Dr Kobus Laubscher says very often farmers have to make production decisions that will only materialise in the market several years down the line. He uses the example of deciding to up production of weaner calves.

“If a farmer decides he wants to produce more weaner calves, then he has to wait two years before that decision results in a marketable product.

“On top of this, production is also often thrown on its head as conditions change from the time of making the production decision to the time when you have a product that can be sold. The drought over the last year is a good example of this.”

He says this highlights the importance of continuous effective production, as well as the role of the primary producer in keeping his product relevant amid changing market conditions.

Laubscher says producers need to arm themselves with information and need to foster good relations with partners and roleplayers along the value chain. He says they can also look at things like producing under contract to minimise risks.

OFM News