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Agriculture

Agri podcast: 6 000 jobs lost in Free State agriculture sector

───   ELSABÉ RICHARD 14:27 Wed, 30 Mar 2022

Agri podcast: 6 000 jobs lost in Free State agriculture sector | News Article
Photo: Photo Express

There was a decline of 6 000 jobs in the agriculture sector in the Free State during the fourth quarter of 2021.

This is according to Agri SA, following the release of employment figures for the fourth quarter of 2021 by Statistics South Africa. The organisation adds 19 000 jobs were shed in the Western Cape, and 9 000 in Limpopo. However, various other provinces showed growth in employment figures for agriculture, with employment in the sector increasing by 38 000 jobs quarter-on-quarter, from 829 000 jobs in quarter three to 868 000 in quarter four of 2021.

Fuel prices in South Africa are set to increase again next month. Fuel is an important input for the agricultural sector and accounts for between 11 and 13% of grain input costs. According to Wandile Sihlobo, chief economist at the Agricultural Business Chamber, the underpinning driver of the fuel price increase is the rising Brent crude oil price on the back of current geopolitics, a disruption in oil production in the Middle East and supply constraints that existed before the intensification of the Russia-Ukraine war, amongst other factors. He says that on 6 April, South Africa's petrol and diesel prices will likely increase by R1,93 and R2,96 cents per litre, respectively. Sihlobo adds that while this fuel price uptick will increase farmers' input costs, it, fortunately, comes at a quiet period in the summer crop-producing areas where the crops are still maturing.

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While South Africa already exports wine to the US and Europe, these markets are currently under pressure due to logistical challenges and Covid-19 trade restrictions, amongst other issues. For this reason, wine exporters have been urged to look to other African countries instead to export wine. Trade with countries in the Far East had also not returned to normal, with various countries still enforcing trade restrictions due to Covid-19. Against this background, it is said that tourism to East African countries, such as Kenya and Tanzania, would grow, which in turn would increase the demand for good food and wine in these regions.





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