Agriculture output to boost job creation

AGRICULTURE output is expected to increase as South Africa recovers from a crippling drought, which the National Treasury is hoping will boost job creation in the sector. According to this year’s Budget review tabled by Finance Minister Pravin Gordhan yesterday, two successive seasons of drought had casued output to fall for seven consecutive quarters. However, the outlook had changed as rains returned to parts of the country. According to a table in the review illustrating the relationship between demand, output and employment, “for every R1 million of extra output in agriculture, the economy creates 3.9 unskilled jobs and one skilled job, and overall output in the economy increases by R1.7m”. The Treasury explained the importance of the containment of the spread of fall armyworms, which if overlooked, could threaten cereal crop production. – ANA