and strains
Functional animal genetic resource centers
Sustainable use of Veld and A Functional and economically sustainable Veld and Forage Improvement Scheme linked to the
Forage resources
implementation of the National Grazing strategy
A Functional and economically sustainable National vegetation database and plant genetic
resource centers to support the conservation and use of indigenous and adapted forage
cultivars
Early warning and decision support system for managing the climatic impact and risk on
livestock production linked to a holistic drought management plan to reduce risk of
environmental degradation
Food Safety and Quality
implementation of the Meat Safety Act (Act 40 of 2000) and a Food safety policy and strategy
with special emphasis on rural areas to improve hygiene and safety practices
Management of input costs
A system for handling trade agreements that impact directly on the relationship of input costs
and product prices
2.
Structural / Institutional Framework
Element
Strategic interventions
Institutional Links
Formal interdepartmental and industry links to develop common strategies to support
effective trade as well as issues such as mentorship and collective bargaining
Food Safety and Quality
Public-private partnerships to develop a countrywide network of monitoring agencies and
laboratories
Support Services
National co-coordinating bodies - using an umbrella approach - to ensure proper prioritization,
maximum use of scarce resources, technical assistance, market information and guidance
according to production areas.
A functional system to identify financial needs linked to funding for identified projects
Production Potential and
Efficiency of indigenous
livestock
Animal improvement policy used to exploit the production potential of indigenous breeds conservation through sustainable use
Production Potential and
Efficiency of Veld
Emerging Sector
3.
National Veld policy and a Functional National Veld assessment and monitoring system
Compensation of communities that conserve and improve natural resources
Land ownership systems and secure rights to resources for viable production systems along
with diversified livestock and other livelihood options for the emerging sector.
Business plans and projects for holistic development of rural communities and farmers
Service provision
Element
Strategic interventions
Infrastructure in Rural Government financial support for projects from institutions (e.g. engineering firms, Transnet and
Areas
Eskom ) providing infrastructure in rural areas
4.
Information and
Statistics
Reliable livestock statistics through effective liaison and linkages between institutions collecting
information and statistics
Food Safety and
Quality
Effective DOH monitoring of Food safety and quality
Market and Trade Protocol
Element
Strategic interventions
Market Development and Formal forums to ensure that the needs and interests of the agricultural sector addressed and
Trade
protected in trade negotiations and agreements.
Export of animal products
Quarterly reviewed tariffs to protect livestock Industry against dumping and subsidized imports
Functional first world South African veterinary protocol and traceability system
Input Costs
Support Services
5.
Trade agreements based on the relationship between input costs and product prices to avoid any
negative impact on production efficiency
Policy, guidelines, market information and other measures for a positive market environment
Marketing structures and information at all levels
Research and Development
Element
Strategic interventions
Research,
Extension and
Training
An Integrated and sustainable research and development system (networks with clear objectives) with
increasing targets to more than 2% of GDP - for long term funding of research, development and
technology transfer
Optimal resource capacity ( highly skilled staff ) for research, development and technology transfer
supported by HR development programs
A national programme for technology transfer with a national co-coordinator
Food Safety and Projects to develop minimum food quality standards integrated with production systems and good
Quality
practices that include standards for resource poor producers and processors in remote rural areas
Food and Income Research and technologies to improve and support post harvest storage and quality of animal products,
Security
agro processing of animal products (hides, skins, wool, hair and cashmere) to reduce animal food
wastage and to add value to processed animal products from IDPs (nodal areas)
SMME development program
Sustainable use of Research and Development for Pastoral risk management and decision support to increase livestock
natural serources productivity within biomes
Veldl monitoring and management and functional decision support system for managing climatic impact
and risk to livestock production within biomes
New and alternative forage crops and production practices to reduce risk of environmental degradation,
high livestock mortality and droughts
National Research and Development and technology transfer programme for biome management with
supporting Information packs for managing pastures and Veld within biomes
Biologocal
Research and Development on sustainable systems for livestock production, reproductive efficiency,
Efficiency of
growth and development, Genetic improvement and enhanced genetic variation, Improved efficiency,
Livestock
Animal nutrition, DNA technology and services, Technologies for diagnostics, services and research,
Integrated livestock and crop systems (especially in communal and resource poor farming areas, e.g.
Kwan-Zulu Natal and Eastern Cape), animal health and the management of animal waste.
Emerging
Sector
B.
Research and development to increase access to commercial markets and R&D into sustainable
extensive and intensive livestock production systems to increase livestock productivity
Technical farmer support with Increased participation of farmers in the commercial sector
INDUSTRY RESPONSIBILITY
1
Element
Strategic interventions
Implementation
Plans
Aligned Commodity - specific and sector specific business and implementation plans.
Local and
International trade
Functional interventions and strategies for competitiveness and market access
Domestic Market
Share
Reliable and accurate product information to consumers leading to Increased consumer confidence and
demand for livestock products
Emerging Sector
Involvement in and co – responsibility for development programmes , recruitment of t farmers and
entrepreneurs to organised agricultural structures and agribusiness , assistance with the establishment
of co-operative structures with shareholding by participants and investment in such ventures to build trust
and to facilitate use of contract suppliers and downstream partners
Enabling
Environment
Share responsibilities regarding statistics, market development and trade, natural resource management,
safety and security, animal health and animal conservation leading to Increased compliance with
regulations , Increased productivity, Improved quality of livestock and animal products and Improved
management of the livestock sector
Research and
Development
Research and Development needs for every commodity identified, prioritized and managed
Increased financial and other resource support
Demand driven Research and Development projects
Structures for planning, -prioritizing and funding of projects
Statutory levy and other means to fund Research and Development
Business Plans indicating required Research and Development interventions
3.2
current SUPPORT STRUCTURES for the red meat industry in south africa
The industry is well supported by a range of structures that are coordinated to a large extent
by the South African Meat Industry Company (SAMIC).
This has facilitated more effective focus on key issues from industry side - despite the varied
nature of the sub sectors and it is hoped that the LDS will further enhance existing initiatives
by adding weight to already strong motivation for more institutional support in the form of
animal health in particular
Support structures for the red meat industry include the following
Red Meat Producers’ Organisation
SA Pork Producers’ Organisation
National Emergent Red Meat Producers’ Organisation
SA Feedlot Association
SA Federation of Livestock and Meat Brokers
SA Meat Processors’ Association
National Federation of Meat Traders
Skins, Hides and Leather Council
South African Meat Distributors and Allied Workers’
SA National Consumers’ Union
Association of Meat Importers and Exporters
Red Meat Abattoir Association
Union
The Ostrich industry is well supported by an umbrella organisation, the SA Ostrich business
chamber that includes breeders, producers, processors and a central marketing agency
A recently developed strategy document – Ostrivision links to and complements the LDS as
far as this sector is concerned and is also a useful model for other sub sectors busy with
strategic planning and alignment with the LDS
Wildlife Ranching – South Africa (WRSA) - currently the mouthpiece for this sector has been
very active in the development of the Veld and forage as well as the closely linked Wildlife
ranching policy.
A sector working group has been established along with a section 27 committee administered
by National Agricultural Marketing Council ( NAMC)
Often blamed for bigger disasters than any cattle owner, wildlife ranching is nevertheless a
viable alternative in many areas where domestic red meat breeds will not survive without
expensive interventions (water supply, camps, etc) and it may also be of some use to look at
examples such as Mauritius where Fallow and red deer are grown in intensive systems for
venison – an d Russia that farms with African Eland - are good examples of exotic and local
wildlife species put to some good.
3.3
KEY CONSIDERATIONS AND THE POTENTIAL IMPACT OF THE LDS
MAINTAINING A COMPETITIVE RED MEAT INDUSTRY
For the South African red meat industry to remain competitive both internationally and in the
context of the SADC region, continuous research and development is essential. At present
SAMIC plays a major role in facilitating and administering research in the industry, however,
the advantage that South Africa enjoys as a result of this knowledge base is steadily being
eroded due to the ever diminishing funding that is available for this essential function.
Research projects are outsourced to established research institutes and partly sponsored with
funds from the Red Meat Development Trust (RMRDT).
It will be difficult to maintain any competitive edge internationally without government support
and it is hoped that the LDS will facilitate more effective integrated support via the identified
interventions
A recently completed Sub - Sector analysis of the emerging red meat Industry in South Africa
should go a long way towards the development of emergent red meat producers and their
integration into the red meat supply chain
IMPROVED STATISTICS AND GENETIC INFORMATION
Basic but accurate data – basic information on animal identification, location of
owners/keepers, breed distribution and composition, matings, births, birth weights, weaning
and post weaning weights - on the different breeds used for food and agriculture can be used
to identify and trace superior animals in registered and non-registered herds and flocks. This
data can be processed into information that could be used to broaden the reference base of
specific breed evaluations.
MOBILISATION OF THE COMMUNAL / EMERGENT FARMER SECTOR
For South Africa to provide for volumes that the expansion of the international, regional and
domestic markets will create it is essential that the potential of the commercialising sector is
developed and nurtured. Forty percent of animals in the national herd belong to emergent
farmers. These animals need to be included in the commercial sector, thus providing the
industry with a much larger resource. This will also create opportunities for emergent farmers,
as well as training, development and job opportunities for those wanting to enter the red meat
industry.
MAKING THE BEST OF LANDRACE RED MEAT BREEDS
Both the animal improvement policy and the LDS have highlighted the importance of
indigenous and locally develop0ed breeds – and the following extracts from the AIP highlight
the prominence policy and strategy has given to this in South Africa
There is a growing international demand for South African Landrace breeds and it is important
to ensure that the flow of benefits from such markets reach all levels and that the rights of
breeders in the country are taken into consideration at all times.
In terms of the Convention for Biological Diversity, South Africa has sovereignty over its
genetic resources, including the names of such breeds. Therefore, intellectual property rights
should be vested in South Africa.
As there are efforts to revise the intellectual property system in South Africa, it may be
necessary for a consultation process that provides inputs on whether patenting of live animals
or genetic material should be allowed. In the interim, however, it is important to monitor
exports as effectively as possible and to ensure that only quality genetic material leaves the
country. Exporting of sub-standard genetic material will only jeopardize future markets and
will also be counter productive as far as broadening the access of stock owners in the
resource poor areas to these markets. It may be prudent to establish an export facility for
black emergent farmers within the farmer support and development programme.
SUSTAINABLE USE OF VELD AND FORAGE RESOURCES
This is arguably the most critical success factor as most of the red meat produced in South
Africa starts with this resource. All the weaners that find their way into the feedlot system –
the biggest producer of red meat – have their origins on extensive farming systems – and
most of the mutton and goat meat is produced under extensive conditions
The resource base is under a lot of pressure – and opportunities for planted pastures
compete with crops in the areas suited to such interventions and farming systems
The LDS addresses these issues and interventions to date include the development of policy
and the establishment of a national veld and forage working group to facilitate both national
and provincial strategy aimed at more effective use of the available resources
SERVICE DELIVERY – THE IMPACT ON THE EMERGENT FARMER SECTOR
The establishment of integrated service centers for the emergent farmer sector, especially
black farmers should be considered as a priority. Such centers should ensure that attention is
given to good animal science principles, including effective veld and pasture management
and animal nutrition. Centers should also include an animal identification and recoding facility.
Consideratio n should also be given to the establishment of a Landrace breed marketing
center – in close proximity to an International port – where animals could be collected, tested,
certified and quarantined for exportation. This facility could be established with donor
assistance – and could be jointly managed by entrepreneurs from the emergent farmer
sector.
Breed societies should be encouraged to assist this sector in a responsible way by becoming
involved in projects that include both genetic material and supportive training
PROJECTS INITIATED DIRECTLY AND INDIRRECTLY AS A RESULT OF THE LDS
While some of the projects and programs listed below have been around for some time, the
LDS has refocused attention on these key interventions and, in the case of the improvement
schemes, played a role in their recognition in terms of the Animal Improvement Act, 1998 (Act
62 of 1998)
Development projects
Kgalakgadi Dipudi Enterprise Training and deployment of
National rangeland monitoring and improvement programme
Livestock support programme for black farmers
Market access for emerging livestock farmers
Veld-livestock decision support system
veld officers
Schemes
Beef Improvement Scheme
Pig Improvement Scheme
Small Stock Improvement Scheme
Kaonafatso ya Dikgomo
Small Stock Improvement Scheme
for black farmers
Technical reports
Commercialization of emerging beef farmers in South Africa: beef profit partnership programme
Management of farm animal genetic resources (FAnGR) in the SADC region
State of the World (SOW) report on animal genetic resources in South Africa
Status of animal recording in South Africa: a report for the International Committee for Animal Recording (ICAR)
Sub-sector analysis of the emerging red meat industry in South Africa
The advantage of this process - as well as the practical experience gained - is that it can be
modeled and adapted for use at National and regional level. This is particularly true when it
comes to the marketing of animals and animal products, disease surveillance and control,
reliable statistics and interventions to increase production efficiency and the conservation of
FAnGR through the sustainable use of plant and animal genetic resources.
Similar processes in other countries have equal potential and it is here that SADC/FANR,
PRINT and SALMF can play a key role – to develop generic guidelines and interventions to
increase national and regional red meat production efficiency as well as effective and
innovative ways to market genetic material and products at regional and international level
EXPECTED OUTCOMES FROM THE LDS WITH THE POTENTIAL TO CONTRIBUTE
TOWARDS MORE EFFECTIVE PRODUCTION AND MARKETI NG OF RED MEAT IN THE
SADC REGION
Better statistics – leading to more effective management of the entire supply chain
A united approach to common problems
Sector and Sub Sector specific development programs
More effective disease surveillance and control
Increased local, regional and international trade as a result of guarantees on
product health and
traceability as well as animal care
REFERENCES AND ACKNOWLEDGEMENTS
Red Meat status report – August 2005
The National Livestock Development Strategy – Department of Agriculture 2007
The inputs of all those who participated in the LDS process are acknowledged with sincere
thanks