Despite all the commendable government work in opening up export markets, helping to control the spread of animal diseases, and supporting smallholder farmers over the recent past, South Africa’s agriculture sector has been operating from one crisis to another, according to a local agribusiness organisation.
Wandile Sihlobo, chief economist at the Agricultural Business Chamber (Agbiz), said this has limited the sector’s full potential growth.
“Last year, the big challenge was load shedding and its effects on agricultural production. Later in the year, there were widespread animal diseases and crises at ports, railway lines, and roads. This means many government programmes to address the sector’s growth remain on the periphery as government officials and the private sector throw their weight on the present issues. For example, the interventions contained in the Agriculture and Agro-processing Master Plan have seen limited implementation thus far,” Sihlobo said.
Agbiz said the launch of the Land Reform Agency, aimed at releasing government-owned land to selected beneficiaries with title deeds, had been delayed.
“We believe this agency … is a vital catalyst to the expansion of the agricultural sector. The government has roughly 2.5 million hectares … that could be transferred to new entrant farmers. President Cyril Ramaphosa has spoken about setting up this agency in various State of the Nation Addresses. Still, there has been limited progress in delivering these promises.”
The agribusiness organisation said they also observed a slow delivery of crucial aspects, such as the reforming and modernisation of the registrar’s office and the efficient registration of new agrochemicals.
It said these were some of the challenges that have caused a profound sense of unhappiness among the various sector stakeholders. This was illustrated by the various sentiment indicators in the sector, such as the Agbiz/IDC Agribusiness Confidence Index, Agbiz said.
Sihlobo said they now feared the months ahead may show very little delivery because of two major challenges, among other hindrances.
It said the first was with the elections being two months away, and the political leadership of various government departments were likely to be focused on re-election.
He said in an ideal situation government officials should continue implementing already adopted programmes.
“Another challenge this year is the change in agricultural conditions, whose real financial impact on farmers and consumers will likely show only in the coming months.”
Parts of South Africa have been dry and extremely hot. This week marks nearly two months since some regions last received adequate rainfall. Throughout February and March, the rainfall has been scant, with an intense heatwave that made summer crop conditions difficult.
“Another challenge of the 2023/24 season was the difficulty of forecasting the size of the summer crop as we face a moving target and continuous unfavourable weather conditions,” he said.
Agbiz said clear communication was needed about modernising the Fertilisers, Farm Feeds, Seeds and Remedies Act 36 of 1947, intended to provide for the registration of fertilisers, farm feeds, and sterilising plants.
He said clarity about the Land Reform Agency was also essential.
“The director-general must call a meeting and guide the sector about the status of the Agriculture and Agro-processing Master Plan and the direction for the implementation process now and post-elections,” Sihlobo said.
Reacting to the recent release of GDP figures that revealed a 12.2% decline in the agricultural sector, another agricultural organisation, Agri-SA, said in the light of these grim realities, it became evident that concerted efforts were needed to address the multifaceted challenges plaguing the agricultural sector.
BUSINESS REPORT