South Africa’s grain farmers can compete with the best in the world despite infrastructural challenges back home. Experts say the local grain industry is well-placed for further growth on the international stage. However, farmers and agribusinesses must take ownership of their energy future and become part of the solution to South Africa’s energy crisis.
This was the key message shared during the Grain Handling Organisation of Southern Africa’s (GOSA) 38th symposium in Mossel Bay in the Western Cape recently.
The symposium – during which the organisation’s 40th anniversary was also celebrated – took place at the Diaz Hotel in Mossel Bay. The theme and programme put the spotlight on which aspects are necessary to provide impetus to the grain industry in a post-pandemic era.
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Adapt to survive
According to Chris Yelland, an independent energy analyst, load shedding should not be accepted or become the new normal for South Africa.
“Customers, including those in the agricultural sector, should take ownership of their energy future and become part of the solution. A total blackout is very unlikely. Several steps can be taken to prevent this,” he said.
Commitment by all large, medium and small stakeholders can ensure that load shedding ends within two years of being given the green light to proceed with alternative solutions, Yelland highlighted at the symposium.
Hein Rehr, president of the GOSA, said agriculture alone would not bring the country back to where it was.
“The private sector will have to intervene drastically and hands will have to be joined with organised agriculture so that the economy can begin to perform again. The harder it gets, the more we have to talk and the more things we will have to do together,” said Rehr.
Other speakers included Dawie Maree, head of agricultural information and marketing at FNB Agribusiness.
One of the most resilient sectors
Maree said, “South African agriculture survived economic setbacks in and after the Covid-19 pandemic and performed 25% better in 2022 than in 2019. This makes agriculture one of the few industries that were able to achieve this.”
He reckons that agriculture will have to adapt to survive and encouraged farmers to decide who they want to be.
“We need to stay relevant, adapt to stay in the market, and stay informed. Focus on what you can control. Don’t look the other way if there is a problem. Be innovative and use what you can control and afford.”
Grain and the export market
According to Japie Snyman, vice president of grain at Olam Global Agri, South Africa is a small player in the world economy but still competes with the best in the world. South Africa can export 350 000 to 400 000 tonnes of grain per month.
“South Africa is in a good position with a great advantage of resilience. Producers can make plans and do well, even if the infrastructure is a challenge. If we constantly produce more and process and consume ourselves, there are many benefits,” Snyman said.
The international export market is very competitive, but South Africa’s biggest advantage is its location, he added.
Dr André van der Vyver, executive director of the South African Cereals and Oilseeds Trade Association, said the export market remained important for South Africa.
“Soybeans were not – like white maize – exported before, but since the production exceeds the demand, soybeans are also exported.”
“The export market is extremely important to stimulate and grow the South African agriculture and economy. That’s why every aspect of exporting products is important to maintain profitability,” said Van der Vyver.
He also pointed out that the standardisation of the unloading capacity of JSE-approved silos is necessary to place a price on the economic value of the grain in the silo.
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