The agricultural sector is seen as a foundation for development and prosperity

Steady growth within the agricultural sector since democracy has resulted in South Africa being regarded as the land of plenty. A recent statement by Finance Minster Pravin Gordhan identified even more potential within the agricultural sector to make a greater impact on the country, both
economically and socially.

Currently, agriculture alone contributes 3% to South Africa’s gross domestic product (GDP).

When combined with the closely linked food processing or agro-industrial sector, however, agriculture makes up 14% of GDP and creates employment for millions who are either employed in primary agriculture or who rely on farming for their income.

The continued growth within the sector is largely attributed to the country’s dual agricultural economy, comprising commercial and subsistence farming.

Evidence of this is the fact that South Africa is almost entirely self-sufficient in terms of growing and producing its own food.

Adding to that, agriculture aims to transform social injustices of the past by alleviating hunger, poverty as well as unemployment.

The value of agriculture is calculated not only in terms of the development of South Africa but of southern Africa as a whole. An example of which is maize. Maize is South Africa’s largest locally produced crop. It is a staple food for human and animal consumption in the Southern African Development Community (SADC).

Currently, South Africa is the major maize producer in the SADC.

Agriculture in South Africa is spread out over 1.2 million square kilometres of land and seven climatic regions, creating opportunities to meet national and international supply and demand requirements.

Agricultural activities range seasonally from intensive crop production, mixed farming, cattle ranching and sheep farming. The result is a wide range of quality products for local consumption and global distribution, some of which include deciduous, citrus and subtropical fruits to grain, wool, cut flowers, livestock and game.

The benefits of a strong agricultural sector has created a healthy export market, particularly to the European Union, United States and within sub-Saharan Africa.

The country’s world-class infrastructure of road, air and shipping networks can suitably support the expansion of the export market. As a result, South Africa is one of the world’s top five exporters of products such as avocados, tangerines, grapefruit, plums, pears, table grapes and ostrich products. Other large exports include wine, sugar, maize, fruit juice, wool and various deciduous fruits.

The relationship between agriculture and the export market marks the maturity of the sector and highlights the numerous competitive advantages that South Africa has over other producers.

One of which includes the country’s natural biodiversity, allowing for a wide range of crops to be harvested to meet international food needs.

The close proximity and counter-seasonality to Europe provides a convenient and profitable export market for crops grown throughout the year.

Other factors that contribute to South Africa being an attractive trading partner include the post-apartheid deregulation of the market, competitive labour rates and relatively low electricity costs in comparison to other countries which, in total, allow South Africa to trade in an internationally competitive environment.

While the product offering is wide and the potential for growth continues to expand, the agricultural sector is not without challenges. The availability of water as an essential resource to grow crops has threatened the sustainability of the industry. Coupled with that are other obstacles such as climate change, land reform and electricity shortages.

Inconsistent rainfall due to climate change and the uneven distribution of fresh water typical of the country’s natural weather conditions has placed an undeniable burden on South Africa’s agricultural sector. Coupled with the fact that large areas of the country are prone to drought, the agricultural sector is in danger of suffering crippling water shortages.

Agriculture and crop irrigation use approximately 60% of South Africa’s water resources. Unless water shortages are suitably addressed, the situation will become critical by 2020, and South Africa will have to import water – a similar fate to other developing agricultural countries such as Brazil and India.

Water shortages come into direct conflict with the increased demand.

Agri-SA’s recent Water Conference highlighted the relationship between water and food security in the country.

The Organisation for Economic Co-Operation and Development and the Food and Agriculture Organization have estimated that global food production will have to increase by 70% to meet food demands by 2050.

The lack of water in major agricultural countries such as South Africa puts an enormous amount of pressure on the sector to address and combat the problem.

The government, together with other international bodies, has begun implementing strategies to contest the problem. One initiative was born out of the United Nations Framework Convention on Climate Change and the Convention to Combat Desertification.

South Africa is required to draw up a National Action Programme to address the conservation of water. This strategy will then be incorporated into a regional programme for the entire SADC.

The Department of Agriculture is addressing the problem by implementing the National Landcare Programme (NLP).

Together with other national strategies to look after the environment, such as the National Agricultural Policy, the Water and Forestry Management Strategy and the National Environmental Strategy, the NLP’s primary focus is to encourage communities and individuals to adopt an ecologically sustainable approach to the management of South Africa’s environment and natural resources, water in particular.

Along with water shortages, the Accelerated and Shared Growth Initiative for South Africa has identified other key projects to ensure the growth of the agricultural industry.

Areas identified include livestock development, the establishment, and rehabilitation of existing irrigation schemes, the use of biofuels for power, land rehabilitation and the development of agricultural corridors.

Although these initiatives are necessary for sustainability, the industry requires the participation of all role-players and initiatives to create alternative solutions to environmental issues. An example of which is the sugar cane industry in South Africa, addressing electricity shortages.

South Africa is the world’s 12th largest sugar cane producer. With over 50% of the annual crop exported internationally, the industry faced a serious threat by the lack of and rising costs of electricity.

By adopting technology that uses ethanol – a waste product from sugar cane refinement – as a form of fuel, it reduces the need and expense of using conventional electricity.

The agricultural industry on the whole is taking up the challenges faced in today’s economic and social climate and going against the grain to ensure that South Africa will continue to be known as the land of plenty.

While the country continues to cement its position as a valuable food source throughout the world, the agricultural sector acts as the foundation for development and prosperity throughout South and southern Africa so that every citizen can reap what has been sown.

Taryn Springhall