Sustainable Usage Of Resources

The sustainable usage of resources means the use of the resources in such a way as not to damage, harm or deplete them. The important principle underpinning this is minimum intervention.

If production enterprises are established in an unsuitable environment or with soils, water or material of inferior quality, there will be an ongoing need for interventions of various kinds. Such interventions are not only costly, and therefore threatening to the profitability of the enterprise, but may require the repeated use of chemical treatments which can start a spiralling cycle of damage to the environment.

For example:

• If the climatic conditions in the area do not favour the production of good yields of high-quality fruit of the chosen cultivars, the production manager will face an ongoing battle to attain the required standards by crop manipulation. Such manipulation may take the form of physical treatments such as trunk girdling or pruning, or chemical treatments such as a hormone or supplementary nutritional sprays.
• If the pH of the soil is too high or too low, corrective action, in the form of applications of certain chemical formulations, has to be taken on a regular basis.
• If the nursery trees are of inferior horticultural quality, the production of high yields may require ongoing physical and chemical manipulation, or may not even be achievable whatever interventions are made.
• If the trees become infected with fungal, bacterial or viral diseases, there may be a requirement for regular chemical or physical disease control actions. Such diseases may have their origin in the nursery trees, be endemic to the production area, or be induced by poor management practices.
• The sustainable use of veld to ensure grazing is maintained and the consistency of plant species is maintained.

To ensure grazing for future generations and to maintain sufficient feed of the correct quality for animals, to provide for their own health and to produce a quality product.

The correct grazing/veld management principles listed below must be implemented:

• The correct load capacity of animals for the area farmed on must be selected. (the number of animals kept on an area that would not overgraze the area).
• Plant succession principles must be implemented to improve the veld consistency by increasing the number of climax species and decreasing at the same time, the number of pioneer species.
• Good rotation grazing practices must also be implemented. Dividing an area into different camps or paddocks with wire fences and regularly moving livestock to prevent overgrazing can do this.

Water is one of the scarcest resources and the use of water must be managed and controlled very carefully to ensure its sustainability. In order to preserve the supply of water, the irrigation system should be effective and efficient. In water-scarce countries, such as Israel, important pioneering work was done in the design of micro-sprinkler and drip irrigation systems to optimise water use efficiency. Such systems form the basis of sustainable water usage in fruit production.

Water quality must also be maintained to ensure that the available water remains useful. Every farmer has the responsibility to ensure that the water that leaves the farm is of the same quality as the water that is received on the farm. Regular sampling and analysis are required to ensure that the water quality remains acceptable.

Agrochemicals pose a direct threat to the environment. If certain broad-spectrum pest control treatments are used, they may damage the populations of beneficial insects. Pesticides must be chosen carefully on the basis of their specific impact on the targeted pest and their minimal disruption to beneficial insect populations.

The Production Plan

The production plan ranks alongside the marketing plan and financial plan as major contributors to the overall strategic plan of the enterprise. These plans form the basis of the business plan that demonstrates how the different facets of the enterprise are linked in achieving targeted revenue and profits and sustainable cash flow.

The production plan comprises a number of component sub-plans, each with its own objectives and timeframes. These would include, for example, individual orchard yield plans or projections, pest and disease control plans, the fertiliser and irrigation application plan and so on.

In this section, we focus on the production plan itself, which represents the combined outcome of all the sub-plans referred to above.

At the heart of the production, the plan is the production or yield model. This takes into account cultivar, rootstock, tree spacing, climate, soils, irrigation, and pest and disease factors.

The yield model in fact takes into account the role of all resources and inputs, together with observations that are made in the orchard, to project the year-on-year yield for the lifespan of the specific planting. The sum of the yield models for each cultivar gives the production model for the entire farm or enterprise.

Example:  An entrepreneur decides to establish citrus for fresh fruit export on a 100ha farm located in the Mpumalanga Lowveld.

Having conducted an evaluation of the market potential for cultivars known to be suited to the region, he takes stock of his resources:

• He evaluates the location of the farm and its topography in terms of its suitability for citrus and conducts a soil survey and determines the availability of water.
• He investigates the availability of labour and identifies a source of certified nursery trees and conducts a risk analysis of the pests and diseases in the region.
• He determines his labour requirements and ensures that there is enough skilled labour available in the area.
• He determines his agrochemical and machinery and equipment requirements and identifies reputable suppliers in the area.
• He then uses all this information, additional factors such as rootstock, planting distances, etc., and determines a production or yield model for each citrus variety he intends to plant. For the sake of simplicity, he decided to plant only two varieties, grapefruit and Valencia oranges, of which he intends to plant 50ha each. The production or yield model for these inputs could look something like the table below for the first sixteen years of the respective plantings’ life spans, with the total yield calculated by multiplying the yield per hectare with the number of hectares.

A figure for the estimated percentage of exportable fruit can be factored into the yield model to calculate the amount of fruit available for export each year. Fruit size ranges could similarly be introduced into the model. A price projection can now be done based on historical data. With projected export percentages for class 1 and class 2 fruit, and projected size ranges, prices per size range and per class can be projected and the total projected income can be calculated.

This information would then be used as the basis for determining the extent to which estimated production will meet projected demand. This could in turn be used for planning packhouse capacity and as the basis for compiling financial and business plans for the enterprise.

The production practices that are required to achieve the projected production can now be formulated. It may for instance be found that in order to produce fruit in the size range that is most profitable in the market that is targeted by the producer, specific irrigation and fertilisation practices are required. Once the production practices have been determined, the labour requirements to implement the planned practices can be calculated.

The production plan for the enterprise is now in place and can be implemented, managed and monitored.

The production plan can now also be used as a basis for developing a business plan for the enterprise. The cost of the planned production practices and projected labour requirements can be calculated and the capital requirements, profitability and cash flow of the enterprise can be calculated.

Example:  An example of a production plan for animals.

The following questions must be asked before the farmer starts his animal production enterprise:

• Availability of capital.
• Projected profit analysis.
• Suitable species selection:
  • Compatibility of the species to the specific area selected.
  • Consumer Market preferences.
• Experience of a manager in a specific field of production.
• Availability of natural resources.

Implementation Plan:

• All necessary infrastructure, water delivery systems, fencing, housing, etc. must be in place.
• Production units must be put in place, for example; sheep, cattle, goats, ostriches, chickens, etc.
• Implement management plan including:-
  • Health maintenance; rotation practices;
  • Breeding and harvesting seasons; and
• Marketing plan, including product selection and network planning.

Legal Requirements

The employment of resources to support the production plan has to be compliant with legislative requirements. These legal requirements that are promulgated as acts of parliament effectively place boundaries on the various production and marketing activities and how they are conducted.

The production manager should be aware of the key requirements of these and other relevant pieces of legislation when planning his citrus production enterprise. Compliance with the requirements may involve costs that have to be factored into the plan.

The following are examples of some of the activities and the related Acts:

Conservation of the environment – Conservation of Agricultural Resources Act of 1983 and National Environmental Management Act of 1998, Plant Amendment Act. Improv.

The minimum citrus fruit quality standards for local and export products – Agricultural Products Standards Act of 1990.

Health and safety and good agricultural practices – Health Act of 1977, Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies Act of 1947, Agricultural Pests Act 1983, Occupational Health and Safety Act.

Marketing of citrus – Marketing of Agricultural Products Act (Amended) of 2001, Agricultural Produce Agents Act.

Equity and fair labour practices – Employment Equity Act of 1998, Basic Conditions of Employment Act, The Land Reform Act (Labour Tenants) of 1996.

Meat Safety Act  - To provide for measures to promote meat safety and the safety of animal products; to establish and maintain essential national standards in respect of abattoirs; to regulate the importation and exportation of meat; to establish meat safety schemes; and to provide for matters connected therewith.