In the time of Covid-19, Help from Tobacco

Photo by gerry meldani on Unsplash

What a shock to find out - a day into lockdown - that tobacco would not be available in shops! People had received notice regarding the ban on alcohol sales during this time and so had been able to stock up on wines, but banning the sale of tobacco is more controversial. What does tobacco have to offer us in the times of Covid-19?

We are not arguing health risks of tobacco here, just questioning the wisdom of disallowing smokers access to their nicotine fix. There are already pressures enough in staying at home without a change of scenery. Making unavailable something which would calm people addicted to nicotine is short sighted. Unlike alcohol, cigarettes do not impair the judgement of, say, fathers who would do things that they regret once sober. It will feed into the sale of illicit cigarettes, depriving the country of tax revenue. Also, few people know that the uses of tobacco go beyond smoking the stuff, and that the industry holds out the promise of manufacturing a Covid-19 vaccine in the second half of this year.

A calming affect in the house

It is difficult explaining to a non-smoker how nicotine functions in shaping the world of a smoker. As an ex-smoker myself, I used to experience it as a creeping dryness of throat, a building agitation combined with a withdrawing interest in any proceedings whatsoever around me. People are different, and so responses to this deprivation probably differ too.

I was still a smoker when the team was visiting role players at the beginning of the agriculture project back in 2003. We would have six or seven meetings or so lined up, and knowing that smoking in the car was out of the question, I tried to schedule a smoke break here and there. Most of the meetings were so good-natured (and conversation hard to draw to a close) that we usually rushed from meeting place to meeting place without the opportunity of a smoke break, which led to my becoming progressively quieter, tipped into a space in which the deprivation crowded out any other imperative.

Compiling the chapters was absorbing, akin to writing several matric higher grade English papers a day, what with all the summarising and seeing what could be left out! Inevitably the dip would come, and I would feel controlled by the nicotine and began to resent it. I would take reading matter outside and do work while I had my fix. It was in the time of printing the second edition that I kicked the habit after accepting Allen Carr’s Easy Way to Stop Smoking from a friend. The book doesn’t frighten you with stories of how smoking is bad for your health (usually this just increases your anxiety, leading to a higher uptake of cigarettes and a feeling of helplessness!) Check the book out for yourself.

But it is also the non-smokers who know the difference of that fix to the family member, and will have to brace themselves for some dark moods in this time of lockdown.

Legal cigarettes

One of the bugbears of the tobacco industry is being undercut by the sale of illicit cigarettes that pass beneath the radar and are sold for half the price you'd pay at the counter (find the articles listed at the end of our Tobacco page for more). Making legal cigarettes illegal at this time will create a bigger market for people who think that they are not able to stop.

Covid-19 Vaccine

We’ve included a block of information in our tobacco chapter for several years now – the other uses of tobacco. It was punted as a biofuel for the airline industry in 2019, and not by the industry but by environmentalists (see our blog "Biofuel production in sub-Saharan Africa should be prioritised for aviation")! A little known fact is that tobacco helped the planet with a vaccine in the time of SARS and Ebola, and is about to do so again.

The press release earlier this month reads:

Medicago, a biopharmaceutical company headquartered in Quebec City, has successfully produced virus-like particles (VLP) of the coronavirus in just 20 days using proprietary plant-based [tobacco] technology. The company did so successfully after obtaining the SARS-CoV-2 gene, which is the virus causing the COVID-19 disease ... [It hopes] to initiate human trials of the vaccine by July/August 2020.

Find the announcement here.

Quitting?

Some remarkable people may go with the flow and set their minds to quitting the habit at this time. For a while, that is. Of them a tiny percentage will pull it off.

Mostly, humans don’t like being controlled and will respond to the lockdown itself with some resentment whereas, if they could have had a puff on the balcony, it would have made the time more bearable and kept the focus on what it is meant to achieve – flattening the curve.

If you want to stop people smoking, give them a book by Allen Carr.

Find the AgribookDigital page on tobacco here.

Agriculture, a strategic sector, must be safe during Coronavirus, Covid-19

Press release. Photo by Chanita Sykes from Pexels

Both TLU SA and Agri SA today called on their members to be more alert, and on the police to maintain visibility in rural areas during this time. As agricultural organisations, we realise that the police are currently under enormous pressure; therefore, both organisations undertook to cooperate with the police to ensure that agriculture can continue producing food within a safe environment during this time.

The President, in elaborating on his declaration of a state of disaster to curb the spread of  COVID-19, identified agriculture as one of the essential sectors. This reaffirms the strategic value of this sector as it continues to feed the population and maintain food security during the state of disaster. The safety of the sector is also of strategic importance for the role it must play as essential sector.

The two organisations also called on their members to continue applying home and hearth protection measures and to be even more safety conscious at this time. Liaison with local security structures, adherence to the farming community’s protection measures and compilation of a local contingency plan with the assistance of police are aspects that should now receive attention locally.

The effective implementation of the Rural Safety Strategy and Farm Access Protocol to keep the farming community safe must be seriously considered to ensure that farm visits can be monitored. Farmers must be more alert than ever before and watch out for people who misrepresent themselves in order to gain access to a farm in order to commit crime. For the safety of the farming community, it is important that everyone knows who is visiting the farm and what the reason for the visit is. The state of disaster could offer criminals an opportunity to target the farming community; therefore, implementing the protocol can serve as deterrent and contribute towards safeguarding the farm.

Relevant pages on AgribookDigital include "Organised agriculture" and "Rural Crime and Farm Safety".

CoVid-19 and agriculture

Cartoon used courtesy of Gary Varvel (see garyvarvel.com)

The message from the Intensive Growers Association began with the usual Johan van Veenendaal wit: JUST IN CASE YOU THINK YOU MIGHT HAVE SEEN THIS MESSAGE BEFORE, PLEASE READ IT AGAIN, AND THEN APPLY YOUR REASONABLE MIND WITHOUT PANIC.

If it had been a WhatsApp message it would have been followed by the laughing face with tears. Usually. Coronavirus, the CoVid-19 pandemic is with us, and it was another email announcing a postponement of an agricultural function. This followed the National State of Disaster declared by the state president, Mr Ramaphosa, on Sunday evening.

Apart from the standard encouragements to wash hands often; avoid touching people, surfaces, your own face; and avoiding crowds, we wondered if there were any other tips of particular significance to agricultural circles. The press release from farmer union TLU SA summed up matters concisely, and we quote (most of) it below:

We want to emphasise that everyone should keep perspective and not go overboard,” says Mr Louis Meintjes, the president of TLU SA. “The coronavirus has the potential to have an enormous negative impact. The danger, however, is that the perception of the possible consequences could cause more damage than the virus itself. The decisions already hold far-reaching economic implications. It could have an even more significant impact on the sustainability of businesses, in future.

“In no way do we want to create the idea that we can ignore the situation and just carry on as normal,” says Mr Meintjes. “Things are not normal, and we should act accordingly.”

The minister of agriculture, Ms Thoko Didiza, on Monday 16 March, called an urgent meeting with all the roleplayer in agriculture to discuss the way forward. All roleplayers had the opportunity to give input and a task team – consisting of the department and organised agriculture – was put in place. TLU SA serves on the task team.

The task team will convene on Thursday 19 March, and will communicate all decisions as they are unlocked.

During the ministerial meeting, the minister confirmed that auctions would continue, for the time being, to ensure the livestock industry doesn’t face any further damages after foot and mouth disease knocked the sector earlier this year. The goal is to protect food security and the agricultural economy.

The success of the government’s emergency measures depends on society’s willingness to implement it. Our members should take further steps to limit the possible damage of the coronavirus.

Workers:

• Inform workers of the virus and how it spreads;
• Emphasise the importance of personal hygiene and ensure soap and water is available for them to wash their hands;
• Discuss the risks of socialising in big groups over weekends, while there is still uncertainty over the momentum of its spread. Explain the benefits of voluntary isolation;
• Monitor the health of workers and their families;
• Do long-term planning of rations with a longer shelf life.

Access to farms:

• Strictly apply the farm protocol for access to farms. Persons visiting a farm for whichever reason should wear face masks and properly clean themselves before continuing with the activities of the planned visit;
• Be alert of criminals abusing the coronavirus to get access to farms under false pretences;
• Consider using farms as a type of quarantine area, granting only approved access.

Crime:

• Uncertain circumstances can lead to a rise in incidents of crime. You can expect crime to increase when local economies come under pressure, and there is a shortage of products on shelves;
• Take precautionary measures with protective gear like face masks and gloves when interacting with criminals or making arrests.

Investment in technology vital to boost agricultural output and exports

Press release

Africa Agritech Conference (2020): Delegates exploring new technology

South African agriculture needs more investment and the implementation of the latest technology to boost output, not only for local consumption, but also for vitally needed exports to boost foreign exchange earnings. Opportunities to increase exports exist provided they conform to international standards such as traceability.

One of the ways to unlock agriculture’s potential is to increase investment in research and development (R&D), according to Dr Thulasizwe Mkhabela, Group Executive, Impact and Partnerships at the Agricultural Research Council (ARC). Speaking at the Africa Agri Tech Conference and Expo in Pretoria he said that current overall expenditure on R&D in South Africa was only R32-billion a year, which equates to 0.8% of GDP. This is way below the 1.5% R&D investment proposed in the National Development Plan (NDP). Agriculture gets only R2.6-billion or 0.8% of the current amount, which is way below requirements. This sum is made up of a contribution of 44.6% from the public coffers, 38.9% from private organisations and companies and 16.5% from foreign sources.

Mkhabela lobbied for more financial support for the ARC which he says will provide big returns for the future growth of agriculture in terms of expanding exports, providing employment and the overriding objective of providing food security, in a world where the population explosion is putting a big strain on food supplies.

The Council for Scientific and Industrial Research (CSIR) is another organisation that has a big focus on assisting the agricultural industry and is deeply involved the latest technological developments.

Dr Moses Azong Cho, Research Group Leader, Precision Agriculture at the CSIR highlighted a need to create a dedicated group of scientists to assist in adapting precision farming techniques to suit local conditions and budgets. Current precision farming projects under development at the CSIR are driven using affordable satellite data to produce Normalised Difference Vegetation Index (NDVI) information.

Dr Santosh Ramchuran, Research Group Leader, Bioprocess Development at the CSIR advocated the use of more bio-based control agents as fertilisers and pesticides to replace existing chemical products. This provides South African companies and organisations an opportunity to develop these products as there appear to be no or few local manufacturers at present.

Ramchuran announced that the CSIR was involved in developing these products and already had some ready for commercialisation. One of these, in prototype form, had already contributed to an 85.2% increase in wheat crop yield. It is now awaiting proposals from SMMEs to bring this unique product to market.

Scientific presentations related to agriculture and Africa Agri Tech included content from the Department of Science and Innovation, The Innovation Hub, the Agricultural Research Council and CSIR.



 Relevant pages on AgribookDigital include "Research & development", "Precision farming" and "Digital agriculture".

Off-take agreements with Emerging Livestock Farmers of R30–R90 million announced by Al Mawashi

Seated (L-R): Emerging Farmers:  Nomthunzi Boyce, Mandisi Nofumba & Zandile Mfingwana. 

Standing (L-R): Thabo Shenxane (Head of Trade, Investment & Innovation, ECDC) & Ilyaas Ally (Director of Commercial & Operations for Al Mawashi)

• Emerging farmers to access between R30 Million - R90 Million over next three years in first-round of off-take agreements

• Al Mawashi off-take agreement spins off vision and plan for ‘Youth Development Centre’ in Northern Cape

East London, 04 March 2020 -- Al Mawashi South Africa, the South African subsidiary of the Kuwait Stock Exchange listed Al Mawashi (KSE: KLTT) - one of the largest international livestock transport and trading companies in the world, announced the country’s first-ever live export, off-take agreement for sheep with emerging South African black livestock farmers.

The announcement, made yesterday at Al Mawashi South Africa’s East London head office in Beacon Bay, involved signing and concluding five preferential procurement off-take agreements.  It forms part of the company’s empowerment strategy to grow, foster and support the development of an emerging farmer live export industry alongside commercial farmers.

Based on future estimations, Al Mawashi said the off-take agreements allow for preferential procurement of 25 000 to 75 000 head of sheep valued between R30 million to R90 million over the next three years, on the condition of farmers meeting specifications of live export.

Mr. Mandisi Nofumba, who rears sheep in Richmond, Northern Cape said: “We need more opportunities such as this one that will provide opportunities for emerging farmers to grow and commercialise their businesses. At some point, we have to outgrow the emerging farmer phase and join the big league of commercial farming. This agreement will enable me to expand my business and has opened us up to new avenues. Through the Al Mawashi deal, we are also busy with proposals to develop a training centre in Richmond in the Northern Cape province where our focus will be on training youth in the agricultural sector”.

According to Mr. Gcina Madasa, “emerging and commercial farmers are allowed a great opportunity to participate in a new industry.” Madasa has been farming in Elliot for 16 years.

“It allows farmers access to a sustainable market.  This also presents an opportunity for farmers to improve the quality of their breed. It puts us in a position to plan our breeding product in a consistent way.  We are exploring initiatives to create a collection point from other emerging farmers for Al Mawashi,” he said.

Since establishing its South African operation in 2019, Al Mawashi has built the largest feed lot in Southern Africa, 40 kilometres outside the Port of East London. It has procured, transported and shipped 56 000 heads of sheep from South Africa to Kuwait offering market-related rates to 150 South African livestock farmers.  This, in turn, injected approximately R155 million into the Eastern Cape’s regional economy in under 12 months.

The company also achieved a 0,2% live animal transport mortality rate during its voyage in October 2019, well below the international benchmark of 2% on board its accredited, twin-tier, and ventilated livestock vessels in 2019.

“The company has supported distressed South African farmers whose livestock was in danger of dying, because of feed and water shortages as a result of the draught, offering market-related prices. To be clear, these animals were destined for certain death by drought-induced starvation.”

Mr. Ally said the company is also exported a mixture of mutton and lamb carcases of 240 232 kg to Kuwait.

Al Mawashi South Africa’s Kuwait-based parent company, is Australia’s largest buyer of sheep, and the company has been in existence for 47 years.   The company announced on the Kuwait Stock Exchange that it will seek out reliable sources of live sheep in the future, and established its first operation on the African continent noting South Africa’s potential as a source for food security for countries in the Middle East.

Al Mawashi operates various abattoirs in the Middle East, supplying meat to the UAE, Oman and Kuwait. The company is further expanding its reach into other countries around the Persian Gulf.

“We are looking to engage and sign more emerging and commercial livestock farmers in South Africa over the next few months.  We have set an ambitious target of building our South African business to turn over R1 billion per annum by the end of 2025,” announced Mr. Ilyaas Ally, Managing Director of Al Mawashi South Africa.

“Our operation has a direct multiplier effect on various industries in the value chain including animal welfare transport, animal medicine, feed and shipping industries, as well as government.”

“We are excited to announce the off-take agreements, and will offer and introduce layers of support to the farmers.  Importantly, through the off-take agreements, we essentially remove barriers of entry for farmers into new global markets.”

Ally said: “The message that we want to get out to red meat exporters in the country is that we are not taking away your business or a market.  We are simply opening up an entirely new market for the country, which never existed before.”

Ally said South Africa also needed to be educated on aspects of live export for slaughter industries, which is as “old as the age of dawn, but has become highly modernised and sophisticated to comply with animal welfare standards.”

“Animals are routinely shipped via sea, and there is nothing strange, novel or cruel about this practice.  We will work closely with organisations promoting animal rights helping them to understand the industry.  Similarly, we will not take lightly any reckless activism, defamation and in some instances, skewed or misrepresented media reporting on the industry.”

Eastern Cape Development Corporation’s (ECDC) head: trade, investment and innovation, Thabo Shenxane said:  “This is exactly why ECDC promotes trade to ensure that benefits acme to everybody that lives in the Eastern Cape.”

Relevant pages on AgribookDigital include "Mutton (sheep)" and "Exporting".

Founding of Agricultural Development Agency “A New Landmark in SA History”

The launch of the Agricultural Development Agency (AGDA) at the three-day Africa Agri Tech Conference and Expo in Pretoria this week has been heralded  as a landmark in the history of South Africa by bringing together the various role players in the agricultural environment to be part of a powerful initiative led by passionate people.

The new organisation will be a private business initiative that will work closely with government in all aspects of agriculture from skills transfer to the practical aspects of implementing land reform.

This is the opinion of Nick Serfontein, a prominent livestock farmer who wrote an open letter to President Ramaphosa in December 2017 asking him to involve commercial farmers in the land reform process. He was subsequently appointed to the President’s 10-person land reform advisory panel and is an enthusiastic founder member of AGDA after actively and successfully supporting new farmers for the past five years.

This positive attitude was a good example of the atmosphere that prevailed at this launch event which was led by Leona Archery, the newly-appointed CEO of AGDA who is also the head of the agriculture division at the Bigen Group and a former deputy Director-General of Rural Development and Land Reform

Thoko Didiza, the Minister of Agriculture, Rural Development and Land Reform,  was unable to attend the function due to an urgent  meeting with President Ramaphosa on public-private sector partnerships in Cape Town, but sent a very supportive message for the establishment of AGDA and its objectives in a recorded video address.

The Minister said the formation of AGDA is an excellent example of a positive response for business to work with government in the drive to uplift the economy that went out as a request from President Ramaphosa in 2018.

“The addition of the variety of businesses involved with the agricultural industry which are now or will become members of AGDA will be an important instrument in meeting the need for the responsible use of land in the reform process,” said Minister Didiza.

“Access to finance and insurance are big challenges for new farmers and this is where an organisation such as AGDA can play an important role too as it will include major roleplays in the financial world.”

The Minister also stressed the challenges facing farmers in terms of biosecurity that is being impacted by global climate change.

On the positive side the Minister said the Africa Free Trade Agreement, which comes into effect in July, will open the doors for increased export opportunities into Africa to the benefit of local farmers and associated businesses.

Rudi Dicks, the head of project management in the Presidency, said the President was given regular updates on progress with agricultural initiatives such as AGDA. He added that this sector of the economy was an important participant in the Jobs Summit, which was driven personally by the President. Dicks said that although there was no financial involvement with AGDA from the government at this stage there could be a possibility of a capital investment in this type of initiative in the future.

Roelf Meyer, a former cabinet minister and now a community and economic development activist, said the launch of AGDA marked a very proud moment for him personally as agriculture was one of the most important aspects of local business. It was one of 20 sectors that were identified to be part of public-private initiatives to boost the ailing economy.

Meyer is a major motivator and facilitator, along with Dr Johan van Zyl, a South African who is currently CEO of Toyota Europe and a member of the board of Toyota Motor Corporation, in setting up the Public-Private Growth Initiative (PPGI) which has full government support.

 Kallie Schoeman, the managing director of a 100-year-old faming business, was another prominent member of the agricultural community who gave his full backing to the AGDA initiative. He said that he saw the efficient use of agriculture as an excellent vehicle for reconciliation in South Africa as it was a practical way of improving the lives of millions by providing wider access to affordable food.

Malcolm Ferguson, an associate in the In Transformation Initiative, said the way forward for AGDA will be to continue with pilot projects, source funding from the private sector, set up a board of directors, establish operational committees and build on the initial list of 36 founding members. The target is for AGDA to be operational by September 2020.


Relevant pages in AgribookDigital include "Finance for new farmers and SMMEs", "Marketing" and "Providers of financial services".

Minister Thoko Didiza to deliver keynote address at the AGDA launch

The Minister of Agriculture, Land Reform and Rural Development Thoko Didiza will deliver the keynote address at the official launch of the much-anticipated Agriculture Development Agency. This take place on 18 February 2020 at the Africa Agri Tech Conference and Expo (AAT), to be held at the Maslow Hotel, Times Square, Menlyn Main in Pretoria.

The launch of the Agriculture Development Agency (AGDA) will also serve as the opening event of the AAT conference, which will run from 18 – 20 February and cover topics ranging from the local and international agricultural economy and access to capital, to mitigating drought conditions through sustainable climate sensitive agriculture as well as developing intra African trade in agricultural products.

AGDA is part of the Public Private Growth Initiative (PPGI), which was established in April 2018 under the leadership of Dr Johan van Zyl, CEO and President of Toyota in Europe. Van Zyl was inspired by President Cyril Ramaphosa’s famous Thuma Mina call in January 2018 and based the PPGI on the hugely successful Japanese economic model. The aim is to align strategic planning between government and the private sector, in the interest of improving economic growth and the manner in which government and business work together.

There are more than 20 sectors identified by the PPGI for specific focus. These include Agriculture; Tourism; Automotive; Chemicals; Manufacturing; Energy and Renewable Energy; Construction; Pharmaceutical; Mining; Retail; ICT; Health; and Insurance. These sectors are all developing comprehensive five-year growth plans, which aim at accelerating economic growth and job creation.

The specific aims of AGDA are intended to promote greater social justice by creating enablers that will help drive sustainable land reform programmes and contribute to changing land ownership patterns in our country.

AGDA, which is an entirely private sector initiative falling under the PPGI framework, will work together on an agreed project basis with government to achieve the common national goal of sustainable and accelerated land reform to the benefit of South Africa and all its people. 

In this regard, Mr Roelf Meyer of In Transformation Initiative, which is one of the main drivers of this project, drew attention to the main objectives of the Agency, which are to promote and support access to agricultural land by black/emerging farmers, and to support the use of agricultural land and infrastructure development so as to promote land reform and food security in the country. Meyer highlighted that AGDA has the specific purpose not only to pursue these noble objectives, but also to ensure the provision of appropriate training, as well as support and assistance to emerging farmers to improve capacity and access to agricultural markets in particular.

 

“It is only through the pursuit of such objectives in partnership with government, focusing on a more vigorous pursuit of the noble objectives the national land reform programme, that the market failures and imperfections in building an inclusive, dynamic and competitive agricultural sector, to enable all our people who have ambitions to work in agriculture can be achieved,” Meyer said.

Ms Gloria Serobe, CEO of WipCapital and also one of the leading inspirations and contributors to the creation of AGDA remarked that, “the Agricultural Development Agency must have a well-developed social conscience and it must be institutionalised in a manner that will ensure it is always dedicated to such imperatives.”

Relevant pages in AgribookDigital include "Finance for new farmers and SMMEs".

NEET and Chancellor Angela Merkel's visit

A young man came to us for help yesterday. His old, worn out ID book was missing the top corner (and the last digit of his identity number). We were impressed with his whole demeanour which spoke of cleanliness and enthusiasm. In the past it was not uncommon to find him bloodshot eyes and in low spirits. What had made the difference? The hope that a job might be his. He is one of the young, NEET (not in employment, education or training) South Africans.

The NEET category is of great concern to anyone who hears of it, especially if you are connected to and affected by someone unfortunate enough to finds herself/himself there. 

If something creative isn’t done about it, it has the potential to affect all of us!

NEET is covered in many quarters, not least a recent International Monetary Fund (IMF)’s Country Focus "Six Charts Explain South Africa's Inequality". The fifth of these identifies high unemployment as being a major factor sustaining the inequality levels. The country's unemployment is significantly higher than the average emerging markets, and spectacularly so when it comes to youth unemployment - 53% to their 16%!

The Country Focus urges: 

• the creation of more low-skilled jobs "to improve labour force participation, especially in the poorest provinces";
• improving the quality of education; and
• facilitating affordable transportation to job centers.

It is against this backdrop that we took great pleasure in reading about the prominence given to youth unemployment when South African President Cyril Ramaphosa hosted German Chancellor Angela Merkel on an official visit on Thursday, at the Union Buildings, in Tshwane. The two signed a joint initiative on the promotion of vocational training the aim of which is to tackle the high unemployment rate in South Africa. “We have to make sure that young people transition from learning to earning at a much faster rate,” President Ramaphosa said. He linked the joint initiative to government's Presidential Youth Employment Intervention.

The other area of co-operation is energy supply with particular focus on renewable energy. A grim smile for us as we face a weekend of load shedding.

Relevant pages on Agribook.Digital include "Careers and employment in agriculture" and "Renewable and alternative energy".

I would like to do animal production

I would like to do animal production where should I go or do pls help

As mentioned in previous blogs, we receive numerous questions from visitors to the website every day. What follows is the reply to a question. 

Photo by Magda Ehlers from Pexels

Dear Nkutlwe

 

There are a lot of things to consider, the first being: (1) Do you have an affinity to a certain type of livestock? You may have a heart for poultry, for example, or goats. Success in life often comes with a type of inspiration when you feel drawn towards a certain path, career or, in this case, what you want to farm with. (2) Is there a market for the animals or animal product near you? Who will buy them?

Our website gives overviews on the different types of animals. See https://agribook.co.za/livestock/. Another page worth looking at is the marketing one, see https://agribook.co.za/marketing-finance/marketing/. The DAFF Agricultural Marketing Extension papers (there are 9) listed under the Websites & publications heading will be important reading. The papers give ideas of how to sustain your animal production business by making it profitable.

You will need training and/or a mentor, someone who already farms with livestock, or who has experience with them. The agricultural colleges/provincial departments of agriculture provide short courses on a number of topics, as does the ARC. There are many AgriSETA accredited courses too. You can browse the page at https://agribook.co.za/agricultural-training-and-careers/agricultural-education-and-training/. It is usually an idea to talk to farmers in the area about their experience. They may alert you to issues, challenges but also point the way to answers that you would not pick up in a book or website.

 

Best wishes.

Agbiz comments on the compulsory installation of water metres and monthly reporting of water used for commercial irrigation

Photo by Süleyman Şahan from Pexels

On Friday the 17th of January, the Acting Director General of the Department of Human Settlements, Water and Sanitation published a notice in the Government Gazette requiring all irrigators to install water meters and report their monthly consumption. This notice specifically relates to those water users who do not form part of a Water User Association nor an Irrigation Board. Water users were given 30 working days to comply.

Section 22 (2), 26 (1) read with Item 4 of Schedule 3 to the National Water Act permits the authority, by declaration, to impose compulsory metering and reporting requirements on any lawful water user. Whilst other sectors have been required to measure and report on their consumption in the past, it is a relatively new requirement for water users in the primary agricultural sector who make use of water for commercial irrigation purposes. In 2017, a notice was published that required only those irrigators that formed part of a Water User Association or Irrigation Board to install meters and the obligation was imposed on the Association or Board itself to report the consumption of its members to the Department. Following Friday's publication however, this requirement will now extend to all commercial irrigators. These water users will be required to submit information directly to the Department using the email address applicable to the Water Management Area in which they operate.

The publication will certainly have a substantial impact on the sector. Aside from the administrative burden involved, water users are required to install the meters at their own cost and need to comply with the prescribed specifications. Those directly involved in irrigation will certainly be affected by this notice. Since the requirement is imposed on water users who are not part of an association, agribusinesses and financiers who finance clients that may be affected by the notice are encouraged to make the requirement known to their clients.

Since the notice was published in its final format and not as a draft for public comments, water users will be required to comply with the requirements within 30 working days calculated from the 17thof January. It has been mooted that the time frame may not be realistic for 30 days is not a great deal of time. The notice is aimed at water users who are not part of associations so there may be a delay in communicating the notice to all affected parties. Furthermore, it remains to be seen whether sufficient meters that meet the requirements are available in this short time. For these reasons, Agbiz will be raising the issue of the time frame with the Department through the various platforms available for engagement.

The original Agbiz statement can be read here.

Relevant pages on Agribook.Digital include "Irrigation" and the general "Water".

Used oil on South African farms can pollute the environment

Press release

Commercial farming relies heavily on technology and mechanisation – which in turn relies on the use of motor lubricant oils. It is estimated that South Africa generates an average of 120 million litres of used lubricant oil in a year with about 10 million litres of this being generated by the Agricultural sector.

Considering that one litre of used oil can contaminate one million litres of water this is a potentially devastating amount of used oil that, if not collected and recycled responsibly, could make its way into our environment.

“Conversion to more sustainable agricultural practice is necessary, both to preserve South Africa's biodiversity and to ensure a future resource base,” says Bubele Nyiba, CEO of the ROSE Foundation (Recycling Oil Saves the Environment) - a national non-profit organization funded by the major producers of lubricants to promote and encourage the environmentally responsible collection and recycling of used oils and related waste in Southern Africa.

The ROSE Foundation provides some practical tips on used oil management:

    Proper collection of used oil for storage

• Used oil must be drained into a clean container with a tight fitting lid, such as a re-usable combination drain pan/storage container. Used oil generators can also use a specially designed plastic ROSE Sumpy to collect used oil. Sumpy containers are available from most spares shops, garages and supermarkets.

    Proper storage of used oil

• Ensure that used oil is stored in a container with a secure lid so that it cannot spill out. Empty oil containers and drums make effective makeshift storage vessels for used oil, however, containers that previously held chemicals, such as cleaners, solvents, fuels, paint or bleach CANNOT be used.
• Containers must always be clearly labelled “Used Motor Oil” and kept in a place that can be accessed by a used oil collection vehicle. A bund wall should be built around bulk used oil storage tanks so that in the event of a spill or leak, the used oil will be contained.
• Containers holding used oil should ideally be stored under cover and away from heat or sources of ignition and they must be tightly sealed to protect them from rain water.
• It is important to not mix used oil with other fluids such as antifreeze, transmission fluid, petrol, diesel etc. Mixing them may make them non-recyclable as well as very hazardous and flammable.

    Proper removal of used oil

• Contact a ROSE registered used oil collector who will come and take away your used oil for responsible recycling. Visit the ROSE Foundation website on www.rosefoundation.org.za, email info@rosefoundation.org.za or call 021 448 7492 to find out who your nearest collector is.

“Recycling used oil allows us to continue to enjoy what many of us take for granted every day – clean, potable water,” concludes Nyiba.

Relevant pages on Agribook.Digital include "Waste management" and "Fuels and lubricants".

Public Private Growth Initiative (PPGI) signals progress despite difficult conditions

Press release

Representatives from the private sector, corporate CEOs, leaders from over 20 economic sectors and from government met in Sandton this week to discuss the progress made on various Public Private Growth Initiative (PPGI) projects and action plans.

At the meeting, economic sectors as diverse as manufacturing, forestry, tourism, agriculture and chemical manufacturing reported a closer working relationship with the South African government. These improved relationships have led to shared projects and the resolution of several bottlenecks to doing better business.

Says Michael Peter, Executive Director of Forestry SA: “Water use licences are finally being sorted out, we have made progress with Transnet on freight and for the first time in six years we are seeing movement on the recapitalisation of state forestry.”

Representatives at the PPGI meeting discussed several areas of progress. The Business Process Services Sector reported that as a result of an agreement between the sector, the Department of Trade, Industry and Competition and the Harambee Youth Accelerator, over 20 000 net new jobs have been created since January 2018.

The sector has attracted investment and has grown revenue and employment year-on-year, with ambitious plans to grow the sector by 100 000 net new jobs by 2023. The Automotive Sector, in turn, reported on the establishment of the Automotive Industry Transformation Fund, which has already received R6bn in investment commitments to apply towards the development of an inclusive supply chain.

In the same vein, the representatives from the Agricultural Sector signalled that they would launch an Agricultural Development Agency on 18 February 2020. This Agency will manage a development fund of R12bn for the development and support of emerging black farmers.

Dr Johan van Zyl

“I am very pleased to hear from so many different sectors that they are making positive connections with various people in government,” says Dr Johan van Zyl, one of the founders of the PPGI. “These new connections will help unblock constraints and support economic
growth.”

A number of sectors reported that they were organising themselves in response to the PPGI’s approach. For instance, the Water Supply Sector is in the process of establishing the Water Chamber SA. In another, the Creative Industries Sector and the Information Communication Technologies (ICT) Sector indicated that they would be working closely together to create a strategy for South Africa in the Digital Age.

The meeting also highlighted a number of ongoing inhibitors, ranging from policy incoherence, congestion at the ports, rising crime and skills constraints.

In a specific example, Simphiwe Hamilton from the Defence Sector spoke about the potential growth in export revenue and employment if government improved its process for product certifications and contract approval.

In another example, representatives from the Construction Sector appealed for fit-forpurpose procurement frameworks within government, while the Tourism Sector indicated that while some progress had been made on visas, the proposed e-visa was a key requirement to enable tourism.

A number of sectors also pointed to the constrained state of the economy and its impact on sales and business growth. In closing the meeting, Roelf Meyer spoke about the importance of systematically addressing inhibitors and challenges.

“We will address ongoing challenges identified in certain sectors and assist where possible through our key points of contact with Minister Ebrahim Patel and his team, as well as with the Presidency.”

Meyer indicated that the PPGI would report on sector progress and new catalytic projects to the Presidency.

Pollen Alert: Highly Allergenic Ragweed Invades South Africa

Press release

 

Ragweed pollen – a highly allergenic weed native to North America – was detected in South African pollen spore traps for the very first time. Eradicating this invasive weed is critical as its fine pollen is highly allergenic and it also poses a threat to crop health. If you find a ragweed bush near your home, pull it out as it is incredibly invasive. Due to the changing climate, ragweed will continue its migration southward putting more South Africans at risk of developing a sensitivity to its potent pollen.

 

This week scientists made a landmark discovery when ragweed – a highly allergenic weed native to North America – was detected in South African pollen spore traps for the very first time.

The discovery was made by Dr Dilys Berman, an aerobiologist at UCT and Prof Jonny Peter, who heads up the UCT Lung Institute’s Allergy Unit. Palynologist, Dr Frank Neumann, based at Wits University whose research focuses on the impact that climate change has on vegetation, also confirmed that the pollen grains indeed belong to the invasive Ambrosia species.

Prof Peter says while the threat of allergic plants, such as ragweed migrating southward, because of climate change, has always been a concern, little did they know it was going to show up so soon.

“Ragweed is incredibly invasive, and its potent pollen has been problematic in the US for many decades. In recent years, allergy sufferers in Europe and South America have also come under threat as ragweed started to invade these areas. 

“For now, KwaZulu-Natal residents are most at risk as ragweed pollen has recently been detected at the Durban monitoring site over the last few days. The counts are relatively low at this stage, but we are monitoring them daily to detect any sudden spikes. A small population of ragweed has also been found on the banks of the Vaal River near Heidelberg – about 50km away from Johannesburg, while the Eastern and Western Cape still remain ragweed-free.

“Based on historical data, ragweed thrives in hot, dry environments and produces more pollen when CO2 levels are high,” he says. 

UCT aerobiologist, Dilys Berman warns that ragweed poses a serious implication for human health.

“It’s been one of the most loathed weeds in the US, causing misery for 23 million Americans and it’s estimated that ragweed allergy rates in Europe will increase from 33 to 77 million in the next two decades. While we haven’t reported sensitisation in SA yet, it is a cause for concern.

“Increasing amounts of fine-powder ragweed in SA could exacerbate hay fever symptoms and asthma for the estimated 17 million South Africans who suffer from allergies.

“Given that its highly allergenic, people who normally don’t suffer from pollen allergies, may develop a sensitivity to it in the future as the weed proliferates.”

Common hay fever symptoms include red, itchy and watery eyes, a runny, itchy or congested nose, post-nasal drip etc, which could irritate and restrict the airways making it difficult to breathe.

Prof Peter points out that because of the world’s changing climate, ragweed is projected to decline in some areas as it may over time no longer be climatically suitable to grow there.

“Either way you look at it, ragweed is on the move. Once it sprouts, it can multiply and grow up to 2 metres in height in a matter of weeks.

“Weed control boards should add it to their invasive weeds list as soon as possible if they haven’t done so already and removal thereof should be a priority before it becomes impossible to control. Some studies also suggest that ragweed poses a threat to crop health. It drains the soil and oppresses plant growth, so is definitely a weed that should be kept an eye on and monitored carefully,” he says.

Pollen monitoring in SA is funded by Clicks, Twinsaver, Thermo Fischer, A.Vogel Echinaforce, Zeiss and Durand.

To expand pollen monitoring efforts, financial contributions can be made by logging on to www.pollencount.co.za. Pollen counts for SA can also be viewed on the same site. 

The relevant pages on Agribook.Digital are "Invasive alien species" and "Crop protection".

Outsourcing builds a resilient operation

Press release

Abattoirs rank among the most utility-heavy operations in the agricultural industry, with electricity, water, cooling and heat being in high demand throughout the year to keep these facilities running. The sprawling operation belonging to Meyerton-based pork products supplier, Lynca Meats, is a notable case in point, where finding the most effective means of containing operational costs remains a top priority.

Running at full capacity, 24/7, Lynca Meats comprises 28 temperature-regulated rooms for the production of a host of processed pork products; an abattoir that markets carcasses, boxed meat and offal; and dedicated units that offer multi-principle cold storage warehousing and logistical solutions to clients.

This means that the basic utilities of electricity and heat represent some of the biggest running costs on Lynca’s balance sheet. As Manie de Waal, CEO of EP Solar explains, outsourcing these functions to a service provider has made all the difference in keeping this part of the business as economical as possible.

“Operating a massive refrigeration set-up like this at full capacity every single day of the year is hugely expensive in South Africa, where annual electricity tariff increases continue to exceed inflation. Luckily, this same production schedule makes Lynca Meats a prime candidate for affordable renewable energy.”

Lynca consulted with EP Solar on the issue, and the solution put forward was a 962kwp rooftop-mounted photovoltaic system. The size of the system was limited by the rooftop space that the client had available, but it would still be able to account for about 15% of the facility’s energy usage. According to De Waal, generating renewable energy on site in the form of solar power, would potentially save the operation around R350 000 in the first year alone. “We estimate that throughout the length of the contract, the client would save around R16 million in electricity costs.”

“In addition, the solution would be provided as part of a power purchase agreement, meaning that the client did not need to invest any upfront capital or be burdened with the daily operation of the system.”

De Waal notes that the system provides peak output during regular business hours, when grid-based electricity tariffs are at their highest. “Through software on the inverters, solar power is always prioritised during the day, while the site runs completely on electricity from the grid during off-peak hours. The advantage of an operation such as this, which runs 24/7, is that it ensures that 100% of the PV power is utilised every day of the year, strengthening the business case. The PV system is currently in the process of being commissioned and will soon be producing electricity for the site.”

Cutting down on electricity spend also required Lynca to review the most energy-intensive parts of its operation. “Of course, this was refrigeration. Again, outsourcing this was by far the most viable option, and EP Refrigeration was able to offer a state-of-the-art solution,” says Dawie Kriel, Director of EP Refrigeration.

With the temperature requirements for the facility ranging from -25⁰C to 5⁰C, Kriel explains that Lynca Meats’ existing 20+ year-old refrigeration system was fast becoming inefficient. “The old system had extremely high energy requirements, and system maintenance had become quite challenging and expensive.”

EP Refrigeration subsequently offered the upgrade under the EP Cooling Sales Model on a ten-year contract. The entire system would be installed at no capital cost to the client, and EP Refrigeration would maintain the system and sell refrigeration as a utility to Lynca Meats, who would reserve the right to buy the system on residual value at any point in time.

“We operate on a tariff structure that is similar to most other utilities. This includes an availability charge and a maintenance fee that makes up the set monthly cost for the service. Along with that, there is also the variable charge for refrigeration, which is measured in kilowatt-hours refrigeration (kWh_R),” explains Kriel. 

To accurately quantify and measure refrigeration, and to bill the client correctly, EP Refrigeration pioneered a cost-effective refrigeration meter to ensure accurate readings. In effect, these meters primarily measure temperature and pressure, from which the used refrigeration measure is calculated. This data is also made available to Lynca Meats, to be used for operational or management decisions down the line.

Having started in January of 2019, work on the plant officially concluded in the first week of April, without any operational disruptions having been experienced by Lynca Meats over the working period. The newly installed system is performing as predicted and has achieved a 30% reduction in the cost of refrigeration for the client. In addition to this, with the client no longer having to be responsible for managing and maintaining the system under the outsourced contract, Lynca Meats is also saving countless man-hours.  

Lastly, there was one final crucial component requiring a more elegant solution – the boilers. With an average steam consumption of around 530tons per month, which gets used for cooking, sterilisation, cleaning and ablutions, Lynca’s boiler units were due for a major upgrade.

Jonathan Probert, CEO of EP Dryden Combustion – a wholly owned subsidiary of Energy Partners - says that a new 4ton per hour coal-fired boiler fitted with EP Steam’s proprietary control and monitoring system would do the trick. “Additionally, a small reverse osmosis plant was installed to provide the boiler with good quality feedwater, as the site water source is borehole water of poor quality. We took over operation of their two existing oil-fired boilers as well. These boilers are only used in the case of either planned or unplanned downtime of the coal boiler to ensure a continuous steam supply.”

Probert explains that with EP Steam taking over this part of the operation on an outsourced basis, Lynca was able to save another R110 000 per month. “Other benefits include improved uptime because we now have redundancy built into the design (standby boilers), and that the client no longer needs to pay any attention to the steam generation operation (including labour, maintenance and inspections).”

In closing, De Waal says that Lynca Meats currently stands out as a testament to what is possible when one takes a fully outsourced approach. “This general principle can apply to any abattoir, as well as any other operation that runs at full capacity for most of the year. We would go as far as to say that this is exactly what the agri and food production sectors will need to do to maintain their profit margins in the years to come,” De Waal concludes.

Relevant pages in Agribook.Digital include "Abattoirs and the meat industry" and "Renewable and alternative energy".

Opportunities in the South African market: A view for US exporters

Photo courtesy of Matthias Mullie on Unsplash

The USDA GAINS (Global Agricultural Information Network) report this week included an Exporter Guide with its overview of the South African market, and naturally curious, we opened it.

In 2018, South African imports of agricultural products were $6.6 billion, down 1 percent from the previous year. The EU accounted for 28 percent of total agricultural imports, Eswatini (Swaziland) 10% (well done!) while 5 percent was from the United States.

Goods from USA (worth $305 million) included chicken products ($69 million), food preparations ($24 million), enzymes ($18 million), wheat ($8 million), almonds ($14 million), corn (maize) seed ($16 million), animal (not fish) guts, bladders, stomach & parts ($12 million), food/drink ingredients ($11 million), sorghum ($4 million), edible frozen livers of bovine animals ($6 million), animal mixed feeds ($9 million), and protein concentrates ($4 million).

Overviews are given on the country, its economy and consumer behaviour, and market conditions.

• Strengths: Advanced economy with well-developed infrastructure
• Weakness: Limited technical capacity and weak political will by regulators contribute to trade barriers and delays in resolving access issues.
• Opportunities: Sophisticated and growing middle class. A well-developed retail sector, and linkage to the rest of Sub-Saharan Africa.
• Threats: FTA with EU. A political preference towards BRICS countries. 

(We were interested to read that the middle class makes up about 70 percent of the South African population and 55 percent of total income earnings. And that "in the past five years the percentage of the population earning less than R5,000 ($333) per month decreased from 56 percent to 40 percent, while the percentage of the population earning more than R5,000 ($333) per month increased from 44 to 60 percent").  

While the agro-food industry is correctly complimented, the report identified six opportunities for US exports to South Africa. The paragraphs below are excerpts from the report: 

Chicken Cuts and Edible Offal

Though South Africa is the region’s leading producer of chicken meat, imports are regularly required to supplement local production and meet domestic demand. In 2018, South Africa imported 520,000 tons of chicken meat, an increase of 2 percent from the previous year to augment local production. Post forecasts a marginal increase in chicken meat imports in 2020 to 555,000 tons, as local production is expected to bounce back. 

Find the poultry page at Agribook.Digital here. 

Almonds

South Africans are looking to various tree nuts to for more diverse protein and snacks. In 2018, South Africa imported $17.8 million of almonds. The United States dominates the market for almonds, with 83 percent of the total market share, valued at $14.8 million, with Australia in a distant second at 10 percent. While year to year the value has decreased, the quantity of almonds continues to rise steadily. South Africa is the largest importer of U.S. almonds in Sub-Saharan Africa.  

Almonds are included on our tree nut page.

Food Preparations

South Africa has a well-developed food processing sector and is a net exporter of food preparations. In 2018, imports of food preparations were valued at $185 million. The EU has the largest market share at 67 percent amounting to $124 million. The United States had 13 percent of the market share of South Africa’s food preparations imports, valued at $24.7 million. Products with good sales potential in this category include sugar confectionery, chocolate and other food preparations, malt extracts, pasta, cereals, cake mixes, syrups, and soup mixes.

Craft Beers and Spirits

South Africa is a net importer of beers, referred to as “beer made from malt.” In 2018, imports amounted to $160 million, and exports amounted to $77 million. Namibia has the largest market share at 48 percent. There are potential opportunities for U.S. exports in this category due to the huge increase in imports from the United States from $399,000 in 2017 to $1.6 million in 2018. Distilled spirits have increased from $15.4 million to $17.1 million.

Read our craft brewing page at https://agribook.co.za/adding-value/craft-brewing/.

Enzymes and Prepared Enzymes

South Africa is a net importer of enzyme and prepared enzymes. In 2018, imports amounted to $69 million, and exports amounted to $26 million. The United States had the second largest market share with 27 percent, valued at $18.5 million, after Denmark with 35 percent. Potential opportunities for U.S. exports are modified starch products such as whey.

Essential Oils for use in food/drink

South Africa is a net importer of essential oils used in food/drinks, mainly used in food processing. These products are also referred to as “mixtures of odoriferous substances.” In 2018, imports were $478 million, and exports amounted to $54 million. Swaziland was the market leader with 74 percent. There is a potential for growth for U.S. exports in this category due to the demand.

Relevant pages on Agribook.Digital are "Essential oils" and "Herbs and spices".  

Find FAS GAIN (Global Agricultural Information Network) reports at https://gain.fas.usda.gov/#/