CURRENT ACTIVITIES IN THE SOUTH AFRICAN BEEF INDUSTRY. 15 October 2014 GERHARD SCHUTTE CEO : RED MEAT PRODUCERS ORGANISATION

Transcription

1 CURRENT ACTIVITIES IN THE SOUTH AFRICAN BEEF INDUSTRY 15 October 2014 GERHARD SCHUTTE CEO : RED MEAT PRODUCERS ORGANISATION

2 SWOT ANALYSIS FOR THE SOUTH AFRICAN BEEF INDUSTRY Weaknesses Threats Opportunities Strengths Conclusion

3 WEAKNESSES Inadequate government support veterinary services and import policy Limited traceability / individual ID of livestock and movement control Lack of training for farmers & workers Market access for emerging sector limited infrastructure in rural areas

4 WEAKNESSES (CONT.) Shortage of availability of livestock statistics Lack of capacity to enforce legislation Porous international borders

5 THREATS

6 THREATS(CONT.)

7 THREATS Sustainable monitoring of controlled and notifiableanimal diseases (CA, TB, FMD, RVF, PPR) and diseases that impact on trade

8 Natural disasters periodic droughts, floods Veld fires / Burning THREATS (CONT.) Manage the control of veldfires both for the purposes of protection of people and their assets as well as for protecting our environmental values such as grazing land and biodiversity 30,6% Extreme risk 31,3% High risk 11,7% Medium risk 26,4% Low risk

9 Alien plant invasions THREATS (CONT.) Invasive alien species affect water security, the ecological functioning of natural systems and they also pose a threat to the productive use of land. They intensify the impact of veldfires and floods, and increase soil erosion. Invader species (Slangbos / Seriphium plumosum) Relationship between aboveground grass phytomass production loss (%) and Seriphiumplumosum density (shrubs ha 1) (P < 0.01; n = 9). (Snyman, 2012) Over regulation and legislation of the industry (Agriculture is dictated by 88 Acts)

10 THREATS (CONT.) Unilateral trade arrangements of neighboring countries Global warming / Water footprint Risk factors posed by the game industry Lack of written bio-security plans on individual farming level

11 THREATS (CONT.) Impact of mining and pollution on the red meat industry Rising input costs feed, electricity, fuel, labour and land prices

12 OPPORTUNITIES Mobilizing and commercialization of the emergent sector (formal and informal mentorships) Establishment of trade marks for differentiated markets (red meat is naturally produced) Establishment of a Grass Fed / Free Range Association

13 OPPORTUNITIES (CONT.) Production systems (feedlot / integration with game or cash crops) New software and GPRS technologies Foot-and-Mouth disease free zone New export opportunities for red meat and red meat products as well as genetic material

14 OPPORTUNITIES (CONT.) Nutrient composition of South African Red Meat Global and local decreases in fat content of meat observed over time Nutrient composition of the 5 th quarter

15 OPPORTUNITIES (CONT.) New scientific findings on the positive characteristics of red meat in a balanced diet The demand for red meat grows in accordance with economic and population growth (20 % for beef and 15 % for sheep meat until 2023)

16 OPPORTUNITIES (CONT.) SA classification system to be tested in terms of consumer needs and international norms Better animal welfare practices Code of Best Practice Research must be expanded State extension actions must be restructured Producer organisations must be involved Consumer preferences in terms of antibiotics, growth hormones and beta antagonists

17 OPPORTUNITIES (CONT.) Disaster management strategy Feed bank management The role of red meat in food security in a country lacking in proteins The role of the red meat industry in a National Development Strategy Role of the 5 th quarter in food security Genomics in terms of new developments Community year for veterinarians New export opportunities Stricter enforcement of the Consumer Protection Act, Labelling Act and Agricultural Standards Act Use of residues, including bio fuel residues as animal feed source

18 STRENGHTS Good organizational support of industry structures (RPO, NERPO (Federation of Red Meat Producers of SA), SA Feedlot Association, RVAV, SAPPO, MPO, NWKV, SHALC, RMIF, RMRD-SA, Nat. and prov. Stock Theft Forums, Nat. and Prov. PMF s, LWCC SAPPO RPO RMRD-SA Small Stock / Cattle Red Meat Research and Development Trust SA Pork Producers SANCU SAFLA SA National Consumer Union SA Federation of Livestock Agents Organization Stock Theft RMIF Red Meat Industry Forum Prevention Forum NERPO AMIE Association of Meat Import and Export SAFA SA Feedlot Association SHALC National Emergent Red Meat Producers Organization AHF Animal Health Forum PMF Predation Management Forum Skins, Hides and Leather Council

19 STRENGHTS (CONT.) State support legislation, veterinary services Strong private business within the value chain Red meat industry not dependent on state subsidies

20 STRENGHTS (CONT.) Statutory levy address critical functions in the red meat industry Good management practices within the total value chain (Codes of Best Practice) 40 % of livestock belongs to developing and emerging producers Household owning sheep Household owning goats

21 STRENGHTS (CONT.) Feedlots 56 units with ±2 500 workers and directly affected dependents primary commercial and emerging farmers employing workers with directly affected dependents Communal and small scale farmers with directly affected dependents 80 % of the natural resource only suitable for livestock and wildlife production and wildlife ranching

22 STRENGHTS (CONT.) South African industry is internationally competitive Total cost and returns of typical cow-calf enterprises 2010 (USD per 100kg live weight)

23 STRENGHTS (CONT.) Nettimporter of red meat and livestock Large gene pool from which genetic, adapted animals can be bred: Livestock genetic resources Cattle breeds: Indigenous 9 ( Other 25 (BEEF BREEDING IN SOUTH AFRICA, 2nd Edition, 2010) Sheep breeds: Indigenous 12 (Snyman& Herselmann, 2011) Other 12 (S AfrJ AnimSci, 1999) Goat breeds: Indigenous 4 (Cambell, 2003; ARC, Large gene pool opportunity for adjustment to changing environment

24 STRENGHTS (CONT.) Stock improvement schemes Onderstepoort Biological Products (OBP) upgrading 40 % Ad valorumimport tariff Good liaison with Departments Preference for fresh meat

25 CONCLUSION Red Meat Commercialization, Technology Transfer & Training Country and Region Beef / cattle Off-take percentages of different species in South Africa compared to other countries and regions (84). South Africa (commercial) 23 [32 (85) 33 (86) ] South Africa (emerging (87) ) 8* [25 (85) 12 (86) *] South Africa (communal (85) ) 6 Australia 28 New Zealand 37 European Union 34 USA 38 [37 (89) ] Brazil 22 Argentina (89) 26 Uruguay (89) 30 South America ** 20

26 CONCLUSION Consumer behavior

27 CONCLUSION BEEF BALANCE SHEETS BEEF Cattle slaughter Beef total production 1000 t Beef imports meat 1000 t Beef imports live Beef total supply 1000 t Beef consumption 1000 t Beef exports 1000 t Beef residual 1000 t Beef domestic use 1000 t Beef total demand 1000 t Beef per capita consumption kg/capita Beef avg abattoir price A2/A3 c/kg Weaner avg auction price c/kg

28 CONCLUSION EXPECTATIONS FOR THE BEEF INDUSTRY IN SOUTH AFRICA FOR 2015 In terms of the year-on-year producer prices A2/3 beef carcasses increased by 18% Weaner prices increased by 29 %

29 CONCLUSION Meat Consumption

30 THANK YOU Gerhard Schutte Tel : Cell : gerhard@rpo.co.za