South Africa’s agricultural sector is a powerhouse of growth and innovation. This is according to new analysis by professors Johann Kirsten and Ferdi Meyer, director of the Bureau for Food and Agricultural Policy (BFAP).
According to the 2023 BFAP Baseline and data collected by the Bureau for Economic Research (BER), the sector’s value has more than doubled in real terms since 1994. This remarkable expansion, spanning livestock, horticulture, and field crops, is underpinned by increased productivity and access to new global markets.
One of the sector’s standout achievements lies in the horticultural domain, where investments have led to production levels exceeding the NDP’s 2030 targets. However, this growth faces challenges in global shipping disruptions and domestic inefficiencies, necessitating urgent collaboration between private enterprises and the government.
Poultry industry sees good results
Kirsten and Meyer further note that the soybean industry represents a particular success story, transforming South Africa from a net importer to a net exporter. While local prices have remained competitive, the poultry industry, despite challenges such as avian influenza and rising feed prices, has made significant strides following the implementation of the poultry master plan.
“Poultry remains the largest contributor to South Africa’s agricultural output and has achieved about one-third of the envisaged growth in the first ten years of the NDP,” the experts note. “Apart from sluggish growth in the local economy that is affecting affordability, the industry struggled for many years to compete against competitively priced imports.”
However, following the signing of the poultry masterplan, which entailed several strategies to ensure a competitive trade environment, the industry has made significant progress in reducing imports and growth in domestic production has accelerated.
Land reform progress and challenges
In the realm of land reform, South Africa has achieved nearly 25% of the NDP’s goal to redistribute 30% of all freehold agricultural land to black South Africans by 2030. However, a substantial portion, approximately 11 million hectares, remains under state ownership. The challenge lies in purposefully transferring this land to individual commercial farmers, a crucial step in eliminating the sector’s historical dualism.
The analysis by Kirsten and Meyer also sheds light on the sector’s progress and challenges, emphasising the need for continued collaboration between the public and private sectors. The experts say it aims to present accurate data showcasing the genuine advancements in land reform and the expansion within labour-intensive and export-focused sectors of agriculture.
These developments bode well for fostering inclusive growth within the agricultural sector, provided the necessary supportive environment is established by the state and various state-owned entities.
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