Table of contents for 11 September 2020 in Farmer's Weekly

There are a few common threads that run through most stories of those people who have, over the past 25 years, benefitted from one of South Africa’s land reform and agricultural transformation programmes. A lack of tenure security and post-settlement support, and insufficient access to markets and knowledgeable extension officers, are some of the most common issues that beneficiaries have persistently struggled with. Another key challenge that many land reform beneficiaries experience is the serious lack of access to water and irrigation infrastructure. This was one of the problems raised by farmers we featured in last week’s (FW, 4 September) and this week’s issues of Farmer’s Weekly. In both instances, the farmers have been waiting for many years for government to make good on its promises to provide boreholes and…

Agricolleges International (Agricolleges), a South African-based online agrieducation platform, has been named one of the top 30 Most Inspiring Digital Innovations (MIDI) of the year by Dutch organisation, Partos. Agricolleges offers a variety of online agricultural courses, from courses focused on business management to plant and animal production. Partos, an association of Dutch NGOs working in international development, believes that there’s huge innovation potential in developing economies. The MIDI 2020 initiative was driven by Partos’s innovation platform, The Spindle, with the aim of showcasing inspiring digital innovations in the field of development co-operation. The Spindle received applications for the MIDI initiative from companies in Latin America, Asia and Africa. “Access to the Internet is exploding across Africa and Agricolleges was founded with the intention of giving those who want to…

The incidences of rhino poaching in South Africa dropped 53% during the first six months of the year, with 166 animals killed for their horns compared to 316 in the corresponding period in 2019. However, since the easing of lockdown restrictions to contain the COVID-19 pandemic, poaching incidents have slowly increased. The Minister of Environment, Forestry and Fisheries, Barbara Creecy, ascribed the decline in poaching to the strict lockdown restrictions that had been in place. “This reprieve was specifically welcome in the Kruger National Park (KNP) where during April, no rhinos were killed in the intensive protection zone for the first time in almost 10 years.” Since the start of the national lockdown on 27 March until the end of June, 46 rhinos were poached across the country. Of these,…

KLL Group, a subsidiary of international diversified industrial brands group Barloworld, recently issued a second material adverse condition (MAC) notice in an attempt to pull out of its original agreement to acquire Tongaat Hulett’s starch business for around R5,53 billion. The KLL Group announced its acquisition intention in February. However, in May it issued a MAC after becoming concerned about potential negative changes in the starch business’s profitability during the current financial year. Barloworld’s May statement, via the JSE’s Stock Exchange News Service (SENS), explained that the KLL Group’s first MAC was because the company believed that “[the] COVID-19 global pandemic and the consequences thereof [are] reasonably likely to cause [Tongaat Hulett Starch’s] earnings before interest, taxes, depreciation and amortization [EBITDA] for the financial year ending 31 March 2021 to…

The second-largest maize crop on record that is expected to be harvested in South Africa this season, will replenish stock levels that were placed under strain as a result of lower than average harvests in 2018 and 2019, which pushed prices to export parity levels. This was according to the Bureau for Food and Agricultural Policy’s (BFAP) recently released Baseline Agricultural Outlook report for 2020 to 2029. BFAP said this season’s harvest was expected to reach an estimated 15,5 million tons, which was a 38% year-on-year increase in volume from a 14% larger area planted to the crop. “Consequently, despite the drastic depreciation in the exchange rate [of the rand], which has supported export-parity prices at a time when global markets came under pressure, annual average prices of white maize…

The recent uptick in cotton production can be attributed to the commodity’s relative profitability compared with other summer crops, but also to improved technology and marketing that has made the industry more competitive. This was according to Dr Tracy Davids, manager of commodity markets and foresight at the Bureau for Food and Agricultural Policy (BFAP), speaking at the recent virtual launch of the Bureau for Food and Agricultural Policy’s (BFAP) Baseline Agricultural Outlook report for 2020 to 2029. Davids said that a lot of this success had been built on cotton exports. “Since 2017, South Africa became a net exporter of cotton lint, predominantly destined for Asia, for which we obtain a premium price on the international market.” According to Davids, cotton was a sector where small-scale producers could thrive.…

Farmers and agribusinesses should welcome the news that South Africa’s agriculture sector achieved 30% growth quarter-on-quarter for the first quarter of 2020, as recently reported by Agbiz. Wandile Sihlobo, chief agricultural economist at Agbiz, predicts more growth in the coming quarters in subsectors such as horticulture, livestock and field crops, averaging a 10% year-on-year growth for the sector. While news of this positive outlook is reassuring during the current economic uncertainty, we cannot remain comfortable, as a number of other industries are experiencing a negative outlook. Organisations such as South African Breweries (SAB) and Heineken have confirmed that they will halt their investments and projects that were meant to be rolled out in the next few years. SAB has confirmed a 30% loss in revenue in the first 12 weeks…

All avocado cultivars grown commercially in South Africa are sensitive to water stress. An annual rainfall exceeding 1 000mm is desirable, and it should be well distributed, with the only dry period in June and July. However, most of the suitable areas in South Africa experience a dry period during flowering, necessitating supplementary irrigation. High humidity is desirable, because it decreases stress conditions (particularly high temperature) that play an important role during flowering and fruit set. The mist-belt areas of South Africa are especially suitable in this regard. The humidity should exceed 50% at 2pm. Avocados tend to have brittle branches that are damaged easily by wind. The majority of blemishes causing a downgrading of fruit most probably result from wind damage.…

In last week’s issue (FW, 4 September), I wrote about the new fresh produce market that has opened in the Midrand area. This prompted me to cast the net wider and look at other new markets being developed in Southern Africa. I’ve always pushed for more markets, as these developments are good news for the regional fresh produce sector. They should also be a clear sign to cynics who oppose fresh produce markets that these establishments have earned their place for thousands of years and will continue to do so. LUSAKA Outside of this country, I know of a projected market coming to Lusaka, the capital of Zambia. Moreover, it is designed to be a template for other markets in the region. MARKETS PROVIDE EMPLOYMENT FOR LOCAL COMMUNITIES At this…

New Holland Agriculture is 125 years old this year and remains one of the world’s most innovative agricultural machinery manufacturers. Proof of this is the NH-DRIVE autonomous tractor launched in 2016 and the 100% methane-powered tractor introduced in 2019. A host of renowned brands, including Fiat, Ford, Claeys, Braud and Flexi-Coil, have contributed to the company’s success. More recently, New Holland acquired Miller and Kongskilde, making its offerings even more versatile. TRACTORS The new New Holland T5 Electro Command range consists of three models: the T5.90 EC (65kW), T5.100 EC (72kW) and T5.110 EC (81kW). They are powered by the well-known FPT S8000 four-cylinder, turbo-intercooled engine and equipped with the Electro Command semi-power-shift transmission, with 16 forward and 16 reverse gears. There is a 540/540E/1000 PTO and hydraulic flow is…

THE ANARCHY by William Dalrymple (Bloomsbury, R350) Dalrymple has made a name for himself as a revisionist, as well as an assiduous digger through often-disregarded archive material about India. The Anarchy certainly caters to those who enjoy history, but will also appeal to readers of business books. This in-depth study gives the often-neglected other side of the East India Company, but deals mostly with the first half of the company’s existence from its founding in 1599. Dalrymple emphasises that today’s era of globalisation, with business, politics and armed mercenary activity blurring to the benefit of the 1%, was prefigured by the East India Company, which raised its own troops and ruled its fiefdoms. OUT OF AN AFRICAN KITCHEN by Nicky Fitzgerald (Struik Lifestyle, R290) Fitzgerald launched her career in hospitality…

If you were given R30 million to invest in agriculture, either in new or existing farming activities or in the agriculture value chain, how would you spend it? NWK is a client-focused and -driven company. After the bumper maize crop this year, we have seen inefficiencies at our grain silo business, so I would choose to invest most of this money in addressing these issues. What is the best advice you have ever been given, and who gave it to you? Once, at a conference I was attending, former Standard Bank CEO Jaco Maree gave a 10-point action list compiled from lessons he had learnt during his career. Maree said that if you have a division in your business that is not performing, look at the management and make changes.…

A new partnership between the Garden Route Environmental Forum (GREF), the Southern Cape Landowners Initiative (SCLI), and Husqvarna South Africa aims to address land management issues brought about by climate change, among other challenges. According to Cobus Meiring, chairperson of the GREF secretariat, the challenges that landowners faced were due to the Southern Cape being a proverbial hothouse for invasive alien plants due to high rainfall, and their spread into sensitive areas has thus become exponential. Meiring said that thousands of hectares of formerly “perfect” agricultural land had succumbed to either bush encroachment, the spread of invasive alien plants, or both. “There are a number of factors allowing for bush encroachment, of which climate change may well be one, but it is mostly the result of overgrazing and a lack…

The Upgrading of Land Tenure Rights Act Amendment (ULTRA) Bill will result in land dispossession on a large scale, according to the Free Market Foundation (FMF). The Portfolio Committee on Agriculture, Land Reform and Rural Development was currently conducting virtual public hearings on the Bill. According to Nkosi Swelivelile Mandela, chairperson of the portfolio committee, the purpose was to amend the Upgrading of Land Tenure Rights Act 1991 in order to provide for applications to be made for the conversion of land lease rights to ownership, and to provide for inquiries to be instituted to assist in the determination of land tenure tights. He added that it also aimed to provide for application to the courts by aggrieved persons seeking appropriate relief, and to provide for the recognition of conversions…

Diversified and farmer-owned agricultural company, GWK, is liable for the R1 million administrative penalty that the Competition Tribunal of South Africa (CompTrib) imposed recently on the now defunct business, Westra Industries. GWK wholly acquired Westra Industries, and renamed it GWK Farm Foods, in 2008. A statement by the CompTrib said that Westra Industries was the fourteenth company so far to be penalised for its involvement in a 1999 to 2007 maize milling cartel that illegally collaborated to directly and indirectly fix the selling prices of their milled, white maize products. Responding to Farmer’s Weekly, GWK stated that “[it] had no interest in or involvement with Westra Industries at the time of the contravention”. A statement by the Competition Commission of South Africa (CompCom), which investigated the alleged maize milling cartel,…

The volume of grapes harvested by French champagne producers will be cut by more than a fifth, in an attempt to mitigate the collapse of sales due to the COVID-19 crisis. An agreement was reached among members in late August to reduce grape volumes to 8 000kg/ha, down nearly 22% from 10 200kg/ha in 2019, as harvesting got off to an early start after warm, dry weather was experienced this year, industry body, the Interprofessional Champagne Wines Committee (CIVC), said. According to Reuters, producers had been locked in talks about harvest output for weeks. Leading champagne houses had pushed for a steep decline to support prices, while some growers wanted a smaller reduction to take advantage of a promising 2020 crop. Jean-Marie Barillere, co-president of the CIVC, told Reuters: “For…

A long road to recovery lies ahead for South Africa’s wine industry, according to Dr Tracy Davids, manager of commodity markets and foresight at the Bureau for Food and Agricultural Policy (BFAP). BFAP recently presented its Baseline Agricultural Outlook report for 2020 to 2029, which provided a comprehensive summary of the agriculture sector and its projected growth. Speaking at the report’s first virtual launch, Davids highlighted the severe impact of the COVID-19 pandemic on the South African wine industry, due to the trade restrictions on exports and on the domestic market during various stages of the national lockdown. She said the “massive demand shock” brought about by the national lockdown to contain the pandemic came at a time when the industry was just starting to recover. “Having gone through a…

The use of farm inputs will require increasingly more meticulous management if producers are to remain sustainable. This was according to speakers at the Fresh Connections Southern Africa Virtual Conference, who stressed that this applied to both water usage and its increasing scarcity, as well as chemical usage as dictated by consumers and export markets. Prof Ferdi Meyer, managing director of the Bureau for Food and Agricultural Policy, noted that the use of shade-netting in farming had already gone up 300% in a quest to improve water efficiency. “The question is, how much more can we improve on farm level? On the other hand, we are seeing huge losses of water between the dams and the farm gate.” Meyer said that better management of water resources was required at a…

Brucellosis poses a serious threat to the South African cattle industry, which is further exacerbated by the fact that nobody really knows the exact prevalence levels of the disease in South Africa. In an effort to curb the spread of the disease, the South African Veterinary Network was in the process of finalising a platform for stud as well as commercial cattle breeders, who regularly had their herds tested by vets and certified as free from the disease. Dr Danie Odendaal, Veterinarian Network director, said the initiative was expected to be up and running in about two months’ time. According to him, stud cattle breeders were committed to testing both male and female animals in order to safeguard the integrity of their individual herds, as well as that of the…

After two decades of positive growth and a relatively stable policy environment, the agriculture sector is confronted with policy ambiguities, slow progress on transformation, climate change, rising farm debt, market-distorting disease outbreaks, and farm-safety problems. This is not a complete list, but these are arguably the top six agricultural problems today. It is also worth noting that all of these issues are equally important; you cannot prioritise one over the other. To do so would lead to weak agricultural growth, job losses, food insecurity and low investment. This article focuses on the transformation problem; subsequent columns will address other strategic areas. Apartheid laws were designed and implemented in a manner that decimated black farming capabilities. Since the end of apartheid, the democratic government has achieved very little to restore farming…

Online livestock auctions are not a new phenomenon. Gert Coetsee, founder of NetAuctions, started experimenting with online auctions in 2005, selling mainly Nguni and dairy cattle via the website Eco Auctions. In 2015, he changed the name from Eco Auctions to NetAuctions to prevent confusion. “We wanted to clarify that we weren’t in competition with auctioneers, but provided a virtual space that could add value to auctioning services,” he explains. THE FALL AND RISE OF ONLINE AUCTIONS Coetsee’s online auctions were well supported up until 2010, after which interest dwindled until he was hosting an average of only five a year. Since the start of the COVID-19 lockdown, however, interest has picked up, and he now hosts several auctions a week via NetAuctions and WhatsApp. A recent highlight was the…

For over 60 years, the Nampo Harvest Day (Nampo) has been an important date on the agricultural calendar. With over 75 000 visitors last year, as well as 680 exhibitors, it was expected that 2020 would be much the same, only with more visitors and more exhibitors. Then, in March this year, President Cyril Ramaphosa announced a national lockdown to contain the spread of COVID-19. In line with the lockdown regulations that banned gatherings of more than 50 people, Grain SA initially announced that Nampo 2020, which was due to take place mid-May, would be postponed until August. When it became clear that COVID-19 was not going anywhere in a hurry, and with the extension of the lockdown and the associated regulations, Nampo was cancelled until 2021. This is not…

The developers of PictureThis call their app a ‘botanist in your pocket’. It has more than three million users and, thanks to their photograph submissions, can identify more than 10 000 plants with 99% accuracy. Simply take a photograph with your phone and the software will match it with the database. The first plant I tested the app on was a carnation in our garden. Within seconds, it had identified the plant as: “Carnation, also known as: clove pink, mini carnation, with the botanical name Dianthus caryophyllus.” There are also ‘Tips for garden coaches’. For carnations, it states: “Most species are hardy perennials. However, there are also several that are annuals. Dianthus also make lovely additions to any herbaceous garden border […]” The quick-care guide for each plant covers planting,…

Calf rearing 19 SEPTEMBER THIS COURSE COMBINES EXPERT KNOWHOW AND PRACTICAL EXPERIENCE TO PRESENT DELEGATES WITH A COURSE THAT HELPS THEM MANAGE PROBLEMS THAT MAY OCCUR WHEN REARING CALVES. 28 SEPTEMBER TO 2 OCTOBER Handyman Course, Agri Skills Cullinan Farm Training Centre. Email Agri Skills Transfer at admin@agriskills.net, or phone 012›460 9585. 5 TO 9 OCTOBER Beef Cattle Management, Agricultural Research Council Irene Campus, Pretoria. Email Mpho Makhanya at makhanyam@arc.agric.za, or phone her on 012 672 9153. 5 TO 9 OCTOBER Tractor Operation and Maintenance, Buhle Farmers’ Academy Delmas Campus.Email info@buhle.org.za. 8 TO 9 OCTOBER Cattle Nutrition Management, George. Visit rltsafrica.com/ product/nutrition-management. 16 OCTOBER Cattle Dairy Farming Management and Production, George. Visit rltsafrica.com/product/ dairy-farming. 20 TO 22 OCTOBER Dairy Processing: Yoghurt and Maas, Agricultural Research Council Irene Campus, Pretoria. Email…

South Africa’s agriculture sector had a solid start to the year, with first-quarter gross value-added figures growing 27,8% quarter-on-quarter (q/q) on a seasonally adjusted and annualised basis. I previously noted that the succeeding quarters would likely continue to show strong growth, which is a view I still maintain. But the second-quarter expansion could be somewhat milder than the first quarter, possibly in the range of 20% to 25% q/q on a seasonally adjusted and annualised basis. The key drivers will remain somewhat similar to the previous quarter, which saw an uptick in animal products, field crops and horticulture. THE WEAKER RAND WAS A KEY DRIVER OF SECOND-QUARTER MACHINERY SALES Within field crops, sugar was the main driver, while in horticulture, deciduous fruits were the primary drivers of the bounce-back in…

The first mohair sale of the 2020 winter season kicked off with a mixed bag of results, according to Mohair South Africa. The average market indicator closed at R225,60/kg, which was 1% lower than the last sale of the summer season. This was mainly attributed to some uncertainty on the market as a result of the COVID-19 pandemic. A highest price of R562,10/kg was paid for a bale of 24-micron, good-style kids’ mohair. A small percentage of this offering consisted of Responsible Mohair Standard (RMS)-certified mohair, which gained a premium of 10%. Due to the large variation in the composition of the offering compared with the previous sale, kids’ and young goats’ mohair prices could not be quoted. However, fine adult hair was down 3%, while strong adult mohair remained…

The decision by Country Bird Holdings (Country Bird) to acquire some of Tiger Brands’ value-added meat product business units was motivated by the company’s expansion drive. This was according to Marthinus Stander, CEO of Country Bird, who explained that the company saw potential value in the chilled processed meat lines, such as viennas and polony, produced in Tiger Brands’ Polokwane factory, as well as in the higher-end products, such as bacon, ham and fully cooked pork products, manufactured in Tiger Brands’ Germiston factory. Tiger Brands was currently dealing with a class-action lawsuit brought against it by direct and indirect victims of the listeriosis outbreak in 2018, which was reportedly traced to food products manufactured under the company’s Enterprise brand. Statements by Tiger Brands issued earlier this year indicated that the…

The Competition Tribunal’s approval of the proposed merger between investment holdings company Senwesbel, its subsidiary agricultural business Senwes, and agricultural company Suidwes Holdings, has been welcomed by Dr Kobus Laubscher, independent agricultural economist. He said it made business sense from which shareholders in both companies stood to gain. “The economies of scale created through the joining of these agribusinesses, both on the acquisition and trade side, vastly increases the companies’ competitive edge,” he said. The Competition Tribunal’s decision followed merger proceedings during which it heard evidence and arguments in the matter, including submissions from an independent expert called by the tribunal. The Competition Commission initially recommended that the proposed merger be approved subject to conditions, but thereafter changed its recommendation to one of prohibition. The primary acquiring firms were Senwesbel…

GERMANY The 2020 grain harvest is expected to decline to below-average levels for the third year in a row, due to extreme weather conditions, the German Farmers’ Association (DBV) said. The grain harvest was expected to amount to 42,4 million tons, down from 44,3 million tons in 2019, and almost 5% below the average for 2015 to 2019, the association said in its final harvest estimates. DBV president Joachim Rukwied said depending on the region, farmers were facing significant harvest losses due to extreme drought, night frosts in May, or mice appearing en masse. NEW ZEALAND The a2 Milk company in New Zealand has reported a 34,1% increase in profits for its current financial year, which it ascribed to stronger demand for infant formula and other products as customers purchased…

Online grocery shopping is a trend that has accelerated quickly as a result of the COVID-19 pandemic, and is expected to be here to stay, which poses a challenge for the fresh produce industry since these items have been lacking in “home-delivery baskets”. Speakers at the Fresh Connections Southern Africa Virtual Conference said consumers were wary about quality and freshness when ordering groceries online, which meant that perishables such as fresh produce were often omitted. The preference for seeing and feeling fruit and vegetables before buying was also an obstacle for virtual shopping. Conor Powell, last-mile solutions manager at CHEP Sub-Sahara Africa, a global supply chain platform, said that while there was currently no solution to the challenges posed by shopping for fresh produce online, having trust in a supermarket…

I never cease to be amazed at how many farmers fail to prepare a detailed annual budget, and if they do, how badly it is done. A well-managed budget is a tool with the power to lift profit and grow the business. No manager worth his or her salt should ignore it. The term ‘budget’ means widely different things to different people. To add to the confusion, we have the ‘zero-base budget’, recently popularised by Minister of Finance Tito Mboweni. He is hailing it as the key to stopping government’s wasteful ways, and getting it to spend money on what’s needed. But first, let’s look at the ordinary, basic budget. A BUDGET IN A NUTSHELL A ‘budget’ is a detailed financial plan for the year ahead. It’s your best shot…

Farmers are lazy. Not all of them, but certainly in my experience I have come across several of them who are. Perhaps lazy is not the right word. Laziness and complacency are related semantically, and I think complacent hits closer to the mark. Complacent is that feeling of being pleased with oneself or one’s achievements or situation. Feeling this way is often justified and we do need to sometimes stand back and appreciate our own efforts and achievements. However, it becomes dangerous when it becomes the norm or a habit. WHEN GOOD HABITS TURN BAD You will most probably have heard before about the seven habits of successful people and the value of instilling good habits in our children. This is true, and there is no doubt that good habits…

While digitalisation is bringing more efficiency to auctions, online auctions are not about to replace physical auctions of stud animals, especially cattle. Simeon Hurwitz, who with his brother, Jarren, owns the Bull Ring Auction House in Mpumalanga, has the best explanation: “Auctions are highly personal, with most buyers still wanting to see, touch and feel the animals they buy. They are also a great part of South African culture, a place for farmers to socialise, network and catch up with one another.” The Hurwitz family were one of the first to import Boran genetics into South Africa, buying theirs in 1995 from Zambia, long before the Boran Cattle Breeders’ Society of South Africa was established in 2003. The family started out with 900 embryos, but poor farm management by a…

Before the announcement that the annual Nampo Harvest Day in Bothaville would not go ahead this year in its usual format due to the COVID-19 pandemic and related lockdown restrictions, but rather as a virtual event to be hosted exclusively online, many of the regular exhibitors had already made plans for new product launches and various machinery and equipment to be displayed at this year’s show. Despite the fact that Nampo will not take place, farmers can still look forward to a wide array of new implements available on the local market this year. This article focuses on some of the latest crop sprayers released on the market by a number of agricultural equipment manufacturers. Some of the crop sprayers featured here will be on display by the various manufacturers…

Whatever your health concerns, it is always a good idea to take a B-complex supplement. This can help regardless of whether you want to increase your thiamine (B1) level, as in the case of Hashimoto’s disease, or if you suffer from plain, unidentified fatigue. Life’s challenges, whether physical, mental or emotional, deplete our energy. A large number of people are overworked, and end up with serious intestinal problems; women, in particular, are at risk, with many having a full-time job and taking care of their families. In addition, there is not always the time to make nutritious meals. B-VITAMIN BOOST In such cases, it may be vital to supplement with B vitamins. The reason is that these vitamins help the body make the most of the food we ingest. But…