Table of contents for 22 November 2019 in Farmer's Weekly

The local agriculture sector has emerged over the past two decades as a major asset in what has become an otherwise ailing economy. The agriculture, food and fibre value chain contributed an estimated 14% to the country’s GDP, and agriculture exports have become an important source of foreign earnings for South Africa. According to Prof Ferdi Meyer, director of the Bureau for Food and Agricultural Policy, who was speaking at a recent Agbiz Information Day in Pretoria (see story on page 16), the agriculture sector’s positive contribution to the country’s trade balance amounted to just under R60 billion in 2018, up from around R20 billion in 2010, and far outperforming other sectors, which in 2018 made a negative contribution to the trade balance of more than R40 billion. However, the…

In order to remain competitive, businesses need to take full advantage of cash flow subsidy benefits. This is especially relevant during times of financial difficulty. A subsidy that generates immediate monthly cash flow for a business is the Employment Tax Incentive (ETI), which is determined by the employer on a self-assessment basis. Accordingly, no applications are required to receive the subsidy, which is exempt from income tax. The Employment Tax Incentive is a National Treasury initiative, and is administered by the South African Revenue Service (SARS). The objective is to encourage and incentivise employers to employ and upskill the youth. The ETI reduces an employer’s cost of hiring people through a cost-sharing mechanism with government, while leaving the wage the employee receives unaffected. QUALIFYING AS AN EMPLOYER The terms and…

Over the past few months, I have written a few articles in which I argued that we shouldn’t worry too much about the current heatwave in South Africa, and that rainfall could soon provide some relief. I made this argument based on the South African Weather Service’s (SAWS) forecasts contained in its ‘Seasonal Climate Watch’ published on 30 September. At the time, the agency indicated that the central and eastern regions of South Africa were likely to receive above-normal rainfall between November 2019 and January 2020. This, of course, would have been timely given that this is a critical period for planting decisions for most summer crops, particularly maize, sunflower seed, soya bean, sorghum, groundnuts and dry beans. MAKING MATTERS WORSE IS THAT TEMPERATURES ARE SET TO BE HIGHER But…

South Africa’s farming sector has been on a positive growth trajectory for the past few years, despite poor growth recorded in the overall economy. However, to sustain growth, key interventions such as improving market access and investing in transport and port infrastructure to facilitate exports are needed urgently. This was according to industry experts speaking at the recent Agbiz Information Day in Pretoria. Wandile Sihlobo, head of economic and agribusiness intelligence at Agbiz, painted a depressing picture of South Africa’s current economic situation, saying that business confidence was “not in good standing”, with GDP growth for 2019 being revised down to well below 1% by most major forecasters. Business confidence had showed sustained improvement from the early 2000s until 2006/2007; however, since then it had deteriorated significantly. According to Sihlobo,…

People living in rural areas, where 880 000 are employed in the farming sector, have the highest infection rate of HIV/AIDS in South Africa at 17,5%. This was according to Dr Jacqui Miot, the division director at the Health Economics and Epidemiology Research Office of the University of the Witwatersrand. She was speaking during a meeting held in partnership with Médecins Sans Frontières and the British Chamber of Business in Sandton recently, to discuss the role of business in the fight against HIV. She said the high prevalence was due to seasonal employment in the agriculture sector, which resulted in high levels of migration, limited access to primary healthcare services, a low minimum wage, and a no-work no-pay policy. As a consequence, some farmworkers were not tested for the disease,…

Research is being undertaken into the health benefits of various varieties of edible flowers in Nice, in the south of France, in an attempt to address a crisis in the floriculture sector in Europe. The ANTEA project is a cross-border initiative between France and Italy, supported by the EU Cohesion Policy, which aims to strengthen the emerging edible flower sector. According to a statement by the project leaders, edible flowers were very fragile products and had a short life span. The researchers were therefore looking at different ways of conserving them, including cold storage, or drying the flowers with either solar or electric dryers Barbara Ruffoni, a project manager at ANTEA, said: “Flowers have always been a traditional ingredient in our grandparents’ recipes, found both in Liguria in Italy and…

Unduly high temperatures during flowering and fruit set have resulted in South Africa’s plum estimate having to be adjusted slightly downwards. The first estimate indicated a 15% increase in the plum harvest compared with the previous season, at 10,15 million, 5,25kg-equivalent cartons. According to Jacques du Preez, Hortgro’s general manager for trade and markets, the harvest was currently estimated to reach 9,8 million cartons, or a 300 000 carton decline. Despite the estimate being adjusted downwards, he said it was still higher than last year. “Yet, it is far from the norm. Under normal conditions, the plum harvest is usually around 11 million cartons or more.” He explained that plums did not experience ideal flowering and fruit set, due to high temperatures during September, with the Klein Karoo particularly badly…

‘FARMERS ARE THE FIRST TO BE HIT BY WATER RESTRICTIONS’ Judgment is expected before the end of the year on three matters that have been brought before the High Court in South Africa pertaining to the use and transfer of water-use licences, according to Janse Rabie, head of natural resources at Agri SA. Rabie said it was a fact that the Department of Water and Sanitation was still experiencing a large backlog with the granting of water-use licences. “We have recently learnt that there is a genuine effort by government to shorten the time limit for the completion of water licence applications to 60 days and to simplify licence conditions.” According to the department, 98% of South Africa’s water resources had already been allocated, with several catchments already over-allocated and…

What direction will NERPO take over the next 10 years? In January 2017, at NERPO’s 50th National Executive Council meeting, we declared that we would do things differently. The reason is we are now operating in a totally different political, economic and socio-economic environment than when the association was formed 22 years ago. We realised it was time to adapt to these changes. ‘WE’LL HAVE TO HAVE E-CONFERENCES AND E-MEETINGS’ Our approach now is to shift the focus from advocating for policy reform to implementing the policies we’ve helped shape by driving development of smallholder farmers through a market-driven strategy. The core change we’re looking into is how we use technology; we need to be agile if we want to survive. Our government is talking about the Fourth Industrial Revolution,…

Crowd farming (visit the website crowdfarming.com) seeks to connect farmers directly with consumers, bypassing the supply chain. This helps ensure a supply of fresh food and prevent wastage. A local business version of this concept has been developed by entrepreneur Ntuthuko Shezi. Called Livestock Wealth, it connects investors with small-scale farmers via the ‘MyFarmbook’ app. HOW IT WORKS Traditionally, farmers’ income is seasonal, or there is a long delay before a fruit tree produces a crop or an animal is sold. Yet farmers have fixed expenses such as salaries, electricity, maintenance costs and bank loan repayments. MyFarmBook offers farmers a new opportunity to benefit financially, and investors the chance to profit. Investment options include: • Easy cow: R576,45 (share a cow with 19 other investors). • Free range: R11 529…

If you were given R30 million to invest in agriculture, how would you spend it? I’d invest about two-thirds in a fruit and vegetable farm in Gauteng. The rest I would invest in the money market to spread my risk. What is the best advice you have ever been given, and who gave it to you? Throughout my life I have been inspired, not by specific words, but by people who believed in me more than I do in myself. First there was my father, who ingrained in me that education is a key pathway in life. Others who motivated me throughout my career are Dr Lindiwe Majele, the late Prof Lindela Ndlovu, Prof Eddie Webb, and Aggrey Mahanjana. If you were given carte blanche to effect one major change…

President Cyril Ramaphosa secured about R200 billion rand in investment pledges, mainly from domestic companies, as part of his drive to boost flagging economic growth. He announced these investments during his opening speech at the second South African Investment Conference in Cape Town recently. “The new investments over five years are with the view of addressing low economic growth and reducing unemployment,” Ramaphosa said. “It is pleasing to see that investors still consider South Africa as a country that has much to offer.” RISING DEBT At last year’s forum, Ramaphosa had set a goal of attracting US$100 billion (about R1,5 trillion) of new investments over a five-year period, and he quickly secured more than half of that amount in pledges. But importantly, many of those promises are yet to translate…

A lack of access to export markets has reportedly led to the liquidation of Coniglio Rabbit Meat Farm. Farmer’s Weekly previously reported that farmers who had purchased infrastructure and breeding stock from Coniglio were left without an income as the company had fallen behind on payments for deliveries by the farmers. Now that Coniglio had been liquidated, there was little hope of ever seeing their money, since the company’s assets were valued at R3,6 million, while losses amounted to over R56 million. Meanwhile, farmers had no other option but to continue farming in the hope that they could find alternative markets for the meat. John Falck, owner of Coniglio Rabbit Meat Farm, said delays in reaching export agreements with the EU and a lack of capital to bridge the delay…

Officials from the Department of Agriculture, Land Reform and Rural Development (agriculture department) have urged all farmers across the country to remain alert and report any animals showing symptoms of foot-and-mouth disease (FMD) to their nearest animal health professional without delay. This followed the agriculture department’s confirmation of a new outbreak of FMD in Limpopo on 6 November. Dr Bothle Modisane, a technical spokesperson on FMD at the department, told Farmer’s Weekly the call went out to all farmers of cloven-hoofed animals, particularly those who had recently introduced new animals to their herds, or purchased stock from unknown origin at auctions, for example. “We would rather have people over-report at this stage than under-report,” he said. Modisane said officials had now informed the World Organisation for Animal Health (OIE) of…

BRAZIL Brazilian farmers have launched a campaign to end a ban by traders on buying soya bean from parts of the Amazon rainforest cleared after 2008. This followed a global outcry about increasing deforestation of the Amazon rainforest, which resulted in the world’s largest grain traders introducing a voluntary moratorium on soya bean from the threatened areas. PERU Global grape production has been affected by a number of factors, such as the US-China trade dispute, and demand for grapes in Asia, Canada and the US being much higher and earlier than the previous season. This was according to a statement by Pacific Produce, which produces grapes in different locations in Peru. “All of this seems strange to European buyers, who saw a big oversupply last year and did not expect…

The drought conditions in Limpopo have been escalating dramatically, placing agricultural producers under severe financial pressure and resulting in large-scale job losses. This was according to Ben Vorster, a citrus producer near Letsitele. He told Farmer’s Weekly that citrus production in the province had declined between 20% and 50%, with quality also being compromised. “We really find ourselves in a perfect storm. The lack of water for irrigation, poor quality and very limited production are bound to have a serious impact on the industry. Production is going down while input costs remain high,” he said. Vorster added that citrus trees on hundreds of hectares in Limpopo had succumbed to the drought. Thousands of trees were being irrigated with just enough water to keep them alive for future production. The water…

The ongoing drought has resulted in a shortage of lucerne across the country, with increased prices making it unaffordable for many producers. This was according to Thinus van Zijl, CEO of Agri Gauteng, who said: “A lot of lucerne is exported to Namibia due to the drought conditions there, which causes a shortage of lucerne that is delivered to Gauteng from outside the province.” The bulk of the lucerne produced in South Africa came from the Northern and Eastern Cape, and according to Van Zijl, one of the reasons for the lucerne shortage in Gauteng was the extremely high demand from other provinces due to the drought, as well as increased drought assistance provided to drought-stricken regions. In addition, the demand for lucerne in these regions had increased for the…

Direct horse exports from South Africa to the EU could result in the R250 million industry easily reaching R1 billion over the next few years. This is according to Adrian Todd, managing director of the South African Equine Health and Protocol (SAEHP). Todd said that the SAEHP, the Western Cape veterinary services and the Department of Agriculture, Land Reform and Rural Development had entered into a public-private partnership in 2017 with the aim of improving the disease-prevention protocol with regard to horses in South Africa. This followed outbreaks of African horse sickness (AHS) in the control zone, which led to South Africa failing a disease-prevention protocols audit by EU veterinary officials in 2013, and a subsequent ban on direct horse exports. However, since then, South Africa’s disease-prevention protocol had developed…

Two years ago, more than 75% of countries experienced positive growth. Currently, more than 90% expect very little to negative growth. In its latest World Economic Outlook, the International Monetary Fund (IMF) reduced its forecast for economic growth in 2019 by a further 0,3 percentage points to 3%. Growth should improve to 3,4% in 2020, which is 0,2 percentage points lower than the April 2019 estimate. The IMF has based its expected higher growth in 2020 on a recovery in emerging market economies. By contrast, it expects stagnant economic growth in the US, the euro area, China and Japan into 2020 and even beyond. Because these four economies account for nearly half of global GDP, they have a large effect on global growth, directly and through linkages to other economies.…

The growth of the world population, which is expected to increase from the current total of about 7,6 billion people to 8,6 billion in 2030, 9,8 billion in 2050 and more than 11,2 billion in 2100, has left farmers with the responsibility to increase the supply of food in order to meet demand, which is set to double by 2050. As is the case for every agricultural industry, this growth will provide opportunities and challenges for the dairy sector. According to a report published earlier this year by the Food and Agriculture Organization of the United Nations (FAO) and the Global Dairy Platform, more than 80% of the world’s population, or about six billion people, regularly consume dairy products. The report, ‘Climate change and the global dairy cattle sector: The…

For nearly 20 years, Grain SA has run the Farmer Development Programme to increase productivity per hectare, be it for subsistence farmers or those farmers verging on commercial level. The goals are to develop capacitated grain farmers and contribute to food security. Development coordinator Jurie Mentz, who has been involved with the programme for a decade, notes one characteristic that separates a successful farmer from an unsuccessful one: passion. “You can give someone a farm, but if they don’t have the passion and know-how to farm, they won’t make it,” he says. In addition to the study groups and mentoring, the farmers benefit from demonstration plots, which play a major role in changing mindsets. “We plant areas using the latest technology, the right fertilisers and seed, adjacent to lands planted…

SAVOURY Curried mince on cabbage Add a starch and some fresh salad to turn this easy dish into a substantial midweek supper. Makes four servings CURRIED MINCE A small quantity of oil 2 onions, chopped 5ml (1 tsp) mild curry powder 5ml (1 tsp) turmeric 600g lean beef mince 60ml (4 Tbsp) boiling water ½ cube beef stock 60ml (4 Tbsp) chutney 5ml (1 tsp) Worcester sauce 250ml (1 cup) frozen mixed vegetables CABBAGE A small quantity of oil 1 onion, finely diced ½ a cabbage, finely sliced 1 small carrot, peeled and grated roughly Salt and pepper to taste CURRIED MINCE 1. Heat some oil and sauté the onions until soft. 2. Add the curry powder, turmeric and mince. Sauté until the mince is cooked through, and well browned.…

Only one in 10 people gets enough vitamin E, which is vital for keeping all muscles healthy and capable of self-repairing. Research indicates that it can even help the heart muscle heal after a heart attack. Microscopic tears in plasma membranes surrounding each muscle cell occur almost daily. When you lift weights, for example, you tear your plasma membranes. The body has evolved to quickly repair these tears, but it requires a certain level of vitamin E to do so. Without this, the membranes cannot heal efficiently, and muscles cannot maintain strength. Indeed, they are even unable to recover from normal, day-to-day wear and tear. According to US cell biologist Paul L. McNeil, muscle fibre is built on the ‘no pain, no gain’ principle. “But if that repair doesn’t occur,…

A 25% increase in milk production in Scotland since 2014 means supply is now “substantially” outstripping demand. This was according to one of the largest dairy companies in Europe, Germany-based Müller, which said it would stop procuring milk from 14 suppliers in Aberdeenshire, Scotland. After a month-long review of its 230 Scottish suppliers, the company concluded that the situation was “unviable”. According to a statement by Müller, these suppliers were located in areas with “heightened or complex logistical transport challenges” for the company. Plans were also announced to introduce a tiered transport charge for suppliers in Scotland from 2020. Müller had previously warned suppliers that the growing milk surplus was not sustainable and had “significant environmental consequences”. Surplus milk was currently transported to the UK, resulting in more than 6…

Irrigation farmers in the Northern Cape have expressed concern about the decreasing levels of the Orange River. The fact that the river had stopped flowing near Aliwal North in the Eastern Cape was of particular concern, according to Willem Symington, chairperson of the Agri Northern Cape disaster management committee. He said irrigation farmers had so far escaped the worst effects of the devastating drought in the province. “Should the river’s [water] level continue to decline and water restrictions [be] implemented, we could expect serious consequences for the irrigation sector in the Northern Cape. This could have a ruinous impact on the agriculture sector already suffering from an extreme drought,” Symington said. Jakkie van Zyl, chairperson of the Maletswai Chamber of Commerce in Aliwal North, ascribed the extremely low water level…

The avocado export season is coming to a close, and it is expected that the export figures for 2019 will be in the region of 14,3 million 4kg-equivalent cartons. This was about 6 700 cartons fewer than were exported last year, according to Derek Donkin, CEO of the South African Subtropical Growers’ Association (Subtrop), who added that the association was in the process of calculating the final figures for domestic sales. As the new season for avocados only started in March 2020, Donkin said it was still too early to estimate the yields for next season, but added that if weather conditions allowed, it would most likely result in a bigger crop. “We have a good crop set currently on the trees, but the weather is very hot and dry,…

Many farmers become upset when their inferior sheep’s wool doesn’t make it into the sorting bins of the valuable wool classes. But if sorters merely try to keep farmers happy by placing inferior wool in the valuable wool bins, these farmers will become even more upset. Why? Because this wool will be re-sorted at the marketplace anyway, and end up costing these farmer more money! The following wool types should always be bailed separately from other wool (the bail marking code is in brackets): • Wool marked with paint brands (BRANDS); • Wool from dead sheep or infested with maggots (PLK); • Wool shorn from skins (VEL); • Rain-stained wool or wool with fungus (BKS 4); • Matted wool (MAT); • Lumpy wool (LPY); • Wool longer than 130mm (OG).…

According to a recent report by Rabobank dairy analyst, Ben Laine, advances in breeding technologies and genetics in the dairy production sector are changing the way dairies run their businesses and ‘design’ their herds. In the paper, ‘Designer cows’, Laine writes that technologies, such as genomic testing and sexed semen, which increases the likelihood of a cow’s offspring being female to over 90%, were once “an expensive niche for elite cattle, but they are quickly becoming a necessary tool for success”. Genomics, according to the report, allows for faster and better decision making in breeding selection and genetic improvement of a livestock herd. “The term ‘genomics’ refers to the study of the entire genome of a living thing,” he writes. As more genomic tests are done, and more data is…

KwaZulu-Natal Rabbit Champions Contacts: Brian Jack 078 312 9226 | Gerald Buhr 073 278 6125 | Gina Nolazana 060 469 0084 | Heather Heron 062 911 8074 KwaZulu-Natal Poultry Champions Contacts: Richard Haigh 082 872 2049 | Myles van Deventer 082 849 1569 | Delon Alwar 082 557 6443 Tim Nixon 082 450 4046 | Peter Armstrong 083 452 4243 | Simon Chubb 084 301 9960…

The tomato, Lycopersicon esculentum, is a herbaceous, usually sprawling species of the nightshade family cultivated for its edible fruit. The genus name lycopersicon means ‘wolf peach’, and comes from German werewolf myths. These held that deadly nightshade was used to summon werewolves, so the tomato’s similar, but much larger, fruit was called the ‘wolf peach’ when it arrived in Europe from the New World. Tomatoes have a very high level of lycopene, a natural antioxidant that provides a range of health benefits. Some plants have a self-pruning gene responsible for the determinate growth habit. Ripening inhibitor (rin) and non-ripening (nr and nor) genes govern the shelf life of the fruit, but this is not a genetically modified trait. Nowadays, long shelf life tomatoes are available without these genes.…

Market agents occupy that crucial space between farmer and buyer. They are the facilitators of the sales deal, an important role that holds both challenges and opportunities for the agent. One of the many qualities required in a good market agent is commitment. This implies a lot more than simply getting to work early every morning. It encompasses qualities that collectively contribute to that person being a superior market agent. And, unless I’m mistaken, every farmer wants to be represented by a superior market agent. GOING THE EXTRA MILE I’ve witnessed these committed market agents ply their trade and it’s exhilarating to see them in action. Even keeping up with them can be a challenge, as their days have no fixed pattern. They work long hours before and after the…

INVEST YOUR WAY TO WEALTH by Thobelani Maphumulo (Zebra, R220) We often hear (and shudder at) the warning that only a small proportion of South Africans are able to retire comfortably. Yet we can solve the problem by commiting to our financial security the way we commit to going to the gym, says Maphumulo. The gym has taught many people to delay the gratification of being a couch potato for the more sustainable pleasure of better health and possibly looks. Translating that to our money management could enable us to avoid the “cancer of spending”, giving us the elusive combination of financial freedom and financial security, he argues. While recommending a more frugal lifestyle, rather like a low-GI diet for our bank account, Maphumulo is also practical about calculating how…