The sale of Puma, a Boer goat, for R30 000 didn’t stir much controversy outside of those specifically interested in Boer goat genetics. Although top Boer goat genetics can fetch prices in the six-figure range, the sale of Puma for R30 000 may have been viewed as a subpar deal.
By Mkhululi Chimoio
The Boer goat, sold by Rietkuil Boer Goat Stud through tender, was recognised by both the seller and the industry as having a genetic value higher than the final sale price. Yet instead of the sale sparking controversy, it led to many positive discussions among South African farmers, both on WhatsApp groups and Facebook.
At a time when many producers are questioning whether livestock pricing still reflects long-term productivity, Puma’s story has many lessons about the value of livestock, trust in the South African agricultural market and the importance of transparency in business.
Why a Tender, and Not an Auction?
Why was an open tender system chosen, rather than an auction or private treaty? According to Danie Strauss, Director of Rietkuil Boer Goat Stud, which specialises in the breeding and keeping of Boer goats, the tender system was chosen because it was about fairness.
“I wanted to do something new,” Strauss says.
“A tender system is similar to an auction, but not quite the same. I have had a lot of interest in my animals over the last few months, and how do you choose who to offer the animal to? So, with the tender system everyone gets a fair chance.”
In an industry where access to elite genetics can often depend on who you are, where you are and when you are there, the tender system ensured that everyone had an equal chance.
It was not just the result that was important, but also the way it was achieved.
Genetic Worth Beyond the Price
There is no argument about Puma’s breeding credentials. His genetic background puts him in an elite group of Boer goats in South Africa.
“Puma is a son of the 2023 World Grand Champion Buck,” Strauss explains.
“His mother is a sought-after bloodline in the industry. She is the mother to Black Jack and now to Jaguar, Puma’s twin brother. You can decide for yourself what you think the genetic worth of an animal with such a huge amount of inheritance [potential] is.”
In stud breeding, genetic worth is not just about looks, it is about heritability, consistency and the ability to pass on genetic improvement to offspring. Puma’s genetic background is a combination of two of the best bloodlines in the breed.
However, Strauss knows that genetic worth does not always translate to market price.
Also read: Boer goat WhatsApp group grows into auction ring
A Message to the Industry
Instead of viewing the sale of Puma as a loss, Strauss sees it as an investment in the future of the industry.
“The message I wanted to send is a message of belief in this fast-growing industry,” he says.
“Also, believe that you can acquire good genetics by being awake; you don’t know when a good opportunity comes by.”
This message will surely be well received in the livestock industry, as young breeders often complain about the high cost of acquiring superior genetics. This sale showed them that an opportunity does exist, but they have to be aware of what is going on and they need to talk to breeders.
Are Prices Disconnected from Long-term Value?
In high-profile sales, there is often criticism that prices paid are inflated, speculative and disconnected from underlying production value. However, Strauss does not believe that the market itself is broken.
“I believe that the margins into stepping up in your breeding with the big-name breeders have become so fine and sought after that people are willing to buy top genetics for top prices just to acquire that genetics. Stud breeding should be seen separate from commercial farming. One is quantity, the other is quality.”
This is an important distinction. Commercial farmers are focused on maximising efficiency; stud breeders are focused on maximising genetic improvement. The problem is that the two are sometimes compared using the same criteria.
Puma’s sale is an example that price is not always an indicator of value without the proper context.
Also read: Quality over quantity: The inspiring journey of Vhutolo Khangale and his pure Nguni goat genetics
The Buyer’s Perspective
The buyer of Puma decided to remain anonymous. What they did share was a reflection on the experience, and it is this reflection that gives us the emotional content of the data.
“I got the best price that I could afford for such a good animal. I did not think I would get it. I foresee great genetics, so I am expecting good offspring.”
This optimism is at the heart of breeding economics. The true return on investment for Puma will not be realised on the day of sale, but rather down the road as the offspring are born.
The Department of Agriculture has its say
The Department of Agriculture sees the sale of Puma as an example of how market freedom and national interest can work hand in hand.
According to Mercia Smith of the Department’s Media and External Communication division, the determination of prices is still the right of the farmer.
“South Africa has an open and free economy; it was the duty of the farmer in this particular case to decide at what price he wanted Puma to be sold,” Smith says.
She says that the overall effect of the sale was as important as the sale itself.
“We are proud that the farmers made [such a smart decision, ensuring that high-quality genetic material was sold at that price to create opportunities for fellow farmers and ultimately] improve the national herd,” she says.
“Such rare decisions will enable our farmers to have quality genetic animals, thereby improving herd productivity and general production efficiency in our national herd.”
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Transparency as Best Practice
Although open tenders are not yet common in high-value livestock sales, the Department sees them as having merit.
When asked whether open tenders promote trust, Smith replied in the affirmative.
“The Department has been taking the lead with the development and implementation of animal improvement schemes and investment in research, development and technology transfer, joining hands with our agricultural agencies, the [Agricultural Research Council] and [National Agricultural Marketing Council], to help improve our animal genetic resources and marketing.”
She adds that there is a greater focus in government circles on agricultural and agro-processing value chains, with support for the sector through partnerships with the private sector.
Access and Transformation
The most significant consequence of Puma’s sale is likely to be felt by emerging or small-scale farmers.
“Smallholder farmers and other commercial farmers have been and continue to benefit from animal improvement schemes through government support and the involvement of stud breeders in the improvement of animals,” Smith says. “This empowers farmers with knowledge and skills.”
Access to elite genetics at a fair price will drive transformation far more effectively than subsidies alone.
Confidence beyond pedigree
However, if breeding economics are to be taken seriously as a credible practice, buyers must have confidence in the systems that provide support for traceability and performance information.
“Animals in South Africa are sold on a free market basis and enjoy the support from the Department through animal registrations and recording on the departmental database INTERGIS,” Smith explains.
She points out that the system is compatible with stud breeders databases such as Logix, used by SA Stud Book. “Each animal on the system is fully traceable.”
Puma might have changed hands for R30 000, but the real value of the transaction is elsewhere. It is a reminder that in a business built on trust, vision and a long-term view, Puma might be worth far more than the R30 000 he fetched.
Also read:
Dr Dolce Motsepe’s Boer goats breeding success: Pure blood, top quality
Unlock the potential of Boer goat farming
Farming with Boer goats: A guide to South Africa’s top meat breed
