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Agri Hour

What does move to lockdown level 1 mean for SA agriculture?

───   ELSABÉ RICHARD 05:30 Tue, 22 Sep 2020

What does move to lockdown level 1 mean for SA agriculture? | News Article

As usual on the Agri Hour, Wandile Sihlobo, Chief Economist at the Agricultural Business Chamber of South Africa, Agbiz, provides a weekly insert about the latest on the global as well as local agricultural markets, brought to you by John Deere.


Sihlobo also provides more information about the latest developments in the sector. Here is Sihlobo...


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Sihlobo says the move to ‘level 1’ of the lockdown is welcomed in the broader macroeconomic perspective. This, as level 1 ensures that economic activity in the country continues to normalise progressively across more sectors of the economy. He says when looking at agriculture, the only segment that will likely benefit the most from this move is agritourism.

Agritourism has been hard hit by the pandemic, along with the wider tourism industry. “The agritourism industry comprises of, amongst others, hunting tourism, rural tourism, wine tourism, nature-based tourism, cultural heritage tourism, and adventure tourism. These activities provide additional income to farming businesses and create jobs in rural areas,” explains Sihlobo.

Sihlobo further adds that wine and hunting tourism are some of the most common forms of tourism in the country. He says they have been hit hard by the temporary ban on interprovincial and international travel during various stages of the lockdown as well as the temporary ban on alcohol sales which was recently lifted.

He further explains that “wine producers and farmers, specifically small farms, rely, to a certain extent, on agritourism to diversify income and to boost the sales of their produce. Hence, the impact of the temporary ban on sales and limited movement of people was quite pronounced despite exports having been permitted for the greater part of the lockdown.”

Since international tourists still cannot access South Africa under level 1 of the lockdown, Sihlobo says it is expected that there might be an increase in local citizens exploring the country. He says this could partly be attributed to consumers feeling the need to travel as coronavirus infections start to decline.

Furthermore, Sihlobo mentioned that after various establishments pronounce their specials on social media and other platforms, local tourists are showing up and enjoying such offers. “While local tourists might not boost the rural economy to vibrant levels as before the pandemic, there will nonetheless be an improvement from weeks of limited business activity,” adds Sihlobo.

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