UMZIMVUBU GOATS entrepreneurial partnerships for led

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UMZIMVUBU GOATSentrepreneurial partnerships for
led
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Geography
Bordering Lesotho in the North, Alfred Nzo is
characterized by mountainous terrain and large
tracts of unused land
Map
Geographical Features

• Local Municipalities
• Umzimvubu Municipality (197,551)
• Urban centres Mt. Frere, Mt. Ayliff
• Matatiele Municipality (194,628)
• Urban centres Matatiele, Maluti
• Transportation
• The N2 connects Mt. Frere and Mt. Ayliff to
  Umtata, Kokstad and Durban
• Major routes are in good repair, while smaller
  roads remain unsealed
• Local population serviced by minibus taxis
• Terrain and Natural Resources
• Mountainous terrain, particularly in the centre
  and northern parts of the district, makes service
  delivery and transport difficult and costly
• Large tracts of land with high potential for
  agricultural cropping, livestock production, and
  new afforestation
• Several rivers that offer potential for irrigation

Maluti
Matatiele
Cedarville
Matatiele LM
Kokstad (KZN)
Mt. Ayliff
Umzimvubu LM
Mt. Frere
Legend
Source Eastern Cape Tourism Board Alfred Nzo
District Municipality IDP (2002 2006) Stats SA
Census 2001
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Regional Economic Centres
The district has a few small urban centres where
the majority of economic activity is
concentrated however, on the whole, most
consumer spending leaks to nearby Kokstad
Kokstad (KZN)

• Pop. 56,528
• Large retail, service, industrial, and transport
  hub (rail and N2)
• Livestock stockyards and timber processing
  facilities, several banks and national retail
  chains
• Captures most of Alfred Nzo consumer spending,
  and is a net exporter of goods and services to
  the node
• Goods are apparently sold at a lower price than
  at retail outlets within Alfred Nzo

Matatiele

• Pop. 16,226
• Retail / service hub for Matatiele LM
• Several banks, national retail chains and
  wholesalers
• Markets sell area produce

Consumer spend
Mt. Frere
Food, building supplies

• Pop. 70,030
• Retail / service hub for Umzimvubu LM
• Standard Bank, FNB, African Bank

Mt. Ayliff

• Pop. 45,924
• Political / administrative centre for district
• Minimal retail and SMME activity
• Only sawmill in the district

Legend
Primary economic hub
Secondary economic hub
Source ECSECC Municipal Demarcation Board
Matatiele IDP Review for 2005/06 Monitor
Interviews
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Production Resource Map
Crop production is concentrated around Mt. Ayliff
and the fertile valley in the north, while there
are large tracks of unimproved grassland
throughout the node that are used for grazing
Several large tracts of unimproved grassland are
located throughout the district and provide the
ideal ground for livestock grazing
An area in the north of the district known as the
Ongeluksnek Valley is ideal for large scale fruit
and vegetable production
Maluti
Hans Merensky has invested R1,5 billion in a
timber processing operation to be located in
Kokstad
Matatiele
Several rivers offer potential for irrigation
schemes
Cedarville
Legend
Kokstad
Saw mill
Mt Fletcher
Maize vegetables
Livestock
Mt Ayliff
Fruit orchards
Mt Frere
Two Category A forests are currently under
management in the Mt. Fletcher and Mt. Frere areas
Forest
Cut flowers
An area known as the Protea Belt sits just
south of Mt. Ayliff
Rivers
Wetland Area
Source Alfred Nzo DM Analysis of Economic
Development Opportunities Alfred Nzo Spatial
Development Framework Monitor Interviews
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PROJECT BACKGROUND

• This project aims to commercialize indigenous
  goat farming in the area. A central facility has
  been constructed in Mt. Ayliff. It has a 200
  goats feedlot, a 40 goats a day abattoir, meat
  processing plant, leather tannery, craft
  workshops, a restaurant and retail outlet. Goat
  breeders who are member of a co-op from Alfred
  Nzo D.M have been contracted to supply the
  facility with 200 goats per week. Processed goat
  meat products like dry wors, sausage, cabannossi,
  burger patties etc are available for sale. The
  project aims to supply the local, national and
  international market. Leather shoes, belts,
  cushions and other curios are also produced.

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CONT.

• UMZIMVUBU GOATS IS AN ISRDP ANCHOR PROJECT OF THE
  DISTRICT MUNICIPALITY
• ITS DEVELOPMENT HAS BEEN THE RESULT OF
  COLLABORATION BETWEEN THE DM, ECAPE AND NATIONAL
  DEPT OF AGRICULTURE, LOCAL EMERGING GOAT FARMERS,
  ANIMAL SCIENTISTS, ARC, SOCIAL FACILITATORS,
  UMZIMVUBU LM, THE INTERNATIONAL SCHOOL OF TANNING
  TECHNOLOGY, CRAFT AFRICA, THE CO-OPERATIVE
  DEVELOPMENT INITIATIVE, MQA, PEATA, DPT. OF
  LABOUR AND OTHERS

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CONT

• GOAT FARMERS THROUGHOUT THE DISTRICT HAVE
  ORGANIZED THEMSELVES INTO 6 REGISTERED GOAT
  CO-OPS AND 10 LEATHERCRAFT CO-OPS WITH THEIR OWN
  MANAGEMENT, CONSTITUTIONS AND BUSINESS PLANS.
  THESE REGIONAL CO-OPS ARE MEMBERS OF THE
  UMZIMVUBU GOATS CENTRAL CO-OP WHICH IS JOINTLY
  OWNED BY THE DM AND THE CO-OPS.
• THIS IS A NATIONAL PROJECT THAT IS PART OF THE
  COMMERCIALIZATION OF GOATS PROJECT

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INITIATION PHASE

• THE PROJECT WAS INITIATED IN 2000
• EXTENSIVE MOBILIZATION FOLLOWED WITH AWARENESS
  CREATION WORKSHOPS THROUGHOUT THE DISTRICT. THIS
  RESULTED IN THE FORMATION OF GOAT INTEREST GROUPS
  WHICH DEVELOPED INTO REGIONAL CO-OPS
• INFRASTRUCTURE DEVELOPMENT STARTED AS WELL

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IMPLEMENTATION PHASE

• CONSTRUCTION OF HOLDING PENS, AN ABBATTOIRE, MEAT
  PROCESSING PLANT, LEATHER TANNERY, ADMIN BLOCK,
  RESTAURANT, CRAFT PRODUCTION UNITS, RETAIL OUTLET
  AND VILLAGE LEVEL INFRASTRUCTURE (2 SITES) HAS
  BEEN COMPLETED TO DATE

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OPERATIONAL PHASE

• THE FACILITY WAS OFFICIALY OPENED IN AUGUST 2005
  BY MINISTER DIDIZA
• 47 PEOPLE WERE EMPLOYED RANGING FROM MANAGERS,
  EXTENSION OFFICERS, SLAUGHTERERS, MEAT
  PROCESSORS, LEATHER TANNERS ETC.
• TRAINING WAS UNDERTAKEN FOR SLAGHTERES AND MEAT
  PROCESSORS

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RETAIL FACILITY
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PRODUCTS
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Selected Sector Agriculture Example The
Umzimvubu Goat Project
The Umzimvubu Goat Project is one such initiative
that couples livestock production with downstream
industries (e.g., meat processing and craft
making)

• The project purchases goats from over 1,000
  breeders in the surrounding area
• Extension Officers in Alfred Nzo have been
  trained in goat farming

• The goats are slaughtered in the abattoir using
  Halaal techniques
• An average of 10 goats are slaughtered per day

• Goat meet is processed on site into ground meat,
  sausages and salami
• The meat is served in a restaurant on the
  premises that caters to tourists new markets are
  being investigated

• The leather is used by 8 local artisan co-ops
  founded and trained by the project
• Their workshop is accessible for tourists

• The crafts are sold in a curio store located next
  to the workshop and exported to other South
  African markets, including the African Craft
  Market in Rosebank

• Hides are moved to a leather tannery next-door,
  where they are processed into leather and coloured

Source Monitor Interviews Umzimvubu Goat
Project Website
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Business Overview

• Umzimvubu Goats will be owned in partnership
  between the ANDM Development Agency (initially
  95) and the Umzimvubu Goats Central Farmers
  Co-operative (initially 5)
• The members of the (legally registered) Umzimvubu
  Goats Central Farmers Co-operative are 6 legally
  registered Regional Farmers Co-operatives (Mt.
  Ayliff, Mt. Frere, Mt. Fletcher, Maluti A, Maluti
  B)
• Each Regional Co-operative has their own
  constitution, Board of Directors, membership fee,
  Animal Brand and bank accounts
• Each member of the Regional Co-operative pays a
  membership fee and each have a membership number
  which appears on all animal ear-tags
• 8 Leather-crafting Co-operatives exist these
  are associated with each of the 6 Regional
  Farmers Co-operatives

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Qualified learners
Restaurant
Mt Frere Co-operative
Leather craft
Mt Ayliff Co-operative
Meat Products
MARKETS
Mt Fletcher Co-operative
Farmers
Crafters
Curio Shop
Maluti A Co-operative
Maluti B Co-operative
Leathers
Umzimvubu Goats Central Co-operative
Glengarry Co-operative
Tourism
Qualified learners
UMZIMVUBU GOATS ORGANISATIONAL PROCESS
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ROLES RESPONSIBILITIES LOCAL GOVERNMENT

• The local economic development strategies that
  the district municipality is embarking on in
  order to develop its economy are
• Development and Maintenance of Infrastructure and
  Services
• The Retention and Expansion of Existing Business
  and the Development and Promotion of Small,
  Medium and Micro Enterprises.
• Investment Attraction and Diversification of
  Economic Base
• The Development of Human Capital

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The key goals to support LED for the District
Municipality are

• Increasing the revenue base for the Alfred Nzo
  District Municipality.
• To position ANDM as one of the Eastern Capes
  Eco, Cultural and Adventure Tourism Destinations
• To establish a diversified agro-industry
• To develop the skills base of the people of ANDM
  through training programmes that will lead to
  their employment and self-employment.
• To increase the number of economically active
  youth working and living in ANDM.
• To develop and maintain social and economic
  infrastructure and services
• To retain and expand existing businesses in ANDM.
• To develop and promote new SMMEs in ANDM
• To attract new investment in order to diversify
  the economic base of ANDM.

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To implement the LED plan the District
Municipality must focus on the following
programmes

• Infrastructure Development
• Small Business Promotion, Acquisition, Expansion
  And Retention
• Diversification of Economic Base To Increase
  Revenue For ANDM
• Developing Other Sectors to Diversify The
  Economic Base
• Focusing on tourism, forestry, agriculture and
  manufacturing
• Human Resource Development

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PROCESS FOLLOWED

• THE COMMERCIALIZATION OF INDEGENOUSE GOATS
  PROGRAMME WAS DEVELOPED BY THE NATIONAL DEPT. OF
  AGRICULTURE.
• THE ARC (AGRICULTURAL RESEARCH COUNCIL) WAS
  COMMISSION TO CONDUCT RESEARCH INTO HOW RESOURCE
  POOR FARMERS IN RURAL AND REMOTE AREAS CAN
  UTILIZE AN EXISTING RESOURCE (GOATS) AND EXISTING
  INDIGINOUSE KNOWLEDGE (GOAT BREEDING) TO GENERATE
  INCOME FOR THEMSELVES AND DEVELOP THE LOCAL
  ECONOMY IN THE PROCESS

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CONT.

• THE FINDINGS WERE THAT A NUMBER OF PRODUCTS COULD
  BE DEVELOPED FROM GOATS AND THE WHOLE PROCESS
  COULD BE COMMERCIALIZED
• THIS INFORMATION WAS OBTAINED BY THE DM FROM ARC
  AND SHARED WITH COMMUNITIES IN INFORMATION AND
  AWARENESS CREATION SESSIONS THROUGHOUT THE
  DISTRICT
• INTERESTED COMMUNITIES WERE MOBILIZED INTO GOAT
  INTEREST GROUPS
• THESE WERE FURTHER DEVELOPED INTO GOAT
  CO-OPERATIVES THROUGH COMMUNITY MOBILIZATION

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CONT

• INFRASTRUCTURE DEVELOPMENT ALSO STARTED
• CONSTRUCTION OF HOLDING PENS, AN ABBATTOIRE, MEAT
  PROCESSING PLANT, LEATHER TANNERY, ADMIN BLOCK,
  RESTAURANT, CRAFT PRODUCTION UNITS IN VILLAGES,
  RETAIL OUTLET AND VILLAGE LEVEL INFRASTRUCTURE
  STARTS IN 2003
• 2 REGIONAL GOAT HANDLING, LOADING, MEETING AND
  TRAINING VENUES (MALUTI B AND MT. FRERE)
• A LAND CLAIM WAS ENCOUNTERED BUT THROUGH
  NEGOTIATIONS WITH THE COMMUNITY AN AMICABLE
  SOLUTION WAS REACHED

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SKILLS DEVELOPMENT

• BOD training provided to all regional
  Co-operatives
• 150 Learners trained in a full one-year NQF 1
  Learnership accredited by PAETA (Farming as an
  own Business Goat specialisation)
• 15 Abattoir personnel trained in animal slaughter
  and meat processing
• 3 Tannery personnel trained in hair-on, veg tan
  and wool-on tanning techniques
• Restaurant staff also trained by the municipality

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OTHER ASSETS

• BOER GOAT NUCLEUS HERD FACILITY AT PUFFUDERSHOEK
  FARM IN GOXE
• TANNERY FULLY EQUIPPED (CHEMICALS, ALL PROCESSING
  EQUIPMENT, FURNITURE, LOCKERS, DRYING RACKS,
  FANS)
• ABATTOIR FULLY EQUIPPED (UNIFORMS, ALL PROCESSING
  EQUIPMENT, WASHING MACHINE, SHELVING, FURNITURE)
• RESTAURANT FULLY EQUIPPED (FRIDGE, STOVE,
  FURNITURE, COUNTERS)
• CURIO SHOP FULL EQUIPPED (DISPLAY FRIDGE,
  SHELVING)
• CENTRAL LEATHER-CRAFTING WORKSHOP FULLY EQUIPPED
  (TABLES, CHAIRS, LOCKERS, CABINETS)
• LEATHER-CRAFTING GROUPS FULLY EQUIPPED (CRAFTING
  TOOLS, START-UP MATERIALS)
• REGIONAL CO-OPERATIVES LEARNERS EQUIPPED WITH
  GOAT MANAGEMENT TOOLS (DOSING GUN, HOOF TRIMMERS,
  EAR-TAG MACHINES, EAR-TAGS, ELASTRATORS,
  SYRINGES, NEEDLES, MEDICINES)

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LITERATURE

• CENTRAL AND REGIONAL CO-OPERATIVES BUSINESS
  PLANS
• UMZIMVUBU GOATS PRODUCERS MANUAL (PRODUCTION
  GUIDELINES - XHOSA)
• CONTRACT TO GOVERN RELATIONSHIP BETWEEN REGIONAL
  AND CENTRAL CO-OPERATIVES
• MONTHLY REPORTS
• CENTRAL AND REGIONAL CO-OPERATIVES CONSTITUTIONS
• INFORMATION AND MARKETING LEAFLET

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CONT THE GOAT MANUAL

• GOAT INDUSTRY IN SA
• OBLIGATION OF UG TO GOAT GROWERS
• MEMBERSHIP
• GOATS SUITABLE FOR GROWING
• REQUIRED GOAT MGT PRACTISES
• DELIVERY OF GOATS
• GROWER OBLIGATIONS
• DELIVERY PRICE

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OBLIGATIONS OF UG

• AIMS TO ENSURE THAT GOATS PRODUCED IN REMOTE
  AREAS OF ANDM CAN EASILY FIND THEIR WAY TO THE
  MARKET. UG HAS THUS CREATED PROCESSING
  INFRASTRUCTURE AND RELATED MARKETING SYSTEMS
  WHICH LINK FARMERS AT VILLAGE LEVEL AND WARD
  LEVEL WITH THIS CENTRAL FACILITY
• IT IS THEREFORE IMPORTANT FOR UG TO KNOW HOW MANY
  GOATS IT WILL RECEIVE FROM ITS SUPPLIER SO AS TO
  PLAN THEIR PRODUCT SALES ACCORDINGLY

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CONT

• UG PROVIDES SALES PENS FOR THE GOAT FARMERS
• UG HAS A GOAT HERD THAT IS THE NUCLEUS HERD. THIS
  HERD IS USED FOR CROSS-BREEDING SO THAT FARMERS
  HAVE FAST-BREEDING HARDY OFF-SPRINGS AND ACCESS
  TO SUPERIOR GENETIC MATERIAL.

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ROLES RESPONSIBILITIES THE FARMERS AND THEIR
REGIONAL CO-OPS

• Are responsible for
• Providing information regarding their members to
  the Central Co-op (names, membership number, bank
  account details)
• Contracting with the Central Co-op and pledging
  goats on a pre-determined schedule
• Providing member farmers with an organised
  (time, place and price) method of marketing their
  goats
• Providing members with a venue to collect their
  animals for sale
• Providing members with access to information
  regarding the market, animal management services
  (tattooing, ear-tagging, dipping, dosing,
  veterinary care, disease control)
• Providing members with access to targeted banking
  services (LandBank, Std Bank), pharmaceutical
  companies, accredited training
• Creating the critical mass required for
  collective bargaining

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Value Chain Responsibilities Central Co-operative

• Is responsible for
• Contracting with Regional Co-operatives to
  receive goats on a pre-determined schedule
• Negotiating on behalf of members for reduced
  prices on inputs and services (i.e. collective
  bargaining)
• Accessing formal market channels due to critical
  mass which ensure consistency of supply and
  quality of product
• Ensuring that producers are aware of market
  needs, and relays this information to them
  regularly
• Receives goats from Regional Co-operatives and
  processes these into meat products, leather,
  local dishes, and leather craft
• Creating a tourist experience restaurant, craft
  workshop and curio shop
• Receiving leather-craft from Regional Crafting
  Co-operatives
• For producing leathers for Regional Crafting
  Co-operatives
• Constantly builds capacity amongst the members in
  improved livestock production

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Production Process - meat

• Four-ton vehicle collects goats on a
  pre-determined collection schedule
• Two-week goat buffer is provided by the dry-lot
  on site
• Only goats tattooed with Co-operative brand, and
  which have a member ear-tag will be weighed and
  loaded
• Animals are off-loaded at Umzimvubu, weighed and
  member number noted
• Member is paid directly into bank account,
  Regional Co-operative is paid a handling fee (
  of goat price)
• Halaal certification on all meat products
• Meat products include salami, cabanossi, dried
  sausage, offal (and others on request)
• Products marketed through curio-store on-site,
  the rest to be marketed through the formal retail
  industry

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Production Process - Skins

• Skins are received via the abattoir (un-salted)
  or purchased from Regional Co-operatives (salted)
• Skins are un-salted, tanned, dried, milled,
  buffed and dyed
• Leather is sold to Regional Crafting
  Co-operatives and other outlets
• Leather is converted into craft as directed by
  Umzimvubu Goats Marketing Manager
• Craft is collected from Regional Co-operatives
  and marketed at the curio shop on-site and
  through formal retail channels

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Value-chain Producers

• THE ENTIRE SYSTEM WILL OPERATE AS A TRACEABLE
  SUPPLY CHAIN
• INDIVIDUAL GOAT FARMERS HAVE A UNIQUE MEMBERSHIP
  NUMBER
• THIS NUMBER WILL APPEAR ON THE ANIMAL EAR-TAG
• EACH CO-OPERATIVE HAS A UNIQUE ANIMAL BRAND
• THIS ANIMAL BRAND WILL BE TATTOOED IN EVERY
  ANIMALS EAR
• THIS INFORMATION WILL BE CAPTURED ON ALL PRODUCTS
  LEAVING THE FACILITY

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GOAT PROJECT
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LESSONS LEARNT

• INNOVATION PAYS OFF
• VALUE-CHAIN ANALYSIS DEVELOPMENT IMPORTANT
• SOCIAL FACILITATION IS VERY IMPORTANT
• COLLABORATION WITH PARTNERS IS KEY
• POLITICAL AND FINANCIAL SUPPORT FROM THE
  MUNICIPALITY
• CAPACITY BUILDING OF FARMERS IS ALSO KEY
• MODEL CAN BE APPLIED IN ANY SECTOR
• RECOGNISE UTILISE LOCAL INDIGENOUSE KNOWLEDGE
  RESOURCES
• INVEST IN BUSINESS INFRASTRUCTURE APPROPRIATE
  TECHNOLOGY
• INVEST IN SKILLS

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CONT

• IMPORTANT TO APPLY BUSINESS PRINCIPLES
• DEVELOP BOARD CAPACITY
• MENTORSHIP
• COMMUNITY MOBILIZATION AND INFORMATION SHARING

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WHAT NEEDS TO BE RE-INFORCED

• EXTENSIVE MARKETING (LOCAL, NATIONAL
  INTERNATIONAL) AND PRODUCT EXCHANGE WITH OTHER
  PROJECTS
• PRODUCT DEVELOPMENT AND CAPACITY BUILDING FOR
  CRAFTERS
• EXIT STRATEGY OF THE MUNICIPALITY
• PRIVATE SECTOR INVESTMENT
• ACCESS TO MICRO-FINANCE (EG APEX FUND AND CO-OP
  BANKS)
• SUPPORT TO PARA-VETS
• VILLAGE LEVEL INFRASTRUCTURE
• STRENGHTNING OF POLICIES, PROCEEDURES SYSTEMS
• CAPACITY BUILDING OF BENEFICIARIE
• INCUBATION
• PROJECT DEVELOPMENT PACKAGING
• ROLE OF INSTITUTIONS OF HIGHER LEARNING