Water scarcity is a direct threat to your farm’s profitability. Marco Appel from Netafim highlights how precision irrigation leads to significant input savings, improved water use productivity, and can directly impact on-farm profitability.
South Africa’s agricultural sector faces a critical challenge: water scarcity. With over 60% of the country’s water withdrawals dedicated to agriculture, efficient water management is an environmental issue as well as an economic imperative.
Marco Appel, agricultural economist at Netafim Southern and East Africa, shares his insights on the importance of precision irrigation and the economic impact of water use on farms.
“South Africa is a water-scarce country, and agriculture accounts for the majority of water consumption, primarily through irrigation. Much of the country’s agricultural GDP comes from water-dependent systems, like livestock and horticulture. As demand continues to rise, the pressure on limited resources intensifies,” explains Appel.
According to Appel, water scarcity directly affects farm profitability, crop selection, expansion plans, and long-term capital investments. “Water availability is a binding economic constraint because agriculture depends on it. Efficient water use is critical for sustainable growth.”
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The reality of dam capacities
Although national surface water storage levels may appear adequate, Appel cautions that the situation remains highly volatile.
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At the end of September 2025, South Africa’s national dam storage stood at around 93% of full capacity. While this may seem reassuring, dam levels can change dramatically from year to year depending on rainfall patterns and drought conditions.
As a semi-arid country, South Africa is heavily dependent on climate variability, making water availability and dam levels highly unpredictable.
He adds that while the total dam capacity roughly equates to 536 000 litres per person, agriculture’s share makes effective water availability much tighter. “The buffer against drought is shrinking, which makes efficient water use, precision irrigation, and long-term planning economic necessities, not optional improvements.”
Saving costs through precision irrigation
Appel’s research focuses on the input cost savings achievable through precision irrigation across different crops.
“Even small improvements in water efficiency can make a real difference. Reducing water use lowers electricity costs for pumps, decreases maintenance needs, and reduces labour. All these small savings add up to significant improvements in farm profitability.”
He emphasises that farmers must understand the true cost of water, which goes beyond the water tariff and includes pumping, system maintenance, electricity, and labour. When all these factors are considered, the real cost of irrigation becomes clear, highlighting the strong economic value of precision irrigation.
Long-term benefits
Investing in irrigation systems is a significant upfront cost, but Appel stresses the importance of a long-term approach.
“The right system protects crops during dry seasons, cuts costs over time, and can save money in the long run. The wrong system leads to wasted resources, lower yields, and constant repairs. It’s a classic case of ‘goedkoop koop is duur koop’, sometimes spending more now saves more later,” he says.
Appel encourages farmers to treat water as a strategic asset rather than simply another production input. In this approach, water is managed much like land or capital, something to be protected, invested in, and carefully stewarded to ensure it remains available for future production. This mindset also supports sustainable expansion and strengthens a farm’s resilience during drought.
Despite clear benefits, some farmers hesitate to adopt efficient irrigation systems due to the initial cost. Appel advises careful financial planning and collaboration with experts.
“Do the math, consider long-term benefits, and involve agronomic or technical experts. The true financial advantages often reveal themselves over time.”
Efficient water management
“Less water means smaller harvests or reduced crop quality, directly affecting farm income. It’s not just a single-season issue; water scarcity influences long-term planning. Farmers must reconsider crop choices, irrigation strategies, and operational plans to maximise every drop of water,” Appel explains.
In simple terms, water use efficiency measures how much crop is produced per unit of water. Appel translates this into economic terms as water use productivity, the revenue generated per cubic metre of water applied.
He gave an example of a farmer in the Western Cape applying 7 500 cubic metres of water per hectare and generating R400 000 per hectare, which would achieve about R53 per cubic metre of water used. With improved irrigation management, producing an additional tonne of fruit using the same amount of water would increase revenue without increasing water consumption, thereby improving water use productivity.
Certification standards, such as GlobalGAP, may soon require farmers to track these metrics. “Calculating water use efficiency enhances competitiveness by demonstrating that water is used productively and sustainably,” Appel explains.
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