Astral Foods will consider permanent production cuts if feed costs stay high and South African consumers remain under pressure, with the broiler-chicken maker trimming output for a second time this year and reducing workers’ hours to curb costs.
The price of animal feed is expected to continue rising into 2017 following a drought in the continent’s biggest maize producer, the Pretoria-based company said in a statement on Wednesday.
Record poultry imports have added to an existing surplus, resulting in lower selling prices as consumers grapple with slower economic growth that has undermined job security and raised debt-service costs.
“The group is also forced to introduce further and more severe cutbacks in the poultry production chain,” Astral said. “The impact of the planned production cutbacks will unfortunately negatively impact on the labour force due to the reduction in hours to be worked. If no relief is forthcoming from the key contributors to the current devastating circumstances being experienced by the poultry industry, more permanent downsizing of production will have to be considered.”
SA last year had the least rainfall since records started in 1904, damaging crops and raising food prices. Yellow maize, which is mainly used to feed livestock in the country, climbed to a record price on June 17 as the nation is set to produce the smallest harvest since 2008.
The country agreed to allow an annual quota of 65,000 tonnes of poultry imports from the US, which started to arrive in February. It also signed a pact enabling chicken and port imports from Poland, ending 13 years of negotiations.
A number of mid-to large-sized independent poultry producers are experiencing “severe financial distress and are either currently in the process of closing down their businesses, or are going into business rescue,” Astral said.
Land and Agricultural Development Bank of SA, a state-owned lender, sees imports and the drought resulting in consolidation in the country’s poultry industry, CEO Tshokolo Nchocho said in an interview last week.
“My prediction is that we are likely to see a lot more mergers and acquisitions happening at poultry, a lot of corporate activity,” Nchocho said. “Feed costs account for 70% of their operating profit, so when those go up, it’s a disaster.”
Country Bird Holdings has made a conditional offer to buy all the shares in Sovereign Food Investments it does not already hold, the companies said on July 11.
Die veiling is op die plaas Stephanium naby Clarens gehou en die aanbod van 2 727 beeste en 50 skape is uitverkoop. Die grootste verkoper was mnre. Daan en Dirk Viljoen van Clarens.
Telers wat hul diere op die Maluti-veiling aanbied, voorsien reeds die afgelope 18 jaar in hul verbruikers se behoeftes. Alle diere wat aangebied word, is onthoring om beserings en kneusings te voorkom.
Die gebruik van groeistimulante en die voer van diereprodukt,e soos hoendermis, word nie toegelaat nie. Koeie en verse wat dragtig is, word deur ‘n veearts gesertifiseer en moet ten minste vier maande dragtig wees.
Die verkopers is almal daartoe verbind om diere aan te bied wat vry van enige siekte en sonder gebreke is. Alle speenkalwers is voor die veiling deur dr. Johan Basson ingespuit om die aanpassing in voerkrale makliker te maak en sodoende longontsteking in kalwers te voorkom. Die telers doen alles binne hul vermoë om voedselveiligheid te verseker. Die vleis van diere wat op die Malutiveiling aangebied word, is dus veilig vir menslike gebruik.
Vleissentraal Bethlehem het die veiling aangebied en mnr. André Pieterse, besturende direkteur, het as afslaer opgetree.
Die lys van diere wat deur die Departement van Landbou, Bosbou en Visserye se Diereverbeteringswet (No. 62 van 1998) gereguleer word, is met 12 soorte wild uitgebrei. Dié wysiging laat die kruisteling en genetiese manipulasie van wild toe.
Die SA Jagters- en Wildbewaringsvereniging (SA Jagters) spreek sy kommer oor die kwessie in ’n mediaverklaring uit. Die organisasie sê die wysiging plaas diere soos die swart en blou wildebeeste, duikers, bontebokke, gemsbokke, rooibokke, rooi hartbeeste, bastergemsbokke, springbokke en tsessebes onder meer onder bedreiging van genetiese besoedeling en manipulasie.
Sommige van die diere is ook bedreigde spesies en teelpraktyke soos genetiese manipulasie en kruisteling van wild is teenstrydig met bestaande beleid rondom biodiversiteit en natuurbewaring, sê me. Lizanne Nel, bewaringsbestuurder by SA Jagters.
SA Jagters sê die department het die wysiging op 10 Junie gepubliseer, sonder enige raadpleging met rolspelers in die bedryf soos vereis deur die wet. Die Departement van Omgewingsake was ook luidens die verklaring onbewus van die byvoeging van wild saam met lewende hawe vir die doel om nuwe rasse deur middel van genetiese manipulasie te skep.
SA Jagters wag nog op terugvoer van beide regeringsdepartemente oor die kwessie.
Droogte in Noordwes in die vorige seisoen.
Foto: Willem Pretorius
Die meeste boere in die somersaaigebiede sal ondanks die droogte hul produksieskuld kan diens, sê die landbousakekamer Agbiz.
In die somersaaigebiede is die afrekeningsdatum vir produksielenings 30 Augustus. Volgens dr. John Purchase, uitvoerende hoof van Agbiz, het die droogte in die algemeen boere se finansiële situasie laat verswak, maar ʼn Agbiz-opname wys dit is nie katastrofies nie.
“ ʼn Beduidende getal sal hul skuld moet herskeduleer, maar sal steeds vir produksiekrediet vir die komende seisoen kwalifiseer.
“Daar is ʼn spesifieke groep met totale skuld van sowat R1 miljard wat nie sal kwalifiseer nie. Ondersteuning is nodig om die verdienstelike en kwalifiserende boere in dié groep te help om in produksie te bly.”
Laat somerreëns
Die droogte se invloed verskil, maar Purchase sê vir gewasboere was daar ʼn mate van verlies danksy laat somerreëns wat laat aanplantings moontlik gemaak het, die later koue en ryp, die gevolglike goeie opbrengste, en hoër as normale pryse.
Baie veeboere is egter tans desperaat besig om te probeer om hul teelkuddes deur die moeilike laaste deel van die winter te kry, voordat lentereëns hopelik middel Oktober begin. In sekere gevalle is hulp in die vorm van voer en water nodig om hulle te help om te oorleef, sê Purchase. In die algemeen is boere se balansstate nie swak of uitgeput nie, maar kontantvloei is ʼn groot probleem.
Purchase sê banke en landboubesighede het almal ooreengekom dat hulle boere sal help waar moontlik om vir die volgende seisoen produksiekrediet te kry, binne hul eie vermoëns en kredietkriteria.
Hulle sekwestreer nie boere nie behalwe as dit absoluut noodsaaklik is weens risiko, kredietkriteria, en die Nasionale Kredietwet se bepaling oor die assessering van bekostigbaarheid.
Reeds reëlings getref
Mnr. Ernst Janovsky, hoof van Absa Agribesigheid se sentrum vir uitnemendheid, sê die meeste boere het, indien nodig, reeds reëlings rondom hul lenings getref.
Hy het vertel van ʼn boer by Biesiesvlei in Noordwes wat op sowat die helfte van sy grond opbrengs van meer as een ton per hektaar gehad het. “Sy kop is deur, danksy prys en die wisselkoers.”
Mnr. Dawie Maree, hoof van inligting en bemarking by FNB Landbou, sê hoewel alle boere nog nie klaar geoes het nie, is dit reeds moontlik om te sê daar sal na verwagting min boere wees wat nie hul produksieskuld kan betaal nie.
“FNB, en ek glo ook die ander banke, sal eers probeer om die boer so lank moontlik op die plaas en in produksie te hou, voordat drastiese stappe gedoen word.”
Herstrukturering
Die getal boere wat om herstrukturering aansoek gedoen het, is volgens hom minder as wat verwag is.
Mnr. Bennie van Rooy, finansiële hoof van die Land Bank, het aan Marleen Smith gesê die bank ondersteun in die algemeen boere wat nie hul produksiekrediet kan terugbetaal nie, mits sekuriteit in plek is, en verwagte toekomstige kontantvloei ʼn verhoogde fasiliteit ondersteun.
Dit is volgens Maree nie noodwendig ʼn gegewe dat minder krediet vir die volgende seisoen toegestaan sal word nie.
“Daar is ʼn goeie kans dat ons selfs meer as verlede jaar kan toestaan, omdat ʼn beter seisoen verwag word en boere daaruit en uit die beter pryse sal wil voordeel trek,” sê Maree.
“Boere se reserwes kan ook moontlik uitgeput wees en hulle kan dus meer afhanklik van krediet wees.”
* Lees ook die berig: Maermaak en doodmaak-maand kom
Supplying animals with more food that is ingested over a longer period, rather than providing several small portions every day, helps to ensure that weak animals get access to feed rations.
Photo: Glenneis Kriel
In preparation for winter, most farmers in summer rainfall areas are supplementing their livestock feed. However, agricultural researcher, Jan Hoon, explains that normal winterfeed supplementation is not enough for animals in drought-stricken areas.
With drought conditions still prevailing in many parts of the summer rainfall region, farmers will have to adjust their winter feeding strategies to compensate for nutritional losses. This is according to Jan Hoon, agricultural researcher at Grootfontein Agricultural Development Institute.
Climatic conditions and pasture types vary greatly between regions, making a ‘one size fits all’ feeding strategy impossible, Hoon stresses. Nonetheless, there is a single important factor that should be borne in mind this season: supplementary winterfeed is aimed only at addressing nutritional shortages in pastures and veld, and should not be considered a substitute for these.
Feed supplementation is the provision of small volumes of concentrated feed stuff lacking in pastures or veld. “When done correctly, supplementary feeding will result in animals receiving a more balanced diet, which, in turn, helps to increase feed intake from veld or pastures. The ultimate result is better animal performance in terms of feed utilisation,” Hoon explains.
Feeding strategy
This year, survival is the main priority for farmers in drought-stricken areas, and it is best to downscale production by culling inferior animals.
“You need to be in a position where you are able to supply the dietary needs of all your animals. It’s better to keep a smaller number of your best animals than to neglect all of them,” Hoon says. The drought feeding plan should be initiated before animals have lost more than 15% of their body weight, or before starvation begins to disturb the animals’ digestive processes or causes them to become too weak.
“It can take two to three weeks for the rumen’s microflora to adapt to new rations, especially if the rations primarily consist of grains. New rations should therefore be introduced slowly and over a couple of weeks. If animals are allowed to lose weight slowly and systematically, they will be able to stay healthy on survival diets during droughts at 66% of their normal, mature bodyweight,” Hoon explains.
The amount of feed given depends on the quantity and quality of available food sources. “If there is no grazing available, research has shown that beef cows with an initial body weight of 440kg can be kept on a 3,6kg concentrate-rich daily diet for eight months, with a weight loss of only 63kg.
This converts to a total digestible nutrient [TDN] intake of 2,65kg/day. Sheep, on the other hand, need a total TDN of 265g when concentrate-rich diets are supplied, and 365g in the case of roughages like lucerne,” says Hoon.
This feeding strategy does not apply to gestating animals and young replacement animals. Weight loss during pregnancy can result in abortion, deficient milk supply and the production of weak offspring, while young replacement animals can suffer permanent damage that will prohibit them from reaching their full genetic potential.
Other strategies
Keeping animals in smaller camps will prevent them from exerting energy in the search for food, and will protect the veld from overgrazing. It has the added benefit of reducing labour and transport costs.
“Group weak and strong animals separately, and ensure that there’s enough space at the feeding troughs so that all the animals get access to feed. Weaker animals usually struggle to compete with the stronger animals for food,” says Hoon.
Feeding intervals are dependent on the animal and feed types. However, it is generally better to supply animals with more food that is ingested over a longer period, than to provide several small portions every day. This also helps to ensure that weak animals get access to the rations. Animals should receive feed two to three times a week.
Hoon points out that farmers generally tend to stop the feeding regime too soon after a drought has broken. This has a negative impact on the veld and the animals.
“Young green pastures have lots of proteins and minerals, but are energy-deficient, which can lead to a drop in the body mass of drought-stricken animals and even livestock losses. To prevent such losses, it’s best to continue the drought rations for at least two to three weeks after the rains,” Hoon advises.
Normal conditions
Under normal conditions, supplements are usually given to animals to address nutritional deficiencies in pastures or veld.
The type and volume of additional feed required will depend on the quality and quantity of the available graze, the age and weight of reproducing and young animals, the stage of pregnancy or lactation, the pregnancy and lactation status (single or twin animals), and the cost of available supplements.
Protein supplements stimulate the rumen’s microbial population, which increases its digestibility potential and voluntary feed intake. Especially suited for grassland areas, these supplements occur naturally in the form of lupines, fish meal, soya/cotton/sunflower cake meal, or as NPN (non-protein nitrogen) in the form of urea, or as a combination of the two.
Excessive amounts of urea, however, could be toxic, and Hoon advises that sheep not receive more than 15g/animal/day. Cattle, he says, should not receive more than 100g/animal/day. High levels of urea should also not be given during drought conditions, as animals tend to lose their ability to digest this source of protein when subjected to feed scarcity. Before animals are supplied with a urea lick, their salt demands must first be addressed.
These are usually associated with shrubveld (bossieveld). All grains and their derivatives can be seen as sources of additional energy, with maize and molasses most commonly used.
Hoon warns that the high intake of energy supplements could have a negative effect on fibre-digesting organisms in the rumen, which could lead to reduced feed intake. In grassland regions, it is therefore important to first ensure that the protein demand of the animal is met, before energy supplements are given.
While salt is usually added to licks to manage feed intake, its primary function is to supply animals with sodium and chloride. If using salt to manage feed intake, sodium and chloride levels will be much higher than required. Therefore, ensure that the animals have access to enough drinking water.
Hoon says that a farm is seldom short of only one nutrient. As such, most farmers must combine different supplements or licks to provide their animals with balanced feed. Since feed ingredients can be expensive, it makes sense to give only the most suitable supplements and to supply them in the right way, at the right volumes, and at the right time. A feed expert can help determine a farm’s nutrient shortages, and advise the farmer on how to correct these imbalances.
For more information, email Jan Hoon at janho@daff.gov.za.
As the worst drought in 35 years continues in Southern Africa, South African farmers are struggling. With the droughts, farm murders, and farm attacks, some farmers are considering selling their farms because they can’t access the funds they need to continue to operate.
The Times Live reported that South Africa has been hit with a drought for the last three years. The drought this year is the worst drought that South Africa has experienced since 1992. AgriSA‚ an organization that represents commercial farmers, said that 15,000 of the 35,000 commercial farmers are struggling and “have their backs against the wall” because of the latest drought.
As previously reported by the Inquisitr, farm attacks have continued to increase while the African National Congress (ANC), the ruling party in South Africa, continues to lose support. The ANC-led government has failed to effectively deal with both the farm murders and farm attacks in South Africa, and their ineffectiveness has contributed to farming in South Africa becoming the most dangerous occupation in the world.
Agri SA called for intervention from the South African government to help farmers get through the drought.
“We are concerned about the fact that more and more big commercial farmers now have their backs to the wall … they do not have the cash flow to support their operations any longer. Agri SA had fielded hundreds of phone calls this week from farmers in dire straits.”
International Business Times reported that the debate over climate change continues to rage as the drought continues in Southern Africa. The drought has caused a food crisis that has left 50 million hungry. Southern Africa has been suffering from a deadly combination of famine and drought for years now. Not only is Southern Africa suffering, but other parts of the world are currently struggling with drought too.
News 24 reported that the recent Brexit deal in Europe may actually benefit South Africa. Critics of Brexit say that South African farmers may suffer under Brexit because of the higher tariffs that could be imposed. These tariffs would be imposed when South African exports are sent to Great Britain. Viccy Baker of the consumer price comparison website Retail Price Watch said that the higher tariffs could actually benefit local South Africans because it would make more food available on the local market.
Great Britain will need to reevaluate its current farm subsidies for British farmers because it has one of the most pernicious systems of subsidies of any country. Currently, Great Britain is not even in the top five trading partners for South Africa despite having a common language, heritage, and culture. A change to farm subsidies will increase the competitiveness of South African products in British markets.
Fresh Plaza reported that Microsoft’s Bill Gates thinks that agriculture in South Africa can be turned into a thriving business. Gates said that Africa has the potential to create an economic opportunity by ensuring the growth in the agricultural sector.
“Right now, most African smallholders suffer from an almost total lack of innovation. They plant unproductive seeds in poor soils in order to produce just enough to feed their family… Doing more of the same is going to bring even more meager harvests. The key to breaking this cycle is a series of innovations at every step along the way from farm to market.”
Gates delivered the speech when he was in South Africa for the 14th Annual Nelson Mandela Foundation Lecture. He didn’t say how he planned to help South African farmers improve their circumstances under the current economic and political conditions.
[Photo by Jamie McDonald/Getty Images]
‘n Rekordomset van R16 767 000 is op die 33ste Maluti-veiling van aanteel-en-slagvee behaal.
