The financial and management implications of integrating beef cattle into crop rotation systems in the middle Swartland

Date
2022-12
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH SUMMARY: South Africa produced roughly R37 billion worth of beef in 2018. The Western Cape; however, contributed only five percent of this total with various factors playing a role to this effect. The environment and natural grazing opportunities of the northern summer rainfall areas lend itself towards beef production, with the largest consumer market, Gauteng, also being part of this geographical area. The Fynbos and Karoo veld types of the Western Cape are not quite suitable for the natural grazing of cattle. Traditionally sheep has been the predominant livestock component used in farm systems in the Western Cape’s Swartland. This area is mainly categorised as a wheat producing area. Since the 1990’s the implementation of Conservation agriculture (CA) and crop rotation has been relatively high. It leads to an increase in crop diversity as it is one of the managing strategies to achieve enhanced productivity and sustainability. Cover crops can be used to serve a variety of key functions simultaneously with the collective goal being to achieve sustainability in farming systems. The inclusion of cover crops in rotation systems creates grazing opportunities, leading to the evaluation of further livestock integration. Integrating livestock into a cereal production system is complex and multi-faceted. Soil health, disease build-up, weed management, marketing systems, labour requirements, mechanisation, and infrastructure need to be taken into consideration. These physical characteristics and relationships need to be balanced through knowledge, capital, diversification, sustainability, and profitability. Underlying factors should be considered when integrating livestock, which would in turn influence whole-farm aspects in CA production systems. A beef cattle component will likely differ from a sheep component in the same farm system. Specific crop rotation systems have the potential to financially benefit beef cattle rather than sheep. A combination of sheep and cattle as an option of integration is also likely. Unfortunately, a lack of knowledge exists regarding the financial viability and management developments of integrating a beef cattle component in CA systems in the Swartland. A whole-farm multi-period budget model was constructed for a typical farm in the Middle Swartland. The financial model incorporated numerous assumptions and parameters that were validated by experts and producers. Multidisciplinary group discussions were a critical part of this study. Incorporating members’ knowledge assured that the budget models were constructed with credible assumptions and parameters to simulate whole-farm systems that projects practical financial guidelines. According to the financial analysis the wheat - medic rotation system, with a sheep livestock component, is the most lucrative over a 20-year period. Among systems that include cover crops (and therefore cattle integration), the rotation of cover crop - medic - wheat, with a mixed livestock integration, financially performed the best. Beef cattle integration is the least profitable livestock integration strategy according to this study, whilst a mixed livestock integration of sheep and beef cattle showed the best financial performance.
AFRIKAANSE OPSOMMING: Suid-Afrika het ongeveer R37 biljoen se beesvleis in 2018 geproduseer. Die Wes-Kaap provinsie het slegs vyf persent van hierdie totaal bygedra. Verskeie faktore speel ‘n rol in hierdie situasie. Die natuurlike weiding van die noordelike somerreenvalgebiede is meer gepas vir beesvleisproduksie en die grootste verbruikersmark, Gauteng, le in die geografiese gebied. Die Wes-Kaap beskik oor Fynbos en Karoo veldtipes wat nie gepas is as natuurlike beesweiding nie. Skaap is tradisioneel die gekose veekomponent vir boerderysisteme in die Swartland. Hierdie gebied word hoofsaaklik as koringproduserende gebied gekategoriseer, maar die implimentering van bewaringslandboubeginsels, spesifiek wisselbou stelsels, is redelik gewild vanaf die 1990’s. Verhoogde gewas diversiteit is een van die bestuurstrategiee om verbeterde produktiwiteit en volhoubaarheid te bereik. Dekgewasse kan gebruik word om tegelykertyd 'n verskeidenheid sleutelfunksies te dien, waarvan die kollektiewe doelwit is om volhoubaarheid in boerderystelsels te bereik. Die insluit van dekgewasse in wisselboustelsels skep weidingsgeleenthede wat ‘n verdere evaluasie van vee-integrasie tot gevolg het. Die integrasie van vee in 'n graanproduksiestelsel is kompleks en veelsydig. Aspekete soos grondgesondheid, siekte-opbou, onkruidbestuur, bemarkingstelsels, arbeidsvereistes, meganisasie en infrastruktuur moet in gedagte gehou word. Al hierdie fisiese eienskappe en verhoudings moet gebalanseer word met kennis, kapitaal, diversifikasie, doelwitte vir volhoubaarheid en winsgewendheid. Daar is onderliggende faktore wat in ag geneem moet word wanneer vee geintegreer word. Die integrasie sal bewaringslandboustelsels en boerdery as geheel beinvloed. 'n Vleisbeeskomponent sal waarskynlik redelik verskil van 'n skaapkomponent in dieselfde boerderysisteem en wisselboustelslels. Sekere boerderysisteme en wisselboustelsels het die potensiaal om voordelig te wees vir vleisbeesintegrasies. ʼn Kombinasie van bees en skaap as ʼn gemengde integragrasie is waarskynlik ook ʼn waardevolle opsie. Gebrekkige kennis bestaan rondom die finansiele implikasies en bestuursontwikkeling wat die integrasie van 'n vleisbeeskomponent in wisselboustelsels van die Middel Swartland inhou. ʼn Geheelplaas multi-periodebegrotingsmodel is vir 'n tipiese Middel Swartland plaas opgestel. Die finansiele model bevat talle parameters en aannames wat met kundiges en produsente getoets is. Multidissiplinere groepbesprekings was 'n kritiese deel van hierdie studie, aangesien dit verseker dat die begrotingsmodelle met kredietwaardige aannames en ‘n volledige stel parameters saamgestel is om geheelplaasstelsels te simuleer wat praktiese finansiele riglyne projekteer. Volgens finansiele ontledings, is tot die gevolgtrek gekom dat die koring - medic rotasiestelsel, met 'n skaapvee-komponent, die mees winsgewende oor 'n tydperk van 20 jaar is. Van die stelsels wat dekgewasse (en dus bees-integrasies) insluit, het die rotasie van dekgewas - medic - koring, met 'n gemengde vee-integrasie, finansieel die beste gevaar. Vleisbees-integrasies toon die laagste winsgewendheid van die vee-integrasie strategiee wat in hierdie studie geevalueer is, terwyl 'n gemengde vee-integrasie van skape en beeste die beste finansiele prestasie getoon het.
Description
Thesis (MAgricAdmin)--Stellenbosch University, 2022.
Keywords
Crop rotation -- Swartland (South Africa), Livestock -- Swartland (South Africa), Cover crops -- Swartland (South Africa), UCTD
Citation