Rural household sources of income, livelihoods strategies and institutional constraints in different commodity contexts - Institutional Constraints to Small Farmer Development in Southern Africa - page 46

2.10.4 Abattoirs
According to the NDA (2005), the abattoir is the least used marketing channel by communal
farmers because of factors which include distance from the producers, payments delays,
high risk factor of animals being condemned on the basis of health status, and many charges
involved in using this channel. It is not economical to sell one or two animals as transport
costs will not be justified. Group marketing can assist farmers to enjoy economies of scale
when using this channel. However, group marketing is not always possible since farmers
sell their animals at different times. Abattoirs pay farmers according to age, weight and
grade of the animal (Nkhori, 2004). This grading system does not consider the breed and
feeding practices. However, abattoirs tend to sell natural beef at high prices at both local and
international markets than genetically modified beef and this result in them getting higher
than normal returns at farmers' expense. The ability to sell stock at market-related prices
would translate small scale farmers' cattle base into a capital base and improved livelihoods.
2.11 Potential markets for other Nguni cattle products
Since the Nguni is a multi-purpose animal, marketing should take a holistic approach, and
promote development of other Nguni cattle products such as beef, milk, skins and hides,
draught power and manure. Neglecting other uses of cattle can reduce household food
security and exacerbate poverty (Shackleton et al., 1999).
2.11.1 Nguni beef
Due to the dynamic nature of the world, naturally produced foods are currently in vogue.
Beef that contains a high fat content is increasingly frowned upon by consumers. Beef from
animals reared with artificial hormones have become unpopular. Natural beef from Nguni
cattle is already being 'grown' in the Eastern Cape Province for instance in Sterksroom and
exportation have already started (ECDC, 2003a). The pesticide and herbicide free natural
grasslands of the province in South Africa provide the opportunity to develop high quality
beef for both domestic and international natural beef markets (ECDC, 2003b).
Nguni cattle producers have the potential to dominate natural beef market due to the
adaptability of the Nguni breed to the local environment. As far as local market is concerned,
local supplies are unable to cope with high demand for naturally produced beef, the current
biggest market for natural beef in South Africa is Woolworths (Raats et al., 2004). Hotel
and other butcheries, especially those that are located in low density suburbs have a high
potential of being possible markets for naturally produced beef.