See PODCAST below

In this news section this week, Farmer’s Weekly takes a look at the growing importance of the agriculture sector as an employer in South Africa. This was re-emphasised by Statistics South Africa’s employment figures for the fourth quarter of 2021. Ryan says that the data shows that employment in the sector increased by 38 000 jobs quarter-on-quarter, from 829 000 in the third quarter to 868 000 jobs in the fourth quarter.

However, while the agricultural sector saw overall growth in employment figures, 19 000 jobs were shed in the Western Cape, 6 000 in the Free State and 9 000 jobs were shed in Limpopo.

Free State Agriculture says that the loss in jobs in the province was partly a result of the recent hike in the national minimum wage which has led to farmers relying more on mechanisation.

Another news story takes a look at the lack of certainty about whether South Africa will plant more wheat in the coming season despite the impact of the Russia/Ukraine conflict on global suppliers. Analysts indicate that South Africa produced 2.3 million tons of wheat over the last season – which was the largest harvest in 20 years. Ryan says this has resulted in a slight reduction in imports from 1.52 million tons in the 2020/21 marketing year to 1.48 million tons this season. She adds that some analysts say that due to the high cost of fuel and fertilisers it is unlikely that more wheat will be planted during this coming season.

Furthermore, this edition sheds some light on rhino conservation. A public-private partnership between the South African Anti-Money Laundering Integrated Task Force (SAMLIT), the Financial Intelligence Centre, and Investec has resulted in 12 arrests and a seizure of 78 rhino horns, ivory and other wildlife products. Ryan explains that this partnership was able to support the Hawks' operations, including increased monitoring of airports and harbours, which led to the seizure of rhino horns before they could leave the country as well as multiple arrests.

Lastly, Farmer’s Weekly also takes a look at prospective cannabis farmers and the folding of cannabis businesses. Ryan says that these businesses tend to fail mainly due to the hidden costs in the industry that experts say producers are not aware of when they draw up their business plans.

There is a prevailing perception that R4 million was sufficient to start cannabis farming. However, Danie Nel, CEO of Afriplex, says that the true cost was closer to R20 million. He says cannabis is a very sophisticated crop that requires a sophisticated set-up. There are also compliance and certification costs and salaries of full-time pharmacists who need to be employed on-site, which are what Nel calls hidden costs that producers tend not to consider when drawing up their business plans.

OFM News