Eastern Cape offers importance and potential for SA’s dairy industry

Conditions are perfect for sustainable dairy farming, but with skills development it could yield even greater benefits 

The rolling hills and green fields of the Eastern Cape are not just beautiful, but crucial. The province’s dairy industry has long stood as an important contributor to the economy and offers exciting future promise, particularly through research.

The University of Fort Hare (UFH) launched the AngloGold Ashanti Research Chair in Dairy Science and Technology in June, at the UFH Alice campus. With it comes the planned establishment of a BSc degree focusing specifically on the dairy industry, and a future Faculty of Veterinary Sciences.

At the launch of the Research Chair, UFH Vice-Chancellor and Principal Prof Sakhela Buhlungu explained that the development of this exciting position came in part from the university’s location. 

“We realised that we exist, live and operate alongside a belt of dairy farms, stretching from the other side of Gqeberha all the way into KwaZulu-Natal,” he said. “Some of the best dairy farms are in this region and we are situated right in the middle of it.” 

He explained that the hope from inception was that not only would the university and its students gain from the research, but that the dairy industry around the institution would also benefit.

Dr Nthabi Taole-Mjimba, Deputy Vice Chancellor of Research Partnerships and Innovation, adds that around a quarter of South Africa’s cattle are in the province. “This is the right place,” she said. “The University of Fort Hare has got what it takes to host this very important Research Chair. “ 

According to data from the Milk Producers Organisation (MPO), The Eastern Cape produced around 28% of the country’s milk in 2022. This makes it the third-largest province after the Western Cape and KwaZulu-Natal. However, it has the largest number of cows in a herd per producer in the country, at 1 121 in 2022. 

It is ideal for these developments to be located in the Eastern Cape, given the province’s strength and potential in the dairy industry in particular. While the northern parts of the country used to be the main dairy-producing region around twenty or thirty years ago, this now only accounts for around 7-8% of national production. 

Chief Executive Officer of the MPO, Fanie Ferreira, said: “All the production of dairy has actually gone down to the coastal areas to KZN and the Eastern Cape, and there’s only one factor — because they can produce it cheaper there, more effectively.”

Ferreira explains that this is mainly because the soil and rain patterns of the region work together in ideal ways to create top-class pastures and with it, affordable, high-yield milk. 

Farmers in the Eastern Cape mainly rely on a pasture system rather than a Total Mixed Ration (TMR) method.  This means that cows walk to nearby fields to graze and return to the dairy to be milked, instead of being fed with grain and other feed on-site. This is not only efficient but affordable. 

“This is a more sustainable way of farming,” he said. “It’s well known in terms of pasture systems in South Africa, that farmers who do it right and well will tell you: sustainability is profitability.”

CEO of Amadlelo Agri Simpiwe Somdyala agreed: “We are predominantly pasture-based, which means the animals roam and are free and healthy. And that is only possible in an environment where you’ve got those natural endowments, like the land, soils and water.“

Somdyala said that while the Eastern Cape is already particularly competitive in the dairy industry, there is even more potential for growth. “Being one of the top producers in the country, it’s an opportunity for a poor province like ours to really build upon and be much stronger. We believe that we can do it, and we should build competitiveness around that.”

He said that one should consider the entire dairy value chain and the wider ecosystem in terms of increased competitiveness. For instance, he said there is an opportunity for growth in the grain sector in the Eastern Cape, which is typically stronger in the Free State province. 

Another key asset to the local dairy industry that has room for growth is human resources. “Skills are critical. It’s not the farm that makes money, it’s the farmer. It’s the people who run the farms,” Somdyala said. “So it’s important to build this talent that will drive this industry.”

Linked to this is the important opportunity that large parts of the Eastern Cape are rural and the land is underutilised. This offers great potential for the dairy industry. “So we need to research those [areas], where you can derive this competitiveness,” Somdyala said. 

However, starting more dairy farms in these parts of the province, particularly towards the East, brings significant challenges with it. The infrastructure, such as roads and water systems, is often lacking or insufficient, and the approval process for industry licences is frequently difficult. 

“There’s no way you can unlock this potential without stronger infrastructure,” Somdyala said. “Dairy, in particular, is not an easy business.” One way to progress, which has been a clear focus for Amadlelo as a company, is to aggregate small rural pieces of land that are under communal ownership. He said their success with this so far shows that this growth is possible. But, more research is needed. 

Ambassador Baso Sangqu, Senior Vice President for Group Sustainability at AngloGold Ashanti, echoed this at the Research Chair launch. “It is very much an agricultural province where you see a lot of livestock. Every other community and every other family has one or two cattle or livestock in their homesteads, but yet these are not being utilised.” He noted that he hopes the UFH’s Research Chair and other developments will affect these communities. 

These uniquely localised opportunities for growth make the university’s work ideal for the Eastern Cape. The Deputy Vice Chancellor for Teaching and Learning at UFH, Prof Renuka Vithal, said: “I really think the university has great potential to contribute.” She lauded the university for choosing particularly the more remote UFH Alice campus for this project. 

She echoed Somdyala’s point that the rural and underdeveloped industry in parts of the province could be particularly stimulated. This research and development of various aspects of the dairy industry would then ideally support the economy of the area as a whole. “We see this as a way to work together and to support each other to address these challenges of unemployment and poverty, which is so needed. 

“We do see that the University of Fort Hare can contribute to both stimulating the development of  Dairy Science and related industries in the Eastern Cape, as well as providing the graduates and the research knowledge needed to support and sustain that industry in the province.”

The Eastern Cape already holds a wealth of experience and industry in terms of dairy production. But, with exciting new developments in the sphere of research and more, the future looks bright.