‘Generate cash flow to withstand tough times in 2019’

Andrew Jordaan Jr was named the 2018 Voermol Sheep Farmer of the Year. His family runs a mixed operation of Merino and Dormer sheep, as well as cattle, a dairy and grain crops in Cradock, Eastern Cape. He spoke to Sabrina Dean.

How did you experience 2018? We achieved amazing prices with our wool this year, which fetched a top sale price at auction of R224,50/kg for greasy wool. We also achieved a top price of R51,50/kg for weaner lambs, as well as our highest average price for Merino rams sold at the national sale, averaging R110 000 for each of the six rams on offer.

How did the South African agriculture sector, in general, experience 2018?

I noticed that animals of good genetic quality, such as breeding animals, weaner lambs, breeding ewes and slaughter animals, are still trading for large amounts of money. This shows that people are willing to pay for quality.

At the moment, the meat industry is under pressure due to economic circumstances, and we are still going to feel this until mid-2019. I think the fibre industry will remain stable due to the shortage of wool.

However, veld farmers are struggling to increase flock numbers due to ongoing drought. Sheep farmers have adapted by introducing intensive lambing systems, which have helped ensure numbers remain stable. Despite this, if we do not get sufficient rain, maize prices will increase significantly, thus leading to higher input costs. The diesel price has also led to increased input costs.

What investments are you planning to make in 2019?

Over the past few years, we have invested heavily in systems to reduce input costs. We established solar farms due to the dramatic electricity price increases, and built a gravity-fed pipeline to transfer water from a high-lying dam to our irrigation areas.

This meant we could switch off all power points on the farm.

We are also trying to implement no-till conservation farming practices, which we hope will result in diesel cost savings.

In the year ahead we will put further development on hold and focus on getting cash flow on track.

Are you optimistic about the future of farming in South Africa?

I am always extremely positive, but am not blinded by the hope that things will just get better on their own.

We will have to put systems in place to stimulate our economy or we will go the same dire route as many other African countries.

That said, a lot of other countries also have their own problems and we need to remember that the grass isn’t necessarily greener on the other side.

• Email Andrew Jordaan Jr at andrewjordaan3228@gmail.com.