Farmers have to adapt to new trends in output, says expert

FARMERS who want to achieve the same level of today’s profit margins in 10 years from now would have to increase input and investments by at least 30 per cent, while increased profits would require even more, an agricultural expert said yesterday.

Ernst Janovsky, who heads the agribusiness division of Absa bank in South Africa, told delegates of the annual conference of the Livestock Producers’ Organisation (LPO) that the pressure of increased input and investment into farming required a mind change on farming methods. “Farms have to better managed and have to become bigger in order to achieve higher production, otherwise you are out,” Janovsky cautioned.”Dairy farms which yielded some 20 to 25 litres of milk per cow today on average now get over 30 litres, some even 40 litres per day from a cow.Farms have to become bigger for crop and meat production and changes have to be done soon in order to keep up with market demands, because future export markets are Russia, China, Asian countries and the Middle East,” according Janovsky.It was important for the private sector to keep abreast of trends and market forces in agriculture and to be in contact with Government and its institutions to accommodate these changes.Asked how the land reform in South Africa would be affected if farms there and in Namibia would have to become bigger, Janovsky predicted that both countries would probably adjust the existing land reform policies.”Farms have to better managed and have to become bigger in order to achieve higher production, otherwise you are out,” Janovsky cautioned.”Dairy farms which yielded some 20 to 25 litres of milk per cow today on average now get over 30 litres, some even 40 litres per day from a cow.Farms have to become bigger for crop and meat production and changes have to be done soon in order to keep up with market demands, because future export markets are Russia, China, Asian countries and the Middle East,” according Janovsky.It was important for the private sector to keep abreast of trends and market forces in agriculture and to be in contact with Government and its institutions to accommodate these changes.Asked how the land reform in South Africa would be affected if farms there and in Namibia would have to become bigger, Janovsky predicted that both countries would probably adjust the existing land reform policies.