Agri SA has reacted to the latest gross domestic product (GDP) figures from Stats SA, which shows a 0.4% growth in the national economy for the second quarter of 2024, despite a 2.1% contraction in the agricultural sector.
This decline in agriculture is attributed to ongoing challenges such as drought conditions in key farming areas and persistent issues related to animal health.
Chief executive officer Johann Kotzé said the GDP data reminds the country of the importance of agriculture as a cornerstone of the economy, particularly for South Africa’s economic health and ultimately food security.
“Farmers are already adapting through technological investment and innovatively mitigating risks both at farm level and across value chains, however, more can and needs to be done.
“Therefore, farmers should remain focused on driving efficiencies and actively work towards long-term sustainable growth,” he said.
Progress and pitfalls
Chief economist Kulani Siweya also weighed in, stressing the necessity for ongoing support from the department of agriculture and the private sector. He noted progress at the Port of Cape Town but pointed to significant challenges posed by deteriorating road and rail infrastructure.
“We have noted the progress being made at the Port of Cape Town and are hopeful that this can be sustained. However, many agricultural values remain exposed to decaying road and rail infrastructure resulting in inflated transportation costs and this continues to weigh on growth potential.
Siweya said in various provinces, enhancing the catchment capacity of water infrastructure and climate adaptation should be prioritised.
“Heightened coordination between the department of agriculture’s animal health directorate and farmers also remains central to addressing lingering animal health concerns,” he added.
Kotzé said AgriSA remains confident that the agricultural value chains are well organised to adapt to the changing business environment and optimise efficiencies, fulfilling its role of consistently contributing positively to GDP growth.
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