"South Africa is at the forefront in leading Africa's technological innovation, and benchmarks with the best in the world" he says, adding that the same potential exists for the rest of Africa as well, "if only African nations would realise this and [...] promote the development of the overall supply chain within their countries."
Köster stresses that it is imperative that an official representative industry body continuously ensures self-regulation while also supporting improved regulation by Government. "The task of regulating the industry is too large for developing Governments to handle on [their] own," he says, adding that the solution is not for Government to regulate, monitor and control the entire feed industry, but rather to put in place appropriate policies and legislation that allow the industry to function optimally without anyone within the industry gaining unfair competitive advantages.
A recent University of Pretoria study concluded that large South African feed manufacturers produce below the desired potential levels due to market conditions. In addition, Köster says, "lack of appropriate policy and policing by developing governments of the feed, and its related supply chain industries is restricting the competitiveness of these industries." Köster mentions that roads and railways account for almost all of SA's grain transportation and delivery systems. However, transporting feed ingredients is becoming alarmingly expensive. "The end result is that agribusinesses cannot be competitive while costs keep escalating." In addition, he says "the constant threat of land claims and the nationalisation of farm lands in South Africa are also creating a trust barrier between producers and Government."
Read the full article on www.allaboutfeed.net.
