In recent years, the agricultural sector has undergone drastic changes. Several processes have reversed the impact of discriminatory legislation, while other initiatives have been implemented to deregulate and liberalise the sector. The main policy shifts include:

  • liberalising agricultural trade and deregulating the marketing of agricultural products
  • implementing land reform policies and programmes
  • abolishing certain tax concessions and reducing direct subsidisation
  • reforming the institutions governing the sector
  • mechanisms to introduce a minimum wage for farm workers.

Although these changes have led to increased competitiveness in the sector, certain structural weaknesses still exist. To consolidate the gains and address remaining weaknesses, the departments of Agriculture and Land Affairs, in collaboration with the National African Farmers' Union (NAFU) and Agri SA, have developed a common long-term vision of a united and prosperous agricultural sector. The medium-term goal is to generate equitable access and participation in a globally competitive, profitable and sustainable agricultural sector.

Planning to achieve this goal began in 2002. Programmes embracing the following basic premises and values will be generated and implemented:

  • security of tenure for present and future participants in the sector
  • equitable access to resources
  • fair reward for effort, risk and innovation
  • the sustainable use of natural and biological resources
  • market-driven direct business activity and resource allocation
  • predictable and consistent policy environment.

In terms of the Constitution of South Africa, 1996 (Act 108 of 1996), agricultural support to farmers is vested in the provincial governments, which provide farmers with a range of services. The national Government retains the overall regulatory and policy functions and agricultural trade and marketing.

Sector plan for agricultural policy

In 2001, a Strategic Plan [PDF] was presented to President Thabo Mbeki. The importance of the Plan lies in the fact that it unites government and industry in sharing a common perspective on the sector's strategic issues and farmers' organisations.

The vision for the sector implies sustained profitable participation in the South African agricultural economy by all stakeholders. It recognises the need to maintain and increase commercial production, to build international competitiveness and to address the historical legacies that resulted in skewed access and representation.

The Strategic Plan [PDF] consists of three core strategies:

  • equitable access and participation: the objectives of this strategy are to ensure equitable access to and participation in agricultural opportunities; to deracialise land and enterprise ownership; and to unlock the full entrepreneurial potential in the sector.
  • global competitiveness and profitability: the aim of this strategy is to enhance profitability through sustained global competitiveness in the agricultural sector's input supply, primary production, agriprocessing and agritourism industries.
  • sustainable resource management: this strategy aims to enhance farmers' capacity to use resources in a sustainable manner and to ensure the wise use and management of natural resources.

As a first step to move the Strategic Plan [PDF] closer to implementation, the role-players identified the following priority programmes and actions:

  • implementing a broad-based safety and security strategy for good working and social stability, trust and confidence
  • fostering a shared vision on agriculture, good governance and social partnerships
  • fast-tracking a programme of land redistribution for agricultural development and processes of empowerment for targeted groups
  • transforming agricultural research, transfering technology and education and extension to be more responsive to markets
  • redefining the mandate of agricultural marketing and international trade in the post-control board era against great global competition and demands for market access, infrastructure and information
  • building credible agricultural statistical and economic analysis systems that will be accessible to all farmers and enterprises
  • building an agricultural risk management system to ensure that agricultural enterprises will recover, grow and develop after natural disasters
  • developing an effective integrated risk management system for plant and animal health systems, price and income systems and natural disasters
  • establishing the integrated rural financial services systems
  • targeting investments in rural development nodes to provide livelihoods, infrastructure, irrigation, electricity, telecommunications, transportation, training and skills development
  • establishing an agricultural co-operation programme for Africa to spearhead the role of agriculture in the New Partnership for Africa's Development
  • lowering the overall cost of production.

The following outcomes are expected from the successful pursuit of these strategic objectives:

  • increased wealth creation in agriculture and rural areas
  • increased sustainable employment in agriculture
  • increased income and increased foreign exchange earnings
  • reduced poverty and inequalities in land and enterprise ownership
  • improved farming efficiency
  • improved national and household food security
  • stable and safe rural communities, reduced levels of crime and violence, and sustained rural development
  • improved investor confidence and greater domestic and foreign investment in agricultural activities and rural areas
  • pride and dignity in agriculture as an occupation and sector.

The partners commit themselves to providing the necessary time, financial and material resources to see to the successful implementation of the Strategic Plan [PDF].

Agricultural economy  

South Africa has a dual agricultural economy, comprising a well-developed commercial sector and a predominantly subsistence-orientated sector in the rural areas. About 13% of South Africa's surface area can be used for crop production. High-potential arable land comprises only 22% of the total arable land. Some 1,3 million hectares (ha) are under irrigation.

The most important factor limiting agricultural production is the availability of water. Rainfall is distributed unevenly across the country. Almost 50% of South Africa's water is used for agricultural purposes. The country can be subdivided into a number of farming regions according to climate, natural vegetation, types of soil and the type of farming practised. Agricultural activities in these regions range from intensive crop production and mixed farming in winter-rainfall and high summer-rainfall areas, to cattle-ranching in the bushveld and sheep-farming in the more arid regions.

Primary agriculture contributes about 2,6% to gross domestic product (GDP) of South Africa and almost 9% of formal employment. However, there are strong backward and forward linkages into the economy, so that the agro-industrial sector is estimated to comprise 15% of GDP.

Today, South Africa is not only self-sufficient in virtually all major agricultural products, but in a normal year it is also a net food exporter. However, with very low average rainfall and high variability within and between seasons, agriculture is vulnerable to the effects of drought. When there is a major drought, strong downward pressure is placed on GDP. In good years, however, the contribution of agriculture can be vital to lifting the economy.

During 2001, the seasonally adjusted real value added by the agriculture, forestry and fishing industry declined by 3,1% compared with 2000, mainly ascribed to a decline in the production of maize and other field crops.

Despite the farming industry's declining share of GDP, it remains vitally important to the economy, development and stability of the southern African region.

For the past five years, agricultural exports have contributed on average approximately 8% (7% in 2001) of total South African exports.

Normally, South Africa is a net exporter of agricultural products in Rand value. The largest export groups are raw sugar, fresh grapes, citrus, nectarines, wine and deciduous fruit such as apples, pears, quinces, apricots and peaches. Other important exports include avocados, plums, maize, black tea, ground-nuts, meat, pineapples, tobacco, wool and cotton.

Sustainable resource use and management

South Africa, at most times, is able to meet its own food requirements, with considerable food exportation. However, the inherent limitations of the natural resource base and variable climate require land users to be very circumspect in how they use and manage these resources so as to retain their productive capacity. Ninety percent of South Africa can be regarded as arid, semi-arid and dry sub-humid, and it is these areas where desertification can occur.

Improved information about the potential and limitations of the natural resource base is essential for good management decisions. An inventory of soils, terrain forms and climate (land types) was initiated by the Agricultural Research Council's (ARC) Institute for Soil, Climate and Water. Data from this and more detailed soil and climate surveys are integrated into a comprehensive Geographic Information System (GIS), which allows for assessment of agricultural potential and land suitability.

Although it is generally recognised that soil degradation is a problem, there has been little reliable data collected systematically over time. Soil degradation is largely related to the decline in soil organic matter. Mono-culture cereal production, intensive tillage, short to no fallow and limited crop rotation have contributed to this in the commercial sector. Excessive fuel-wood collection, inappropriate land use, population density and overgrazing are the main causes of soil degradation in the communal areas. In addition, it is estimated that about 60% of the cropland area is moderately to severely acid, and probably at least 15% is affected by subsoil acidity.

Physical degradation of South Africa's agricultural land results in soil erosion, by both water and wind. It has been estimated that water erosion affects about 6,1 million ha of cultivated soil in South Africa, and wind erosion about 10,9 million ha. Another degradation problem is compaction within the soil profile, especially on fine sandy soils where, for example, maize yields can be adversely affected by some 30% to 40%. Soil crusting causes seedling emergence problems for many crops, and where it has been alleviated results in a 60% increase in wheat yield.

Urban spread, industrialisation and mining also impact on the sustainable use of agricultural land. Opencast coal-mining in Mpumalanga is an example of this pressure.

The Conservation of Agricultural Resources Act, 1983 (Act 43 of 1983), allows the national Department of Agriculture to exercise control over the utilisation of South Africa's natural agricultural resources. This legislation provides for the conservation of natural agricultural resources through maintaining the land's production potential; combating and preventing erosion; and protecting vegetation and combating weeds and invader plants. The Act generally applies to all agricultural land in South Africa, except for the sections dealing with weeds and invader plants that also apply to urban areas.

Specific requirements and prohibitions applicable to land-users are detailed in control measures published as regulations of the Conservation of Agricultural Resources Act, 1983. Certain activities, such as the cultivation of virgin land and burning of veld, are subject to prior approval, while others are prescribed as 'best practice' in the interest of sustainable land use. The Act further provides for the implementation of schemes, of which two are still functioning. These are the Weed Control Scheme that is administered nationally and the Soil Conservation Scheme that is administered by the provinces.

In order to promote natural agricultural resource conservation, policies, norms, standards and guidelines have been developed, as has a national agricultural resource audit division and a conservation GIS. At farmer level, conservation committees can be appointed to promote the conservation of the natural agricultural resources in the area concerned in order to achieve the objectives of the Act. The national Department of Agriculture's Inspection Service does compliance monitoring on farm level in all provinces.

South Africa is a signatory to a number of international agreements and conventions that require the matter of sustainable resource use and management to be addressed in a responsible way. Agenda 21 is an action plan and blueprint for sustainable development that was one of five documents adopted by more than 178 governments at the United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro in 1992. Specific to sustainable resource use is Chapter 14 on Promoting Sustainable Agriculture and Rural Development. The international conventions that apply to aspects of sustainable resource use are the Convention on Biological Diversity, the UN Framework Convention on Climate Change and the Convention to Combat Desertification (CCD). The CCD requires South Africa to draw up a National Action Programme, which will be integrated into a regional programme for the Southern African Development Community (SADC) region. All these activities are receiving attention under the leadership of the Department of Environmental Affairs and Tourism, involving all stakeholders including the national Department of Agriculture and the provinces.

One of the key programmes of the national Department of Agriculture that addresses sustainable use and management of the natural resources is the National LandCare Programme (NLP).

Research institutes of the ARC and some universities are contracted to undertake various research projects on matters relating to the sustainable use of agricultural resources. The practices of minimum tillage and no-till crop production are again being actively promoted in KwaZulu-Natal and Mpumalanga, aiming at not only commercial farmers but also smaller and subsistence farmers.

The National Water Act, 1998 (Act 36 of 1998) [PDF], places a strong emphasis on equity in access to water, including water for agriculture. A feature of the development of water sources for agriculture has been the lack of co-ordination of initiatives and support interventions.

The draft policy on co-ordinated implementation strategies in support of small-scale farmers was completed in October 2001. It is titled Mainstreaming the Marginalised through Agricultural Water Use. The national Department undertook two projects to improve stockwater provision to small-scale farmers. In terms of the projects, existing boreholes are rehabilitated, pumps repaired and new boreholes will be provided where water audits indicate that additional supplies are needed. Operations commenced in the Sekhukhune Cross-border and Chris Hani districts, and will be expanded to the eastern and Kalahari-Kgalagadi districts. Eventually all the priority nodes will be included. Boreholes equipped with motorised pumps were provided to resettlement farms in the Moretela and Odi areas in the North West.

Production

In general, the prices of agricultural products increased by 13% from 2000 to 2001. Prices of field crops increased by 23%, horticultural products increased by 6%, and prices of livestock products increased by 11%. The net income of the farming sector increased from R6,538 million in 2000 to R9,600 million in 2001. The country is self-sufficient where primary foods is concerned, with the exception of wheat, oil-seeds, rice, tea and coffee.  

Field crops and horticulture

The largest area of farmland is planted with maize, followed by wheat and, to an extent, sugar-cane and sunflowers.

The maize industry plays a very important role in the economy. It is the largest locally-produced field crop and most important source of carbohydrates in the Southern African Customs Union (SACU) for animal and human consumption. South Africa is the main maize producer in SACU with an average production of approximately 9,0 metric tons (mt) per annum over the past 10 years.

It is estimated that more than 9 000 producers of maize are responsible for a major part of the South African crop, while the rest is produced by many thousands of small-scale producers.

Maize is produced mainly in the North West, the north-western, northern and eastern Free State, the Mpumalanga Highveld and the KwaZulu-Natal Midlands. Local consumption of maize (commercial) amounts to approximately 7,4 mt and surplus maize is usually exported.

Wheat is produced in the winter-rainfall areas of the Western Cape and the eastern parts of the Free State. At present, production in the Free State is the highest, but there are considerable annual fluctuations.

Barley is produced mainly on the southern coastal plains of the Western Cape. The area where barley is planted was estimated at 78 990 ha for the 2001/02 production season, and production was estimated at 157 000 tons (t).

Ground-nuts are mainly grown in the Free State, North West and Northern Cape. Ground-nut plantings decreased by 57%, from 165 250 ha in 2000/01 to 94 160 ha in 2001/02.

South Africa is the world's 11th-largest producer of sunflower seed. Sunflower seed is produced in the Free State, North West and on the Mpumalanga Highveld as well as in Limpopo (formerly the Northern Province).

For many years, Oudtshoorn and De Rust have been the only areas in South Africa where lucerne seed of reasonable quantity was produced. Today, the Oudtshoorn district is responsible for about 90% of the lucerne seed produced in South Africa. A lucerne plant can produce 100 to 120 lucerne bales per hectare every three weeks, provided that enough water is available.

Sorghum is cultivated mostly in the drier parts of the summer-rainfall areas such as Mpumalanga, Free State, Limpopo and North West.

South Africa is ranked as the world's 12th-largest sugar producer. Sugar-cane is grown in 15 cane-producing areas extending from Northern Pondoland in the Eastern Cape through the coastal belt and Midlands of KwaZulu-Natal to the Mpumalanga Lowveld. An estimated 2,5 mt of sugar is produced per season. About 50% of this is marketed in southern Africa. The remainder is exported to numerous markets in Africa, the Middle East, North America and Asia. Based on actual sales and selling prices in 2000/01, it is estimated that the South African sugar industry contributed R1,9 billion to South Africa's foreign exchange earnings.

Deciduous fruit is grown mainly in the Western Cape, as well as in the Langkloof Valley in the Eastern Cape. Smaller production areas are found along the Orange River and in the Free State, Mpumalanga and Gauteng. This industry's export earnings represent 15% of the country's total earnings from agricultural exports. In 2001, apples made up the largest percentage of the crop (43%), while grapes totalled 21% and pears 19%. Approximately 79% of the total crop was produced in the Western Cape, 11% in the Northern Cape and 8% in the Eastern Cape.

The wine and spirits industry in South Africa is a very important part of the agricultural sector. South Africa is ranked as the eighth-largest wine producer in the world. It is also pioneering an integrated production system, including an environmentally-friendly approach to wine-making. In 2001, South African wine-growers produced a harvest of 7,5 hectolitres of which 65% was used in wine-making. About 106 331 ha of land are under cultivation with about 314 million vines. About 86% of wines are still produced by co-operatives. Some 4 390 primary wine producers employ about 53 000 people. According to the South African Wine and Spirits Export Association, the export of white wine increased from 20 million litres (ml) in 1992 to 177 ml in 2001.

The long-awaited Wine and Spirits Agreement between South Africa and the European Union (EU) was signed on 28 January 2002.

It is anticipated that the Agreement will improve market access into the large European market for South African wine and spirits. Applying a duty-free tariff quota of 42 ml annually will ensure better access for South African wines. In addition, the EU will make available an amount of Euro15-million for restructuring the South African wine and spirits industry. The signing of these agreements is an essential step in formalising South Africa's co-operation with the EU in the wine and spirits trade.

Since 1 January 2000, the Directorate: Marketing of the Department of Agriculture has issued export permits for sparkling wines in terms of the Trade, Development and Co-operation Agreement (TDCA) between South Africa and the EU for 472 500 litres to be exported at reduced levels of duty to the European community.

Export permits for 42 020 000 litres white and red wine have been issued since March 2002, when the Wine and Spirits Agreement came into effect.

Part of the Agreement involves the phasing out of names traditionally used in South Africa for specific types of wines. The names port and sherry will be phased out over five years for exports to non-SADC markets, starting from 1 January 2000. It must be phased out for all markets after 12 years. South Africa will also phase out the names grappa, ouzo, korn/kornbrand, j„gertee and pacharan within five years of entry into the agreements. South African GIS will also be recognised and protected by the EU.

The EU is the largest destination for South African wine and spirits accounting for well over 75% of total exports in this sector. At the same time, it is the largest supplier of imported wine and spirits to the South African market.

Citrus production is largely limited to the irrigation areas of Limpopo, Mpumalanga, the Eastern and Western Cape and KwaZulu-Natal.

Pineapples are grown in the Eastern Cape and northern KwaZulu-Natal. Other subtropical crops such as avocados, mangoes, bananas, litchis, guavas, pawpaws, granadillas, and macadamia and pecan nuts are produced mainly in Mpumalanga and Limpopo at, among other places, Levubu and Tzaneen, and in the subtropical coastal areas of KwaZulu-Natal and the Eastern Cape.

About 40% of the country's potato crop is grown in the higher-lying areas of the Free State and Mpumalanga. Limpopo, the Eastern, Western and Northern Cape and the higher-lying areas of KwaZulu-Natal are also important production areas. About two-thirds of the country's total potato crop is produced under irrigation.

Of the total crop, 45% is delivered to fresh produce markets and a further 16% is processed. The South African potato-processing industry grew by more than 100% over the past five years. This growth took place primarily in the three main disciplines of the processing industry, namely crisps, chips and French fries. Production of frozen French fries (41% of the total processed potato products in South Africa) has increased over the last couple of years due to an increase in fast food consumption. The growth in production is also due to the expansion of existing facilities.

In terms of gross income to the grower (apart from potatoes, which contribute 40%), tomatoes, onions, green mealies and sweetcorn are probably the most important vegetable crops.

These crops contribute 39%, combined, to the income derived from vegetables. Tomatoes are produced country-wide, but mainly in Limpopo, the Mpumalanga Lowveld and middleveld, the Pongola area of KwaZulu-Natal the southern parts of the Eastern Cape, and the Western Cape.

Onions are grown in Mpumalanga, in the districts of Caledon, Ceres and Worcester in the Western Cape, and at Venterstad and the adjoining areas of the southern Free State.

Cabbages are also grown country-wide, but are more concentrated in Mpumalanga and the Camperdown and Greytown districts of KwaZulu-Natal.

Cotton is cultivated in Mpumalanga, Limpopo, Northern Cape, KwaZulu-Natal and North West. It constitutes 74% of the natural fibre and 42% of all fibre processed in South Africa. Cotton is grown under irrigation as well as dry-land conditions. Cotton under irrigation usually contributes almost as much to the national crop as dry-land conditions, although the number of hectares under dry-land conditions are much more than hectares under irrigation. Seventy-five percent of local production is harvested by hand.

Virginia tobacco is produced mainly in Mpumalanga and Limpopo, with smaller quantities of Oriental tobacco being produced in the Western and Eastern Cape. There are more than 1 000 growers in the country, who produce an annual average of 33 million kilograms (kg) on about 24 000 ha of land. The crop represents 173 different grades of Virginia and five different grades of Oriental tobacco.

Honeybush tea grows mainly in the coastal and mountainous areas of the Western Cape but also in certain areas of the Eastern Cape. From a small beginning in 1993, the honeybush has grown to a commercial crop, with a production of more than 100 t of processed tea per annum. In the last eight years, the industry has seen an improvement in the quality of tea and the establishment of export standards, construction of a large processing and packaging facility in Mossel Bay, increased consumer awareness, appearance of several brand names on supermarket shelves and a growing overseas market.

The South African Honeybush Tea Association was established in 1999 to enable producers of this beverage to formalise their industry in response to the growing demand for their product.

The ARC is developing a method to create interspecies crosses between different honeybush tea species.

Rooibos tea is an indigenous herb produced mainly in the Cedarberg area of the Western Cape. In 2001, the demand for rooibos was estimated to be 4 000 t up from 2 800 t exported in 2000. The active producers of rooibos tea are estimated at 300, ranging from small to large farming enterprises.

Ornamental plants are produced throughout the country, but production aimed particularly at the export market is concentrated mostly in the central part of Limpopo, Mpumalanga and Gauteng. Ornamental plant production includes nursery plants, cut flowers and pot plants. The country's most important plant export products are gladioli, proteas, bulbs, chrysanthemum cuttings and roses.

South Africa is the world's leading exporter of proteas, accounting for more than half of all proteas sold on the world market. Most proteas grown in South Africa are sold on the European market, with Germany being the biggest consumer. Australia, New Zealand and Hawaii are, however, challenging South Africa as the dominant producer of proteas.

Cut flowers, foliage and dried flowers from the Cape floral kingdom (fynbos) are supplied to world markets. Cape fynbos serves as a gene pool for flowers such as freesias, Guernsey lilies and gladioli. Cultivation of fynbos earns the Western Cape valuable foreign currency.

In South Africa, almost 200 000 ha of fynbos is harvested from the wild annually, with another 4 200 ha under intensive and extensive cultivation. The industry accounts for 20 000 direct and indirect job opportunities.

Dried flowers are an important section of the fynbos industry. A large variety of dry flower species, used for this purpose, such as the everlasting conebush (Leucadendron) and other suitable types, are produced.

Other flowers indigenous to South Africa are also gaining recognition on the international market. In 1999, two of the top flowers sold in the Netherlands were of South African extraction, namely the gerbera (Barberton daisy) and freesia.

Amaryllis bulbs are also a lucrative export, for instance to the United States of America (US).  

Livestock

Livestock is farmed in most parts of South Africa. Numbers vary according to climatic conditions. Stock-breeders concentrate mainly on the development of breeds that are well adapted to diverse climatic and environmental conditions. The latest estimates for cattle and sheep are 13,5 million and 28,8 million respectively. South Africa normally produces 85% of its meat requirements, while 15% is imported from Namibia, Botswana, Swaziland, Australia, New Zealand and European countries.

Dairy-farming is practised throughout South Africa, with the highest concentration of dairy farms in the eastern and northern Free State, the KwaZulu-Natal Midlands, the Eastern and Western Cape, the Gauteng metropolitan area, and the southern parts of Mpumalanga. Holstein Friesians (76%) and Jerseys (16%) are the predominant dairy breeds, followed by Ayrshires and Guernseys.

The South African Milk Federation co-ordinates industry matters, including the information and research functions, financed by means of voluntary levies. Market forces determine prices. The dairy industry is an important employer as the some 4 300 milk producers employ about 60 000 farm workers and indirectly provide jobs to some 40 000 people. Milk production for 2001/02 was estimated at 1,97 ml.

Cattle ranches are found mainly in the Northern and Eastern Cape, parts of the Free State and KwaZulu-Natal and Limpopo. The indigenous Afrikaner and Nguni and the locally-developed Bonsmara and Drakensberger are popular beef breeds, but British, European and American breeds, such as Brahman, Charolais, Hereford, Angus, Santa Gertrudis, Simmentaler and Sussex are maintained as pure breeds and used in cross-breeding.

The Taurus Livestock Improvement Co-operative (in Irene, Gauteng) provides the country's beef farmers with an annual average of some 110 000 units of semen and the dairy industry with 580 000 units of semen for use in artificial insemination.

Sheep-farming is concentrated mainly in the Northern and Eastern Cape, Western Cape, Free State and Mpumalanga, with Ermelo in Mpumalanga being one of the largest wool-producing districts. Most sheep are fine-woolled Merinos (50%). Other breeds include the locally-developed Afrino (a woolled mutton breed adapted to arid conditions), the South African Mutton Merino, the Dohne and the Merino Land Sheep. The minor wool breeds, namely the Dorper, a highly productive, locally developed mutton breed for arid regions, and the Merino account for most of South Africa's mutton production.

The indigenous meat-producing Boer goat accounts for about 40% of all goats, and the Angora goat, used for mohair production, for the remaining 60%. South Africa has about 3 500 Angora farmers.

Compared with the mainly extensive cattle and sheep industries, the poultry and pig industries are more intensive and are located on farms near metropolitan areas such as Gauteng, Durban, Pietermaritzburg, Cape Town and Port Elizabeth. The predominant pig breeds are the South African Landrace and the Large White.

South Africa's poultry meat production is estimated at 980 000 t. Broiler production contributes about 82% to total poultry meat production with the rest made up of mature chicken slaughter (culls), small-scale and backyard poultry production, ducks, geese and turkeys, and other specialised white meat products.

The number of broilers slaughtered by commercial producers during 2001 is estimated at 535 million. The gross value of broilers and other fowls slaughtered during this period is estimated at R9 297 million, which makes it the most important contributor to the value of agricultural production in South Africa.

South Africa accounts for 78% of world sales of ostrich products namely leather, meat and feathers. The Klein Karoo Co-operative is the world's largest producer and exporter of ostrich products. According to the Co-operative, there is a big increase in demand for ostrich meat abroad.  

Game-farming, aquaculture and bee-keeping

South Africa has more game and a wider variety of game species than most countries. Game-farming has grown over the years, and today it is a viable industry with great economic potential. The main game areas are regions in Limpopo, North West, Mpumalanga, Free State, Eastern Cape, the Karoo, the Kalahari in the Northern Cape, and the thorn scrub of KwaZulu-Natal.

Despite periodic droughts in the past, game numbers have consistently increased. The South African Game Organisation, as well as local organisations in each province, service the industry.

A descriptive game production model has been developed for optimising intensive animal production on game farms. The model has the potential to increase the global produce of the game industry by between 8% and 15%.

The aquaculture industry in South Africa continues to make meaningful progress in cultivation technology, marketing strategy, marketing practice and scientific innovation. Mussels, trout, oysters and waterblommetjies (Cape pondweed) are the major aquaculture species. Mussel-farming occurs mainly at Saldanha Bay. The Abalone Farmers' Association of South Africa has been instrumental in formulating product standards.

It was announced in March 2002 that the 111 ha of land formerly known as the Tooth Rock weapons range near Saldanha in the Western Cape had been successfully leased to Clear Seas Aquaculture for the development of an abalone farm.

The property will be leased for a period of 10 years at R875 000 per annum (6% annual escalation) with an option to purchase the property after a 10-year period at market-related value.

According to their proposal, Clear Seas Aquaculture will, over a five-year period, invest nearly R59 million in the establishment of a 120 t abalone farm for the export market, creating sustainable job opportunities for at least 36 people.

The South African honey industry is still small, worth some R27 million annually. The ARC presents bee-keeping courses and provides on-farm support for between 12 and 18 months.  

Production input  

Fertilisers, farm feeds and agricultural and stock remedies are known as agricultural production input. A Draft Bill makes provision for the registration of products such as animal feeds, fertilisers and pesticides to enhance agricultural production and for the registration of persons involved with the application of such products. The Draft Bill will repeal the Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies Act, 1947 (Act 36 of 1947), and was expected to be published for comment in 2002.

The internationally proposed classification and labelling systems have been accepted for agricultural and stock remedies. These systems, locally referred to as the RSA Classification and Labelling System, have been in use since 1993. The System also makes provision for the use of CropLife International's pictograms on product labels.

Complaints about a specific agricultural production resource are investigated immediately, and administrative or legal action is taken against offenders when necessary.

Samples of all raw materials and animal feeds are taken regularly and tested for pathogenic contamination. This action, and the steps that follow when contamination is detected, assures the public of food safety.  

Veterinary services  

State Veterinary Services constantly guard against the introduction of animal diseases from outside South Africa, while existing animal diseases, which may be detrimental to the economy of South Africa and to human and animal health, are controlled and combated. Stock in the high-risk areas is inspected at short intervals.

The Directorate: Animal Health of the national Department of Agriculture sets norms and standards for the delivery of veterinary services in South Africa.

The Animal Diseases Act, 1984 (Act 35 of 1984), provides the necessary powers to control diseases such as foot-and-mouth disease (FMD), swine fever, rabies and anthrax. After the outbreak of FMD in September 2000, South Africa is once again applying for recognition as a FMD-free zone, excluding the Kruger National Park and surrounding game reserves.

Surveillance systems are in place to ensure that all agricultural products entering and leaving the country are free of disease and thus safe for human consumption. All ports are thoroughly monitored, making sure that imported and exported goods are disease-free.

Trade with various countries in livestock products has resumed in huge volumes.

Although national livestock disease schemes have reduced the incidence of both tuberculosis and brucellosis since the sixties and early seventies, these diseases are still a big concern. Comprehensive attempts are made to control the increasing incidence of rabies throughout South Africa but especially in KwaZulu-Natal. A new rabies vaccination policy was instituted whereby all dogs and cats must be vaccinated against rabies.

The Meat Safety Act, 2000 (Act 40 of 2000) [PDF], stipulates that meat inspections and hygiene control must be carried out by qualified meat inspection personnel at abattoirs to prevent the transmission of diseases through meat to humans and animals.

The Directorate: Food Safety and Quality Assurance prescribes and audits essential standards implemented at provincial level. Imported and exported meat is monitored, and a national residue-monitoring programme was implemented.

The Directorate: Onderstepoort Biological Products (OBP) is a State-owned public company. It has the capacity and the technology to produce veterinary vaccines for the whole of Africa. The OBP is the sole or main producer of at least 15 vaccines for African animal diseases.

It provides large quantities of vaccines to fight major outbreaks of diseases such as CBPP (lung-sickness in cattle), lumpy skin disease, rift valley fever, horse sickness and anthrax. The OBP has joined the Pan African Vaccine Network to supply rinderpest and lung-sickness vaccines for Africa. The OBP is also involved in projects of the Office International des Epizooties (OIE), the World Health Organisation and the EU to supply vaccines to African countries.

OBP sales have increased in the last three years from 8% to around 37%.

The ARC is involved in the development of a new generation vaccine against Newcastle disease while major progress has been made towards a recombinant vaccine against heartwater. Heartwater is the most important tick-borne disease affecting livestock in the country.

The ARC is also involved in the development of a ethnoveterinary database.

Pest control  

The Department of Agriculture is involved in the chemical and biological control of invader plants. In total, 48 000 ha of Queen of the Night infestation has been controlled, partly in co-operation with the Working for Water Programme of the Department of Water Affairs and Forestry.

The Department is active in a campaign to control the weed Cereus jamacura, which has invaded an area of approximately 255 000 ha. It involves four provinces stretching from Loskop Dam in the east to Zeerust in the west, and from Modimolle (formerly Nylstroom) in the north to Hartbeespoort Dam in the south. The cactus seriously reduces groundwater supply and the agricultural potential of the land. In some parts, the weed is also being controlled in collaboration with the Working for Water Programme.

The Department is actively spreading biological control agents on other weed species such as Harissia martinii, Sesbania punicea and some aggressive Opuntia spp.

The ARC is involved in:

  • the successful biocontrol of red water fern and Acaciapycnantha
  • a new field guide for alien plant invaders
  • the registration of Garlon 4 to control Prosopis spp. and Ulex europaeus.

Host-specificity testing was completed for the leaf-mining fly Calycomyza eupatorivora, for the biological control of chromolaena in South Africa and permission was obtained to release five new species of biological control agents against their target weeds.

The Plant Pathogenic and Plant Protecting Bacterial Culture has been registered with the World Federation of Culture Collections.

Migratory pest control

In terms of the Agricultural Pests Act, 1983 (Act 36 of 1983), the Department is continuously involved in the control of migratory pests, such as the quelea, locust and blackfly.

The South African Pest Control Association (SAPCA) is the official representative of the pest, termite and woodborer control industries. All SAPCA-qualified inspectors have to apply for registration with the Department of Agriculture.

South Africa liaises with other countries and international organisations to ensure technology transfer on the control of pests.

Marketing  

In order to achieve the Government's stated aim with regard to the upliftment of small, medium and micro enterprises (SMMEs) and the commercialisation of the emerging farming sector, the Subdirectorate: Domestic Marketing was created in the Department of Agriculture. One of the first tasks of this Subdirectorate was to plan and organise a marketing course for extension officers. This was done in close collaboration with the Food and Agricultural Organisation (FAO) of the UN. During the course, which ended in February 2002, a total of 914 extension officers and 1 102 farmers were trained in the basic principles of marketing.

In terms of the Marketing of Agricultural Products Act, 1996 (Act 47 of 1996), which replaced the 1968 Marketing Act, all the old control boards (schemes) in terms of the 1968 Act had to be abolished by 5 January 1998.

By the end of 2001, the liquidation process of the schemes had not been completed, as a number of issues pertaining to levy collection and asset ownership still had to be resolved. There is, however, no longer any statutory intervention in terms of the 1968 Act.

Six schemes were extended until 31 July 2002. Liquidation committees had been established for the Meat Board, Wool Board, Maize Board, Deciduous Fruit Board, Wheat Board and Citrus Board.

Some partial deregulation had taken place prior to the implementation of the 1996 Act and some schemes, such as those for bananas, dried beans, eggs, chicory, rooibos tea and tobacco, had been revoked before 1997.

In terms of the Act, certain limited statutory measures may be introduced if the objectives of the Act are advanced and directly-affected groups are consulted.

Since deregulation, statutory measures in respect of records, returns and registration had been introduced in the maize, cotton, winter cereal, oil-seeds, sorghum, wine, deciduous fruit, citrus, dried fruit and wool industries.

Statutory levies were implemented in the cotton, sorghum, wine, deciduous fruit, citrus, dried fruit and winter cereal industries to finance the information and research functions (also the function of generic promotion in the case of wine and cotton).

Several industries that previously made use of statutory intervention no longer do so, and now operate free of control. The Act also provides for control over the sale of certain agricultural products, of certain imported agricultural products, and of other agriculture-related products.

With the task of closing down the boards almost complete, the National Agricultural Marketing Council (NAMC) is considering the integration of disadvantaged and small-scale participants into agriculture's mainstream. It monitors how the market is operating in order to advise on correctional measures.

The NAMC is a statutory body and primarily provides advice to the Minister of Agriculture and Land Affairs. One of the tasks of the NAMC is to provide the Minister with a report on the current status of a specific industry and to make recommendations to the Minister in order to enhance the viability of the relevant industry. The NAMC also has to propose measures to increase the participation of previously disadvantaged individuals in all facets of the agricultural sector.

One way of conducting investigations is through the establishment of committees in terms of Section 7 of the Marketing and Agricultural Products Act, 1996. The benefit of a Section 7 committee is that in such a committee representatives of all the directly affected groups can discuss relevant issues and compile a report for the NAMC. The NAMC then makes recommendations to the Minister.

In 2000/01, the Council established Section 7 committees for the fresh produce, deciduous fruit, dairy, maize and red meat industries. In 2001/02, the Council established Section 7 committees for the wine, flower, citrus and ostrich industries.

Attendance at agricultural shows, farmers' days, conferences and workshops offers the NAMC the opportunity to disseminate information to farmers. Operation Outreach continues as a valuable initiative. In 2001, 10 provincial marketing workshops were held under the NAMC slogan of Market-driven Production Pays.

The Directorate: Plant Health and Quality of the Department of Agriculture is responsible for setting the standards for certain agricultural and agriculture-related products. This includes aspects such as composition, quality, packaging, marking and labelling, as well as physical, physiological, chemical and micro-biological analyses.

These standards are published in terms of the Agricultural Product Standards Act, 1990 (Act 119 of 1990), and the Liquor Products Act, 1989 (Act 60 of 1989), in the form of regulations for products sold on local markets and as standards and requirements for products that are intended for export. The Liquor Products Amendment Bill was expected to be referred to Parliament during 2002.

The Directorate developed the Production Unit Code Registration of production units for deciduous as well as subtropical fruits. This is aimed at ensuring the traceability of the origin of the products. The production unit codes were issued from 1 May 2000.

Another international development to ensure safe food of good quality through good agricultural and manufacturing practices is the control of management systems. Such systems ensure a more structured approach to the control of identified hazards than what can be achieved through traditional inspection and quality procedures.

The Directorate drafted the Draft Food Security Bill to ensure not only food safety but also the quality of agricultural products, including fresh fruit and vegetables, exported within the current control system. By implementing the prevention-is-better-than-cure rule, control is transferred from end-product testing to the design and manufacture of such products.

In any international exchange of plants and plant products, there is a risk that pests and diseases might be introduced into the territory of the importing country. In view of this, the South African Government is a signatory member of various multinational agreements. The most important in terms of safeguarding the country's agricultural resources and natural environment are the International Plant Protection Convention (IPPC) and the World Trade Organisation Agreement on the Application of Sanitary and Phytosanitary Measures (WTO-SPS) [PDF].  

Land administration

The Department of Agriculture, through the Directorate: Farmer Settlement and Development, controls and administers 673 253,1418 ha of State agricultural land.

State agricultural land is divided as follows:

  • some 581 864,2735 ha of land expropriated by the South African Development Trust
  • some 91 388,8683 ha of commercial land purchased from insolvent estates and properties transferred by the Department of Public Works in terms of Section 7 of the Disposal Act, 1961 (Act 48 of 1961).

The primary goal of the Directorate is the internal administration of State agricultural land with the aim of farmer settlement and ownership reform.

Food security  

A decision was taken at the Cabinet Lekgotla of 2000 to design an integrated food security strategy that will streamline, harmonise and integrate actions/programmes that address food security in the country. The Integrated Food Security Strategy [PDF] was adopted at MinMec (forum of national and provincial Ministers), resulting in consultative workshops at national and provincial levels with relevant departments.

A joint plan of action was agreed on with provincial departments of agriculture.

National departments provided a list of their existing food security programmes and committees that could be linked to the Food Security Strategy.

The Integrated Nutrition and Food Security Programme [PDF] targets children under the age of 18 years and was developed within the Social Cluster Working Group led by the Department of Health.

The Food Security Section successfully embarked on a food security awareness campaign where projects were identified. These focused on the 13 nodal areas as identified by the Integrated Sustainable Rural Development Programme (ISRDP) [PDF] and the Urban Renewal Strategy. The second step of the campaign was the launching of Telefood with a concert that was broadcast internationally to create awareness on the plight of poverty in the country and fund-raising towards food security projects specifically for South Africa and the African continent. This was done in collaboration with the FAO of the UN and the SABC.

A database of non-governmental organisations and community-based organisations has been initiated for rolling out food security projects in 2002.

The Draft Food Security Bill was developed in 2001. During working committee discussions with officials from the Human Rights Commission and UN Council for Human Rights, the document was hailed as the first of its kind to comprehensively address all pertinent food-related issues. The Draft Bill will be used as a basis for discussions in Africa and at the UN. Normal procedures on new legislation and policy guidelines will follow when discussions are finalised.

A workshop on food security information systems was held as a way of networking and collaborating towards the development of a food security information system. Priority is given to the establishment of information systems in the nodal areas where food security campaigns were held.

The preparation phase of the Special Programme for Food Security has been completed within the three pilot provinces. Preparations are under way towards the implementation and expansion stage.  

Regional issues

South Africa participated in various training programmes of the Southern African Development Community (SADC) Food Security Training Programme. The country also participates in the Regional Advisory Committee (RAC) of the Programme.

A Regional Food Security Training Programme (RFSTP) has been developed over a five-year period as endorsed by the RAC. As from January 2000, the activities of the RFSTP focus on three main areas: strengthening the supply of food security training services; strengthening the effective demand for training; and developing and sustaining regional markets for food security-related training services.

The SADC has instituted a Subcommittee for Plant Protection, tasked with harmonising phytosanitary requirements in southern Africa. South Africa is also one of some 52 members of the Inter-African Phytosanitary Council which was established in 1954. Regional plant protection organisations such as these are able to provide valuable co-ordination on a localised level for the activities and objectives of the IPPC.  

International issues

As a signatory to the Rome Declaration, South Africa has committed itself to the implementation of the World Food Summit Plan of Action. For this purpose, South Africa reports annually to the World Committee for Food Security. South Africa is also collaborating with the FAO on the implementation of the SPFS within the context of the ISRDP [PDF].

South Africa is an active participant in other international standard-setting bodies vital to its global market share, such as the IPPC and Codex Alimentarius.  

Risk management  

The Department of Agriculture was expected to implement risk management strategies for the agricultural sector in South Africa in 2002.

These strategies cover awareness, avoidance, mitigation and transfer of risks.  

Drought management

There is an overall shift in the orientation of policy to place the responsibility of coping with drought back on the normal production system. This will cause farmers to exercise greater prudence and make themselves less vulnerable to the effects of drought.

A working group to devise a drought strategy has been established.  

Crop insurance

Government is investigating the introduction of a national crop insurance policy to assist farmers to recover from national disasters. Pilot programmes were implemented in 2002.  

Credit and assistance  

The agricultural sector has, to date, been a net borrower, in that it borrows more than it saves. In fact, the total debt of South African farmers has grown by about 10% a year since 1995 ¡ reaching R29,826 million by the end of 2000, compared with R9,495 million at the end of 1984.

The six major sources of credit for farmers are: banks (37%), agricultural co-operatives and agribusinesses (15%), the Land Bank (32%), private creditors (7%), other creditors and financial institutions (6%) and the State (3%).

Agribusiness Promotion and Industry Relations (APIR)

The Directorate: APIR is a newly-established unit in the Department of Agriculture, charged with promoting participation and equity sharing towards an inclusive, equitable and prosperous agricultural sector.

The ultimate aims are:

  • unlocking the economic potential of idle to underutilised resources of emergent groups by
    • instilling self-confidence and self-esteem through organisational skills, basic business management principles and technical skills.
    • encouraging and supporting them to take charge of their life by facilitating the opening of opportunities/markets and accessing productive resources.
    • allowing/affording them the opportunity to contribute to the growth and wealth of their economy. This will be achieved in two ways. At each value chain level, niche enterprises and possible partnerships will be developed. Special training, mentorship support and incentive support packages will be utilised.
  • facilitating restructuring/expansion of existing agribusinesses to enhance their competitiveness and contribution to the sector as well as the sector's contribution to the economy as a whole.

The objectives are to:

  • develop a national agribusiness policy framework for an inclusive, equitable and prosperous agricultural sector
  • establish a legislative framework for managing relationships/partnerships within the sector
  • provide co-ordinated support packages in niche enterprise development; project establishment/maintenance support; incentive schemes towards reducing transaction costs and risk management; skills development; and capacity-building/mentorship support
  • co-ordinate development and implementation of relevant programmes
  • monitor and evaluate progress towards set targets.  

National LandCare Programme

The vision of the Department's NLP is to have communities and individuals adopt an ecologically sustainable approach to the management of South Africa's environment and natural resources, while improving their quality of life. This means people use the soil, water and vegetation resources in a responsible manner to ensure that future generations will also be able to use them to their benefit. It also implies that cultivation, livestock grazing and harvesting of natural resources should be managed in such a manner that no further degradation (such as soil erosion, nutrient loss, loss of components of the vegetation and increased run-off of water) occurs.

The NLP's objectives are to:

  • promote partnerships between communities, the private sector and government in the management of natural resources
  • establish institutional arrangements to develop and implement policies, programmes and practices that will encourage the sustainable use of natural resources
  • encourage opportunities for the development of business enterprises that focus on sustainable resource management
  • enhance the long-term productivity of natural resources.

LandCare themes are grouped into two areas, namely focused investment (Watercare, Veldcare, Soilcare and Juniorcare) and small community grants.

LandCare is developing and implementing integrated approaches to natural resource management in the country, which are efficient, sustainable, equitable and consistent with the principles of ecologically sustainable development. LandCare partners have consequently designed key strategies for sustainable natural resource management.

Serious concerns about land and water degradation, which impact on sustainable resource use, are identified in each province, and specific projects address these issues.

In cases of serious catchment-wide degradation and erosion, the root causes are investigated. In some cases, physical control structures are needed to ensure that water run-off control takes place. The Department of Agriculture's Subdirectorate: Key Soil Conservation Works designs and constructs such structures in terms of the Conservation of Agricultural Resources Act, 1983.

Projects are in progress in Limpopo, KwaZulu-Natal, Eastern Cape, Free State and the Western Cape.

The purpose of this strategy is to empower resource-poor communities to develop LandCare groups and activities through awareness, training and education. This includes communication strategies directed towards rural community groups and young people. The strategy formulates policy and legislation to develop incentives for natural resource management.

Research and evaluation wants to establish and implement a monitoring system to evaluate progress, assess contemporary issues and provide a basis for planning and research.

The Department also aims to promote its National Policy on Agricultural Land and Resource Management to all spheres of government and other stakeholders.

Focused investment

The Watercare theme targets Limpopo in particular, because of water shortages and the importance of water for irrigation in the province. This theme establishes a framework for managing land and preventing the silting up of dams for irrigation. Watercare works in partnership with the community to develop action plans for managing and restoring irrigation schemes. The rehabilitation of irrigation schemes increases water supply and household food security. Furthermore, Watercare promotes the development of techniques for water resource management and encourages opportunities for training in this field.

Veldcare promotes best grazing systems and erosion-prevention practices to improve production. It develops and maintains agricultural activities in accordance with the principles of ecologically sustainable development within North West. Economic and social development opportunities are realised by improving grazing areas and maintaining viable grazing areas throughout rural communities.

Soilcare encourages rural farmers in KwaZulu-Natal, the Eastern Cape and Mpumalanga to build innovative structures to combat soil erosion. This includes reducing the depletion of soil fertility and soil acidity. Through Soilcare, sustainable agricultural production systems are introduced, such as diversification, management of input and conservation tillage.

The objectives of Juniorcare are to empower previously disadvantaged youth through training in facilitation and leadership skills.

This includes the promotion of food security at home and at schools, awareness of sustainable agriculture, stimulating the formation of youth clubs and projects that aim to promote other components of LandCare. Juniorcare addresses the needs of young people in an integrated way and involves interdisciplinary approaches.

Land Bank

The Land Bank is a statutory body with a mandate from government to support the development of the agricultural sector as a whole. The Bank's key strategic intent is to achieve financial sustainability focused on social and development impact. Meeting client needs with cost-effective and competitive products and services, building an efficient, representative and committed workforce, and good relations with stakeholders are critical elements of this strategy. The Bank provides a comprehensive range of retail and wholesale financial products and services designed to meet the needs of commercial and developing farmers and agriculture-related businesses.

The total loan portfolio increased to R16,5 billion at the end of 2001, up from R14,7 billion in 2000.

Net interest income increased to R766,5 million in 2001 from R749,5 million in 2000 while there was a 10% increase in operating income to R885,7 million.

The net surplus for 2001 was R344 million after making all the necessary provisions ¡ a decline of 15% due to increased provisions for irrecoverable debts. Cost-to-income ratio was 35% for 2001.

The Land Bank Act, 1944 (Act 13 of 1944), as amended, made it possible for the Bank to extend loans to agribusiness and to make equity investments, opening the way to diversify and grow the portfolio. Diversification is important for long-term financial sustainability. The Bank receives no ongoing grants or subsidies from government. It raises its funds on the local and international money markets. The Bank's conservative financial approach and good results are reflected in a premium risk rating, enabling it to access funds at favourable rates.

Legislation to replace the Land Bank Act 1944, namely the Land and Agricultural Development Bank Bill [PDF], was promulgated in June 2002.

Products and services

The Land Bank provides low, medium and high-risk clients with access to a full range of long, medium and short-term loans to meet all their financial needs, including land and equipment purchases, asset improvement and production credit. During 1999, the Bank added Gold Premium and Platinum risk categories to its existing Gold low-risk category. Clients who qualify on the basis of exceptional security and high-loan values pay reduced interest rates. Specific criteria for medium and high-risk clients with limited security increases access to credit while minimising the risk of default. These clients pay competitive interest rates, but on-time repayment earns them a bonus that reduces their rate to that paid by Gold low-risk category clients. To manage risk effectively, funding for these loans comes from a separate Development Finance Fund.

Corporate and development finance

The Bank has set up a Corporate Finance Unit, which provides a range of wholesale products to intermediaries and finance to corporate clients involved in agriculture-related business in South Africa. Agribusiness is defined as up-and-downstream activities, comprising input manufacturing, and supply and output-processing activities. The Unit works closely with the Development Projects Unit. Many projects do not get off the ground because businesses cannot afford loan repayments in the early years. The Development Projects Unit overcomes this by investing in projects and taking a share of the eventual profits, rather than charging interest. The Land Bank is developing monitoring mechanisms, principles and criteria for project selection. Coupled with this is an existing strategy where the Bank gives the clients total control.

Black Economic Empowerment (BEE)

The high price of farmland in South Africa makes it impossible to finance the purchase of land solely from returns on farming activities. In a bid to assist historically disadvantaged people to gain entry into farming, the Land Bank has introduced a low-interest loan for historically disadvantaged, first-time buyers of agricultural land. The interest rate is set at 10% and is reviewed after 24 months. The Bank is committed to keeping the interest rate as low as market circumstances allow. Many of the Bank's activities come together to support its BEE Initiative. These include pricing based on risk, wider access to credit, new product lines, new risk criteria, Step Up micro-finance, equity investments, preferential access to bought-in properties and increased use of black service-providers.

Microfinance

To address the widespread need for micro-finance in rural areas, the Land Bank introduced the Step Up scheme in April 1998. This enables people with no security to borrow an initial amount of R250. If clients repay on time they can 'step up' to a R500-loan, continuing to a maximum loan of R18 000.

At this stage, Step Up clients have a track record that qualifies them for the Land Bank's high to medium-risk categories.

By mid-2002, the Land Bank had lent R117 million to over 70 000 clients of which the majority were women.

Between December 2001 and mid-2002, the repayment rate was 86%.  

Agri SA

Agri SA is an independent producer organisation consisting of provincial agricultural unions, commodity organisations and businesses owned by farmers, such as co-operatives and agricultural businesses. The main objective of Agri SA is to negotiate the best possible economic and social conditions for agricultural producers within the South African community. To attain this objective, it strives to organise the farming population and agricultural business into a united front.

The highest authority within the structure of the organisation lies with the Agri SA Annual Congress, where all three legs of organised agriculture are represented.

The General Council of Agri SA, which consists of representatives from the Provincial Chamber, Commodity Chamber and Agribusiness Chamber, gives continuous attention to matters of general interest concerning the farming community. An executive committee, consisting of Agri SA's President, Deputy President and the Chairpersons of the three Chambers, makes the day-to-day decisions within the accepted policy of the organisation.

Agri SA also has a number of functional committees specialising in matters which are relevant to the farming community such as economic issues, safety, labour, land affairs, etc. In addition, they are major employers, developers and sources of added value.  

Agricultural Business Chamber (ABC)

The ABC is a sectoral body representing an important component of South Africa's business life. The ABC's members represent total assets of almost R30 billion and an annual agricultural business turnover of approximately R50 billion.

ABC members together operate more than 2 000 service centres country-wide and have a total employee complement of more than 100 000. In many rural areas, members of the ABC are the business hub of the community and make a key contribution to maintaining the rural infrastructure.

The ABC is an integral part of the Agri SA Group and associate with Business South Africa and international bodies such as the International Federation of Agricultural Producers, the International Chamber of Commerce and the International Agribusiness Management Association.

The ABC strives to support its member organisations by creating an environment within which they are enabled to operate as competitive and innovative business enterprises.

The Chamber represents agricultural companies, agricultural co-operatives, agricultural co-operatives in the developing agricultural sector, companies which arose out of the conversion of agricultural co-operatives, and other agricultural business enterprises and organisations.

Agricultural businesses play a significant role in the economy of South Africa as handlers, processors and marketers of agricultural products, and as suppliers of production input and services.

Agribusiness as an economic sector

Agribusiness can be divided into two categories: non-co-operative business ventures and co-operatives or transformed co-
operatives.

Non-co-operative business ventures, normally known as profit companies, are involved in the production and distribution of agricultural equipment and production requisites and the marketing of agricultural products.

Co-operatives dominate the distribution of intermediate requisites and the handling, processing and marketing of agricultural products.

Agricultural co-operatives or agribusinesses are regarded as the farmers' own independent business organisations. There are close to 1 000 primary agricultural co-operatives and agribusinesses throughout the country. They supply their members with production input such as seed, fertilizer, fuel and repair services. They also provide credit and extension services, and handle a large percentage of their members' produce.

There are more than 15 central co-operatives in the country, which aim to supply the primary co-operatives with specific services, such as processing and marketing of agricultural products, insurance services for crops, short-term cover and farming requisites. The structure of agribusiness changed substantially since the deregulation of the agricultural sector to a free market economy in 1994. Many co-operatives transformed into private companies, consolidations and mergers occurred, international groups entered South Africa, and agribusinesses are today listed on the Johannesburg Securities Exchange. OTK, an agri-service group, was rated number 11 in the top 100 South African companies in 2001. The group's name was changed to Afgri in June 2002.

Agribusinesses are involved in the production and distribution of agricultural equipment and production requisites and in the marketing and processing of agricultural products. The expenditure on agricultural input and services in 2000 amounted to more than R21 billion, with farm feeds, fuel, fixed improvements and fertilizer being major items handled by agribusinesses.

South African agribusiness is increasingly challenged to perform competitively and the ABC's Competitive Index indicates an upward trend, especially since 1998. This implies that value-adding processes in South African agriculture are becoming more competitive. The input sectors also indicate a positive trend in competitiveness. These positive trends are supported by upward agricultural exports and sustained increases in the Agribusiness Confidence Index.

The co-operative movement in South African agriculture is expected to grow. A new Co-operative Bill is under consideration and it is envisaged that this enabling legislation will make co-operatives accessible to all communities through outgrower projects, contracting and share equity schemes. The second draft has been completed and approved by Cabinet in December 2001. It has been referred to the State Law Advisors office for review and certification.

The Co-operative Development Initiative is one of many efforts to facilitate such linkages and support a 'growth-with-equity' development path for South African agriculture.  

National African Farmers' Union

NAFU strives to promote the interests of the disadvantaged farming sector by lobbying for access to support services and empowering its members through effective communication and capacity-building programmes.

Economic empowerment

The Department of Agriculture funds NAFU's capacity-building programme. Further funding is provided by the US Department of Agriculture.

Bergville Maize Milling Co-operative was also co-ordinated and funded by the national Department of Agriculture.

The Zijamele Farmers Co-operative's training programme was co-ordinated by the Department and rendered by Africare as an implementing agent.

The Department co-ordinates the Presidential Mechanisation Lead Projects.  

Institutional capacity-building

The Department of Agriculture has developed a databank for agricultural human resource capacity for South Africa.

In collaboration with the Economic Development Institute of the World Bank, the Department has designed and developed training courses for rural restructuring and development. The Youth Entrepreneurship Programme was launched in 1999.

The Department has co-ordinated and funded the development of the National Emerging Red Meat Producers' Organisation. This includes the formation of provincial structures and the provision of organisational leadership training.  

Training and research  

South African agriculture has a strong research component. Many of the people involved are world leaders in their respective fields of expertise. The ARC, an autonomous statutory body set up in terms of the Agricultural Research Act, 1990 (Act 86 of 1990), is the largest agricultural research organisation in Africa. Since its establishment, the organisation has transformed and consolidated, reducing the total number of research institutes from 16 to 13 in 1999.

The ARC provides research support to the Department of Agriculture and the nine provincial departments of agriculture. ARC
scientific expertise supports most of the Department of Agriculture's regulatory directorates such as the Directorate: Public Veterinary Health, the Directorate: Animal Health, the Directorate: Plant Health and Quality, the Directorate: Agricultural Resource Conservation and the Directorate: Agricultural Production Inputs. The ARC also supports other agricultural institutions such as the Registrar of Livestock Improvement and Identification, the Registrar of Brands as well as the South African Veterinary Council and the Perishable Products Export Control Board.

The ARC serves the whole continuum of farmers, from the small-scale subsistence sector, through the emergent commercial sector, to fully-fledged commercial farmers. Research can be scale-neutral or directed to the specific needs of small-scale or commercial farmers.

The ARC publishes various reports, field guides and other multimedia information products directed at all levels of agriculture in South Africa and the rest of Africa. Various specialised training courses and information days are regularly presented and attended by farmers and delegates from South Africa and neighbouring countries. Participatory research, specialised exhibitions, training courses and open days (with practical demonstrations) are used to reach the small-scale farmer.

South Africa has a number of specialised agricultural high schools or regular schools offering a comprehensive range of agricultural subjects. Prospective farmers are trained at 11 agricultural colleges: Elsenburg (Western Cape), Cedara and