Professor Simon Letsoalo is the head of the department and senior lecturer of Agricultural Economics and Extension at the School of Agricultural Sciences. The School of Agricultural Sciences has four disciplines: Agricultural Economics and Extension, Animal Health, Animal Sciences and Crop Sciences and more than 10 postgraduate qualifications to choose from.

According to Professor Letsoalo, “Agriculture has a massive social and economic footprint in the country. Agriculture contributes a lot to reducing poverty in South Africa.” 

He adds that more than 70% of South Africa’s rural population depend on agriculture for their livelihood. “This really illustrates how critical agriculture is.” 

Agriculture is, of course, responsible for food supply, provides employment and raw material to other sectors, and offers the business-minded various opportunities.

“As a starting point, one can be a supplier to the industry,” advises Professor Letsoalo. “You can provide tractors, pesticides, and fertilizers. This is serious business in agriculture because agriculture leans on it.”

Interest rates, repo, and exchange rates are high, creating challenges for the industry. “We import our fertilizers and have to pay in dollars.”

There are many factors that determine the profitability of the industry as a whole, including interest rates and exchange rates. The continuously fluctuating petrol price, diesel price and labour laws have serious implications for the sector.

The second opportunity to earn from agriculture is by being a primary producer, or farmer. There are commercial farms and small-scale farmers who produce on land that is less than five hectares in size.

Small-scale farmers are usually part of the informal sector; however, small-scale farmers who produce high-value crops like herbs, garlic, ginger, chili, mushrooms, and more play a major role in South Africa’s formal agricultural sector.

According to Professor Letsoalo, there are provisions for these small-scale farmers. He warns, however, that a small farmer who wants to grow maize typically won't be able to compete with industrial farmers that grow these crops.

One of the gaps that Professor Letsoalo identifies is that the contributions of small farmers in the informal sector are not properly recorded. “They contribute a lot to their communities and townships, but it is not properly recorded.”

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