BY SAPPO CHAIRMAN : JAMES JENKINSON

1. 1. SAPPO 2. PORK INDUSTRY 3. FEED 4. SMALL SCALE FARMER 5. JOBS 6. COST OF PRODUCTION 7. SUMMARY Table of content

PORK INDUSTRY SOWS SLAUGHTER PIGS PER ANNUM TURN OVER PER ANNUM R 4.8 BILLION CARCASS MASS PER ANNUM TONS IMPORTED PORK PER ANNUM ( 18% of own production) TONS FEED USAGE PER ANNUM TONS MAIZE USAGE PER ANNUM TONS

FEED 75% of Production Costs relate to Feed Costs 62% of Feed relate to Yellow Maize MAIZE PRICE INCREASE YEAR ON YEAR: Jan 2015R per ton Jan 2016R per ton That means: 90.4% Increase TOTAL FEED PRICE INCREASE YEAR ON YEAR: More than 70%

SMALL SCALE FARMER SAPPO ALLOCATES 20% OF ITS TOTAL BUDGET TOWARDS EMERGING FARMER DEVELOPMENT SAPPO EMPLOY 3 SPECIALLY DEDICATED PROJECT MANAGERS FOR DEVELOPING FARMERS ASSIST WITH: Training-360 developing farmers trained annually Mentorships-National programme Business plans-Including building designs Veterinary Service-On-farm consultation SMALL SCALE FARMER (SSF) IS MOSTLY EFFECTED. WITHOUT GOVERNMENT SUPPORT SSF WILL BE UNSUSTAINABLE. INTERVENTION URGENTLY NEEDED.

JOBS DIRECT ON-FARM PORK PRODUCTION:4 800 INDIRECT JOBS UP TO CONSUMER’S TABLE:15 000

COST OF PRODUCTION FEED COST: 75% IMPORT COST DUE TO R / $ EXCHANGE RATE: Jan $205 X = R2 367 Jan $205 X = R3 355 Exchange rate:42% depreciation year on year MARKET PRICE: Jan R23.79 per Kg Jan R22.77 per Kg Price to producer year on year:4.5% lower

SUMMARY THE PORK INDUSTRY WILL LOOSE SOWS AND INEVITEBLY LOOSE PRODUCERS. JOBS WILL BE LOST. EXPECT TO LOOSE AT LEAST 10% DIRECT JOBS. PRODUCTION COSTS ARE RISING AND ARE EXPECTED TO RISE EVEN MORE. FARMERS ARE MAKING A LOSS AND THIS WILL CONTINUE DURING CONSUMERS WILL PAY MORE FOR PORK. IT IS EXPECTED THAT THE PRICE TO THE CONSUMER INCREASE WITH AT LEAST 25%. PRODUCER PRICE TO IMMEDIATELY GO UP WITH AT LEAST 15%.