VN July 2023

Vetnuus | July 2023 48 Much of my work over the years has been in agricultural economics as it relates to animal production. As a third-year agricultural economics student, way back in 1967, we were taught budgeting, right down to the last cent. Then came the difference between theory and practice, and over the years, it has become very apparent that by doubling the input costs and halving the expected income, one gets far closer to the truth. How does this relate to us in South Africa now? With fuel prices that jump around and the effect this has on articles like fertilizer and commodity transport and then load shedding, how can one hope to be accurate with budgeting? Then we must put an incompetent government into the equation. Davie Roodt, the well-known economist from the Efficiency Group, spoke last week of the Big Mac method of comparing costs internationally. Well, it was frightening. An upmarket motor vehicle would take the averagemiddle-income South African 75months to pay for it. In America, it takes less than six months! Then I heard the story of power in the far-off Orkney Islands, yes, those lost islands off the Scottish mainland. This little place is off the grid in so far as fossil fuels are concerned. They have plenty of wind but not so much sun. This little community is reliant on green hydrogen for all its power requirements; yes, from the rubbish removal van, the tractors and the electricity supply. Green hydrogen, which is the current buzzword in future energy sources, is produced on this island using solar and wind energy in the fusion of water. The cost of production is thus minimal once the capital cost has been met. Their production units are reliable and require minimal upkeep. Where does South Africa fit into this equation? Well, recently on the news, there was a statement from the Minister of Electricity that a delegation from the Netherlands and Denmark were visiting to look at the possibilities of green hydrogen in South Africa. Figures indicate that the Western Cape is an ideal place and one of the best worldwide due to the wind and sunlight available, and it can be produced from seawater after desalination. What do we need to make this a reality? Firstly, a committed government that is genuinely concerned about the well-being of its people. With the current situation, farmers have reduced irrigation due to very high current costs – our Valley had nearly 6000 hectares under irrigation and employed 22000 people. Now, virtually nothing and job losses have been enormous. The oil companies are not known for their philanthropic attitudes, and it is well known that all inventions that may affect their income are rapidly purchased and put on the back shelf. Would they be interested in green hydrogen replacing the fossil fuels that have afforded them such fantastic incomes? Other sources of power are available. The Ranch I am involved with in Gabon has a river which can be used for hydroelectric power. A fairly sizable investment will enable them to produce adequate power for all their requirements, including electric vehicles and irrigation. The life of a plant like this, if well maintained, is hundreds of years. Danie Odendaal and I were privileged to enjoy a visit to the hydroelectric plant in South America. This plant has been functional for over 60 years with minimal cost. It supplies current to the furthest point, over 6000 kilometers away. This all tells a single story – where there is a will, there is a way, but big business does not see this in a similar light. The tiny country of Rwanda went through horrendous genocide not that long ago and, when it hit bottom, was fortunate enough to get a philanthropic dictator who, in a matter of fewer than 20 years, made it the gem of Africa. Where do you find more of this manner of the politician? A difficult find. v Life plus 24 without parole Mike Lowry Mike Lowry has been in veterinary practice for "life plus 23" years. In this column, he shares his experiences and opinions . Regulars I Life plus 23 + 24