A new study by the Human Sciences Research Council (HSRC) reveals that over two-thirds of agribusinesses adopted innovative strategies between 2019 and 2021. This showcases a sector that has not only weathered but actively responded to the challenges of the Covid-19 pandemic, natural disasters, and civil unrest.
In the period under review, the agricultural sector was under siege with disruptions caused by the pandemic, floods and drought in certain areas, and the KwaZulu-Natal unrest.
Agriculture adapts and thrives
The survey, conducted on behalf of the department of science and innovation by the Centre for Science, Technology and Innovation Indicators at the Human Sciences Research Council (CeSTII-HSRC), shows high levels of innovation in the agribusiness sector.
Dr Yasser Buchana from the HSRC, who led the survey, said these results demonstrate that the nation’s agricultural businesses have shown remarkable resilience in the face of adversity, adapting and innovating their way out of the crisis.
“While there is still room for improvement compared to other countries in the Global North, with the right innovation ecosystem supported by progressive sectoral innovation policies, our agricultural sector has the potential to withstand shocks and remain competitive, which is crucial for our country’s food security,” Buchana said.
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According to the report, 67.1% of all agribusinesses in the target population engaged in innovation activities. Innovation activities include all developmental, financial, and commercial activities undertaken by a company that are intended to result in an innovation for the company.
Training, acquisition of machinery and equipment, and acquisition of computer software were the top three activities that innovation-active agribusinesses engaged in, according to the survey.
Medium-sized agribusinesses made up the largest proportion of innovation-active businesses (72.9%), followed by large agribusinesses (70.8%).
Small businesses had a moderately lower innovation activity rate of 66.4%, while 57.2% of very small agribusinesses were classified as innovation-active, the report stated.
Meanwhile, CeSTII’s executive head, Dr Glenda Kruss, said the department aims to harness science, technology, and innovation (STI) to build a vibrant and economically sustainable agricultural sector through bio-innovative technologies, products, processes, and services that, in turn, will contribute to increased productivity, competitiveness, food security, and rural economic development.
“The data are equally significant for monitoring the implementation of the government’s agricultural, forestry, and aquaculture master plans. We look forward to engaging with policy actors and other sectoral stakeholders to draw out relevant policy evidence and insights from the data,” Kruss said.
Innovation insights and sector success
The study revealed that in the Northern Cape, North West, and Western Cape provinces, the highest proportions of all agribusinesses were innovation-active (87.3%, 90.0%, and 75.2%, respectively), with proportionally fewer innovation-active agribusinesses in KwaZulu-Natal (43.5%), Free State (55.7%), and Mpumalanga (55.1%).
“In the animal and crop farming subsector, approximately 22.7% of agribusinesses rated the importance of increased revenue resulting from innovations as high,” the study reported.
Meanwhile, poultry farmer Nqobile Khumalo from the Northern Cape, who started her business during the Covid-19 pandemic, said the journey had had its ups and downs.
“When we started, we just took a leap of faith because Covid-19 was still a major concern. However, we took the step of starting something. Yes, we were worried that companies were closing down because of the pandemic, but we believed that we would be able to pull through. “The company is growing; we are still operating at a small scale level, but the growth is there, and I think the challenges of Covid-19 pushed us to the limit,” she said.
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