Acquiring key raw materials – like feed - at a reasonable price could contribute significantly to improving the long-term competitiveness of the poultry sector – which is why Centre for Competition Regulation and Economic Development economist Zengeni Tatenda has called on government to increase the production of maize and soya as feed.
Speaking at the second annual Economic Research Advisory Network conference in Bloemfontein last week, Tatenda said that achieving an increase in production of maize could be accomplished domestically but that soya would be challenging because of climate factors.
The Department of Agriculture, Forestry and Fisheries (Daff) points out that temperature plays an important role in determining the rate at which soya beans grow. They also require consistent rainfall – a phenomenon which is unpredictable in South Africa.
According to Tatenda this is why there is a need for government to take a regional value-chain approach across southern Africa, incorporating countries such as Zambia and Mozambique. But for the regional focus to work there was a need for investment in transport and logistics that would enable smooth trade among regional players, he added.
