Ethics Drive Production and Profitability at Fair Cape Dairies
DO THE RIGHT THING. It’s a simple philosophy and a big commitment.
For Fair Cape Dairies, doing the right thing means maintaining the highest possible animal welfare and environmental standards while stewarding social progress in South African communities.
The power of this core value is a driving force that has helped propel this once small-scale dairy farm operation run by the Loubser family to one of South Africa’s leading producers of dairy products.
“When we established the farm in 1955, we had 64 cows on our farm,” notes Melt Loubser, a founding member of the Fair Cape Group and CEO and Director of Companies. Today, Fair Cape maintains a herd of more than 5,600 animals at two dairy facilities located in The Western Cape, about 25 kilometers from Cape Town. Their processing facilities, located near the farms, process, pack and sell milk, yogurt, dessert and related products in the local markets. Overall, Fair Cape employs about 1,500 people.
Business culture is a critical part of Fair Cape’s growth story. The Loubser family has built an organization of like-minded people committed to doing the
right thing to produce milk products of uncompromising quality. As the business has grown, so has the family’s commitment to build Fair Cape on moral and ethical principles. “Ethics are important to us. Our passion and drive compel us to take positive action to reduce our carbon footprint by conserving natural resources in an environmentally friendly manner, caring for the welfare of our animals and making a meaningful contribution to society,” says Melt.
It’s a philosophy that drives all aspects of their vertically integrated business from the consumer shelf to the dairy barn and the land used to produce dairy rations. Fair Cape’s business partners and suppliers also help the dairy do the right thing. Fair Cape works with Semex to elevate dairy genetics and build healthy, high-producing cows with increased longevity to produce milk more efficiently and sustainably.
MEETING THE DEMANDS OF CONSUMERS
“We have 8 billion people on the planet, and we believe the world’s nutritional needs can be supplied by commercial farms,” says Melt. But farms must produce food in a sustainable manner. “It’s not about getting a premium from the market, it’s about doing the right thing. We firmly believe it’s our duty to farm in a responsible manner and consumers are demanding that our businesses do not harm the environment.”
The foundation of Fair Cape’s commitment to do the right thing rests on three pillars:
Animal Welfare. “At Fair Cape, milk production is not just a business — it’s a way of life that makes the well-being of our cows our top priority,” says Melt. This includes providing daily medical care, modern housing, food and water, a tranquil environment and systems that ensure the well-being of each individual animal is guaranteed at all times. Technologically advanced barns are designed to give each cow sufficient space and provide cover in an open air section. Cows are also monitored closely to check for illness and a vet observes the herd daily.
Environmental Welfare. Fair Cape actively works to decrease its carbon footprint and ensure it does not negatively impact the environment. It was the first dairy company in Africa to publish its carbon footprint on its milk bottles. Cow manure is used as an organic fertilizer thereby decreasing the use of chemical fertilizers on the farm. The Fair Cape group of companies is also committed to targeting 50% of waste to recycling, diverting as much as possible from landfills. Renewable energy is another focus. Solar energy projects capture about 19% of the milking facilities’ daily energy demand on average annually. In the summer months, 26% of energy use is provided by solar. Renewable energy is enabling an approximate reduction of 147,000 Kg CO2 each year.
Social Welfare. The company also embraces social welfare issues. “We are passionate about this and it is our aim to give back in positive and rewarding
ways,” says Melt. Fair Cape is committed to playing a meaningful role in supporting good causes and influencing positive change through its Fair Cape Cares Foundation. It raises funds to assist three charities: Atlantic Hope Baby Sanctuary; Durbanville Kinderhuis and the Saartjie Baartman Centre for Abused Women and Children. Fair Cape is also committed to community outreach and education, regularly hosting school tours.
At Fair Cape, milk production is not just a business — it’s a way of life that makes the well-being of our cows our top priority.”
Melt Loubser
KEEPING COWS HEALTHY AND COMFORTABLE
Johannes Loubser, Fair Cape’s Director of Farming Operations notes this ethical commitment is also strictly applied to all areas of milk production. “We do what’s right for the cows and it’s also right for our business. Milk production comes naturally if we look after our cows, comfort them and keep them healthy,” he says.
Today, the Fair Cape milking operation includes 2,550 milking cows — 2,150 Holsteins, 250 Ayrshires and 150 Jerseys. Cows are housed and milked in two separate freestyle facilities; one featuring a 64-point rotary and the other utilizing a 56-point herringbone parlor, with production per cow averaging 41 litres per day.
Cows are managed in groups, including first lactation cows, while older cows are grouped based on production. Cows are fed twice daily with TMR rations using crops grown on the farm’s land base, including 2000 acres of oat silage, 350 acres of alfalfa under irrigation and 2000 acres of wheat. The Western Cape area of South Africa is a Winter rainfall area, making it almost impossible to grow corn silage.
WORKING WITH SEMEX TO ELEVATE GENETICS
Johannes also stresses the important role genetics plays in the health of the herd and its milk production. Fair Cape began genetic testing its animals in 2018 using Elevate®, Semex’s genetic herd testing and strategy tool. This allows Loubser and his team to identify key production, health and type traits for its heifers. Using Semex’s OptiMate™ mating program, bulls are then selected to match female genetic profiles that improve the herd.
“Semex came to us with the Elevate program of genetic testing and it made enormous sense to me,” he says. “It’s put us on a new level of genomic breeding. I think we are going to progress rapidly for the next five to 10 years when it comes to production, butterfat profitability and the longevity of the herd.”
The commitment to herd health has a significant genetic component, beginning with a strategy to use 100% Semex Immunity+® bulls which carry disease resistant genetics on the Holstein herd and where possible on the Jerseys moving forward. The impact of Immunity+ sires on the herd is evident through Elevate genomic results. The Immunity+ sires have increased the herd’s immunity levels, which are now 21% (High) in daughters genomic tested in 2021.
The Semex Team works directly with the herd and plays a key role in helping Fair Cape execute its genetic strategy says Johannes. “They know what our animals look like, they score the animals and they know their strengths and shortcomings. We rectify that by using the correct bull on the correct animal.”
Johannes notes how the recent emphasis on genomics is already being seen in the herd, with all replacement heifers being produced from virgin and first calf heifers, a strategy in place for the past three years. “We don’t want to produce any heifers from older cows. All heifers are produced from young stock on the farm using sexed semen, because we now have the ability to have high genomic value animals on the farm and that will generate all milking stock.”
FERTILITY, PRODUCTION AND LONGEVITY EQUAL SUCCESS
Improving genetics also supports Fair Cape’s overall strategy for dairy success. “The most important three things on a dairy farm are fertility, production and longevity,” says Johannes. “We want our animals to be fertile, we want our animals to produce a lot of milk and we want our animals to live long on the farm.” He notes that the number of Fair Cape cows exceeding lifetime production of 100,000 kg continues to grow. The highest producing cow on the farm has now surpassed 140,000 kg.
Johannes’ final point of emphasis is the importance of animal health and welfare. It’s a core value of the company and critical for milk production. A lot of the credit for Fair Cape’s ability to maintain cow health goes to the AFI FARM 5 Herd Management software program, that provides critical health data on a daily basis. “It’s impossible to operate without it. You can’t afford to wait for a cow to show you she has a problem. You have to use software that can identify issues.” He also credits his talented team of veterinarians that work closely with the animals to maintain herd health.
The AFI program also plays a key role in elevating cow fertility rates. “It really has put us onto a new level of production. Heat detection is no longer being done by humans. It’s being done by a computer 24 hours a day and it’s 100% correct.” The end result is reduced average days in milk, lowered calving intervals and increased insemination and conception rates.
For CEO Melt Loubser, doing the right thing throughout all Fair Cape Dairies operations is an ethical decision. But it’s also a strategy that ensures healthy, productive cows, as well as future growth and prosperity for its milk processing business.
SOURCE: Semex Discover 200 magazine
YouTube Video:
At Fair Cape Dairies, fertility, production and longevity equal success. Join us as the Loubser Family discusses the core values that have led this dairy for over 70 years from a small-scale operation with only 64 cows to one of South Africa’s leading commercial dairy brands. Fair Cape has more than 5,600 animals at two facilities located in The Western Cape. Their facilities process, pack and sell 300,000-400,000 litres of milk per day, including milk, yogurt, juices and dessert products to local markets.
About Semex
OUR MISSION
WE CREATE VALUE BY…
Developing and delivering innovative genetic solutions
Leveraging strategic planning
Cultivating global leadership and partnerships
with an unwavering commitment to success
OUR VISION
WE DEMAND THE BEST
Of ourselves…
Our company…
And what we do for our customers
OUR VALUES
WE BELIEVE
People are the cornerstone of our success
Passion fuels our results
Leadership creates growth and opportunities
Transparency builds clarity, encourages ideas and
questions the status quo
For further information visit www.semex.com
To list your business email – marketing@agri4africa.com
For products or equipment queries email – info@agri4africa.com
For events email – marketing@agri4africa.com
