Theo E. Kleynhans

THE COMPETITIVENESS OF WESTERN CAPE WHEAT PRODUCTION: AN INTERNATIONAL COMPARISON

This paper reports the results of an international comparison of the cost of producing wheat in 8 Western Cape, 3 Free State and 7 foreign producing areas. Results show that South African yields are low compared to foreign countries whose production costs are as high as or higher than those in South Africa, while the net margins for South African producers are less than a third of those for countries that have the same or lower yields as South Africa. If the wheat industry in the Western Cape is to survive international competition, it will have to create its international competitiveness.

Agricultural land purchases for alternative uses—evidence from two farming areas in the Western Cape province, South Africa

Abstract Purchases of agricultural land for diverse reasons, such as recreation or aesthetic appeal (collectively referred to as lifestyle purposes), has implications for agricultural land valuations, commercial agriculture and the acquisition of land for redistribution purposes. This paper reports on the extent of purchases of agricultural land for diverse reasons within an intensive and extensive agricultural farming area in the Western Cape, gathered through a survey of land buyers between January 2005 and October 2007. Descriptive statistics provide demographical information of buyers, their reasons for purchasing farms and the importance of specific characteristics of agricultural properties considered in such purchases. Analyses of variance convey more information regarding the different characteristics of agricultural properties considered by agricultural and lifestyle buyers. Survey results indicated that farm purchases for alternative purposes were substantial: more than half of all transactions in both the intensive and extensive area were for lifestyle reasons. Lifestyle buyers mostly rely on income from outside the agricultural sector for their livelihoods and financing of purchased properties, therefore they could focus on characteristics of farms unrelated to commercial agricultural production in their decision to buy agricultural properties. Characteristics such as the recreational opportunities provided by the property and its aesthetic beauty, including natural scenery, beautiful views and locations within a valley and set against a mountain, appealed to these buyers.

Towards more inclusive long-term bulk water resource management

Abstract Fresh water resources provide a platform for complex and often emotional issues to develop, particularly in resource scarcity situations. Bulk water infrastructure contains elements of a public good and proved vulnerable to failures in market and government driven allocation strategies. Common to both are uncaptured costs and benefits due to shortcomings in cost quantification techniques. Natural ecosystems stands to lose the most since ecosystem services are often not quantifiable in monetary terms and therefore neglected in allocation decision-making. This paper took on the challenge of expanding current decision-support in order to promote more inclusive long-term water management. A case-study approach with the focus on a choice related problem regarding different long-term bulk water resource management options was applied in the Western Cape province. The paper incorporated components of economic valuation theory, a public survey and a modified Delphi expert panel technique. Both spatial and temporal dimensions of the decision-making context were expanded. Two surveys were completed to accommodate these expansions. The first focused on public preference in water allocation management and the relative merit of accommodating public preference in highly specialised decision-making such as long-term water allocation decision-making. The second survey utilized a modified Delphi technique in which an expert panel indicated the relative merit of two alternative long-term allocation strategies. A willingness to pay for “greener” water was observed and may be used to motivate a paradigm shift from managements perspective to consider, without fear of harming their own political position, “greener” water supply options more seriously even if these options imply higher direct costs to public.

Comparative life cycle assessment of Flemish and Western Cape pork production

ABSTRACT This study compares a life cycle assessment (LCA) of pork production in the Western Cape with pork production in Flanders. The objectives of this study were to map and quantify the environmental impacts of producing pork in the Western Cape and exporting it to Antwerp in Flanders with the environmental impacts of producing pork in Flanders and delivering it to the same location. The impact categories included are (i) global warming potential (GWP), (ii) eutrophication potential, (iii) acidification potential, and (iv) energy use. By pointing out weak points in the different environmental impact categories, suggestions are made to lower the environmental burdens of pork production. Four main activities of the pork production chain were covered by the LCA, namely: (i) the feed provision activity, which includes the production of raw materials and feed, (ii) the pig farming activity, (iii) the slaughter house activity and (iv) the slurry (treatment) activity. An additional (v) pork shipping activity was added in the case of the Western Cape pork chain. A cradle-to-gate life cycle assessment was carried out, with a functional unit (FU) of one kg of Western Cape or Flemish pork (carcass weight) delivered to the distribution centre in Antwerp. Flemish GWP, eutrophication potential, acidification potential and energy use are 56%, 65%, 62% and 59% respectively of the Western Cape equivalents. The exporting of pork accounts for less than 8% of environmental impacts in all impact categories. Potential exists in the Western Cape to compete on an environmental par when impacts are measured in terms of a per-area unit. It is therefore recommended that for future comparative South African-European LCA studies of pork or other intensive livestock or poultry production chains, an FU of one kg meat as well as an area unit be used when measuring total eutrophication and acidification impacts.

Financial viability of agroforestry for bioelectricity generation on various farm types in the Western Cape, South Africa

ABSTRACT South Africa relies on fossil fuels for generating more than 80% of its electricity. While projections of known reserves indicate sufficient coal for 114 years, air pollution from coal power plants causes serious environmental damage. The production of lignocellulosic biomass for generating bioelectricity seems to be an appropriate option in order to become less dependent on fossil fuels. In this article, the potential for producing this type of biomass was investigated for the Cape Winelands District Municipality (CWDM). First, the potential area for production in a Short-Rotation Coppice (SRC) system was identified by means of Geographic Information Systems (GIS). After assessing suitable tree species and their productivity rates, an annual supply of about 1.4 million tonnes per year could be expected, using exotic species such as Eucalyptus cladocalyx. Three scenarios were assessed by means of farm modelling. The first scenario describes woody biomass production as a single production activity on fynbos/uncultivated land, not competing with other agricultural activities. In the second scenario, biomass production is introduced as an additional enterprise on a dryland winter-grain farm, typically in the rainfed grain- and livestock-producing Gouda/Hermon farming area. The third scenario describes biomass production in an intensive farming environment. Given the National Energy Regulator of South Africa (NERSA) tariff for bioelectricity, it can be concluded that woody biomass production in a short-rotation system, either as a soleproduction business or integrated into a farming business with other agricultural activities, can be economically and financially viable. Land values, however, have a large influence on viability.

LONG-TERM WATER RESOURCE MANAGEMENT IN SEMI-ARID AREAS: A SOUTH AFRICAN CASE STUDY

Fresh water resources provide a platform for complex and often emotional issues to develop, particularly in resource scarcity situations. Bulk-water infrastructure contains elements of a public good and has proved vulnerable to failures in market and government driven allocation strategies. Common to both are uncaptured costs and benefi ts due to shortcomings in cost quantifi cation techniques. Natural ecosystems stand to lose the most since ecosystem services are often not quantifi able in monetary terms and therefore neglected in allocation decision-making. This study took on the challenge of expanding current decision-support to promote more inclusive long-term water management. A case-study approach with the focus on a choice related problem regarding different long-term bulk-water resource management options was applied in the Western Cape province. The study incorporated components of economic valuation theory, a public survey and a modifi ed Delphi expert panel technique. Both spatial and temporal dimensions of the decision-making context were expanded. Two surveys were completed to accommodate these expansions. The fi rst focused on public preference in water allocation management and the relative merit of accommodating public preference in highly specialised decision-making such as long-term water allocation decision-making. The second survey utilised a modifi ed Delphi technique in which an expert panel indicated the relative merit of two alternative long-term allocation strategies. A willingness to pay for ‘greener’ water was observed and may be used to motivate a paradigm shift from the management’s perspective to consider, without fear of harming their own political position, ‘greener’ water supply options more seriously even if these options imply higher direct costs to the public.

Geographic information system concepts for land management

A Geographical Information System (GIS) has recently been developed for the assessment of the agricultural potential of the Southern African Development Community (SADC) region. The main value of this GIS is the integration of agricultural resource information from the SADC countries in order to support regional planning. The development of GIS technology makes it possible to compile, store, retrieve, analyse and display vast quantities of spatial data on, inter alia, the climate, topography, soils and infrastructure of the region. This article aims to give background information on the nature and general application of a GIS. Attention is given to the capabilities of a GIS, the spatial questions that drive analyses, basic database requirements, analytical and operational functions, as well as the applications of a GIS in land reform. More detail on the spatial agricultural resource data captured and its use by means of the SADC GIS will be described in a later article.

Scenario development to support strategic planning in the south african table grape industry

Abstract This article adopts scenario planning as a tool to analyse the potential impact on the South African Table Grape Industry (SATI) if the industry relocates a certain percentage of exports away from the traditional markets (i.e., European Union (EU)) to the emerging Eastern markets. It also evaluates the future impact if the industry maintains the current market distribution. A deterministic farm-level model is developed based on accounting principles to quantify and analyse the impact of changes in markets on the financial viability of farms under different scenarios. The implications of specific market distributions under each scenario on the table grape industry are compared.

FYNBOS EXPORTS FROM THE WESTERN CAPE PROVINCE: A PROBLEM OF LOGISTICS

During 1997 research was conducted on trends in factors that affect the supply and demand for airfreight space for fynbos exports from South Africa. The aim was to sensitise decision-makers to probable trends in those factors that will shape cargo space availability. The main finding was that the supply of airfreight to South African producers is aggravated by the unbalanced availability of cargo space on southbound and northbound trips originating from Cape Town. If the price and quantity of cargo space were determined by supply and demand, an imbalance couldn’t arise in a perfect market, as prices would balance cargo space supplied and demanded. However, airfreight tariffs are rigid per weight level. The result is that items with a higher mass per volume unit represent a higher income per palette, and are therefore preferred by export agents. This finding has implications for future growth in the industry.

APPLE PRODUCTION SYSTEMS FOR SMALL-SCALE FARMERS IN THE WESTERN CAPE / APPELPRODUKSIESTELSELS VIR KLEINBOERE IN DIE WES-KAAP

The feasibility and consequences of small-scale (1–2 hectare) apple production systems are examined as a contribution to the dialogue on agricultural and rural transformation in the Western Cape. The most important constraint facing emerging farmers is assumed to be start-up capital. An expert panel of scientists and commercial apple fanners were dram into an interactive, computer assisted dialogue to design alternative apple production systems requiring significantly scaled-down investment. Within imposed capital constraints, production technologies were designed using horticultural integrity and feasibility as criteria. Each model was then subjected to economic analysis. Net present values for 10 and 20 year orchard lives, internal rates of return and other criteria are applied. The analysis explores feasibility within the particular constraints of small-scale faming such as available household labour and risk averseness. One model passes most feasibility tests under a wide range of conditions. Assumpti...