Presentation by N.B. Nengovhela at an inception workshop for the Competitive Smallholder Livestock in Botswana project held at Gaborone, Botswana on 31 October 2012.

1. Development and Mentorship: Beef
Profit Partnerships Experiences
NB Nengovhela (Phd; Pr.Sci. Nat)
Baldwin@arc.agric.za
www.arc.agric.za

2. Beef Supply Chain
±13 000 to 48 000 ±3500 to 35 000 Local
tons imported tons exported ± 45 million consumers Export
± Per Capita consumption=13.72 kg/year
± 7 to 13% Agricultural GDP
Affluent Consumers Tanneries for automotive
(Premium markets) Poor Consumers industry
± 580 000 tons (Cheap cuts market)
Restaurants, produced Hides, Skins
Wholesale & Retail
Developing sector
Meat processors
markets
(±495Abattoirs)
Integrated Butchers Auctions
80% of the animals through
feedlots Festivities
20% abattoir
Feedlots Developing Sector
(60 to 75 % beef People
cattle slaughtered) Land reform
beneficiaries (±15
000)
Developed Sector Emerging farmers
50000 high-income (±87 000)
producers 150000 to 300000
2250 elite breeders imported weaners
Communal farmers
(±3million)
6.67 million Cattle
5.69 million Cattle
National herd of 12.36 million cattle

3. BEEF PRODUCTION OVERVIEW IN RSA
Production Traits Emerging (Poor) Commercial (%) Stud or elite (%)
Sector (%)
Calving rate 40 65 85
Pre weaning mortality 50 2 2
Post weaning mortality 15 2 2
Market price 50 100 >130
Beef Market off-take 5 28 22
Weaning weight (kg) 150kg 200kg 223kg

4. Failure Points of RSA Beef Industry Local
±13 000 to 48 ±3500 to 35 000 Export
000 tons imported tons exported
± 45 million consumers
± Per Capita consumption=13.72 kg/year
± 7 to 13% Agricultural GDP
Tanneries for
automotive industry
Affluent
Consumers Poor Consumers
(Premium markets) (Cheap cuts market)
± 580 000 tons
Restaurants,
produced Hides, Skins
Wholesale &
Retail
Meat processors
(±495Abattoirs) Developing
80% of the animals sector markets
Integrated Butchers Auctions
feedlots Failure point: limited directed access Festivities
CULTURE?
to feedlots markets due to animal Failure point: 5% market off-take
issues CULTURE?
Feedlots
Failure point: limited directed access to Developing Sector
(60 to 70 % beef
cattle slaughtered) CULTURE?
feedlots markets due to people issues
People
Land reform beneficiaries
(±15 000)
Failure point: Support Emerging farmers (±87
000)
Developed Sector
50000 high-income
producers
CULTURE?
facilitating RSA beef
Communal farmers (±3m
150000 to 300000
integration
imported weaners
Failure point: Low herd productivity
CULTURE?
due to people issues and capitals
6.67 million Failure point: Limited
Cattle Improved Gene Flow due to
CULTURE? 5.69 million
limited Knowledge & Capital Cattle

5. EXTENSION PARADIGMS IN A SPECTRUM
Decreasing people skills
C
High Technical
know-how
Increasing complexity of the situation

6. For Profit- Focus
Profit = Income - Costs
Profit = Price x Throughput - Costs
Price
Marketing
R/kg
Growth
Genetics
Kg/hd/yr
Profit/Enterprise Throughput Reprod
Nutrition
R/kg/ha/year Kg/ha/year %
Profit/Community Deaths
Health
R/Community %
Profit/Region Costs
Management
R/Region R/kg

7. Continuous Improvement &
Innovation
6. Creation & synthesis
Creating & synthesising
opportunities for
improvement & innovation 1. Situation
(Tools)Analysing your
5. Performance situation
assessment
Assessing your
performance
FOCUS
Competitiveness 2. Impact analysis
4. Action (Tools)
implementation
Implementing your
action
3. Action design
Designing your action

8. Continuous Improvement &
Innovation
6. Creation & synthesis
Creating & synthesising
opportunities for
improvement & innovation 1. Situation
(Tools)Analysing your
5. Performance situation
assessment
Assessing your
performance
FOCUS
Competitiveness 2. Impact analysis
4. Action (Tools)
implementation
Implementing your
action
3. Action design
Designing your action

9. Continuous Improvement &
Innovation
6. Creation & synthesis
Creating & synthesising
opportunities for
improvement & innovation 1. Situation
(Tools)Analysing your
5. Performance situation
assessment
Assessing your
performance
FOCUS
Competitiveness 2. Impact analysis
4. Action (Tools)
implementation
Implementing your
action
3. Action design
Designing your action

10. Continuous Improvement &
Innovation
6. Creation & synthesis
Creating & synthesising
opportunities for
improvement & innovation 1. Situation
(Tools)Analysing your
5. Performance situation
assessment
Assessing your
performance
FOCUS
Competitiveness 2. Impact analysis
4. Action (Tools)
implementation
Implementing your
action
3. Action design
Designing your action

11. Back 50 years Kaonofatso ya Dikgomo

12. DATA to WISDOM CURVE

13. Previously BPP Supported Established Elite
Income Drivers
Disadvantaged Farmers Commercial Farmers
Farmers (PDF) Farmers
Average calving percentage 40% 61% 65% 85%
Pre-weaning mortality 50% 3.9% 4% 2%
Post-weaning mortality 15% 3% 2% 2%
Calves weaned /annum 5 14 16 21
Calves available for sale 2 (5%) 13 15(85%) 20
(after replacement)
Average weight 150 180 200 205
Price /kg (market price) R3.50 (8.00) 11.18 (13.23) R8.00 (8.00) R8.25
equivalent to (8.00)
R6.76 (8.00)
Potential income lost (%) 57% 16% 0 0
Potential monetary value R1050 R15819.32 R21 600 R33 825
Potential monthly income R88 R1318.28 R1800 R2818

14. Conclusion
Provide Methods + Tools + Skills for profitable and
sustainable beef businesses

15. The Value of Collaboration
MARKET INTELLIGENCE
TECHNOLOGY INTELLIGENCE
STIMULATING KNOWLEDGE
OPERATIONAL INTELLIGENCE
TRANSACTIONS
RISK REDUCTION
EXERCISE ORGANISATIONAL LEARNING
COMPETENCIES
REVENUE ENHANCEMENT
COST REDUCTION
THE VALUE OF STIMULATING BUSINESS
ASSET OPTIMISATION
COLLABORATION TRANSACTIONS
LEAD-TIME REDUCTION
1/07/2003 - v4
RELIABILITY ENHANCEMENT
RISK REDUCTION
POWER BASE ENHANCEMENT
PERSONAL NETWORK EXPANSION
STIMULATING SOCIAL
INTERORGANISATIONAL RISK REDUCTION
TRANSACTIONS
UNDERSTANDING BUSINESS
ENVIRONMENT
TESTING IDEAS

16. Acknowledgements
Thank you
NOT_MY_JOB_ATTITUDE
DEPARTMENT OF
AGRICULTURE
LIMPOPO
DAFF
DoACE-
NORTH WEST