Transformation requires more than just land

FAIRPLAY couldn’t agree more with the sentiments expressed by Eustace Mashimbye, chief executive of Proudly South African (“Transformation and job creation in agriculture,” Business Report, April 2).

Transformation requires more than simply giving black farmers land; there are ample opportunities in the supply chain of commercial agriculture and food production to effect empowerment, and the large established players have to play their part.

The South African chicken industry is a prime example of what can be achieved. Over recent years, the industry’s assistance model has resulted in 70 black farmers establishing themselves not only as successful chicken farmers, but as landowners. Combined, they supply between 10 million and 12 million chickens and employ at least 700 people.

Many more emerging farmers are working towards the same goal, and the numbers grow constantly.

Two years ago, then-president Zuma spoke about the commercialisation of 450 black smallholder farmers. While that number was unrealistic given the timeframes used, the principle of assisted industrialisation is sound, and the chicken industry has a proven blueprint for smallholder industrialisation.

It is a blueprint worth duplicating in that it prepares and supports emerging farmers to participate in the market and doesn’t depend on government subsidies.

This blueprint is, however, destined to gather dust in future if the market into which these farmers sell their chickens is not protected. In other words, if dumping of chicken does not stop.

The chicken production value chain can only empower and support upcoming farmers if it has the resources – financial, technical and human – to do so.

If the industry is further decimated by unfair international competition, transformation and empowerment efforts will stall.

In addition, established black farmers would lose their hard-won assets if the domestic market collapses due to dumping.

Dumping has the potential to destroy an entire industry and, in doing so, halt and reverse the significant gains that have been made to bring black farmers into the commercial agricultural fold.