He explains the policy agenda for growing South Africa’s agricultural sector has been clear as far back as 2012 when the National Development Plan (NDP) was released. The NDP sketched out a number of sectors in the economy with high potential for labour-absorbing growth. One such subsector was horticulture, which, among others, had the capacity to grow and create employment along the value chain, including off-farm activity and in agro-processing.

Seven years after the NDP was crafted, nothing has fundamentally changed with respect to the growth opportunities that horticulture presents. The global demand for horticulture and protein-rich food products has increased notably over this period and with this, South Africa’s agricultural exports have also increased, amounting to US$ 10.6 billion in 2018, representing a 17% increase from 2012, the year the NDP was released, says Sihlobo. 

The country’s gains have largely been underpinned by the subsectors that were identified as potential drivers of South Africa’s agricultural economy – namely horticulture, as well as wine, grains and wool, amongst others. But the growth in exports has not been evenly distributed from a geographic and spatial point of view.

He also refers to the Crop Estimate Committee (CEC) that didn’t present any surprises when it released its eighth 2018/19 summer crop production estimates last week. Maize, soybeans and sunflower seed production are estimated at 11.1 million tonnes, 1.2 million tonnes and 680 940 tonnes, which are 11%, 24% and 21% lower than the previous season. This notable decline is because of poor yields as a result of dryness in most parts of the country during the season.

Here is Sihlobo…

See PODCAST below

OFM News