Livestock marketing is an essential but often challenging aspect of farming. Farmers must make informed decisions about when, where, and how to sell their livestock to maximise profits while ensuring sustainable and ethical practices.
Khomotso Mashiloane, a livestock technical advisor for the Red Meat Industry Services (RMIS), shares his expertise and insights into livestock marketing, focusing on strategies to help farmers succeed in the red meat industry.
Mashiloane states, “Cattle marketing, basically, in simple terms is about being able to sell and be able to cover your costs in your production.”
Successful marketing isn’t just about the sale but also ensuring that a farmer’s overheads like feed, medication, and labour are covered. By maximising production, farmers can make their businesses profitable and sustainable.
Selecting the right marketing channel
Farmers have several marketing channels to consider, each with unique logistical demands and market requirements.
When choosing a marketing channel, Mashilane advises farmers to assess their output. “If you are still a communal farmer, maybe you have five or six cattle, it is important to keep in mind the kind of marketing you can engage yourself with,” he says.
Channels can range from auctions, feedlots, and agents to direct informal sales. Each option has specific requirements that may suit a farmer’s production scale and goals differently.
Seasons and cultural events, such as initiation schools, can impact demand and prices in the informal market, while holiday bonuses influence the formal market’s demand towards the end of the year. Farmers should also consider the readiness of their cattle, including factors like age, weight, and overall condition, to ensure they receive the best price.
Livestock theft presents a serious threat to farmers’ livelihoods. Mashiloane notes that stock theft results in financial losses and can jeopardise lives. “It is important that we implement systems such as feasibility whereby we can be able to identify where does this animal comes from before being able to get into the formal value chain,” he says.
In this episode, Mashiloane also discusses:
- Navigating formal markets;
- Feedlot efficiency;
- The importance of traceability.
Want to know more? Dive deeper into the episode and gain insights from the award-winning Farmer’s Inside Track, officially recognised as Africa and the world’s best podcast at the 2024 Digital Media Awards presented by WAN-IFRA, the global press organisation.
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