Suggestions for fostering growth

Create an enabling environment

Establish rural farmers’ associations

Focus points to accelerate growth

To create jobs, to continue to ensure food security and to increase exports, South Africa must create a conducive environment for farming investments and ensure that the industry is globally competitive. The State is starting to remove itself as the central figure and is aspiring more to partnering with the private sector.

Establish community farmers’ associations to formalise the industry into a stronger agricultural front. The initial idea of incorporating black farmers into existing agricultural associations had limited success, owing to language barriers, and a better structure must be devised.

New entrant farmers must also be better assisted to ensure that they are financially viable and environmentally sustainable.

Formalise informal trade To help formalise the informal agricultural market, an online trading platform must be established to trade farming produce. There are currently several such platforms under development, but it requires a more centralised approach.

More small-scale farmer support

Prioritse infrastructure investment

Pursue passive income more strategically Provide access to more veterinary support, including veterinarians and animal health technicians, for small-scale farmers in remote regions to improve on disease control. Focused education and training sessions at communal dipping sites could be introduced to train smaller farmers in early disease detection. Rapid tests must be acknowledged by authorities and used at these points for effective disease control.

A national livestock identification and traceability system must be implemented to better manage disease control and to combat animal theft.

Crumbling infrastructure has major implications for the continued growth of the agriculture industry. Government must prioritise investment in the repair and maintenance of critical infrastructure.

As renewable-energy investments gain momentum in South Africa, energy farming has become a passive income for many in the farming community. Commercial farmers and the State, on behalf of emerging farmers, must better share these ‘windfall’ gains. Commercial farmers must guard against being perceived as ‘greedy’.

Suggestions for fostering growth

Reduce red tape and lessen monopoly power Government must reduce the amount of red tape and bureaucracy that farmers, and businesses in general, face. Monopoly power, for instance in the banking sector, must also be reduced to enable smaller farming participants to flourish.

Subsidise telecommunications The integration of digital technology into agriculture is a major opportunity for the industry to benefit from ‘smart farming’ advances. However, this requires improved connectivity. Challenges associated with economically motivated cellular companies providing suboptimal services to sparsely populated farming communities may require that mobile companies subsidise rural areas with the profits made from densely populated areas.

Sustainable land reform Find effective and sustainable plans to make land reform a success. This must happen in the existing policy and legislative framework, including programmes such as blended finance and the AAMP.

Seek out value chain opportunities South Africa must add more value to its agricultural production by seeking out agroprocessing opportunities. More engineering technicians must be trained to assist those entering the agroprocessing industry.