I don’t know how freeloaders sleep at night. They happily share in the benefits of work done by others, but refuse to make a contribution. In a recent letter to Farmer’s Weekly (8 November 2013), Warren Bartholomew, a paid-up member of the South African Macadamia Association (Samac), says: “If statutory membership is not achieved, I will withdraw my membership from Samac, as I am no longer willing to pay for research, marketing etc. while non-payers reap the benefits”.
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The macadamia industry might be riding the crest ofa wave right now, but at the recent Subtrop Marketing Symposium, Golden Macadamias CEO Allen Duncan highlighted theserious market risks it faces. Current world production is 150 000t in-shell nuts per year. South Africa produces some 35 000t of this. This figure will double within a few years. But by 2025, China, presently a major market for SA macadamias, will be producing 300 000t of macadamias a year!
Unless something pretty dramatic happens to drive up macadamia consumption, we could be flattened. Duncan pointed out that local producers have little hope of making any impact if they tackle marketing efforts individually. Working together, they have a fighting chance of growing macadamia consumption and gaining market share.
The rise of the macadamia industry in South Africa has coincided with the decline of state-funded production research. If farmers don’t do it themselves, it won’t be done, and to tackle this as individuals would be nonsensical. In these and other areas, working together will achieve so much more than everyone going it alone.
It seems so obvious and, like Bartholomew, I also don’t understand how any farmer cannot see the value of an industry organisation.
Of course, it goes without saying that I’m talking about an effectively led and managed organisation – which brings me to my next point. There is often confusion among producers when discussing the merits of industry co-operation through organisations such as Samac, Potatoes SA and so on. The beneficial role of these organisations is usually acknowledged, but their performance is often criticised.
Leadership and management
Let’s get this straight. There are two issues involved here. The one is the need and justification for the organisation. The other is its leadership and management. If the existence of the organisation is justified, but the organisation itself is not delivering to the expectations of its members, get to the heart of the problem. Fix the leadership and management.
The members choose the leadership, just as the shareholders of a company choose the directors. If the directors are doing a bad job, then you need to play your part in replacing them, instead of abandoning the organisation.
As much as you might not be a ‘committee person’ and would prefer to keep your footsteps on the land, your industry association needs you to allocate some time to it. It goes with the job of being a farmer.
But back to the scourge of freeloaders. It’s in the nature of mankind for some to take advantage of the others. Even an organisation delivering excellent value to its members will have some freeloaders. There will just be fewer of them. There’s a tipping point. If the number of freeloaders goes beyond a certain level, the organisation implodes, and Bartholomew seems close to reaching his personal tipping point.
In the end, there is only one way to avoid freeloaders – through statutory levies, which is what Bartholomew is calling for. Many agricultural industries are doing this. At the last count, there were 13 organisations established under the Marketing of Agricultural Products Act of 1996. These cover products as diverse as red meat, lucerne, citrus and dried fruit. And from what I know of the few with whom I have occasional contact, they are doing a pretty good job for their industries.
Get involved in your industry
The government structures regulating these organisations – the National Marketing Council and the various agricultural trusts – seem to be well-governed. Directives on how levy funds are to be spent (70% on research, information and marketing, 10% maximum on administration and 20% on transformation) seem eminently reasonable.
The burgeoning macadamia industry faces some important decisions in the coming months regarding Samac’s future, and no doubt other sectors of agriculture are grappling with similar issues. As a farmer and responsible manager, you cannot isolate yourself from the affairs of your industry. Get involved.
This article was originally published in the 13 November 2013 issue of Farmers Weekly.