There is deep concern about the long-term, potentially devastating impact the foot-and-mouth disease crisis could have on the livestock industry.
By Alani Janeke, senior journalist at African Farming and Landbouweekblad
Foot-and-mouth disease (FMD) could have devastating consequences for the auction industry, meat supply, meat prices for farmers and consumers, as well as the national dairy herd and milk supply. In addition, genetic material built up in herds over decades could be lost.
Auction House Forced to Scale Back
At present, the largest auction house in KwaZulu-Natal has only two of its 22 auction facilities operating intermittently. AAM Livestock Agents and Auctioneers, which has been operating in KwaZulu-Natal for 20 years, has been forced to reduce its operations by 50% since March last year, with further cutbacks over the past two months. It has already had to retrench seven employees and can now only offer its remaining staff work once or twice a month.
Ollie Aadnesgaard, a director at AAM, says because of FMD in the province only two of their auction facilities are currently handling auctions from time to time. Farmers cancelling production auctions to prevent the spread of FMD can consider online options, although they may not necessarily achieve the same prices for their animals.
Aadnesgaard says although it is unclear when government regulations might change, they remain hopeful that a solution will be found soon.
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Abattoir Goes All Out to Remain FMD-Free
Wynand Viljoen and his team are pulling out all the stops to keep Weltevrede Abattoir and farm in Bethlehem free of FMD. “About 20 farms in our district have already had confirmed cases,” he says.
Measures include dissolving chlorine in water to properly disinfect all vehicles. “We can’t get F10 SC [a veterinary disinfectant recommended for combating FMD] anywhere, because there’s a shortage.”
The additional cost to the abattoir for vehicle disinfection alone currently amounts to about R20 000. This excludes further costs to disinfect the abattoir itself or people entering the building.
Viljoen says slaughter numbers at his abattoir are roughly in line with what is normally expected in January. “After the high demand for meat during the festive season, January is usually a slow month and February even slower. Slaughter numbers normally start increasing from March.” He is unsure whether the same pattern will hold this year.
He is particularly concerned about two possible transmission routes. Some farmers in the district use small trailers to transport individual animals, including to his abattoir.
“You’re not always sure when or whether these trailers are properly cleaned before or after being hired. That’s why everyone in the value chain needs to be informed.”
There is also suspicion in the district that bushpigs may be spreading the virus. These animals can come into contact with livestock or drink from cattle water points, thereby transmitting the disease.
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Risk of Milk and Meat Shortages
The spread of the virus and the protocols being applied will ultimately cause structural problems in the dairy and meat industries, says Prof Johan Willemse, an independent agricultural economist.
“The cash flow of farmers who cannot sell their livestock dries up. And there is a large number of animals on farms that could later enter the system simultaneously, which could result in price declines for farmers.”
A reduced supply of milk and meat could emerge in the country, Willemse says, and some milk buyers have indicated in the media that milk imports may need to be considered if shortages arise.
“The income of farmers’ associations that operate auction facilities also comes under pressure,” he adds.
Also read: FMD | Biosecure online auctions offer lifeline to farmers
Stud Industry and Auction Houses May Take Years to Recover
The ripple effect of the FMD outbreak on the stud industry and stud auctions could mean that these auctions only return to normal in a year or two.
Louis Steyl, CEO of Bonsmara SA, says quarantine measures and infection protocols are “absolutely catastrophic” for auctions in the short term.
Auctions scheduled by Bonsmara SA members up to April this year have either been postponed by several months or cancelled altogether. “Many stud breeders are bona fide cattle farmers, and their production auctions are like harvest time for a grain farmer. Without them, they earn no income.”
This situation will not only mean that some breeders earn no income this year, but also that they may have a double supply of animals at their next auction, which could lead to lower prices for high-quality stock.
“Production auctions are also a source of quality animals for stud breeders, and stud breeders in turn supply feedlots – so the system is being severely disrupted.
“The other side of the coin is that the protocols could wipe out stud breeders’ genetic material, which some have built up over 60 or 70 years, if animals can no longer be sold and have to be slaughtered instead. Stud breeders also want to know who will buy stud animals branded with the letter F.”
Steyl explains that if a farmer has to start rebuilding genetic material from scratch, it can take decades. “You only really see a bull’s value after seven years – once his first calves have produced calves of their own.”
The industry will, as always, try to find ways to survive, he says. One option will be to consider online auctions, although most farmers still prefer to view animals in person. “It will be like during the Covid period – but this time it’s about keeping animals apart, not people.”
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