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11 May 2020 | Story Leonie Bolleurs | Photo Supplied
Food security and uncompromised food security are but two of the challenges facing the food industry.

When the national lockdown was announced by President Cyril Ramaphosa on 23 March 2020, it was indicated that South Africa’s food supply sector was to remain fully functional. This sector was one of the essential systems for livelihood and thus remained operational.

Prof Arno Hugo from the Department of Microbial, Biochemical and Food Biotechnology’s Food Science division at the University of the Free State (UFS) participated in a webinar, #MondayMotivation on Foodfocus with academics in the food industry, Profs Lise Korsten from the University of Pretoria (Department of Plant and Soil Sciences) and Pieter Gouws (Department of Food Science and Director of the Centre for Food Safety) from Stellenbosch University.

Foodfocus’ #MondayMotivation was presented by Linda Jackson, a Director at Food Focus SA. The platform provides information from recognised experts and services providers and offers training, consultation, and auditing to ensure that role players comply with the regulations set for the industry. 

A major focus of the webinar was on how well the food industry is performing under pressure during the lockdown initiated by government due to COVID-19. During the webinar, the academics also elaborated on their connection to the food industry. 

Uncompromised food safety

Prof Hugo thanked the food industry for their commitment in this difficult time and encouraged them to continue with the essential services that they provide. This includes the agricultural production sector, the food ingredients industry, the food processing industry, the food distribution industry, as well as the retail sector. 

“You are the frontline workers, our first line of defence, South Africans rely on you. You bring stability to the lives of every South African, providing us with safe and nutritious food. Due to your endeavours, our supermarket shelves are full and panic buying was therefore unnecessary. You work under difficult conditions at great personal risk, travelling to and from work. When working on factory floors, you had to adapt to even more strict hygiene protocols to prevent the spread of the virus,” he said. 

Prof Korsten said the food industry is in uncertain times. She emphasised the role that the industry is playing in food security – providing food of uncompromised safety. Many people are concerned about whether the food they purchase is still safe. 

“The circumstances under which the food industry is working are incredibly challenging,” said Prof Gouws. The Centre for Food Safety are working, among others, on building a food safety culture. “It is important to maintain consumer confidence in the safety of food as well as the availability of food. I believe the food industry is geared to ensure that the virus will not spread,” he added.

Is South Africa food secure?

Responding to the question of food security, Prof Hugo supported a statement by Agri SA Executive Director, Omri van Zyl, who said: “With the implementation of phase four lockdown, the entire South African agricultural value chain, with the exception of the local sale of tobacco and alcohol, was exempted. The export of wine and other agricultural products is now also allowed. Important agricultural services such as certification, inspection and quality control can continue.”

Referring to the opinion expressed by Paul Makhube, senior agricultural economist at FNB, Prof Hugo believes that one can stay positive about food security in the country. Makhube said: “South Africa expects its third largest maize harvest in history, while good harvests are also expected for soya peanuts and sunflower seed.”

“After the good rains, conditions are also more favourable for livestock production in some regions,” added Prof Hugo. 

Makhube continued: “Livestock auctions can continue under Level 4 restrictions under strict hygienic conditions. The large reduction in the fuel price will also result in lower input and harvesting costs for farmers and lower food distribution costs.”

Prof Hugo also endorses the positive sentiments about food security from Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa, who said: “South Africa will produce significantly more maize than the local consumption and are not much dependent on meat imports, especially beef.”

“Due to a strong and stable primary agricultural sector and an efficient and technologically advanced food processing industry, South African consumers are assured of the availability of enough safe and nutritious food. From a food security perspective, South Africa is in a much better position than many other countries in the world,” Prof Hugo believes. 

“A concern in our current situation, however, is household food security. Urgent interventions should be implemented in order for sufficient food supplies to reach the vulnerable and rising unemployed,” Prof Hugo reconed.

UFS adds to food science research

The UFS Division of Food Science is training undergraduate and postgraduate students for the food industry. Their research is mostly focused on chemical, microbiological and sensory quality, and stability of food. He added that the UFS has just completed the construction of a brand-new, well-equipped, and staffed Sensory Laboratory to deliver commercial sensory analysis services to the food industry.

Prof Hugo, whose field of specialisation is meat sciences and technology with a special interest in the lipid components of meat products, said the research he is working on includes how to change the diet of meat-producing animals to improve the health properties of fat tissue in meat. He is also investigating the use of natural preservatives and the effect of salt reduction on the quality and stability of meat products. This research group’s expertise in lipid chemistry also allows the department to conduct research on fats and oils and on the fat component of milk, dairy products, and plant foods.

He indicated that the department is working from home during lockdown to ensure that online teaching can take place, and that Food Science students at the UFS will be able to complete the 2020 Food Science curriculum. 

News Archive

Inaugural lecture: Prof. Phillipe Burger
2007-11-26

 

Attending the lecture were, from the left: Prof. Tienie Crous (Dean of the Faculty of Economic and Management Sciences at the UFS), Prof. Phillipe Burger (Departmental Chairperson of the Department of Economics at the UFS), and Prof. Frederick Fourie (Rector and Vice-Chancellor of the UFS).
Photo: Stephen Collet

 
A summary of an inaugural lecture presented by Prof. Phillipe Burger on the topic: “The ups and downs of the South African Economy: Rough seas or smooth sailing?”

South African business cycle shows reduction in volatility

Better monetary policy and improvements in the financial sector that place less liquidity constraints on individuals is one of the main reasons for the reduction in the volatility of the South African economy. The improvement in access to the financial sector also enables individuals to manage their debt better.

These are some of the findings in an analysis on the volatility of the South African business cycle done by Prof. Philippe Burger, Departmental Chairperson of the University of the Free State’s (UFS) Department of Economics.

Prof. Burger delivered his inaugural lecture last night (22 November 2007) on the Main Campus in Bloemfontein on the topic “The ups and downs of the South African Economy: Rough seas or smooth sailing?”

In his lecture, Prof. Burger emphasised a few key aspects of the South African business cycle and indicated how it changed during the periods 1960-1976, 1976-1994 en 1994-2006.

With the Gross Domestic Product (GDP) as an indicator of the business cycle, the analysis identified the variables that showed the highest correlation with the GDP. During the periods 1976-1994 and 1994-2006, these included durable consumption, manufacturing investment, private sector investment, as well as investment in machinery and non-residential buildings. Other variables that also show a high correlation with the GDP are imports, non-durable consumption, investment in the financial services sector, investment by general government, as well as investment in residential buildings.

Prof. Burger’s analysis also shows that changes in durable consumption, investment in the manufacturing sector, investment in the private sector, as well as investment in non-residential buildings preceded changes in the GDP. If changes in a variable such as durable consumption precede changes in the GDP, it is an indication that durable consumption is one of the drivers of the business cycle. The up or down swing of durable consumption may, in other words, just as well contribute to an up or down swing in the business cycle.

A surprising finding of the analysis is the particularly strong role durable consumption has played in the business cycle since 1994. This finding is especially surprising due to the fact that durable consumption only constitutes about 12% of the total household consumption.

A further surprising finding is the particularly small role exports have been playing since 1960 as a driver of the business cycle. In South Africa it is still generally accepted that exports are one of the most important drivers of the business cycle. It is generally accepted that, should the business cycles of South Africa’s most important trade partners show an upward phase; these partners will purchase more from South Africa. This increase in exports will contribute to the South African economy moving upward. Prof. Burger’s analyses shows, however, that exports have generally never fulfil this role.

Over and above the identification of the drivers of the South African business cycle, Prof. Burger’s analysis also investigated the volatility of the business cycle.

When the periods 1976-1994 and 1994-2006 are compared, the analysis shows that the volatility of the business cycle has reduced since 1994 with more than half. The reduction in volatility can be traced to the reduction in the volatility of household consumption (especially durables and services), as well as a reduction in the volatility of investment in machinery, non-residential buildings and transport equipment. The last three coincide with the general reduction in the volatility of investment in the manufacturing sector. Investment in sectors such as electricity and transport (not to be confused with investment in transport equipment by various sectors) which are strongly dominated by the government, did not contribute to the decrease in volatility.

In his analysis, Prof. Burger supplies reasons for the reduction in volatility. One of the explanations is the reduction in the shocks affecting the economy – especially in the South African context. Another explanation is the application of an improved monetary policy by the South African Reserve Bank since the mid 1990’s. A third explanation is the better access to liquidity and credit since the mid 1990’s, which enables the better management of household finance and the absorption of financial shocks.

A further reason which contributed to the reduction in volatility in countries such as the United States of America’s business cycle is better inventory management. While the volatility of inventory in South Africa has also reduced there is, according to Prof. Burger, little proof that better inventory management contributed to the reduction in volatility of the GDP.

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