The Umzimvubu goat production and processing facility

The Umzimvubu Goat Production and Processing Project consolidates components of infrastructure
development, social help, institutional improvement, and innovation exchange and preparing. This project began
as an activity of a Member of Parliament who got to be occupied with the likelihood of goats for Eastern Cape
country improvement in the wake of survey a Goat Product display in Parliament in 1999. This showed the
significance of connecting inventive research yields with potential recipients of the knowledge (Eponou, 1990).
Additionally, an NGO in the area organised a progression of goat production and product demonstrations at a
few towns in the area and taking after the positive authorization of intrigued goat farmers of the district, the
possibility of a Goat Production and Processing Facility was conceived.
Virtually very quickly, linkages with the Local Governance structure of the area and the District Region were
shaped. The District Municipality took responsibility for idea, and helped with the outline of a financing
proposition to National Government. For this situation particularly, financing was acquired from the Integrated
Sustainable Rural Development Program, oversaw by the Independent Development Trust, and conceded by
means of the Department of Local Government and Housing. Spending take place through the Local Economic
Development Program of the Alfred Nzo District Municipality. Villagers likewise recorded "Goats" as a need amid
the procedure of need setting that educated the Integrated Development Plans of the area. In this manner, the
significance of grass-roots sanction, government and national government backing ought to be highlighted here.
Record non-popularized agriculturists have small herds differing in size from 10 or 20 animals (Eastern Cape), in
spite of the fact that groups as substantial as 300 animals can be found in the Northern Cape. Small herd sizes
increase the exchange costs for the individual rancher. Inputs required can be restrictively costly. For instance:
prescriptions and ear labels (little pack sizes cost more), administration devices (dosing weapons, ear tattoo
machines, ear label instruments are costly), transport offices, and holding pens. Additionally, heard structures are
frequently erroneous. One and only buck is required for each 40 does. Most agriculturists have their own buck and
does,yet the bucks are to a great extent ineffective whilst using costly assets (sustain, administration time,
pharmaceuticals and so forth.).
These hindrances can be overcome through the aggregate activity of Goat Farmer Co-agents. Every rancher turns
into an individual from the co-agent, and gets a participation number. Through these co-agent bunches expenses of
pharmaceuticals and ear labels can be decreased when purchased in mass, and administration gear and advertising
base can be shared. Groups can additionally guarantee that those farmers who are keen on getting to be business
goat ranchers are identifiable, and can get focused backing. This backing may incorporate the procurement of
marketing base, transport help, preparing and innovation exchange and financial services. Co-operative can
decrease the expense of enlisting brands or tattoos on account of goats and sheep by enrolling a solitary
brand/tattoo for the co-agent with the National Department of Agriculture's Registrar of Livestock Improvement.
Despite the fact that the co-operative brand then shows up as an ear tattoo on every goat, the ear tag can
incorporate the participation number of the member farmer, and the animal number. This will help with
consenting to the tractability prerequisites of the retail and global markets. To build up a reliable supply of raw
product, farmer groups can arrange and characterize their generation and conveyance abilities together, and give
this data to the following connection in the chain (the transporters or the processors). A group in this manner
accomplishes consistency of supply where distinctive proprietors can show their creatures available to be
purchased at various times, however the supply produced by their group activity is predictable.
Umzimvubu Goats was produced to comprise of a focal "Umbrella" farmer co-operative (Umzimvubu Goats),
oversaw by a board of nine directors. The individuals from this co-operative are local working in Wards inside the
Alfred Nzo District Municipality. Each of these provincial co-operative has their own particular character, are
legitimately enlisted, have their own sheets of executives, and part ranchers drawn from the towns inside every
ward. Participation changes amongst the local co-operative (300750 ranchers), and individuals are drawn from a
shifting scope of towns for every situation (715 villages). Enrollment has been intentional, and guided by an
orderly social assistance process portrayed for venture recipients and administration suppliers in a " Farmer
Facilitation and Co-agent Development Process" manual (Roets, 2004). A "joining charge" is an inner activity
taken by the cooperatives to guarantee that individuals are for sure intrigued by being a piece of the endeavour. This
shows thats the Co-operatives are completely self-overseeing, and are building up their own particular frameworks

of overseeing good dangers and free riders.

Generally, history shows that indigenous goats were principally used for conventional and religious purposes and
accentuation was not set on amplifying the business capability of the animals. The quality required by the
conventional and religious markets is construct predominantly in light of shading examples and size; bigger animals
regularly being favoured, and, contingent upon the function, male or female goats might be required. During the
time spent changing the indigenous goat into a shopper item, and all together for the non-popularized agriculturist to
get by in the advanced focused business sector, he/she should be helped to comprehend the significance of age, body
adaptation score, weight, precise record keeping and creature distinguishing proof. In handy terms, farmers must be
taught how to judge a animals weight, must be demonstrated to utilize a scale (and should be given access to a
measuring scale on a constant premise) (weights under 35 kg being favoured), must figure out how to tell the age of
a goat (goats under one year of age being favoured), have the capacity to judge the body condition score of a
creature (body condition scores of 3 or 4 being favoured), must start an exact record keeping framework for his/her
group, and should apply ear tattoos and ear labels to each of his/her goats. This new knowledge will guarantee that
the product meets the required product quality specifications.
An obvious omission here is any discussion of superiority of or preference for specific breeds. This is
based on the results of the market surveys and knowledge of the goat resource in general. From the
surveys it becomes clear that the consumer requires tasty, safe, nutritious products. The consumer is
less inclined to demand particular breeds. Furthermore, with the emphasis on value-adding, the
importance of size of the carcass is reduced. It is felt that as the industry develops non-commercialised
farmers will intuitively seek faster growing and more fertile breeds that can produce multiple offspring in a
shorter period of time. For the interim however, emphasis need only be placed on the provision of young,
healthy goats into the marketing chain. An undeniable oversight here is any talk of predominance of or
inclination for particular breeds. This depends on the aftereffects of the business sector reviews and learning
of the goat asset when all is said in done. From the reviews it turns out to be clear that the buyer requires
heavenly, sheltered, nutritious items. The customer is less disposed to request specific breeds. Moreover, with
the accentuation on worth including, the significance of size of the remains is lessened. It is felt that as the
business creates non-popularized agriculturists will instinctively look for more quickly developing and more
prolific breeds that can deliver various posterity in a shorter timeframe. For the between time be that as it
may, accentuation require just be set on the procurement of youthful, sound goats into the advertising chain.
Technology transfer activities have followed a trial-and-error process in the Umzimvubu case.
Initially, involvement of the Eastern Cape Department of Agriculture Extension officers was pledged to
support the farmer training drive. Approximately 25 Extension officers were trained in the project
concept, goat management practices, value-adding opportunities, and farmer facilitation and co-operative
development processes. However, the differences between the institutional cultures of the District
Municipality (which are under obligation to perform to performance contracts) versus the Regional
Agricultural Department (with their limitations in vehicle resources, level of competence of the Extension
officers, poor supervisory arrangements) soon became apparent, and little or no activity was observed
from the side of this group of Extension officers (apart from the work of two individuals who were very
active and very successful in their regions despite the same constraints as their colleagues). The limitations
of agricultural extension services are a matter often commented on in development literature.
Innovation exchange exercises have taken after an experimentation procedure in the Umzimvubu case. At
first, inclusion of the Eastern Cape Department of Agriculture Extension officers was promised to bolster the
rancher preparing drive. Around 25 Extension officers were prepared in the task idea, goat administration
hones, esteem including opportunities, and rancher assistance and co-agent advancement forms. In any case,
the contrasts between the institutional societies of the District Municipality (which are under commitment to
perform to execution contracts) versus the Regional Agricultural Department (with their impediments in
vehicle assets, level of ability of the Extension officers, poor supervisory game plans) soon got to be obvious,
and practically zero movement was seen from the side of this gathering of Extension officers (aside from the
work of two people who were extremely dynamic and exceptionally effective in their locales regardless of the
same requirements as their associates). The confinements of rural expansion administrations are a matter
frequently remarked on being developed writing.
Because of these limitations, it was decided that farmer training should be handled internally. To effect

this, a Regional Co-operatives, Membership, Goat Production and Delivery Guidelines manual was
developed (Roets, 2004b). This manual is available in the local language, Xhosa, and is made available to
each member of each co-operative when he/she joins the co-operative and pays their joining fees.

On account of these confinements, it was chosen that agriculturist preparing ought to be taken care of
inside. To impact this, a "Provincial Co-agents, Membership, Goat Production and Delivery Guidelines"
manual was created (Roets, 2004b). This manual is accessible in the neighborhood dialect, Xhosa, and is
made accessible to every individual from every co-agent when he/she joins the co-agent and pays their
"joining" charges
A third development has occurred due to the formation of the National Qualifications Authority in
South Africa (an initiative of the Department of Labour), the development of the Sector Education and
Training Authorities, and specifically, in the case of primary agriculture the formation of the Primary
Agriculture Education and Training Authority. This body is mandated to assist in the training and
development of adults within an employeremployee relationship. However, the contract-growing model
has drawn interest since it encourages learning within the sector, but caters for a different form of
employeremployee relationship. Within this system a full N1 level qualification, the Contract Grower

Goat Management Learner-ship Programme has been developed (Roets, 2003). This 10-month training
programme teaches the non- commercialised goat farmer all the intricacies of goat contract growing to
market specifications and entails 25% theory and 75% practical assignments. Aside from ensuring total
understanding of the principles of goat farming for market requirements, it also provides adult learners
with a formal tertiary qualification that could assist the individual in obtaining employment in other
sectors. Funding for this training is provided by PAETA and the Mineworkers Qualifications Authority
(MQA) through their National Skills Fund Programme.
A third advancement has happened because of the arrangement of the National Qualifications Authority in
South Africa (an activity of the Department of Labor), the improvement of the Sector Education and Training
Authorities, and particularly, on account of essential agribusiness the development of the Primary Agriculture
Education and Training Authority. This body is commanded to help with the preparation and advancement of
grown-ups inside an "employeremployee" relationship. Be that as it may, the agreement developing model
has drawn enthusiasm since it supports learning inside the area, however cooks for an alternate type of
"employeremployee" relationship. Inside this framework a full N1 level capability, the "Agreement Grower
Goat Management Learner-ship Programme" has been created (Roets, 2003). This 10-month preparing
program educates the non-popularized goat rancher every one of the intricacies of goat contract developing to
market determinations and involves 25% hypothesis and 75% reasonable assignments. Beside guaranteeing
all out comprehension of the standards of goat cultivating for business sector prerequisites, it likewise
furnishes grown-up learners with a formal tertiary capability that could help the person in acquiring
livelihood in different divisions. Subsidizing for this preparation is given by PAETA and the Mineworkers
Qualifications Authority (MQA) through their National Skills Fund Program.

In an attempt to move the goat industry from a commodity (live animals) into a consumer product,
processing or value-adding becomes a necessity. Value-addition by firms with producer integration will
also allow a greater share of the ultimate value of the product to be returned to the producer. However,
value-adding can be of different forms and at different levels depending on the requirements of the
market. Some markets may require whole carcasses, whereas others may prefer ready-to-cook or
microwaveable T.V. dinners. Leather and cashmere products require a substantial amount of processing
before they reach the consumer. However, the processing procedure should always address the needs of the
consumer.
While trying to move the goat business from an item (live creatures) into a shopper item, handling or esteem
including turns into a need. Esteem expansion by firms with maker incorporation will likewise permit a more
prominent offer of a definitive estimation of the item to be come back to the maker. In any case, esteem including
can be of various structures and at various levels relying upon the prerequisites of the business sector. A few
markets may require entire cadavers, while others may incline toward prepared to-cook or microwaveable "T.V."
suppers. Cowhide and cashmere items require a significant measure of preparing before they achieve the buyer.
Notwithstanding, the preparing strategy ought to dependably address the necessities of the purchaser.
One such consumer need, which is of particular relevance here, is the production of Halaal products for
the
Muslim market. Goats are particularly suited to this market both in South Africa and the Middle East. In
such cases, the slaughter and processing of goats in a Grade A, EU certified abattoir is of little consequence

if the requirements of the Halaal Authority of South Africa are not adhered to.
Thus, it is clear that there is certain specificity in terms of the infrastructure that is required to produce
the goat products for which markets have been identified. This specificity entails that abattoirs currently
slaughtering swine cannot be used, Halaal practices must be in place, the infrastructure should be
centralised within the production areas, and as close to major road infrastructure as possible to allow
transportation to major urban retailers or export avenues (shipping and airfreight). One such shopper need,
which is of specific importance here, is the creation of "Halaal" items for the
Muslim business sector. Goats are especially suited to this business sector both in South Africa and the Middle
East. In such cases, the butcher and preparing of goats in a Grade An, EU ensured abattoir is of little outcome if the
prerequisites of the Halaal Authority of South Africa are not stuck to.
In this manner, unmistakably there is sure specificity as far as the framework that is required to deliver the goat
items for which markets have been recognized. This specificity involves that abattoirs at present butchering swine
can't be utilized, Halaal rehearses must be set up, the foundation ought to be unified inside the generation
territories, and as near real street framework as could be expected under the circumstances to permit transportation
to major urban retailers or fare boulevards (delivering and airfreight).
Furthermore, the current tannery industry, which is currently producing under capacity (Manie
Booysen, personal communication), could be utilised for the tanning of skins. It appears that the tannery
industry is somewhat of a monopoly, and it is doubtful whether the non-commercialised farmer will be able
to realise the true value of his/her skins if he/she were to follow this formal marketing route with single
skins. This again illustrates the importance of goat co-operatives, where skins from domestic slaughter could
be warehoused for sale in bulk along with skins generated from the exclusive slaughtering of goats at
dedicated abattoirs to tannery operations. A further possibility is that the skins generated by these two
routes could be tanned at smaller boutique style tanneries specialising in hair-on and hair-off goat
skins using particular finishing techniques which could add substantial value, and return these skins to
crafting co-operatives where leather craft manufacture could take place.
Moreover, the present tannery industry, which is right now creating under limit (Manie Booysen, individual
correspondence), could be used for the tanning of skins. It gives the idea that the tannery business is to some degree
a restraining infrastructure, and it is far fetched whether the non-popularized agriculturist will have the capacity to
understand the genuine estimation of his/her skins on the off chance that he/she were to tail this "formal" promoting
course with single skins. This again outlines the significance of goat co-agents, where skins from household
butcher could be warehoused available to be purchased in mass alongside skins created from the elite butchering of
goats at committed abattoirs to tannery operations. A further plausibility is that the skins produced by these two
courses could be tanned at littler "boutique" style tanneries represent considerable authority in hair-on and hair-off
goat skins utilizing specific completing procedures which could include significant esteem, and give back these
skins to making co-agents where calfskin create assembling could occur.

Thus, at Umzimvubu the central infrastructure of the facility has been designed to include:
560-goat feedlot and
infirmary
Feed, equipment and medicine
stores
Goat abattoir (maximum 40 goats
per day)
Meat processing
plant
40-skins a day hair-on
tannery
Leather craft workshop Labelling and packaging facility and cold
storage area

 Effluent
treatment plant
Administrative
buildings
and shop
Ablution
facilities
Security
housing
Fencing
around
perimeter
Water (reservoir, pipeline and pump), electricity (stand-by generator), sewerage (pipeline) and
road infrastructure
In this venture all the raw products will be drawn from goats that are owned by noncommercialised member farmers in the Alfred Nzo, Oliver Tambo and Central Regions of the Eastern Cape.
The business will entail the manufacture of goat leather products for local and international markets, and
fresh and processed goat meat products such as various retail cuts (vacuum packed, spiced and
labelled) and cabanossi, dry sausage (Afrikaans: dro wors) and salami. It is envisaged that the facility
will produce to Halaal specifications. In this wander all the crude items will be drawn from goats that are
claimed by non-marketed part agriculturists in the Alfred Nzo, Oliver Tambo and Central Regions of the
Eastern Cape. The business will involve the assembling of goat calfskin items for nearby and worldwide
markets, and new and prepared goat meat items, for example, different retail cuts (vacuum pressed, spiced
and named) and cabanossi, dry hotdog (Afrikaans: dro wors) and salami. It is conceived that the office will
deliver to Halaal details.

Due to the specificity of the infrastructure, vertical integration with goat producers in the
region becomes a necessity (Sporleder, 1992).Indefining the relationship between the
central umbrella co-operative and the regional co-operatives a contract was designed.
Some factors of this contract are discussed here. Because of the specificity of the framework,
vertical coordination with goat makers in the district turns into a need (Sporleder,
1992).Indefining the relationship between the focal "umbrella" co-agent and the provincial
co-agents an agreement was composed. A few elements of this agreement are examined here.
The contract makes provision for the processing enterprise (Umzimvubu Goats Co-operative), the
individual farmer and the regional co-operatives obligations and responsibilities. On the one-hand
Umzimvubu is created to promote goat farming in the area, will ensure tractability, quality and consistency
of supply to various markets, and will provide several services to regional co-operatives (on payment of a
membership fee) such as

The agreement makes procurement for the preparing undertaking (Umzimvubu Goats Coagent), the individual agriculturist and the local co-agents' commitments and obligations.
From one viewpoint Umzimvubu is made to advance goat cultivating in the range, will
guarantee tractability, quality and consistency of supply to different markets, and will give a
few administrations to territorial co-agents (on installment of an enrollment expense, for
example,on-going advice on the management, breeding and caring for goats, will assist
producers in producing goats to the required standards (as set out in the Contract
Producers Manual), will ensure a sustained, consistent, reliable and efficient market for
goats from member producers, will hold shares of the member co-operatives in trust and
assist in the collection and distribution of any dividends from the operation, implement a
system of training, advise on preferred feed and pharmaceutical products to use, purchase
all goats that meet the required standards, shall pay out a 2% annual bonus if the regional
co-operatives meet their production targets, will assist in the establishment of regional
cooperatives, and will pay for all purchased animals within 7 days of acquiring the stock
from the regional co-operatives. on-going guidance on the administration, rearing and tending to

goats, will help makers in creating goats to the required gauges (as set out in the Contract Producer's
Manual), will guarantee a managed, steady, dependable and effective business sector for goats from
part makers, will hold shares of the part co-agents in trust and help with the accumulation and
circulation of any profits from the operation, actualize an arrangement of preparing, prompt on
favored food and pharmaceutical items to utilize, buy all goats that meet the required guidelines,
might pay out a 2% yearly reward if the territorial co-agents meet their generation targets, will help
with the foundation of provincial cooperatives, and will pay for all obtained creatures inside 7 days of
securing the stock from the local co-agents.
The individual producer is required to submit an annual production estimate, indicating the number of
goats and the times at which these would be available to be delivered to the central cooperative, must
deliver the numbers of goats pledged, must apply the recommended record keeping and numbering system
to the goats, must produce goats of the quality specified in the Contract Producers Manual, and must have a
bank account.

The regional co-operatives are established to plan delivery dates with their members,
provide a collection point to which all animals to be sold should be brought, arrange with the
central cooperative for the transport of the animals to the abattoir, must assist in ensuring the
tractability, quality and consistency of supply to the central cooperative and must have a
bank account. The individual maker is required to present a yearly creation gauge, demonstrating the
quantity of goats and the times at which these future accessible to be conveyed to the focal helpful,
must convey the quantities of goats vowed, must apply the prescribed record keeping and numbering
framework to the goats, must deliver goats of the quality determined in the Contract Producer's
Manual, and must have a ledger.
The provincial co-agents are built up to arrange conveyance dates with their individuals, give an
accumulation point to which all creatures to be sold ought to be brought, organize with the focal
helpful for the vehicle of the creatures to the abattoir, must help with guaranteeing the tractability,
quality and consistency of supply to the focal agreeable and must have a financial balance.

The contractual innovations of importance here are those that attempt to reduce holdups, build trust between the central and regional cooperatives, and improve the producers
access to inputs. The reason for this is of course the necessity of the central infrastructure to
provide processed products to further markets on a consistent basis, but also to utilize the
infrastructure most efficiently, since a large capital investment was made to build these
specific assets. To ensure the supply of goats to the facility Umzimvubu Cooperative has
pledged to provide training and advisory services (an Agricultural Officer will be appointed
at the central facility), has negotiated special services and products with a pharmaceutical
company (Virbac), and is in the process of negotiating a finance warehousing scheme with
the Land Bank, in an effort to bring much needed finance to non-commercialised farmers in
the project. Furthermore, Standard Bank is assisting the members of cooperatives and the
cooperatives themselves with the opening of banking accounts. These innovations are
similar to those adopted by Juhocukor in Slovakia, when repositioning themselves
towards their sugar beet producers (Gow et al., 2000). It is felt that these contract
innovations will greatly assist in the viability of the venture. The authoritative developments of

significance here are those that endeavor to decrease hold-ups, fabricate trust between the focal and
local cooperatives, and enhance the maker's entrance to inputs. The explanation behind this is
obviously the need of the focal base to give handled items to further markets on a reliable premise,
additionally to use the base most proficiently, since an extensive capital venture was made to fabricate
these particular resources. To guarantee the supply of goats to the office Umzimvubu Cooperative has
vowed to give preparing and consultative administrations (an Agricultural Officer will be selected at
the focal office), has arranged unique administrations and items with a pharmaceutical organization
(Virbac), and is arranging a fund warehousing plan with the Land Bank, with an end goal to bring
tremendously required money to non-popularized ranchers in the undertaking. Besides, Standard Bank
is helping the individuals from cooperatives and the cooperatives themselves with the opening of
managing an account accounts. These developments are like those received by Juhocukor in Slovakia,
when repositioning themselves towards their sugar beet makers (Gow et al., 2000). It is felt that these
agreement advancements will enormously help with the reasonability of the endeavor.
As can be seen above, co-operatives have been chosen as the legal entity, and aside from being members
of a central processing and marketing cooperative they have contractual obligations towards that

cooperative. This thus creates a Co-operative Contract Growing enterprise. Umzimvubu Goats will
negotiate shelf space with various retailers utilizing its own brand name (and logo), but may also cobrand or package and brand under other brand names (e.g. Kalahari Kid), as explained later.

As can be seen above, co-agents have been picked as the lawful element, and beside being individuals
from a focal preparing and showcasing agreeable they have legally binding commitments towards that
helpful. This along these lines makes a "Co-agent Contract Growing" endeavor. Umzimvubu Goats
will arrange rack space with different retailers using its own particular image name (and logo),
however may likewise co-brand or bundle and brand under other brand names (e.g. Kalahari Kid), as
clarified later.
1.1. The Kalahari
Corporation

Kid

The Kalahari Kid Corporation is a public company registered on the 3 October 2002. This company
was created to develop the goat industry in South Africa, and has as its core functions the branding,
brand
management, quality control and marketing of goats and goat products from the entire South Africa.
The company is a joint initiative between private sector commercial partners (5%) and the Northern Cape
Provincial Government (95%) where funding is channelled to the project via an Economic Development Unit
established to assist in the economic development of the Province.

Its main goal is to establish goat meat in the loc

al retail and international export markets. To do this it is building the brand name Kalahari
Kid, negotiating shelf-space with various retailers (Checkers Hypermarket, Pick n Pay,
Spar), paying listing fees where necessary, presenting the product to the public through
various publicity campaigns (such as up-market lunches with radio, T.V. and foodie
personalities), food exhibitions and magazines, pamphlets, posters, and international
exhibitions (utilizing funding from the Department of Trade and Industry SMME Export
Support initiatives)), developing a reliable distribution network, soliciting the support of
several key, high grade processing centres (abattoirs), and building a client base (both in
South Africa and abroad). These activities are required for the establishment of the brand.

The Kalahari Kid Corporation is an open organization enlisted on the 3 October 2002. This
organization was made to build up the goat business in South Africa, and has as its center capacities
the marking, brand administration, quality control and promoting of goats and goat items from the
whole South Africa. The organization is a joint activity between private segment business accomplices
(5%) and the Northern Cape Provincial Government (95%) where subsidizing is directed to the
undertaking by means of an Economic Development Unit set up to help with the financial
improvement of the Province.
Its fundamental objective is to build up goat meat in the nearby retail and worldwide fare markets. To
do this it is building the brand name "Kalahari Kid", arranging rack space with different retailers
(Checkers Hypermarket, Pick "n" Pay, Spar), paying posting charges where vital, displaying the item
to general society through different reputation crusades, (for example, up-business sector snacks with
radio, T.V. what's more, "foodie" identities), sustenance displays and magazines, leaflets, notices, and
worldwide presentations (using subsidizing from the Department of Trade and Industry SMME
Export Support activities)), building up a solid circulation system, requesting the backing of a few
key, high level handling focuses (abattoirs), and building a customer base (both in South Africa and
abroad). These exercises are required for the foundation of the brand.
The perception of quality is strongly associated with brand recognition. A brand is the main
communication between sellers and consumers (Raynaud, 1999). Often, when a single firm is too
small to establish its reputation in the market, a shared brand name may substitute for a single producer
brand. This allows a group of smaller players to take advantage of economies of scale in establishing a
reputation and sharing the costs of establishing a reputation. In the highly competitive agro-food industry,

a shared brand may be an important differentiation strategy for small firms. Thus, within a shared brand
name, there may be several products but a single promise of quality (Raynaud, 1999). Successful
branding of goat products is essential to ensure that goat products can be recognized, requested, and
chosen. Branding also assists in negotiating shelf space with retailers, since the consumers affinity
towards the selected brand and its packaging can be demonstrated quantifiably. Aside from the quality
control measures to assist the building of the image of the brand name, other national structures such as the
Department of Veterinary Public Health, and SAMIC are included to assist with quality control at the
abattoir level.
On the side of supply the Kalahari Kid Corporation is also working at grass-roots level building a
supply base from emerging goat producers (currently in the Northern Cape, but with plans to expand to
other parts of the country). To build trust and secure contract growers the Kalahari Kid Corporation is also
providing certain services to emerging farmers as a means of self-enforcement of contractual obligations.
These are similar to those described for Umzimvubu goats. Thus, as with the other projects, the Kalahari
Kid Corporation must in some way work with the supply side of the vertical chain to influence
quality and timing of deliveries (Sporleder, 1992).

The impression of value is firmly connected with brand acknowledgment. A brand is the principle
correspondence amongst "dealers" and shoppers (Raynaud, 1999). Frequently, when a solitary firm is
too little to set up its notoriety in the business sector, a common brand name may substitute for a
solitary maker brand. This permits a gathering of littler players to exploit economies of scale in setting
up a notoriety and sharing the expenses of building up a notoriety. In the very aggressive agronourishment industry, a mutual brand might be an essential separation procedure for little firms. In
this way, inside a mutual brand name, there might be a few "items" yet a solitary guarantee of value
(Raynaud, 1999). Effective marking of goat items is crucial to guarantee that goat items can be
perceived, asked for, and picked. Marking likewise helps with arranging rack space with retailers,
since the purchasers' liking towards the chose brand and its bundling can be shown quantifiably.
Beside the quality control measures to help the working of the picture of the brand name, other
national structures, for example, the Department of Veterinary Public Health, and SAMIC are
incorporated to help with quality control at the abattoir level.
In favor of supply the Kalahari Kid Corporation is likewise working at grass-roots level building a
supply base from developing goat makers (as of now in the Northern Cape, however with
arrangements to grow to different parts of the nation). To manufacture trust and secure contract
producers the Kalahari Kid Corporation is additionally giving certain administrations to rising
agriculturists as a method for self-authorization of legally binding commitments. These are like those
depicted for Umzimvubu goats. Hence, as with alternate tasks, the Kalahari Kid Corporation must
somehow work with the supply side of the vertical chain to impact quality and timing of conveyances
(Sporleder, 1992).

The key difference between the Kalahari Kid Corporation and the previous projects
described is its emphasis on the down-stream market linkages (as well as production and
processing in some cases) whereas the other projects are concentrating more on the
production and processing side of operations. This thus lends itself perfectly for these two
types of operations to combine forces in creating a completely integrated marketing chain
from producer to consumer (both local and foreign) or to enter into a strategic alliance
(Sporleder, 1992), where each firm would offer specific inputs that would be
complementary within the production, processing and marketing chain. The key contrast
between the Kalahari Kid Corporation and the past ventures portrayed is its accentuation on the downstream market linkages (and also creation and handling now and again) while alternate undertakings
are focusing more on the generation and preparing side of operations. This therefore loans itself
consummately for these two sorts of operations to join strengths in making a totally coordinated
promoting bind from maker to buyer (both neighborhood and remote) or to go into a vital cooperation
(Sporleder, 1992), where every firm would offer particular inputs that would be reciprocal inside the
creation, preparing and showcasing chain.

Thus, whereas the Kalahari Kid Corporation, like Umzimvubu and Laphumilanga, has a standard
Contract Growers Agreement where benefits and obligations of goat producers and the purchasing
company are described, it is clear that at the current stage of development of the industry, the Kalahari
Kid Corporation possesses the most marketing power (Sporleder, 1992) and if it continues its strong
marketing activities will soon also possess referent power, i.e. the brand will be so strong that others will
want to be associated with it. Thus, if the other goat production and processing operations want to share in
some of this power a further contractual relationship will need to be designed between the Kalahari Kid
Corporation and processing enterprises such as Umzimvubu (leather and meat products), Picardy
(milk and leather products) and Laphumilanga (leather products and live goats). That is, if these
enterprises are interested in making use of the marketing expertise of this company and provides products
under the brand name Kalahari Kid. This shared branding could culminate in a semi-franchise
operation (Raynaud, 1999) or other forms of strategic alliances (Sporleder, 1992) (such as contracts). For
this to be achieved, standard operating, production, and processing systems need to be in place, and
strictly monitored (Raynaud, 1999).

Along these lines, while the Kalahari Kid Corporation, as Umzimvubu and Laphum'ilanga, has a
standard "Get Grower's Agreement" where advantages and commitments of goat makers and the
buying organization are depicted, unmistakably at the present phase of advancement of the business,
the Kalahari Kid Corporation has the most "advertising force" (Sporleder, 1992) and in the event that
it proceeds with its solid showcasing exercises will soon likewise have "referent force", i.e. the brand
will be strong to the point that others will need to be connected with it. Accordingly, if the other goat
generation and preparing operations need to partake in some of this "power" a further legally binding
relationship should be planned between the Kalahari Kid Corporation and handling endeavors, for
example, Umzimvubu (cowhide and meat items), Picardy (drain and calfskin items) and
Laphum'ilanga (cowhide items and live goats). That is, if these ventures are keen on making
utilization of the advertising mastery of this organization and gives items under the brand name
"Kalahari Kid". This "mutual marking" could come full circle in a semi-establishment operation
(Raynaud, 1999) or different types of vital partnerships (Sporleder, 1992, (for example, contracts). For
this to be accomplished, standard working, generation, and preparing frameworks should be set up,
and entirely checked (Raynaud, 1999).
The production and processing centres also possess power due to the resource dependency of the Kalahari
Kid Corporation (Sporleder, 1992). The Kalahari Kid Corporation requires their produce, and where
infrastructure investment has been made by other parties (District Municipalities), the Kalahari Kid
Corporation may be sore pressed to make similar investments themselves. Thus, a situation of mutual
dependency and mutual obligation (Sporleder, 1992) is created. However, it is doubtful whether the
marketing function will also be entrusted to the processing centres (which is common practice in such
franchise operations (Raynaud, 1999)) in the short term, and this will in all likelihood be the greatest cause
of conflict and opportunistic behaviour in the future. This is because the industry is only just developing
and the creation of competition at this stage will do little to build a strong client base from which to grow.
It is of course, likely, that as skills in this sector develop, that splinter companies capable of doing their own
marketing will appear.

The generation and preparing focuses additionally have power because of the asset reliance of the
Kalahari
Kid Corporation (Sporleder, 1992). The Kalahari Kid Corporation requires their produce, and where
foundation speculation hosts been made by different gatherings (District Municipalities), the Kalahari
Kid Corporation might be sore squeezed to make comparative ventures themselves. Along these lines,

a circumstance of common reliance and shared commitment (Sporleder, 1992) is made. Be that as it
may, it is dicey whether the promoting capacity will likewise be endowed to the handling focuses
(which is normal practice in such establishment operations (Raynaud, 1999)) in the short term, and
this will no doubt be the best reason for strife and deft conduct later on. This is on the grounds that the
business is just barely creating and the formation of rivalry at this stage will do little to construct a
solid customer base from which to develop. It is obviously, likely, that as abilities in this segment
build up, that chip organizations fit for doing their own particular advertising

2.

Conclusion
The National Commercialisation of Indigenous Goats Project currently entails the establishment of
goat production and processing units and goat farmer co-operatives at various locations around South
Africa. The Umzimvubu, Laphumilanga and Kalahari Kid developments are described. Raw products will
be drawn from goats that are owned by currently non-commercialised goat farmers in the regions
surrounding each project. Some projects include value-adding operations including the manufacture of
goat leather products such as handbags, slippers and key chains, goat meat products such as spiced and
vacuum packed meat cuts, salami and cabanossi, and drinking yoghurt and amasi. The primary market for
these products are tourism facilities on-site, and marketing activities to national retailers. An opportunity to
effect strategic alliances with a new marketing company, the Kalahari Kid Corporation, and the possibility of
a shared brand can extend the marketing power of grass-roots projects to include wider national distribution
and export sales.
The main feature of this work has been its emphasis on the reduction of transaction costs for the
non- commercialised farmer. These costs can be reduced with the initial accurate identification of
interested farmers, assistance provided to them to form self-governing institutions, providing them with
market information and specifications through training and technology transfer, including several options
of production and use (different products for different markets), utilising local government organisations to
effect the delivery of required infrastructure, and the formation of institutions which link them to the market
place.