development and mentorship: beef profit partnerships experiences
DESCRIPTION
Presentation by N.B. Nengovhela at an inception workshop for the Competitive Smallholder Livestock in Botswana project held at Gaborone, Botswana on 31 October 2012.TRANSCRIPT
NB Nengovhela (Phd; Pr.Sci. Nat) [email protected]
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