Value chains are those activities that involve adding value to a primary product, according to banker and agricultural economist Maluta Netshaulu. In agriculture, however, farmers are at the centre of the chain, and some people provide services to the farmer. Netshaulu shares this and more insights on this episode of Farmer’s Inside Track.
“Investment in agriculture is quite important and it comes in different forms,” he says.
He explains that farmers themselves are the main stakeholders in this transaction. They make risky investments every year, putting time and money at risk in what they do.
“When it comes to funding in farming, let’s say if you’re extremely wealthy, you can do all that work with your own resources. But the majority of farmers rely on debt funding from external sources to be able to carry out their activities.”
He adds that farmers approach financial institutions like Nedbank to ask for financial support. Nedbank finances them directly and indirectly, using working capital such as overdrafts, he further explains.
‘Optimism oils the wheels’
Being optimistic keeps farmers going, says Netshaulu.
“Transformation is quite key, and as Nedbank, we are playing [bringing] solutions there, to be able to address market needs. Because we want to see inclusive growth within the sector that reflects on our rainbow nation.”
He adds that load shedding is a problem for everyone, not just farmers. According to Netshaulu, many types of farmers, including those involved with poultry, greenhouses, cold storage, security, and dairy farming, must invest heavily in alternative power sources to keep their businesses running.
“[Load shedding] it is a huge concern, but our farmers always make a plan and always make sure that we do have food on our plates every day.”
Over the course of the session, Netshaulu discusses:
- Why it is crucial to adapt agritech solutions.
- Why a sustainable agricultural system is crucial in South Africa.
- The value chain versus the agro-economy.
Want to know more? Listen to the full episode of Farmer’s Inside Track.
Option 1: Click here to listen on Spotify (all mobile and other devices).
Option 2: Click here to listen on any Apple device.
Option 3: Click here to listen on Google Podcast.
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