Forces of change facing the food industry

SAAFoST---Forces-of-change-Understanding our many sub-systems and taking a holistic view was the central theme of a talk delivered by Prof André de Villiers at a breakfast meeting at 3M on 25 January 2011. The talk was based on research for his book: Tincture – passing the buck and bucking the system. Prof de Villiers then wrote this article for Food Review.

The food industry in South Africa has always been vibrant. It has delivered sound returns to investors and has been a nexus in the building of financial and human capital. With a rich harvest of basic food products to process and attractive markets in Africa and the rest of the world, it is logical that our food industries have an important role to play in innovation, economic development, employment and exports as well as feeding all – the poor and the rich. To fulfil this role effectively, food industry leaders should apply the ‘Triple Bottom Line’ principle to ensure that not only the economic, but also the social and environmental imperatives are met.

More than most other industries, the food industry reflects what is happening in South Africa.

Where we come from

South Africa was born and has evolved through bitter strife and war; our natural resources, especially mining, played a key role in this. Today, the country undeniably has riches such as scenic beauty, a pleasant climate, a cultural as well as a fauna and flora diversity.

After a bitter Anglo Boer- War, the twentieth century development of the country was largely shaped by Afrikaner nationalists. The winds of change over Africa since the 1960s and the fall of Communism in 1989 eventually forced the country’s Afrikaner leaders to hand power to a black nationalist majority. Unfortunately, this group effectively gained hegemonic power, which meant that it was only partially accountable to Parliament; after the year 2000 this accountability eroded rapidly.

Thought leaders in society now have very little influence over government policy. So although 1994 saw the establishment of a constitutional democracy, it is in many ways a pseudo democracy.

The new democracy created winners who became the ruling elite, and losers who soon felt powerless and became apathetic; these and some other mindsets were thus established. Elections, therefore, became rather perfunctory exercises and we now have a winner-takes all-society.

What we’re faced with today

A brief analysis of the main subsystems in contemporary South Africa provides evidence of the following:

· Serious environmental degradation due to mining; failing sewerage systems due to very scarce potable water resources (Ecoli found on fresh foods)

· A social subsystem split along lines of racial, cultural and income inequality

· A largely dysfunctional school system which does not deliver suitable products for a modern economy; universities and R&D in gradual decline

· ‘A Cosatufication’ process in the country producing an undisciplined labour force with a low work ethic and low competitive spirit

· An ineffective judicial subsystem largely a ‘criminal injustice system’; much violent crime and increasing police brutality

· A largely corrupt government subsystem with an overload of dependent people and limited tax base; is ineffective service delivery due to black economic empowerment and affirmative action causing drainage of competent and scientifically-trained personnel. The concept of a ‘developmental state’ is now a complete fallacy.

All in all, the whole government subsystem is battling to support a still relatively-strong economy. Powerful elites meddle in government because the separation between legislative, executive and judicial powers is weak.

How the future should be managed

By having a holistic mindset, no developed or logical person, especially not an accomplished food technologist, should allow the future to creep up on him/her. That would be a bit like the frog in slowly warming water which allows itself to be boiled before jumping.

The future is unknowable so forecasting is seldom effective. However, through an analysis of system changes and trends as well as the development of scenarios of the most likely futures, we cán in some way prepare for the future and even make more desirable futures happen.

The following need careful consideration

· There is a lack of principled leadership at all levels in our system; thought leaders have become scarce

· The gradual degradation of the different subsystems mentioned in the previous section; especially water quality, the educational subsystem and government services, are worrisome; causal relationships between subsystems need to be understood

· Environmental issues, such as global warming, are going to force food industries to consider sustainability, redesign of products and recycling

· Food enterprises need to integrate the changes in South African subsystems as well as global issues into their long-term strategies; this will require entrepreneurship and innovation and could include improved ways of harvesting, processing, packaging and transporting of food products

· Measuring and managing not only tangible assets (seen on the balance sheet of an enterprise), but also developing intangible assets (the competencies required to perform processes consistently and productively). Food industries should support universities and technical training institutions in the development of human capital.

· Therefore: ‘I would ask the oracle how we as civil society could best learn to be better stewards of democracy. Because we get the leaders we deserve. I would ask the oracle how we could re-inculcate the values that drove so many of us to sacrifice so much for this democracy to be born, (for) a dream that has been replaced by rampant materialism, greed, corruption and total disrespect for basic human values… We need to get back what we have lost.’ (www.dinokengscenarios.co.za , 2009)

‘We the people are the rightful masters of both Congress and the courts, not to overthrow the Constitution but to overthrow the people who pervert the Constitution’ (Abraham Lincoln, Congress replaced by Parliament). Unless the South African system starts revering respect for the law, truth, competence, the work ethic and accountability, we will at best muddle along with low GDP growth rates in the future; at worst our system will rapidly destruct.