April 2013 - AFMA

having transport to get products to local
markets and therefore reduces the potential
to be profitable and continue productive
farming. This increases the risk of
cheaper imported products remaining in
the market and reduces future growth of
the feed industry and agricultural products.
Land transfer remains a reality and
we need to find ways to help these rural
farmers become more effective.
Andy Crocker, Meadow Feeds
The South African feed industry is under
pressure, as the competitive intensity has
increased in direct relation to growing
overcapacity in the industry. In addition,
demand for our customers’ animal protein
products, across all species sectors, has
softened considerably as economic pressure
comes to bear on the South African
consumer.
“A growing middle-class is
furthermore developing an
appetite for value-added
foods, including all forms of
meat. The production resources
for feeding this world are
concentrated, amongst very
few other countries, in Africa”
This pressure has been amplified by rising
input costs which reached record levels
last year, and after a temporary reprieve
in the first quarter, 2013 have resumed the
upward trend. Despite this, astute feed
businesses have increased efficiencies and
controlled costs to ensure that they remain
positioned to service the food sector of
the future, which undoubtedly faces rising
demand in the longer term as the world
charges toward a population of nine billion
people.
A growing middle-class is furthermore
developing an appetite for value-added
foods, including all forms of meat. The production
resources for feeding this world
are concentrated, amongst very few other
countries, in Africa. This is a good place
to be for feed manufacturers who can
deliver consistent traceable quality to a
more quality-conscious market that is fed
up with poor or adulterated foods, and increasingly
protected by legislation such as
our own Consumer Protection Act (CPA).
Consistent performance
South African feed manufacturers compare
favourably with their counterparts
elsewhere in the world. Most major manufacturers
in the country have some kind
of relationship with international leaders,
giving them a direct link to the latest technology.
In many cases our technology and
manufacturing capability is in line with
world standards.
At the same time, however, there are
some factories that are aged and, although
they are maintained and operated well,
they simply are not capable of adapting
to the latest standards all the time. On the
other hand, we are building new facilities
in the country, such as Meadow Feeds’ new
Standerton Mill, which is based on the latest
and best technologies.
The bottom line is that we know how to
make feeds that perform consistently. Our
broiler performance, for example, is in line
with the rest of the world.
Looking at the technical advisory services
we offer here, I believe that our technical
advisors, on the whole, are right up
there with the best. On the same basis that
we are linked to international companies
to guide us in terms of technology, our
technical staff is also being exposed to international
expertise and developments.
What has to be said, though, is that our
local research capability has unfortunately
been compromised, with the result that
we are dependent on research results that
were generated elsewhere. Our local institutional
support for the industry has weakened
over time, which is very unfortunate.
Koos Kooy, De Heus South Africa
“The South African feed
industry is furthermore operating
within an environment that is
not equal to our counterparts
in the global village. Import
and export legislation relating
to feed industry raw materials
and animal products, is not
facilitating a level playing field”
South Africa has a developed first-world
and professional animal husbandry industry
with farmers being able to compete
with the best in the world. This is largely
supported and facilitated by an animal
feed industry that is able to supply nutrition
to livestock to produce animal proteins
at a competitive price and to achieve
the genetic potential of animals under the
unique circumstances of a very diverse
South Africa.
The animal feed industry operates
within a South African environment with
unique challenges. Our industry still operates
within an outdated feed law which is
not only outdated with regards to the latest
nutritional developments of the world,
but also does not facilitate development
and quick product implementations required
to fulfil the demands of animal producers.
So in essence we are moving too
slow to be able to keep up with global and
local needs and developments.
The South African feed industry is furthermore
operating within an environment
that is not equal to our counterparts in the
global village. Import and export legislation
relating to feed industry raw materials
and animal products, is not facilitating a
level playing field. This hampers the industry’s
growth potential, the nation’s food
security and the capacity of the industry to
create jobs.
Under the leadership of AFMA the South
African feed industry has taken huge leaps
to ensure “safe feed for safe food”, and contributed
to the new proposed feed bill to
be approved by Parliament. The challenge,
however, remains a bigger inclusion of
feed-producing entities over the complete
spectrum to participate within AFMA to
ensure the global long-term competitiveness
of our industry as a whole.
Feed industry
AFMA MATRIX ● APRIL 2013 9