Agri AUG SEPT 09.indd - Agri SA

agri
Viewpoint
The ruling ANC has identified agricultural and rural development as one of its priorities for the
next few years. Its earnestness in this regard is underscored by the two ministries that have
been created to focus on the commercial functions of agriculture, forestry and fisheries, which
are closely related to those of rural development and land reform.
Government politics
For a long time the joint administration of these two policy
directives within one ministry had meant that commercial
functions of the industry were neglected in favour of
social upliftment objectives of transformation. The result
was the gradual decline of agriculture’s competitiveness and a
decrease in investment, which in 2008 caused South Africa to
lose its status as stable net exporter of food.
It appears that food security, food exports and a more favourable
investment climate for agriculture now represent a government
priority. In a watershed speech before Agri SA’s General Council
in July 2009, Ms Tina Joemat-Pettersson repeatedly referred to
her mandate from President Jacob Zuma to forge partnerships
with organised agriculture and to address matters in which
the state is involved, such as import protection, research and
funding, in order to exploit “all modern and relevant ways to
develop the production sector”.
Minister Gugile Nkwinti has also assured Agri SA that rural
development and land reform would be managed within a
strategic framework which would require his department to
work far more closely with organised agriculture at various
levels than was the case in the past. This attitude was given
substance by offering Agri SA the opportunity to participate in
the parliamentary Portfolio Committee on Rural Development
and Land Reform’s strategic planning session.
There can be no doubt that a new page had been opened for
agriculture and rural development at government level. There
can also be no doubt that government continues to strive for
transformation objectives as set out in the ANC Polokwane
congress resolu tions. The urgency to make progress in this
regard has in fact inten sified. However, various troublesome
policy issues must still be addressed, which will be no easy
task. Aspects such as abandoning the “willing buyer, willing
seller” approach, strengthening of ESTA legislation to provide
farm workers with greater security of tenure, and the basis of
reallocating resources such as water rights, have not yet been
figured out and addressed. In fact, there is more than enough
reason to be concerned about the potential implications of certain
schools of thought on policy changes relating to ownership and
commercial enterprises.
And yet, aspects such as sustainable and competitive agricultural
production are emerging more prominently and we have an
agriculture minister who is in favour of enhancing commercial
agriculture. This is indeed a welcome development and represents
a new search for balance which has lagged behind for too long.
International perspectives on agriculture
The biennial commodity and policy conference of the International
Federation of Agricultural Producers (IFAP) was held at the end of
July 2009 in Ireland against the backdrop of a worldwide economic
recession which agriculture has been unable to escape. The Irish
Farmer’s Association’s president, Padraig Walshe, pointed out
that prices of agricultural products had declined drastically and
that price instability and the credit crisis were making things
increasingly difficult for farmers. Sound familiar? Mr Walshe
added: “Excessive retail power is a problem in Ireland and
many countries as supermarkets push forever more profit at the
expense of the producers. Milk producers in Ireland receive less
than 20 percent of the retail price of milk, while the processors
receive 35 percent and the retailers 45 percent”. He recognised
the need for a code of practice to regulate the conduct of retail
chain stores. This may also be something to which the South
African Competition Commission could attend.
The conference also gave considerable attention to addressing
price stability of agricultural commodities. South African farmers
are extremely frustrated with such price instability, which makes
planning and especially investment decisions problematic and
even highly risky. South African agriculture could benefit from
heeding international opinion on this issue and evaluating it with
a view to local application. The National Agricultural Marketing
Council should attend to this matter, as should the Department
of Agriculture, Forestry and Fisheries which is currently looking
at a new agricultural marketing policy.
The issue of rural development and, more specifically, the
empowerment of women in agriculture, access for smallscale
producers to commercial markets and the alleviation of
poverty, were also discussed in depth. Given the South African
government’s new focus on rural development, these debates
at the IFAP conference make one wonder whether the former
Rural Development Foundation should not be revisited, albeit in
an acceptable format which can mobilise resources to make a
meaningful difference to the needs and challenges of our rural
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