The Changing Landscape of Farming in South Africa

Erik Holm, Ian van Brouwershaven9th June 2015, Amsterdam

Scope

KareeboschAmmondaleDikgale

Staging Depot - Lanseria

Pontdrift Esméfour

Waterpoort

JachtpadBanganiBHBGomotoMatomahoekVreedzaam

WagendriftMorgenzonOlyfberg

Haakiesdoorn

Ceres

Oudrif

Willem van Zyl arrived in South Africa in 1699. Employed by the Dutch East India Company

ZZ2 incorporated as a company in 1965

History

Tomatoes 2,000ha 190’000 tons p.a.

ZZ2 further produces

Our Inspiration ZZ2 wants to be the benchmark of success in agriculture

by creating sustainable value for all its stakeholders as a living, open system.

ZZ2 Stakeholders

• Customers• Suppliers• Trading Partners• Government• Society• Future Generations• Nature• Employees• Shareholders

Population “000,000

2015 2050 2100

Africa 1,166 2,393 4,185

World 7,325 9,551 10,854

16% 25% 39%

Our CustomersAfrica is the size of what…

USA

Europe

China

India

UK

Japan

Our Customers Consumer requirements

0

10

20

30

40

50

60

70

80

90

100 South African Tomato Product LinesFood safety and traceabilityEnvironmental responsibilitySocial responsibilityQualityHealthPackagingAvailabilityUse and user friendlyValue for money

ZZ2 uses best applicable technologies in harmony with natural resources and ecosystem laws.

We call this Natuurboerdery® Healthy food from healthy soil with healthy relationships

How do we farm? ZZ2 Natuurboerdery®

Passive Protected Technologies

Customer value and productivity Technology Curve

100 t/ha

300 t/ha

600+ t/ha

Open field

Passive Indoors

RevenueHigh risk,

low income

Customer Value for money

High cost, limited market

10k EU/ha

100k EU/ha

1000k EU/ha

Cost/unit

Cost/unit

Revenue

Revenue

Cost/unit

Active Indoors

Customer value and productivity Energy vs Nature

100 t/ha

300 t/ha

600+ t/ha

Open field

Passive Indoors

Extensive Inputs Energy Intensive

Balance

Climate Control Energy Intensive

10k EU/ha

100k EU/ha

1000k EU/ha

Active Indoors

Heating, Cooling, Ventilation, Lighting

Nature’s free EnergySun, Climate, IPM,

Compost

Production EnergyFertilizer

Pesticides

Developments ( 2005 – 2015)1. Plastic Greenhouse, automation, RH control

• Rain advantage

• High capital investment• Ventilation, Temperature

• Good wet season results

Passive Protected Technologies

Developments ( 2008 – 2015)2. Insect Nethouse structures passive control

• Low capital investment

• Rain disadvantage

• Good dry season results

Passive Protected Technologies

Developments ( 2013 – 2015)3. Hybrids

• Best of Both ?

Passive Protected Technologies

The Results

The Challenges

• Adaptation to climate– Summer season, Rain– Winter season, Frost– Intermediate production cycles, 9 months– Short cycle 6 months– Long cycle 11 months

• Energy cost• Capital outlay

The plan forward

• Replace 2000ha open field production with 600ha natuurboerdery® protected farming technology– 100ha established– 80% more water efficient per unit produced– Land resource utilization factor 1 : 14 !

ZZ2, Changing the GameNatuurboerderyIn harmony with nature Fractal NetworksOpen System Approach

– Customer value– Relevance

ZZ2 (1990's)

United States (

1998)

Californ

ia (1998)

Eurozo

ne (2004)

Thailand (2

011)

Vietnam (2003)

ZZ2 (2002-2010)

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500

1000

1500

2000

2500

3000

EIQ values for different tomato produc-tion regions

EIQ

Sco

re (A

vg)

ZZ2, Changing the GameKe Tzwa Tzweo“ That….. is it!”

Consider timing

CLOSED SYSTEM OPEN SYSTEM

Does not change or adapt, everything happens continuously

Changes over time, adapts. Paradigm shifts are possible.

Each process can be reversed (e.g. water <> ice <> water).

Processes once-off on the timeline (irreversible e. g. water under the bridge; life).

Centralised and isolated, focused and orientated only on itself.

Sensitive, decentralised and tuned in to the external environment.

Vertically organized – information (e.g. orders) flow linearly from top to bottom.

Horizontally organized – information networks in all directions. Feedback systems.

System philosophy of Aristotle

The ecology of an economic farming unit or farming system:

The ideal size will differ for each function

Optimized communication and transport

Small- Effective- Vulnerable- Adaptable

Large- Safe- Possibly

ineffective- Productive- Inflexible

Super-organismEffectiveness, productivity &adaptability continuously improving

Mutualistic co-existence

Source: ZZ2 (2014)

Responses to the challenges

Infrastructure Activities

Size

Effici

ency

The Four Causes of Aristotle• Causa Finalis [The Ultimate Goal]

– The purpose for which the system exists– The purpose or end that is to be served:

• i.e., the CONSUMER

• Causa Formalis [The Formal Structures]– The formal arrangement of processes and physical

structures and matter that constitute the system• i.e., the systems’ definitions, form, pattern, strategy, design,

whole, and synthesis

• Causa Efficiens [The Processes]– The primary source of all the “work” done; what sets the

system in motion• i.e., the systems’ programmes, activities, functions,

interactions

• Causa Materialis [The Material]– The physical material of which the system is composed of

or consists of• i.e., seeds , edible product packaging materials

Supra system:purpose & form

Sub system:work & material

Informs Provides

CONSUMERS

PRODUCERS

The Value Channel of Fresh Produce- an integrated model: “We are all agents for customer value”