SOUTH AFRICA-THE BEEF TRADE.
International economic recession, high energy prices and global warming are increasingly important factors in beef-cattle breeding. Stud breeders and commercial cattlemen will be forced to reconsider the merits of large, grain-fed, feedlot or "diesel bulls" against smaller, veld-adapted "solar bulls" such as Afrikaners. So says Albert de Villiers, Afrikaner breeder from Koopmansfontein in the Northern Cape. Annelie Coleman reports.
The efficiency of producing beef will play an increasingly important role in South Africa,
says Afrikaner breeder Albert de Villiers from Koopmansfontein. "Energy from fossil fuel is becoming scarce and expensive and apart from contributing to global warming, the effect of its rising price will undoubtedly also affect beef production," says De Villiers. "Eventually it will influence the type of bull commercial farmers will use to survive economically."
He explains the choice will be between so-called "diesel bulls" and "solar bulls". Bulls heavy on grain don’t graze a lot and the production cycle from farm to slaughter includes fossil fuel-intensive grain production, hence the term "diesel bulls".
Developments in the global economy no longer make it economically and ecologically sustainable to round off 80% of slaughter cattle in feedlots.
The feedlot industry is based on a centrally concentrated mass-production approach in which value is added in feedlots. For this purpose, the price of raw material inputs must be kept as low as possible, whether for diesel fuel, grain or weaner calves.
In his view, the Afrikaner breed probably has the best genetic potential to produce red meat on veld, especially in drier parts of southern and South Africa.
Increasing concerns
Two cheap commodities, diesel and grain in particular, made "beef factories" profitable in the past. Warning lights started to flash for the feedlot industry as early as the energy crisis in 1974, but at that stage good profits were still made.
However, recent oil price shocks and new biodiesel technology have made grain an increasingly expensive commodity. It’s now directly linked to the price of diesel and crude oil, with a dramatic influence on the South African feedlot industry. Albert says it’s unlikely the feedlot industry will be eliminated, but its role will decrease in future.
Furthermore, health-conscious consumers are becoming aware of the disadvantages of grain-fed beef as opposed to grass-fed beef, as well as the contribution of feedlots to global warming. Grain-fed cattle belch large quantities of methane – a potent greenhouse gas. In future, governments may even penalise feedlots for this.
Albert says cattle farmers in southern Africa are left with only one viable alternative – to rear cattle naturally on veld. The source of energy would only be from sunlight converted to green grass by photosynthesis, and then to beef.