Agriculture sector still employs a significant number of South Africans

The South African agricultural sector remains essential and a notable job creator in our economy.

This past week, Stats SA released its Quarterly Labour Survey data that updated the number of people working in this sector in the last quarter of 2023.

Some interpreted the data negatively. But that should not be the case.

There is much more to celebrate and hope for regarding employment prospects in this sector.

For example, after a notable jump in the third quarter of 2023 to 956,000, SA’s primary agricultural employment fell by 4% quarter-on-quarter to 920,000 in the last quarter of 2023.

Jobs declined mainly in the Eastern Cape, Western Cape, Gauteng, Mpumalanga and Limpopo.

Some may have emphasised this quarterly job decline when they assessed the agricultural sector’s employment conditions.

But to get a better view, one must view the jobs annually.

From this perspective, in the last quarter of 2023, agricultural employment was still well above 2022 levels, except for Mpumalanga, where we saw a marginal decline in primary farm jobs.

Notably, the 920,000 jobs in primary agriculture in the last quarter of 2023 is 7% up year on year and well above the long-term agricultural employment of 793,000.

Figures like this do not represent a sector that is on a decline but one that is robustly employed and has the potential for further expansion.

The general annual improvement in jobs mirrors the robust agricultural season of 2022/2023 across most subsectors of agriculture.

More specifically, the excellent production conditions of various field crops, forestry and aquaculture were behind the improvement of farm jobs in the last quarter of 2023.

Meanwhile, the livestock industry registered a slight decline, which is unsurprising as the industry was confronted by various animal diseases such as foot-and-mouth, avian influenza and African swine fever in 2023.

The tail-end of these challenges continues to weigh on the industry.

The production of organic fertiliser facilities also registered an annual decline in employment.

Beyond this quarterly jobs data, the primary agricultural sector’s broad challenges, such as the inefficiencies at the ports, rising geopolitical tensions, deteriorating rail and road infrastructure, weakening municipalities, rising crime, animal diseases and energy supply constraints, are the significant constraints to longterm growth and employment prospects in the sector.

Therefore, the South African government and the private sector should work collectively to address these issues, particularly the ones on the domestic policymakers’ reach, to support long-term growth.

The first step could be a clear road map of the implementation of the Agriculture and Agro-processing Master Plan, with the government leading the way in easing up the regulatory matters that the industry has raised, such as the need for modernisation of the Fertilizers, Farm Feeds, Seeds and Remedies Act 36 of 1947.

This Act aims to provide for the registration of fertilisers, farm feeds, sterilising plants and specific remedies.

The Act also deals with the importation of these products.

I specifically single it out because the South African agricultural sector’s growth over the past decades has mainly been using better seeds, agrochemicals and fertilisers.

The change in attitude of the regulators and their continuous reluctance to register improved and new products risks the country’s agricultural productivity gains.

Additionally, the government must address cost challenges associated with its use of assignees.

The matter of assignees has been a constant headache for organised agriculture and industry stakeholders.

The government should address the matter speedily.

The capacitation of the registrar’s offices is also vital, especially when considering the need to register the new agrochemicals and seeds.

Competent and dedicated personnel who could effectively address the industry concerns within this office are needed.

Managing biosecurity also remains fundamental to the growth of the sector.

The livestock and poultry industry accounts for roughly half of agriculture’s gross value added, which illustrates the importance of this sub-sector.

Notably, a clear focus on the above regulatory matters would help revive the confidence of stakeholders and ease any doubts about the government’s commitment to the sector.

Launching the Land Reform Agency and policy pronouncement on releasing state land to beneficiaries with title deeds would also profoundly boost sentiment on aspects of inclusive growth in the sector.

Overall, these interventions would all be positive for mediumto long-term employment.

For the near term, the negative effect of scant rains on the harvest of various crops is worth monitoring as the outcome would have near-term implications for jobs, particularly in 2024.