The Livestock Development Strategy (Lds) and Its Potential Impact on the Red Meat Marketing

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

Meat industry Involvement in the Free Trade Agreement (FTA) with MERCOSUR to ensure that Market Development and there is no adverse impact to livestock industry Trade A flexible tariff system to deal with dumping and subsidized imports A functional National traceability system and an independent audit system

Safety and Security Reduction in stock theft as a result of the implementation of the Animal Identification Act, ( Stock theft ) improved policing and support structures for more effective law enforcement A Functional Animal health database Animal Health Effective control and monitoring of highly contagious notifiable zoonotic diseases including the ( A healthy national herd) 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 Breed Conservation Economically sustainable National Livestock Recording and Improvement Schemes ( Conservation through Implementation of policies and regulations to support the conservation and sustainable use of sustainable use ) 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

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 Animal improvement policy used to exploit the production potential of indigenous breeds - Efficiency of indigenous conservation through sustainable use livestock

Production Potential and National Veld policy and a Functional National Veld assessment and monitoring system Efficiency of Veld Compensation of communities that conserve and improve natural resources Emerging Sector 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

3. Service provision

Infrastructure in Rural Government financial support for projects from institutions (e.g. engineering firms, Transnet and Areas Eskom ) providing infrastructure in rural areas

Information and StatisticsReliable livestock statistics through effective liaison and linkages between institutions collecting information and statistics

Food Safety and Effective DOH monitoring of Food safety and quality Quality

4. Market and Trade Protocol

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 Trade agreements based on the relationship between input costs and product prices to avoid any negative impact on production efficiency

Support Services Policy, guidelines, market information and other measures for a positive market environment Marketing structures and information at all levels

5. Research and Development

Element Strategic interventions Research, An Integrated and sustainable research and development system (networks with clear objectives) with Extension and increasing targets to more than 2% of GDP - for long term funding of research, development and Training 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 Research and development to increase access to commercial markets and R&D into sustainable extensive Sector and intensive livestock production systems to increase livestock productivity Technical farmer support with Increased participation of farmers in the commercial sector

B. INDUSTRY RESPONSIBILITY

1 Element Strategic interventions

Implementation Aligned Commodity - specific and sector specific business and implementation plans. Plans

Local and Functional interventions and strategies for competitiveness and market access International trade

Domestic Market Reliable and accurate product information to consumers leading to Increased consumer confidence and Share 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 Share responsibilities regarding statistics, market development and trade, natural resource management, Environment 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 Research and Development needs for every commodity identified, prioritized and managed Development 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’ Union SA National Consumers’ Union Association of Meat Importers and Exporters Red Meat Abattoir Association

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 veld officers National rangeland monitoring and improvement programme Livestock support programme for black farmers Market access for emerging livestock farmers Veld-livestock decision support system

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