Agricultural sector in mire

CONSEQUENCES: PRODUCERS BATTLING TO STAY AFLOAT

Agri SA report paints a bleak picture as producers face financial constraints.

There’s no other way to say it: South Africa’s agricultural sector is in deep organic fertiliser, and it’s going to stay that way for the foreseeable future. Agri SA released its agriculture drought report 2019-20 yesterday, revealing financial constraints to the point where banks were refusing loans to farmers, the slaughtering of breeding stock, massive job losses pending on top of those already lost, and more.

According to a presentation by Agri Northern Cape vice-chairperson Willem Symington on behalf of Agri SA, drought conditions of 2013, 2015, 2016 and 2019 had “left many maize producers in the North West and parts of the Free State in a very challenging environment”.

“Financial strain is increasing, carry-over debt is rising and many are looking to alternatives in urban areas,” Symington said,

“Producers not only suffered substantial yield losses, but several producers could also not plant their intended maize area.”

He noted late plantings combined with patchy rainfall were expected to negatively affect grains, while herds recovered following the outbreak of foot and mouth disease (FMD).

The FMD outbreak had halted beef exports in the first quarter of 2019 in the Western Cape.

In the Western Cape, the report noted, “wheat production dropped from 1.86 million tons in 2018 to 1.69 million tons in 2019. Although more hectares were planted, year-on-year production decreased by 208 000 tons”.

Employment in agriculture for the Northern Cape and Free State had declined by 9 000 and 18 000 jobs respectively on a year-onyear basis.

In the Free State, last year’s heatwave had prevented maize from being planted, and for many farmers it was their last chance to prevent foreclosure by the banks,

“Besides late rains again this season for maize, the farmers whose farms don’t get attached will not be able to obtain any production credit to put in a maize crop. Hence, we are in a financial drought,” the report stated.

Adri Kitshoff-Botha of Wildlife Ranching SA noted the Northern Cape had had an 80% loss of total game numbers, and the numbers were growing.

The Eastern Cape had lost 300 000 animals, “despite reduced herds”.

“Game mortalities aren’t as visible livestock in a kraal,” KithoffBotha said in her presentation.

–