R43m dairy investment yields barely any milk

bwana

MyBroadband
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Holy cow!

R43m has been invested in an Eastern Cape dairy farm since 2014 — and it is able to produce only about 350 litres of milk a day.

This has also led to an East London dairy farm, which had agreed to buy the milk from Mantusini Dairy, terminating its contract because of the low production rate.

This was revealed by DA MPL Retief Odendaal on Tuesday, based on an official reply to questions about the Mantusini Dairy project in Port St Johns.

The project was established on 373ha of communal land in Mantusini village — 577.8km away from Nelson Mandela Bay.

It was meant to benefit about 500 households under a communal tenure. The households joined their land together to form a single unit for dairy production.

More: https://www.heraldlive.co.za/news/2020-11-18-r43m-dairy-investment-yields-barely-any-milk/
 

eg2505

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why is nobody surprised, corruption and incompetence is endemic to that area.
would have been easier to simply put all the money in a hole and light it on fire, at least you could have had a nice braai.
 

gamer16

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What a surprise, then again its not as bad as the same case in the Free State.
 

WAslayer

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So they will break even in about 22 years, assuming they sell at clover 2L prices.. nice...
 

eg2505

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Ah, socialism at its finest. Put a bunch of people together in a project with equal shares of outcome regardless of input..
And everyone sits on their ass waiting for someone else to make it work.
its worked before overseas, look at kibbutz, and many dairy farms run similarly there worked.
 

2021

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So averaging about R20K a day... at 350Lt...

Just sell the milk at R57 per lt and you'll break even! :thumbsup:
 

eg2505

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These are fundamentally different people
agreed, and that is my point, giving these people big bags of money is the WRONG move,
what should have happened is the farm should have been run by competent people who trained disadvantaged farmers
how to run the farm competently. and they were always around to make sure it got run properly.

and this is exactly why Land reform will never go anywhere in this country.
more incompetence and mismanagement than results.

sure there are exceptions to the rule, but they are few and far between.
 

konfab

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its worked before overseas, look at kibbutz, and many dairy farms run similarly there worked.

Kibbutz were a complete failure:

There was another powerful force that kibbutz utopians had not taken into consideration: women’s preference for choosing their own outfits. In a traditional kibbutz, clothes were deemed to be collective property. Dirty clothes were handed to a central laundry, and clean ones were handed out in exchange — but no tabs were kept on whose were whose. Women hated it and demanded cash allowances to buy their own clothes. As the pioneers warned, this opened up a Pandora’s Box of savage individualism. If you could own clothes, why not toiletries or furniture or even individual refrigerators?

This policy, called ‘privatisation’ at the time, confirmed what now seems blindingly obvious: that people make better use of money when it is their own. When everything was shared, people left the lights on day and night, and invited new acquaintances — and even their dogs and cats — to eat in the communal dining hall for free. When the kibbutzim started giving people cash and charging them for services, people stopped wasting resources.


There were other problems too. What happens when you can’t fire a slacker or reward someone productive? A scholar of kibbutz education, Yuval Dror, realised: ‘People like me who started as socialists concluded that you can work hard and get nothing while others don’t work hard. It is so unfair.’ Another kibbutz veteran concluded that his community was turning into a ‘paradise for parasites’.


The most talented and the hardest-working began to leave. This exodus was a devastating blow to the movement. The kibbutzniks thought that the first generation would be the most wayward, having been raised in a world tainted by selfishness and markets, but they believed that things would get easier as successive generations were raised within the system. As the pioneer Yosef Bussel wrote, there was a prevailing hope that ‘what we cannot achieve today will be achieved by comrades who have grown up in the new environment of the kvutza [group]’.

But instead, these young comrades found they wanted more from life and decided they didn’t want to be exploited in the name of solidarity. As a result, in the 1970s, the majority of kibbutz-raised kids started leaving. Some kibbutzim survived by borrowing heavily, which resulted in a debt crisis in the 1980s and a series of government bailouts.

In Daniel Gavron’s history of the kibbutz, we meet Bussel’s grandson, Chen Vardi. He came to believe that ‘public pressure doesn’t work any more’, and that ‘incentives and penalties’ were necessary. Asked what he would tell his grandfather if he were alive, Vardi said: ‘“You were a revolutionary,” I would point out. “You changed things. Now I want to change them in my way.”’

In the 1990s, kibbutzim began employing outside managers and assigning wages according to skill levels. In a telling answer to the essay question ‘Under socialism, who will take out the garbage?’, they started hiring unskilled labour. Eventually, most kibbutzim privatised themselves, by giving each member entitlement to their dwellings and an individual share in their factory or land. Only a few still adhere to traditional communal ideals, usually the religious ones.


https://www.spectator.co.uk/article/the-rise-and-disastrous-fall-of-the-kibbutz
 

Milano

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Reminds me of Durban city council

2017: eThekwini Municipality to buy Rainbow chicken farms

2019: Chicken farms bought by eThekwini for R15m left barren
 

Bigjay84

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The ANC send cadres to the Eastern Cape to learn how to loot and steal
 

konfab

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seems that when people realise there is hard work involved they sommer stop trying
It isn't even that. I would bet that the people involved with this on the ground level probably tried their hardest.

The problem lies with the fact that the government was allowed to steal R47 million from taxpayers and allocate it as they see fit. They did nothing to earn that money, so why should they be prudent about how it should be spent?

Would anyone here invest their own money into a company that formed by people with little to no farming experience? Heck I bet few people would risk their own money if these people already had a profitable farm and were looking for capital to expand. This is the fundamental reason why government driven projects always turn into money pits. They are not driven by economic reality.
 
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