Farming with commodity beef / Om met kommoditeit beesvleis te boer
Farming with commodity beef has become a financially marginal business. That’s why we farm with Wagyu! / Om met kommoditeit beesvleis te boer het ‘n finansieel marginale besigheid geword. Dis hoekom ons telers met Wagyu boer!
Professor Frikkie Neser, from the University of the Free State has calculated that you need a female herd of at least 300 cows to break even. Even then, your livestock enterprise will be an economically marginal business. This statement is supported by the presentations delivered to industry by the Bureau for Food and Agriculture Policy (BFAP) at both the RPO and LRF Stockmanschool conferences. The illustration below shows that whilst the price of commodity beef has increased in value, in real terms (after adjusting for inflation), it has in fact decreased in the last decade.
Illustration 1 This graphic shows the real carcass and weaner price adjusted for inflation and a projection for the next decade (BFAP 2021).
When I took the Wagyu position in Nov 2017, I firmly believed that the South African Beef Industry needs to move away from meat as a commodity to a high value product, similar to other Western Countries where large profits are being made in the high value product markets. Angus in the USA and Australia has transformed the industry world-wide using the increased marbling as its marketing tool. They produce a tender, juicy and flavorful product. Wagyu had all these attributes, and its marbling is the highest compared to any other breed. It took someone of Graham Truscott’s calibre to pull a fragmented Wagyu Industry together, institute strong corporate governance procedures and then position the Australian Wagyu as a World leader in genetic evaluation programs outside of Japan. They are now the third largest breed in Australia. The USA Wagyu has recently employed an experienced Breed Director called Dr Robert Williams who has also been tasked to pull a fragmented industry together and to institute strong corporate governance procedures. The USA are now the largest Wagyu association outside of Japan with over 1200 members and are growing exponentially. They have also initiated a genetic evaluation program.
Wagyu South Africa’s vision is to transform the South African beef industry to be highly profitable with consumers demanding and enjoying a premium and healthy eating experience. In the past year export markets opened for some of our producers and producer groupings, and the retail sector who undoubtedly bullied us for lower our prices in the past two years. They have got the message that producers will only farm with Wagyu if they are fairly compensated. The prices have increased, as have the slaughtering’s that have increased 4-fold over the last 6 months, and the exports have also increased significantly. Whilst the business is still in its infancy, we now predict a serious shortage of oxen in 4 to 5 months’ time.
Professor Frikkie Neser, van die Universiteit van die Vrystaat het bereken dat jy ‘n vroulike trop van minstens 300 koeie nodig het om gelyk te breek. Selfs dan sal jou vee-onderneming ‘n ekonomies marginale besigheid wees. Hierdie stelling word ondersteun deur die aanbiedings wat deur die Buro vir Voedsel- en Landboubeleid (BFAP) by beide die RPO en LRF Veeskool-konferensies aan die industrie gelewer is. Die illustrasie hieronder toon dat terwyl die prys van kommoditeit beesvleis in waarde toegeneem het, in reële terme (ná aanpassing vir inflasie), dit in werklikheid in die laaste dekade gedaal het.
Toe ek die Wagyu-posisie in Nov. 2017 aangeneem het, het ek vas geglo dat die Suid-Afrikaanse Beesvleis bedryf moet wegbeweeg van vleis as ‘n kommoditeit na ‘n hoëwaardeproduk, soortgelyk aan ander Westerse Lande waar groot winste in die hoë waarde markte gemaak word. Angus in die VSA en Australië het die bedryf wêreldwyd getransformeer deur die verhoogde marmering as sy bemarking instrument te gebruik. Hulle produseer ‘n sagte, sappige en geurige produk. Wagyu het al hierdie eienskappe, en sy marmering is die hoogste in vergelyking met enige ander ras. Dit het iemand van Graham Truscott se kaliber geneem om ‘n gefragmenteerde Wagyu-industrie saam te trek, en sterk korporatiewe bestuursprosedures in plek te stel, sodoende die Australiese Wagyu as ‘n wêreldleier in genetiese evaluerings programme buite Japan te posisioneer. Hulle is nou die derde grootste ras in Australië. Die VSA Wagyu het onlangs ‘n ervare rasdirekteur genaamd Dr Robert Williams in diens geneem wat ook die taak gekry het om ‘n gefragmenteerde bedryf bymekaar te bring en om sterk korporatiewe bestuursprosedures in te stel. Die VSA is nou die grootste Wagyu-genootskap buite Japan met meer as 1200 lede en die genootskap groei eksponensieel. Amerika het ook nou n genetiese evaluerings program.
Wagyu Suid-Afrika se visie is om die Suid-Afrikaanse beesvleis bedryf te transformeer om hoogs winsgewend te wees met verbruikers wat ‘n premie en gesonde eet ervaring eis en geniet. In die afgelope jaar het uitvoermarkte begin oopmaak vir sommige van ons produsente en produsent groeperings. Die kleinhandel het aanvanklik ons Wagyu telers die afgelope twee jaar geboelie om ons pryse te verlaag maar vinnig die boodskap gekry dat produsente net met Wagyu sal boer indien hulle met ‘n billike prys vergoed sal word. Die pryse het toegeneem, so ook die slagtings wat 4-voudig toegeneem het oor die laaste 6 maande, en soos genoem het die uitvoere ook aansienlik vanjaar toegeneem het. Terwyl ons nog steeds in ons kinderskoene is, voorspel ons nou ‘n ernstige tekort aan slagosse oor die volgende 4 tot 5 maande.
Illustration 1 This graphic shows the real carcass and weaner price adjusted for inflation and a projection for the next decade (BFAP 2021). / Illustrasie 1 Hierdie grafiek toon die werklike karkas- en speenkalf prys aangepas vir inflasie en ‘n projeksie vir die volgende dekade (BFAP 2021).
