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A financial analysis of different sheep meat production and marketing systems in the Northern Cape
Thesis (MScAgric)--Stellenbosch University, 2025.
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| Format: | Thesis |
| Language: | en_ZA |
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Stellenbosch : Stellenbosch University
2025
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| _version_ | 1867613911586439168 |
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| access_status_str | Open Access |
| author | Steyn, Lynette |
| author2 | van der Merwe, Melissa |
| author_browse | Steyn, Lynette van der Merwe, Melissa |
| author_facet | van der Merwe, Melissa Steyn, Lynette |
| author_sort | Steyn, Lynette |
| collection | Thesis |
| dc_rights_str_mv | Stellenbosch University |
| description |
Thesis (MScAgric)--Stellenbosch University, 2025. |
| format | Thesis |
| id | oai:scholar.sun.ac.za:10019.1/132282 |
| institution | Stellenbosch University (South Africa) |
| language | en_ZA |
| last_indexed | 2026-06-10T12:43:40.048Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Stellenbosch : Stellenbosch University |
| publisherStr | Stellenbosch : Stellenbosch University |
| record_format | dspace |
| source_str | SUNScholar — Stellenbosch University Repository |
| spelling | oai:scholar.sun.ac.za:10019.1/132282 A financial analysis of different sheep meat production and marketing systems in the Northern Cape Steyn, Lynette van der Merwe, Melissa Kirsten, Johann Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics. Sheep Farming -- Economic aspects -- Northern Cape (South Africa) Farm produce -- Marketing -- Northern Cape (South Africa) Farm management -- Northern Cape (South Africa) UCTD Thesis (MScAgric)--Stellenbosch University, 2025. Steyn, L. 2025. A financial analysis of different sheep meat production and marketing systems in the Northern Cape. Unpublished masters thesis. Stellenbosch: Stellenbosch University [online]. Available: https://scholar.sun.ac.za/items/6c8a38ba-2129-4634-a64c-d32cdc23777c ENGLISH SUMMARY: This thesis is a financial analysis of sheep meat production systems and marketing channels in the Northern Cape, South Africa (SA), amid economic and environmental challenges facing sheep farmers. The decline in flock numbers due to prolonged drought, rising input costs, market volatility, and limited industry-specific financial research emphasises the need for this analysis. The study aims to evaluate the profitability of extensive, semi-intensive, and intensive sheep production systems across post-farmgate processing scenarios, including the potential profitability of on-farm processing compared to direct abattoir sales. A financial model was developed to achieve these objectives using theoretical insights from literature and empirical data from local industry sources. This model, designed in Microsoft Excel, incorporates income and expense variables relevant to sheep farming, such as meat prices, feed costs, and operational expenses. The model enables a comprehensive assessment of gross margins (GM) for each farming operation by analysing different production systems and marketing options. The study then analyses post-farmgate processing scenarios applicable to farmers wanting to capture value in the sheep meat value chain, assessing post-farmgate income and expenses, such as transportation costs. The results reveal that extensive and semi-intensive production selling to an abattoir and an extensive farmer selling partly to the feedlot and abattoir is still the best farming choice in NC in terms of profitability. Upon analysing the processing scenarios, it was clear that they are not more profitable than the base production cases explored. The results underline the critical importance of marketing optimal carcass grades, specifically A2/3 and C2/3. Farmers should strategically consider supplemental feeding practices, as the optimal balance between feed input and carcass quality is essential in maintaining the financial viability of the farm. Additionally, farmers should prioritise identifying and implementing the best scenario for their operations to realise the highest margin. Challenges like price volatility, transportation costs, and profits that are sensitive to small market changes require careful consideration and management to maximise profitability. This thesis contributes to the limited knowledge of financial outcomes of different production models and marketing options in sheep meat production, providing practical insights for stakeholders seeking to optimise profitability within the Northern Cape’s sheep industry. The study’s Excel-based model serves as a decision-making tool, allowing industry stakeholders to effectively evaluate the financial implications of different production and processing strategies. Future research should be comparative studies across other provinces, such as the Free State, and examining their production practices, feed requirements, and distance to markets. A broader analysis would yield valuable insights into optimal production systems and the proximity of processing plants to the market. Further studies can compare SA sheep meat producers' profitability to that of leading sheep meat-producing countries facing similar drought-related environmental challenges, such as those in Australia, to learn from them and note where SA can improve. Examining these established industries could highlight potential areas for improvement in SA’s sheep meat production, providing actionable insights for strategic industry advancement. Masters 2025-06-02T12:30:03Z 2025-06-02T12:30:03Z 2025-03 Thesis https://scholar.sun.ac.za/handle/10019.1/132282 en_ZA Stellenbosch University vi, 119 pages : illustrations, maps, includes annexures application/pdf Stellenbosch : Stellenbosch University |
| spellingShingle | Sheep Farming -- Economic aspects -- Northern Cape (South Africa) Farm produce -- Marketing -- Northern Cape (South Africa) Farm management -- Northern Cape (South Africa) UCTD Steyn, Lynette A financial analysis of different sheep meat production and marketing systems in the Northern Cape |
| title | A financial analysis of different sheep meat production and marketing systems in the Northern Cape |
| title_full | A financial analysis of different sheep meat production and marketing systems in the Northern Cape |
| title_fullStr | A financial analysis of different sheep meat production and marketing systems in the Northern Cape |
| title_full_unstemmed | A financial analysis of different sheep meat production and marketing systems in the Northern Cape |
| title_short | A financial analysis of different sheep meat production and marketing systems in the Northern Cape |
| title_sort | financial analysis of different sheep meat production and marketing systems in the northern cape |
| topic | Sheep Farming -- Economic aspects -- Northern Cape (South Africa) Farm produce -- Marketing -- Northern Cape (South Africa) Farm management -- Northern Cape (South Africa) UCTD |
| url | https://scholar.sun.ac.za/handle/10019.1/132282 |
| work_keys_str_mv | AT steynlynette afinancialanalysisofdifferentsheepmeatproductionandmarketingsystemsinthenortherncape AT steynlynette financialanalysisofdifferentsheepmeatproductionandmarketingsystemsinthenortherncape |