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SOUTH AFRICA YEARBOOK 2017/18
Agriculture
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South Africa Yearbook 2017/18 • Agriculture
The agriculture, forestry and fisheries sectors are crucial to growth and job creation. Therefore, the expansion of South harmful consequences.
South Africa’s socio-economic development. However, the Africa’s forest resources remains one of the department’s main • The Disaster Management Act, 2002 (Act 57 of 2002) and
future of these sectors depends on critical issues such as objectives to ensure growth, transformation and sustainability of the National Disaster Risk-Management Framework of 2005
climate change, population growth, skills shortages, changes in the sector. address agricultural risk management and climate change,
consumer needs and shifts in the global economy and related As a natural resource, the fisheries sector is also recognised and are supplemented by climate change-related policies and
markets. as a potential area for economic growth. The mandate for programmes.
As one of the most employment-intensive sectors of the fisheries management includes fresh water and inland fisheries, • The Meat Safety Act, 2000 (Act 40 of 2000) provides for
economy, agriculture’s potential impact on empowerment as well as aquaculture. measures to promote meat safety and the safety of animal
and poverty relief is much larger than its actual weight in the Broadening the scope of aquaculture will provide an opportunity products; establishes and maintains essential national
economy suggests. to increase the production of fish and other aquatic food species, standards in respect of abattoirs; regulates the import and
While the primary agricultural sector contributes about 3% to thereby decreasing the pressure on natural fish resources. export of meat; and establishes meat safety schemes.
the country’s gross domestic product (GDP), it represents about Through the National Aquaculture Strategic Framework, the • The Conservation of Agricultural Resources Act, 1983
7% of formal employment. If the entire value chain of agriculture department strives to ensure effective stakeholder engagement (Act 43 of 1983) provides for control over the use of natural
is taken into account, its contribution to GDP reaches about and management, as well as advancing the transformation agricultural resources to promote the conservation of soil,
12%. agenda in the sector. water sources and vegetation, and the combating of weeds
The mandate of the Department of Agriculture, Forestry and and invader plants.
Fisheries (DAFF) is to address production and consumption in Legislation and frameworks • The Control of Markets in Rural Areas Ordinance, 1965
the agriculture, forestry and fisheries sectors. Some of the legislation of the DAFF include: (Ordinance 38 of 1965).
The department’s strategic goals over the medium term, which • The Veterinary and Para-Veterinary Act, 1962 (Act 71 of 1962), • The Problem Animals Control Ordinance, 1978 (Ordinance 14
are organised around the key priority areas of food security, job as amended in 2012, provides for the establishment, powers of 1978).
creation, and rural and economic development, are to: and functions of the South African Veterinary Council and also • The Livestock Brands Act, 1962 (Act 87 of 1962) regulates the
• provide effective and efficient strategic leadership, regulates the institutions and registration of professionals in registration of a brand in the name of an owner of livestock for
governance and administration; the practising veterinary and para-veterinary fields. the purpose of identifying the livestock.
• increase production and productivity in the agriculture, • The Fertiliser and Farm Feeds, Agricultural Remedies and • The Agricultural Credit Act, 1966 (Act 28 of 1966) provides for
forestry and fisheries sectors, to enhance employment and Stock Remedies Act, 1947 (Act 36 of 1947) regulates the a system of assistance to people or undertaking to farming
economic growth; registration, acquisition, disposal, sale and use of fertilisers, operations, and for control in respect of assistance rendered.
• provide an enabling environment for food security and sector stock feeds, agricultural remedies, stock remedies, sterilising • The Subdivision of Agricultural Land Act, 1970 (Act 70 of
transformation; and plants and pest control operators. 1970) regulates the subdivision of agricultural land and its
• ensure the sustainable use of natural resources in the forestry • Consultation regarding the Plant Breeders’ Rights use for purposes other than agriculture.
and fisheries sectors through the conservation, protection, Amendment Bill was underway to replace the Plant Breeders’ • The Plant Improvement Act, 1976 (Act 53 of 1976) provides
rehabilitation and recovery of natural resources within Rights Act, 1976 (Act 15 of 1976). The Bill aims to strengthen for the registration of establishments where plants and
ecosystems. the protection of intellectual property rights relevant to propagation material are sold and packed, for the introduction
Agricultural activities range from intensive crop production new plant varieties, which in turn positively impacts on the of schemes for the certification of certain propagation material,
and mixed farming to cattle-ranching in the bushveld and sheep- competitiveness of South Africa’s agricultural sector. for the requirements to which plants and propagation material
farming in the more arid regions. About 12% of South Africa’s • The Genetically Modified Organisms (GMO) Act, 1997 sold for the purposes of cultivation must conform and for
surface area can be used for crop production. High-potential (Act 15 of 1997) provides for the regulation of GMO activities quality control over plants and propagation material imported
arable land comprises only 22% of total arable land. Some 1,3 in South Africa, and states that biosafety assessments should or exported.
million ha are under irrigation. be conducted for every proposed GMO activity. The Act • The Livestock Improvement Act, 1977 (Act 25 of 1977)
The forestry industry is one of the strategic economic sectors provides a framework to ensure that all activities involving the regulates the collection and sale of semen and ova and the
in South Africa, with a significant contribution towards economic use of GMOs are carried out in such a way as to limit possible artificial insemination and inovulation of certain animals, the
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South Africa Yearbook 2017/18 • Agriculture
establishment of a system for the evaluation and certification • The Onderstepoort Biological Products (OBP) Incorporation In the former homelands, there are thousands of hectares of
of the performance of certain animals quality control Act, 1999 (Act 19 of 1999) provides for the establishment under-utilised arable land that can be put back under production.
regarding the importation and exportation of certain animals, of a company to manage the institution, the appointment Currently the total hectares that have been planted since the
semen, ova and eggs the incorporation of livestock breeders’ of directors and the holding and disposal of shares in the Fetsa Tlala food production initiative was launched in October
societies and the maintenance of the legal personality of company. 2013 is 381 396 and the balance is planned for the remaining
livestock breeders’ societies and the granting of certain • The Marine Living Resources Act, 1998 (Act 18 of 1998) years of the current MTSF.
exclusive powers relating to the registration of pedigrees of provides for the conservation of the marine ecosystem, the The department continues to provide targeted support
certain livestock. long-term sustainable use of marine living resources and the programmes such as the Comprehensive Agricultural Support
• The Liquor Products Act, 1989 (Act 60 of 1989) provide orderly access to exploitation, use and protection of certain Programme (CASP), Ilima/Letsema and LandCare in order to
for control over the sale and production for sale of certain marine living resources; and for the exercising of control over realise enhanced food production, contributing towards the
alcoholic products, the composition and properties of such marine living resources in a fair and equitable manner for the eradication of hunger by 2030. With the approval of National
products and the use of certain particulars in connection with benefit of all the citizens of South Africa. The Marine Living Policy on Food and Nutrition Security by cabinet, the department
the sale of such products; for the establishment of schemes; Resources Act of 1998 was amended by the Marine Living will reduce the percentage of households with inadequate to
for control over the import and export of certain alcoholic Resources Amendment Act, 2014 (Act 5 of 2014). severely inadequate access to food.
products; and for matters connected therewith. • The National Forests Act, 1998 (Act 84 of 1998) allows for an The department would increase its inspection capacity and
• The Co-Operatives Act, 1981 (Act 91 of 1981) regulates exemption for the use and handling of protected trees and infrastructure for abattoirs and ports of entry for US imports to
the formation, registration, management and functioning of their products; and authorises the Minister to establish a trust, manage AGOA trade agreements.
various types of co-operatives. in respect of state forests under certain circumstances. The management of pests and diseases remains important in
• The Perishable Products Export Control Act, 1983 (Act 9 of • The National Veld and Forest Fire Act, 1998 (Act 101 of 1998) contributing to sustainable agricultural production and ensuring
1983) provides for the control of perishable products intended reforms the law on veld and forest fires and repeals certain access of commodities to export markets. As such, the DAFF
for export from South Africa and for the continued existence provisions of the Forest Act, 1984 (Act 122 of 1984). continues to provide intensified control measures to deal with
of a statutory board to bring about the orderly and efficient • The Sea Fishery Act, 1988 (Act 12 of 1988) provides for outbreaks and maintain a Foot and Mouth Disease (FMD) free
export of perishable products from the country. the conservation of the marine ecosystem and the orderly status.
• The Agricultural Pests Act, 1983 (Act 36 of 1983) introduces exploitation, use and protection of certain marine resources; In 2016, the department initiated the Compulsory Community
measures for the prevention and combating of agricultural and provides for the exercise of control over sea fisheries. Service (CCS) for newly qualified veterinarians.
pests. The African Growth and Opportunity Act (AGOA) is a trade In 207/18, the DAFF will place 130 cohorts to strategically
• The Agricultural Research Act, 1990 (Act 86 of 1990) act of the United States of America (USA), enacted on 18 May service resource-poor farmers in the rural and under serviced
establishes a juristic person, the Agricultural Research 2000 as Public Law 106 of the 200th Congress. AGOA has areas. The deployment of CCS veterinarians entrenches the
Council (ARC), to undertake agricultural research and since been renewed to 2025. It provides duty-free access to the department’s commitment towards community service for
regulate matters regarding the ARC’s proceedings, powers, USA market for almost all products exported from more than 40 young professionals.
duties, management, control, employees, financing and eligible sub-Saharan African countries, including South Africa.
related matters. Budget and funding
• The Agricultural Product Standards Act, 1990 (Act 119 of Agriculture sector For the 2017/18 financial year, the department was allocated
1990) provides for control over the sale and export of certain About three quarters of smallholder farms are within the former R6 807 billion. An amount of R2,2 billion was allocated as a
agricultural products and other related products, with a view homelands, and the rest are split between urban areas and conditional grant to support farmers. R1,6 billion was for CASP
to the maintenance of certain standards regarding the quality commercial farming areas. There is a scope to increase the size and R522 million for Ilima/Letsema.
of products and packing, marking and labelling. of the smallholder sector in each of these areas. R220 million was set aside for the development of smallholder
• The Agricultural Produce Agents Act, 1992 (Act 12 of 1992) In the 2017/18 financial year, the DAFF work with provincial farmers to graduate to commercial farmers. The target is to
provides for the establishment of an Agricultural Produce departments of agriculture (PDAs) to support these smallholders have 2 250 black commercial farmers by 2022.
Agents Council and fidelity funds. to become sustainable and meet the targets set out in the NDP. Over the medium term, the department will focus on4
South Africa Yearbook 2017/18 • Agriculture
improving food security, creating decent jobs, and sustainably The loans will improve producers’ access to production inputs The DAFF promotes food and nutrition security by supporting
increasing the contribution of the agriculture, forestry and (such as fertilisers, seeds, seedlings and chemicals) and food producers through the:
fisheries sectors to GDP. Through pursuing these objectives, farm infrastructure, to increase the participation of emerging • Micro-Agricultural Financial Institutions of South Africa,
the department contributes to the realisation of the goal of the producers in the agriculture, forestry and fisheries sectors. which provides agricultural production loans to smallholder
National Development Plan (NDP) to eliminate poverty and The DAFF plans to spend R241 million on an agricultural operators in the agriculture, forestry and fishery sectors
reduce inequality by 2030, and outcome 4 (decent employment census in collaboration with Statistics South Africa. The census • CASP grant, which provides post-settlement support to
through inclusive growth), outcome 7 (comprehensive rural will create a registry of subsistence, smallholder and commercial targeted beneficiaries of land reform and redistribution, as
development and land reform) and outcome 10 (protect and farmers, and gather baseline information. well as to other producers who have acquired land privately
enhance our environmental assets and natural resources) of The gathered information will be used to properly target and are engaged in domestic value-adding enterprises or
government’s 2014 – 2019 medium-term strategic framework. support to farmers, avoid duplicating support to emerging exporting agricultural produce
Over the medium term, the department plans to support farmers, and allow for a proper ratio of extension officers to • Ilima/Letsema projects grant, which provides production
around 435 000 subsistence and smallholder farmers through: ensure the productivity of emerging farmers. inputs to subsistence and smallholder farmers
• providing farm equipment, fencing, fertilisers, seedlings and The DAFF aims to deploy at least 150 veterinarians each year
other essentials over the medium term, to strengthen primary animal healthcare, Creating jobs
• disbursing a grant through the comprehensive agricultural support smallholder animal production, and contribute to The DAFF plans to support the production of commodities such
support programme productivity and food security. as red meat, poultry, fruit, vegetables, wine and wheat.
• repairing flood-damaged infrastructure. This initiative will be supported by an allocation of R403 million This is expected to contribute to job creation, food security,
The DAFF will support the agri-park initiative, in collaboration over the medium term, in the Agricultural Production, Health growth and the export-import trade balance.
with the Department of Rural Development and Land Reform. and Food Safety programme. To contribute to the creation of 60 000 job opportunities
The initiative aims to: over the medium term, the department plans to spend more
• establish and maintain producer support infrastructure such Improving food security than R1,7 billion on the Ilima/Letsema projects grant, which is
as markets and agro-processing facilities South Africa has been self-sufficient in most agriculture products transferred to provinces for food production initiatives.
• create networks and provide logistical services for producers with the exception of wheat, poultry and red meat. Between The department’s LandCare programme grant promotes
and input suppliers 50% and 60% of the country’s wheat requirement is imported, sustainable land and soil management practices, and the
• coordinate activities for producer support and development to due to the fact that it is cheaper to import than to produce locally. prevention of land degradation and desertification in rural areas,
create jobs and develop rural economies. Grains remain an important part of food and nutrition security thereby contributing to job creation through the establishment of
Through the R5,3 billion comprehensive agriculture support initiatives in the cpuntry. Accordingly, the Agricultural Research more arable farmland.
programme grant, the department will play a crucial role in Council (ARC) has developed and disseminated at least seven Over the medium term, the programme is projected to create
supporting smallholder farmers who will supply produce to agri- new grain cultivars for improved yields and productivity in South 4 725 local jobs through refurbishing forested and deforested
park initiatives across South Africa. Africa. plantations; as well as 2 400 full-time-equivalent local jobs
The DAFF will also provide support to farmers by putting The country’s investments in research and development through rehabilitating 48 900 hectares (ha) of land by reducing
one million hectares of land into production, and provide farmers continue to yield good results for market access. In February the spread of invasive alien plants, erecting fencing and
with advisory services and training on the basic components of 2018, the ARC launched a new table grape, “Joybells” at the protecting agricultural land from degradation.
food security. World’s largest fruit exhibition in Berlin. This table grape variety About R233,7 million will be allocated towards the LandCare
The department plans to increase financial support to was well received by producers and fruit traders in the global programme grant over the medium term.
emerging producers by R370 million over the medium term, market. Already, more than 50 000 cartons of Joybells have sold The Oceans Economy Operation Phakisa is expected to
which will be accessed through the Land and Agricultural across Europe and the UK and producers and exporters are increase the production of fish from 4 000 tons per year to
Development Bank of South Africa (Land Bank). expanding sales into other world markets. At least 200 hectares, 20 000 tons per year, over the medium term. This is expected
This amount has been reprioritised from funding for provincial and expanding, have been planted in South Africa to produce to create 2 500 direct new jobs and 15 000 jobs in the fisheries
conditional grants, and will provide loans to qualifying producers. this table grape variety. value chain by 2020.5
South Africa Yearbook 2017/18 • Agriculture
Over the medium term, the DAFF will spend R121 million in of Agriculture and Value Chains (RAAVC) and Land Reform; the loan portion of the funds required to commercialise these
the Aquaculture subprogramme in the Fisheries programme to farmer training is crucial. producers.
support Operation Phakisa initiatives. Colleges of Agriculture are best suited to offer practical For small scale producers that have a turnover of less
Aquaculture is an important growth sector and a priority for accredited training for farmers, agricultural technicians, than R500 000 per year, the development support will remain
the country. It has demonstrated potential for growth over the producers, processors, and farm managers. The colleges are the responsibility of provincial departments of agriculture in
past 10 years and offers a significant opportunity to contribute to playing a pivotal role in Agricultural Vocational Education and partnership with the commodity associations.
food security and nutrition, rural development, job creation and Training (ATVET) through a three-year diploma qualification The department continues to support livestock farmers
the GDP of the country. and the vocational skills training to farming communities, youth to develop and improve their livestock through dedicated
There are currently 36 Operation Phakisa aquaculture and women. Correctly elevating these colleges to become programmes. One such programme is the Kaonafatso ya
projects, 26 of which are in production. At least 15 of these a national competency will ensure that they are strategically Dikgomo – an animal improvement scheme dedicated to the
projects represent small scale entities. positioned to respond to the agri-skills shortage challenge in a development and improvement of livestock breeding and
The total investment committed to Operation Phakisa more comprehensive and uniform manner. production among black farmers.
aquaculture projects is R690 million, of which government On average, each college admits 400 full time students and To date more than 8 800 farmers are participating in the
committed R227 million. trains 1 000 farmers per annum and this relates to close to 1 Kaonafatso ya Dikgomo programme which is designed to
The total jobs created across Operation Phakisa aquaculture 000 potential entrant farmers and over 10 000 skills trainings improve the health condition of livestock in rural areas. The
projects in 2016/17 is 1 806 on 26 registered aquaculture farms. per year. majority of these farmers own an average of 20 cattle. Herd
A total of 3 500 tons of aquatic animal products was produced In 2018, the DAFF was expected to place 1 000 unemployed performance has increased over the past year.
from these aquaculture projects. agricultural graduates within the sector across the nine provinces The average calving rates for these farmers increased from
Aquaculture production was expected to increase to 20 000 on a two-year internship program, training them to be future 54% in 2016 to 57% in 2017. Average herd mortality remained
tons, resulting in an additional 2 500 direct jobs and 15 000 agri-preneurs. The initiative will contribute in addressing the relatively steady at around 6% while average herd off take rates
jobs in the value chain by 2019, and an additional investment unemployment challenge in the sector and will be championed increased slightly from 10% in 2016 to 11% in 2017.
of R500 million. by the AGRI-BEE and the Fisheries Transformation Council in Through participating in Kaonafatso ya Dikgomo programme,
Further opportunities and livelihood alternatives in the support of the sector skills development and transformation. smallholder farmers were able to generate higher incomes.
fishing communities will be created through the continued Government is also working with the private sector to PDAs and ARC conducted five cattle auction sales involving
implementation of the Expanded Public Works Programme achieve transformation in the fishing industry. Old Mutual’s Sea 410 farmers during the previous financial year. With a high
(EPWP) in coastal and rural communities. The department aims Harvest, Brimstone and Masisizane Fund have committed to women participation rate of 30%, these auctions generated
to create 1 085 full time jobs under this programme. the establishment of a R100 million fisheries development fund. R7,8 million from the sale of 794 herd of cattle. The department
Partnerships with several coastal municipalities and investors The fund will ensure the empowerment of small businesses also conducted two goat auctions involving 169 farmers with
have been formed to rehabilitate abandoned fish processing entering the fishing industry in order to truly revitalise the 41% women participation where R417 255 was generated from
plants in order to process fish for major retailers, including Ocean’s Economy. Focus will not only be on supporting the sale of 502 goats.
Woolworths and WiseFoods in the United Kingdom. smallholder production, but also on increasing the number of
The beneficiaries of these will be the right holders of the black commercial producers. Agricultural Policy Action Plan
community co-operatives who will eventually own the facilities. The DAFF with the assistance of the Dti, the Land Bank, the The challenges facing the agricultural, forestry and fisheries
This is part of the implementation of the small-scale fisheries National Empowerment Fund and the IDC have developed a sectors are numerous:
policy which was approved by Cabinet. programme to commercialize black producers in the agriculture, • rising input costs
forestry and fisheries sectors. This is an incentive-based • an uneven international trade environment
Sector transformation programme to provide access to small, medium and large scale • lack of developmental infrastructure (rail, harbour, electricity)
In addressing the developmental challenges in the sector and black producers in these sectors. • a rapidly evolving policy and production environment
to achieve policy imperatives of the NDP, National Growth The Land Bank has been identified as the grant fund • transformation of the agriculture, forestry and fisheries
Path, Agricultural Policy Action Plan (APAP), Revitalisation administrator, but together with commercial banks will provide sectors has been slow and tentative.6
South Africa Yearbook 2017/18 • Agriculture
Based on this analysis of the various challenges within the strengthening in economic activity in 2017 was partly driven According to the 2016/17 export values, citrus fruit (R16 989
agriculture, forestry and fisheries sectors, the Agriculture, by the agriculture, forestry and fisheries sectors recovering million), wine (R8 731 million), apples, pears and quinces (R7
Forestry and Fisheries Strategic Framework was developed to from one of the worst droughts in recent history. The sectors’ 161 million), wool (R4 158 million) and nuts (R3 568 million),
outline appropriate responses to these challenges. The APAP contribution to the GDP was 2,4% in 2017. were the most important agricultural export products.
aims to translate these high-level responses offered in the The sectors have expanded in four consecutive quarters. Rice (R6 438 million), maize (R6 364 million), meat (R5 717
Agriculture, Forestry and Fisheries Strategic Framework into The growth in the industry is attributed to the increase in the million), cane or beet sugar (R3 788 million) and undenatured
tangible, concrete steps. production of field crops, horticulture and animal products. The ethyl alcohol (R3 445 million) accounted for the highest imports
The Agriculture, Forestry and Fisheries Strategic Framework total volume of South African agriculture production for 2017 in terms of value.
identifies four broad sector goals: was estimated at 62,9 million tons compared to 50,8 million tons During 2016/17, the Netherlands, with exports to the value
• equitable growth and competitiveness in 2016 – a 24% increase in production, which is attributed to of R10 827 million, the UK (R8 908 million), Zimbabwe (R6
• equity and transformation the bumper summer crop harvest following good rainfalls during 125 million), Mozambique (R5 938 million) and China (R5 389
• environmental sustainability the season. million) were the five largest trading partners of South Africa
• governance. South Africa’s agriculture exports increased to R127,85 billion in terms of export destinations for agricultural products. About
These goals translate into a comprehensive, abiding in 2017 from R112,07 billion in 2016, boosted by growth in edible 20,2% of the total value of agricultural exports from South Africa
intervention framework, which will be supported through fruits, beverages, spirits as well as prepared fruits, vegetables for the period July 2016 to June 2017 went to the Netherlands
iterations of APAP via short and medium-term interventions and nuts. Imports of agriculture products increased by 21% in and the UK combined.
targeting specific value chains (sectoral interventions) or 2016, from R76,10 billion in 2015 to R91.81 billion. The import The five largest trading countries for South Africa’s imported
transversal challenges/interventions). value of agriculture products decreased by 5% to R 86,93 billion agricultural products during 2016/17 were Argentina (R7 306
The APAP is the programmatic response to Priority One of in 2017, led by processed products such as prepared foods, million), Brazil (R5 375 million), the United States (R4 305
the Nine-Point Plan to ignite growth and create jobs. It outlines meat, sugar and beverages. million), Thailand (R4 173 million), and Indonesia (R3 858
a value chain approach in priority commodities, informed by The South African agriculture products continue to benefit million). About 16,0% of the total value of agricultural imports by
the commodities with high-growth potential and high-labour from the Tripartite Free Trade Area agreement of the Southern South Africa during the period July 2016 to June 2017 was from
absorption capacity identified in the NDP. African Development Community, Common Market for Eastern Argentina and Brazil combined.
The APAP has been reviewed to ensure that it becomes a and Southern Africa and the East African Community.
jobs driver and promotes growth, employment, rural incomes, Crop and livestock production decreased sharply in 2016/17. Farming income
investment, output, exports and African regional development. Maize production, for example, decreased by 24%, from 7,54 Gross income from all agricultural products increased by 7,3%
million tons in 2015/16 to 5,7 million tons in 2016/17. Higher and amounted to R277 436 million for the year ended 31 March
Agriculture and South Africa’s role in yields are expected in 2017/18 as the drought is predicted to 2018. This was mainly influenced by the increase in income from
the national and international economy end. animal products (14,7%) and field crops (1,7%). Income from
Agriculture’s prominent, indirect role in the economy is a function The department expects to spend R644 million on horticultural products showed a slight decrease of 0,2%, from
of backward and forward linkages to other sectors. Purchases infrastructure projects over the medium term, R75,4 million of R77 119 million to R76 967 million. The increase in income from
of goods such as fertilisers, chemicals and implements form which is allocated for the maintenance and erection of fences animal products was mainly due to the increase in income from
backward linkages with the manufacturing sector, while forward along the borders of the Kruger National Park. The erection poultry meat by 18,0%, cattle and calves slaughtered (15,8%),
linkages are established through supplying raw materials to the of these fences plays a critical role in the management of the eggs (12,1%), milk (10,4%) and sheep slaughtered (6,9%).
manufacturing industry. About 70% of agricultural output is used incidence and the spread of foot-and- mouth disease, which has The increase of 1,7% in income from field crops was mainly
as intermediate products in the sector. Agriculture is therefore a negative impact on the export of red meat products. boosted by the increase in income from groundnuts by 419,8%,
a crucial sector and an important engine of growth for the rest The estimated value of imports for 2016/17 came to R79515 dry beans (92,5%), grain sorghum (70,4%), cotton (54,2%),
of the economy. million, an increase of 3,9% from R76 511 million for 2015/16. soya beans (25,4%), tobacco (5,7%), sugar cane (4,0%), hay
The South African economy grew by 1,3% in 2017, The value of exports increased by 17,4%, from R83 022 million (3,7%) and maize (3,6%). However, the income obtained from
exceeding National Treasury’s expectation of 1,0% growth. The in 2015/16 to R97 429 million in 2016/17. wheat decreased by 20,7% and sunflower seed by 32,2%. The7
South Africa Yearbook 2017/18 • Agriculture
decrease in income from horticultural products was caused by The prices of animal products increased on average by 16,5% The estimated volume of agricultural production in 2016/17 was
the decrease in income from deciduous and other fruit by 10,6% due to the increase in prices of slaughtered stock by 19,5%, 7,7% more than in 2015/16.
and subtropical fruit by 2,9%. Income from citrus fruit increased poultry by 17,3%, pastoral products by 13,4% and milk by 7,1%. The field crop production volume increased by 50,8%, mainly
by 6,0%, viticulture by 1,4% and vegetables slightly by 0,7%. The prices paid for farming requisites, including machinery as a result of increases in the production of summer crops
The gross income of producers for the year ended 30 June and implements, material for fixed improvements and (maize and sorghum), winter crops (wheat, barley and canola),
2017, amounted to R267 009 million, compared to R242 216 intermediate goods and services increased by 3,9% compared as well as oilseed crops (soya beans, sunflower seed and
million the previous year – an increase of 10,2%. The increase to 5,1% the previous year. Prices of animal health and crop groundnuts), hay, sugar cane and dry beans.
can be ascribed mainly to significant higher volumes of maize, protection increased by 10,0%, seeds by 7,7%, packaging Maize production increased by 8,2 million tons (99,7%) and
grain sorghum, groundnuts, soya beans and dry beans material by 5,4%, fencing materials by 4,6%, implements and sorghum by 92 960 tons (114,7%) from the previous season and
produced in comparison to the poor harvest during 2016 as a maintenance and repairs of machinery by 4,2%, trucks and can mainly be attributed to the favourable production conditions
result of the severe drought. irrigation equipment by 4,1% each, fertilisers by 3,9%, tractors that prevailed at the beginning of 2017.
The gross income from field crops increased by 24,2% to R63 by 2,9%, fuel by 2,3% and feeds by 1,4%. Domestic terms of Wheat production increased by 472 087 tons (32,6%), barley
718 million for the year ended 30 June 2017. Income from all trade weakened by 5,3%, largely because of a decrease of by 23 000 tons (6,93%) and canola by 12 000 tons (12,9%).
major grain and oilseed crops showed marked improvements, 1,9% in prices received by the farmers for their products and Soya beans production increased by 598 370 tons (80,6%),
notwithstanding lower prices paid to farmers. Income from 3,9% increase in prices paid for their production inputs. sunflower seed by 69 630 tons (8,9%) and groundnut production
maize amounted to R29 905 million, an increase of 20,2% on The 7,3% increase in gross farming income and 6,2% by 82 460 tons (412,2%). The production of hay increased by
the R24 874 million of the previous 12 months. increase in intermediate expenditure led to a 15,1% increase 396 000 tons (8,8%), sugar cane by 213 209 tons (1,4%) and
At the end of June 2017, 54,0% of the expected record maize in net farming income. Interest payments increased by 8,7%, dry beans by 36 390 tons (93,3%) from 2the previous year.
crop of 16 400 million tons were delivered. Soya beans income labour costs by 6,2% and rent payments by 4,7%. The farmers’ Horticultural production decreased by 2,3% from the previous
increased by 32,3% to R6 272 million. Income from sunflower cash flow increased by 9,0% to R103 816 million during the season, which can mainly be attributed to decreases in the
seed amounted to R4 843 million, 33,9% more than the R3 617 period under review, from R95 268 million the previous period. production of citrus fruit and subtropical fruit. The decrease
million of the previous 12 months. Income from groundnuts The increase in gross farming income was mainly the result in the production of oranges by 395 061 tons (22,4%), grape
increased by 304,7% to R746 million and that of grain sorghum of the increase in income made from animal products (14,7%) fruit by 72 586 tons (18,6%), lemons by 30 068 tons (8,5%)
by 83,8% to R470 million. Income from sugar cane at R8 094 and field crops (1,7%). The increase in income from animal and naartjes by 5 793 tons (13,8%) led to a decrease in citrus
million was 25,7% higher than that of the previous 12 months. products can be attributed mainly to the increase in prices, while fruit production from 2015/16. The decrease in the production
Income from cotton production also increased by 29,3% to that from field crops was largely due to significant increases in of bananas by 113 813 tons (28,3%), pineapples by 12 877
R298 million. production levels of summer grains, cotton, oilseeds, dry beans, tons (12,3%) and avocados by 4 268 tons (4,9%) attributed to a
On average, prices received by farmers for their products sugar cane and tobacco. decrease in the production of subtropical fruit from the previous
decreased by 1,9% for the period ended 31 March 2018. This season.
was due to the decrease in prices received for field crops Consumer prices Animal production decreased by 0,6%, mainly as a result of
(30,4%) and horticultural products (2,1%). The decrease The consumer prices of all agricultural products increased by an decreases in number of stock slaughtered (sheep, pigs, cattle
of 30,4% in prices of field crops was mainly caused by the average of 6,0% for the year ended June 2017. The consumer and calves), as well as decreases in the production of wool,
substantial decrease in prices of summer grains by 46,4%, price index of food increased by 10,1% and that of non-food ostrich feathers and eggs. The number of sheep slaughtered
oilseeds by 21,8%, hay by 9,8%, winter grain by 4,5%, sugar items by 5,3%. decreased by 224 668 units (4,4%), pigs by 65 603 units (2,3%)
cane by 3,4% and tobacco by 2,6%. The price index of sugar and related products rose by 19,2%, and cattle and calves by 58 940 units (2,0%), from the previous
The prices of cotton and dry beans increased by 9,1% and coffee and tea by 14,7%, fruit by 14,1%, grain products by year. The production of wool decreased by 8 779 tons or 20,2%,
1,6%, respectively. The reason for the decrease of 2,1% in 12,2%, fish by 9,5%, dairy products and eggs by 8,8%, meat by ostrich feathers by 40 tons or 22,6% and eggs by 11 242 tons or
prices of horticultural products was the decrease in prices of 8,4%, fats and oils by 8,1% and vegetables by 5,6%. 1,8%, as compared to the previous season
vegetables by 8,9%. The prices of viticulture increased by 6,9%
and fruit slightly by 0,5%. Volume of agricultural production Role players8
South Africa Yearbook 2017/18 • Agriculture
Credit and assistance loans, to entities with a BBBEE Level of four or better in 2017. involvement and input on national and international policy and
The six major sources of credit for farmers are banks (56%), In 2017, the bank relinquished approximately R100 million of the implementation thereof.
agricultural cooperatives and agribusinesses (9%), the Land its profit to subsidise interest rates to emerging farmers. The Essentially AgriSA, through its affiliated membership,
Bank (30%), private creditors (3%) and other creditors and bank provided support to farmers impacted by the drought, represents a diverse group of individual farmers regardless of
financial institutions (2%). disbursing more than R100 million in loans under its drought- gender, colour or creed.
relief programme, administered in conjunction with the Industrial AgriSA’s policy advocacy includes work on trade negotiations,
Land and Agricultural Development Bank of Development Corporation of South Africa. industrial policy, taxation, financing, land reform, labour laws,
South Africa training, farmer development, environmental affairs, water rights
Established in 1912, the Land Bank is a government-owned Micro Agricultural Financial Institutions of South and water pricing, other input-related issues, farm safety, law
Development Finance Institutions with the sole mandate of Africa (MAFISA) and order, infrastructure, technology development and transfer,
financing agricultural development to achieve food security, and MAFISA is a scheme that provides production loans to smallholder statistical information and local government.
to drive economic growth and development in South Africa. It operators within the agriculture, forestry and fisheries sectors. Furthermore, the organisation maintains an extensive
is charged with promoting agricultural and rural development, The scheme’s operations are guided by the MAFISA Credit Policy. communication network with its members and other affected
as well as providing a range of financial products and services, MAFISA loans were initially restricted to agricultural communities, organisations and individuals. AgriSA is a
including crop insurance to farmers and agribusinesses. enterprises, but following the incorporation of the forestry and member of high-level business, trade and agricultural entities
As part of its transformation objective, the Land Bank Insurance fisheries subsectors into the department of agriculture, the that includes Business Unity South Africa, the International
Company (LBIC) subsidiary launched and implemented a Black credit policy was reviewed so that it can also accommodate Chamber of Commerce, the World Farmers’ Organisation, the
Broker Training Programme to train the first fully accredited Black these two subsectors. Southern African Confederation of Agricultural Unions and the
Crop Insurance Brokers in the country. A total of 18 brokers Loans are provided at 7% interest and accessed through Cairns Group Farm Leaders.
were accredited and began marketing LBIC’s crop insurance a network of institutions accredited by the DAFF as retail AgriSA communicates with its members via its two-monthly
products, collectively writing R22,6 million in premiums in intermediaries. Intermediaries submit monthly and quarterly magazine, namely Agri (incorporating Die Boer/The Farmer) and
their first season of crop insurance solutions provision, which reports to the department as part of its monitoring process. an electronic newsletter. The magazine provides background
equates to R565 million worth of risk managed exposure. Regular workshops and inspection visits to intermediaries are information on policy, legislation and programmes of interest to
The bank is a specialist agricultural bank guided by also conducted as part of monitoring. farmers. It also offers advice, extension and news on topical
a government mandate to provide financial services to The scheme offers production loans of up to R500 000 per events to more than 29 000 farmers who are members of Agri
the commercial farming sector and agribusiness. It also person, with the repayment terms structured according to the SA via the respective affiliates. The magazine is sent directly
makes available financial products to new entrants to income cycle of the enterprise. The loans are limited to South to each member. It is also distributed more widely to include
agriculture from historically disadvantaged backgrounds. African citizens who meet the eligibility criteria. Loans of up opinion-formers and decision-makers. It is also responsible for
Through its direct lending, Land Bank currently supports to R50 000 can be granted without security. Most of the loans programme content for an agricultural radio programme aired
approximately 1 500 black farmers and relinquished disbursed are in respect of livestock, sugar cane, vegitables on Radio Sonder Grense (RSG).
approximately R100 million of its profits to subsidise interest and grain crops. MAFISA loans are available for the entire value Agriculture in South Africa remains an important sector
rates to these farmers as well as an additional 700 emerging chain of agriculture, forestry and fisheries, though most of the despite its relatively small contribution to the GDP. The sector
farmers through its WFF intermediaries. One of the contributing loans are still in respect of primary production. plays an important role in terms of job creation, especially in
factors to the increase in development finance is that average rural areas, but is also a foremost earner of foreign exchange.
transaction values increased from approximately R0,7 million in Agri South Africa (AgriSA) Agriculture’s prominent indirect role in the economy is a
2016 to more than R2,0 million in 2017. AgriSA was established in 1904 as the South African result of backward and forward linkages with other sectors.
The bank nearly doubled its Wholesale Finance Facilitiy that Agricultural Union. It serves approximately 32 000 large and Purchases of intermediate goods and services form backward
supports emerging farmers through intermediaries from R477 small commercial farmers. linkages with the manufacturing sector, while forward linkages
million in 2016 to R914 million at the end of 2017. Its mission is to promote the development, profitability, stability are established through the supply of raw materials to industry.
It also disbursed more than R5,0 billion, including revolving and sustainability of agriculture in South Africa by means of its Approximately 70% of agricultural output is used as9
South Africa Yearbook 2017/18 • Agriculture
intermediate products. Agriculture is therefore a crucial sector agricultural union serving commercial farmers. It also renders the Ilima/Letsema Programme, as well as the mobilisation of
and a key driver of growth for the rest of the economy – a fact services to its members in terms of property rights, economic farmers, women and youth into agricultural co-operatives.
also acknowledged in policy-related documents such as the issues, and safety and security. TAU SA conducts various
NDP: Vision 2030. projects to enhance the concept of successful agriculture. Veterinary services
Essentially, the NDP entails that agriculture – both emerging Veterinary public health and food safety aspects, in relation to
and commercial – should still be afforded the opportunity to National African Farmers’ Union of South Africa animal products, remain a priority and are receiving increasing
contribute optimally to economic growth, job creation, foreign- (NAFU) attention. The DAFF has set aside R100 million for the Primary
exchange earnings and development of the industrial sector NAFU was established in 1991 with the aim of creating a Animal Health Care Programme. Special attention is being given
within a safe and non-discriminatory environment. AgriSA is “home” for thousands of black farmers who had previously to the major rehabilitation of existing infrastructure, as well as
preoccupied with ensuring a safe environment for all people been excluded from the mainstream of agriculture. At the time the building of new clinics, animal healthcare centres and other
involved in the agricultural sector. A sound working relationship of its formation, there was no farmer organisation operating animal-handling facilities. Mobile veterinary vehicles will also be
has been established with the South African Police Service at national level in South Africa. Between 1979 and 1991, the considered for remote areas. These efforts support the creation
(SAPS) at both policy and operational level, with a view of only organisation which attempted to address the needs of of an enabling environment for the Compulsory Community
addressing the relevant rural safety problems. black farmers at national level was National African Federated Service (CSS) Programme for newly qualified veterinarians.
Chamber of Commerce and Industry. This organisation The CCS is aimed at promoting primary animal healthcare in
Agricultural Business Chamber (Agbiz) eventually facilitated the formation of the NAFU. rural areas and at improving access to veterinary services.
Agbiz is a voluntary, dynamic and influential association of NAFU is a mouthpiece of predominantly black smallholder The CCS service for young professionals is a government
agribusinesses operating in South and southern Africa. farmers in South Africa. It strives to promote the interests of policy which started in 1998 when the medical doctors were
Agbiz’s function is to ensure that agribusiness plays a primarily black farmers who are largely a disproportionately deployed to rural areas. The deployment of veterinarians
constructive role in the country’s economic growth, development disadvantaged farming community. NAFU therefore represents entrenches the department’s commitment towards community
and transformation, and to create an environment in which the aspirations of those who have been disadvantaged, service. This programme will also incorporate the training of
agribusinesses of all sizes and in all sectors can thrive, expand neglected and marginalised. veterinary technicians or paravets.
and be competitive. The focus of NAFU has been on advocacy, and it has and To strengthen the DAFF’s animal healthcare, 18 primary
• Agbiz is the only organisation that serves the broader and continues to lobby for access to crucial resources such as healthcare clinics were delivered to provinces and the Veterinary
common over-arching business interests of agribusinesses in land, credit, information, extension and other support services. Strategy, as part of the Animal Disease Management Plan.
South Africa. However, NAFU also played and continues to play a role in In addition, the DAFF requested the World Organisation for
• Agbiz addresses the legislative and policy environment on the building the capacity and strength of its membership through Animal Health to conduct an evaluation on the performance of
many fronts that it impacts on the agribusiness environment. the use of effective communication systems, training, improving veterinary services in South Africa. The recommendations from
• Agbiz facilitates considerable networking opportunities so management skills and exposing farming to the latest and most the World Organisation for Animal Health’s report will be applied
that South African agribusinesses can play an active and up-to-date production techniques. to further enrich interventions on all veterinary issues.
creative role within the local and international organised
business environment. The African Farmers’ Association of South Africa Agricultural Research Council
The strategic intent of Agbiz is to advocate for and facilitate a (AFASA) The ARC was established by the Agricultural Research Act of
favourable agribusiness environment in order for its members to AFASA’s objectives are to create a sustainable united body 1990 and is the main agricultural research institution in South
perform competitively and sustainably. of African farmers with capacity to influence policies through Africa. In terms of the Act, the council’s primary mandate is to
lobbying and advocacy. AFASA, like any other organisation, conduct research and development, and effect the transfer of
Transvaal Agricultural Union South Africa (TAU is a collection of individuals who come together for a common technology to promote agriculture and industry, contribute to a
SA) purpose. better quality of life, and facilitate and ensure conservation of
TAU SA was established in 1897 as the Transvaal Agricultural The DAFF is expected to support smallholder farmers through natural resources.
Union. In 2002, the union reorganised to become a national conditional grants such as the CASP, the LandCare Programme, The ARC’s spending focus over the medium term will be on:10
South Africa Yearbook 2017/18 • Agriculture
• generating knowledge and technologies that will enhance production of specialised animal vaccines. The company support and services to South African grain producers to
the efficiencies of crop production, animal production and produces millions of doses a year to control as many as 50 support sustainability.
health different diseases and is an acknowledged world leader in the Grain SA is a voluntary association of grain farmers
• the management of natural resources battle against animal disease. established to represent the interests of its members. It wants
• research and development Experiments at the OBP have seen encouraging progress in to be recognised as an autonomous and independent grain
• maintaining national assets the development of new and improved vaccines against African producers’ organisation.
• providing diagnostic and analytical services on behalf of the horse sickness, which, despite the development of immunisation The organisation wants to be involved in all matters bearing
DAFF and industry stakeholders. programmes, remains a constant threat to farmers, breeders on the wellbeing of the industry and to be consulted about policy
Over the medium term, the ARC will spend its total budget of and owners. issues relating to the industry. It is strongly apolitical and issues
R4 billion on supporting 1 130 farmers participating in animal In 2018, OBP will commence building a Manufacturing Plant are dealt with only on merit and sound business principles
health improvement schemes, conducting 1 777 diagnostic and which will be completed by 2020 for R347 million. This will without any party political consideration.
analytical services, and producing 238 peer-reviewed scientific lead to large scale production of competitively priced vaccines Grain SA is controlled by farmers for farmers and structured
publications in natural resource management. manufactured under global quality standards; consistent to ensure members’ democratic control over their elected office
In response to climate change, the council is working on 25 availability of OBP vaccines and improved response to animal bearers.
research studies into new crop cultivars that will be registered. disease outbreaks; penetration of previously inaccessible
The new cultivars are expected to benefit rural South Africa markets and sustainable job creation in the fields of Veterinary National Agricultural Marketing Council
and the Southern African Development Community (SADC) and Biotechnological Sciences. Currently, there are 18 industries that are subjected to statutory
region. It is the objective and target of OBP to improve performance measures, collecting R517 million through statutory levies. The
The council’s staff complement will remain constant at 3 297 and production efficiencies of current products. The government funds collected are used to finance industry-oriented activities
over the medium term to contain growth in expenditure on is expected to increase the number of new distribution points of including transformation. One of the approval conditions is that
compensation of employees, which constitutes R2,7 billion or OBP products in rural areas to nine. at least 20% of levy income be spent on transformation. NAMC
68,3% of total expenditure. The council’s main revenue stream OBP takes priority in advocating for farming skills to alleviate works directly with eleven industry trusts that were formed during
over the medium term will be transfers of R2,8 billion received poverty. OBP has implemented two learnership programmes, the process of deregulation. To date, the total asset value of the
from the DAFF, and the Department of Science and Technology, the Pharmaceutical Sales (NQF Level 5) and Animal Production trusts is R2,4 billion from the initial value of R678 million.
constituting about 66% of total revenue. Other income, of (NQF Level 4). The objective of the learnership is to bridge the Monthly, NAMC provides analysis of food price trends and
R1,5 billion, will be generated by sales of publications, research gap between the current education and training provided and tracks the cost of a basket of 28 selected basic food items. This
material and technology to supplement transfers received. the needs of the labour market. It offers youth an opportunity to information is made available to, amongst others community
gain a qualification through a structured learning programme. radio stations. This enables citizens to make informed choices
Onderstepoort Biological Products state-owned The programme has registered eight learners. in household spending on food.
company (SOC) Ltd The Competition Commission has raised competition issues
OBP SOC was corporatised in 2000 under the OBP Incorporation Grain SA in the industry, including barriers to entry for emerging farmers
Act of 1999. Grain SA was established in June 1999 and was formed out of throughout the value chain. Lack of access to markets led to
The OBP’s mandate is the prevention and control of animal the following organisations: some of the produce rotting in the fields.
diseases that impact on food security, human health and • National Maize Producers’ Organisation (known as NAMPO) As such, a Transformation Review Committee was established
livelihood. This mandate is delivered through the continued – maize to, among others, ensure the statutory levies collected are used
development of innovative products and efficient manufacturing • National Oilseed Processors Association – soyabeans, by industries to contribute meaningfully to the development of
processes that ensure the affordability and accessibility of sunflower and groundnuts black farmers. Milk SA’s commercialisation project in the Free
vaccines through diverse distribution channels. • Wheat Producers’ Organisation – wheat, barley and oats State developed nine projects that support black farmers with
The OBP possesses the capability, skills and scientific • SPO – grain and sorghum. cattle, feed, milking parlour and electrification of the farms.
expertise to combat animal disease through the large-scale The mission of Grain SA is to provide commodity strategic The result is that black farmers are able to supply formalYou can also read
