Agriculture holding its own in recession

AGRICULTURE in South Africa is weathering the economic storm‚ despite a recent recession.

This is according to agricultural industry body AgriSA‚ which recently approached the auditor-general and public protector to investigate claims that funds earmarked for the relief of farmers affected by drought were underspent by 30%.

AgriSA’s chief economist Hamlet Hlomendlini said even after the worst drought since 1992‚ the agricultural sector had shown strong signs of resilience and continued to play a significant role in South Africa’s flailing economy.

Although the sector shed 44 000 jobs in the first quarter of this year‚ it remained critical for the country’s labour market‚ particularly rural.

Hlomendlini said timber and fruit‚ mainly for export‚ had contributed to the growth in the agricultural sector.

“The big producers have also been affected by drought‚ but they made contingency plans to protect their crops. The rand has not been doing very well for some‚ but that has benefited the exporters. “The downside is that these producers may downscale local production and focus on export,” he said.

Hlomendlini said given the demand for South African fruit in the world’s markets‚ “it is fundamentally important that for strategic growth in the sector‚ new entrants be encouraged and incentivised to grow some horticulture products”.

He said it was imperative that the government make agricultural development a national priority.

“For sustainability purposes‚ young people have a huge role to play in the sector.

“It is therefore important that the government also develop a strategy for the elevation of young people in agriculture.”

Hlomendlini said the biggest impediment was land.

“Land ownership is paramount in this instance.”

‘ It remains critical for the country’s labour market