How to generate wealth from owning cattle

Press release

Communal farmers in the Eastern Cape can secure a wealthier future for themselves and their families. This can be done without sacrificing the unique traditions of communal farming. By making some shifts, small scale livestock farmers can raise their economic position.

In the rural village of Centane in the Eastern Cape, cattle farmers are being given an opportunity to generate lasting wealth for themselves and their communities, from Mnquma through to the entire Amathole district, with the boundary-pushing Transkei Feed Kraal Project.  

“It is a game-changer for communities, as it gives cattle farmers access to a market that previously did not exist,” explains Gloria Serobe, founder of WIPHOLD.

Started in 2021, the Project is spearheaded by Beefmaster Group, a leading specialist supplier of beef products to South Africa and global markets –– together with Serobe – who has earned a distinguished reputation as a leader in the South African business world, especially in agriculture, as the founder of WIPHOLD. The project is jointly owned by the KwaDrabo Trust (a trust founded by Gloria Serobe) and Lingelihle Co-op, established by the Traditional Leadership of Centane. Nedbank provided finance for the project.

“Centane is an area with good weather conditions to cultivate livestock. However, this isn’t enough to translate livestock into liquidity for the community. We see a lot of poverty, while animals continue to roam around. The only thing that can change this is access to a market,” says Serobe.

The Project is also addressing some of the misconceptions around how to reap the economic benefits from farming cattle, such as when to sell cattle.

“Many people may make the mistake of putting more value on an older bull, rather than weaners – or younger cattle between the ages of 9 and 10 months. However, there is no economic reason that justifies this.”

Older animals cost farmers more over time to raise and to keep, while young cattle require less feed, making input costs for the period of owning the animal, less. The bull’s value in the eyes of the market reduces with time. It is therefore much more lucrative for farmers to sell their cattle earlier.

“By selling one small, young animal every year, rather than selling one big or older animal every three years, farmers can double their income,” says Serobe.

In addition, the longer animals are kept, the bigger they get, which means problems in terms of over-grazing and trampling of vegetation happens, rendering the land useless. But if animals are sold quicker when young, the land continues being lucrative.

“In addition, the most valuable animal in the herd is in fact the cow because of its ability to bear calves. In other words, a farmer’s return is better because the cow can produce more.”     

She adds that introducing fewer bulls into the herd also improves the quality of livestock.

“Perhaps long time ago people didn’t have tractors and they used bulls to plough, but things have changed, so bulls are not as useful as what they were then,” says Serobe.

More on the Transkei Feed Kraal Project 

The Transkei Feed Kraal is a space for the formalised selling and buying of cattle in Centane, allowing the people of the area to benefit from trading with cattle in a sustainable manner. It is based on the farm of the late King Xolilizwe, run by Centane born Manager, Thabo Magandana.

An initial investment of R6 million was made, which allowed the facility to be built. During the construction phase 30 local people were employed and there were five permanent jobs created to assist in feeding and taking care of the cattle once they are brought in.

Roelie van Reenen, supply chain executive at Beefmaster Group, says Centane was chosen for the project because it has the most cattle in the country.

“Yet many of these farmers struggle with viable routes for their products. The more formalised structure also addresses and solves many problems that come with informal trading of cattle; including a safe means of transaction, as well as a physical space where farmers can gather and buy and sell cattle,” says van Reenen.

Farmers in the Eastern Cape who wish to learn more about how they can trade their cattle at the Transkei Feed Kraal may contact Thabo Magandana on 083 728 9286.

Relevant Agribook pages include “Beef cattle farming“.

Photo by bill wegener on Unsplash