Agri AUG SEPT 09.indd - Agri SA

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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 to page 8
Net wat jy nodig het LandMark-winkel het net wat jy nodig het vir jou boerdery. Hierdie moderne landbouwinkels se rakke kreun behoorlik onder die wydste reekse landbouprodukte, hardeware en boubenodigdhede. Besoek ons ook gerus vir buitelewe - en huishoudelike produkte en vra gerus ons kundiges – hulle help graag! agri Tuinbou Gereedskap Verf Besproeiing Buitelewe Bou Landbou www.landmarkretail.co.za STANDPUNT van bladsy 4 beskerm. Lewensbydraerfondse van affiliasies – waarop Agri SA rente aan affiliasies betaal het en later onttrek is – asook bankfinansiering is opgeneem om die projek deur te voer. Mettertyd het die gebou se huurinkomste ‘n betekenisvolle bydrae to Agri SA se befondsing gelewer, maar die brandskade aan die gebou in 1994 het die organisasie finansieël geknou. Die hantering van skuld wat aangegaan moes word om die gebou te herstel het saamgeval met ‘n gewysigde finansieringsmeganisme vir die organisasie en het die rasionalisering van Agri SA se uitgawe profiel vereis. Desondanks het Agri SA daarin geslaag om sy dienste op ‘n aanvaarbare vlak voort te sit en skuld te delg. Dit is egter nie in Agri SA se belang om sy hoofbelegging in een gebou opgesluit te hou en heelwat tyd van bestuur aan gebou af te staan nie. Daarom was daar ‘n mandaat verkry om die gebou te verkoop indien dit teen ‘n aanvaarbare prys verhandel kan word. Agri SA was in die gelukkige posisie om ‘n goeie sakebesluit te neem om te verkoop en is tevrede dat aan die grondleggers van die gebou se verwagtinge voldoen is om die organisasie se bates op die wyse te beskerm en laat toeneem. Agri SA verhuis in September na Centurion en ons vertrou dat dié skuif sal bydra tot die organisasie se strewe na funksionele uitnemendheid. a Hans van der Merwe, Uitvoerende Direkteur VIEW POINT from page 4 areas. There are various projects underway in agriculture where individuals or groups have already achieved much to break the spiral of poverty and illiteracy and to offer communities an opportunity for development and participation in the formal economy. These examples could find much wider application within a structured dispensation and could make a significant difference in the lives of many people. AGRI SA relocates The SALU/SAAU building has been a landmark within the Pretoria central business district for the past 40 years. It was originally erected to protect the South African Agricultural Union’s modest assets against inflation. Life contributor funds of affiliates - on which Agri SA paid interest to affiliates and which were later withdrawn – as well as bank financing were used to implement the project. In due course rental income from the building made a significant contribution to Agri SA’s funding but the fire damage in 1994 plunged the organisation into financial difficulty. Repayment of the debt that had to be incurred to restore the building coincided with an amended funding mechanism for the organisation, requiring rationalisation of Agri SA’s expenditure profile. Agri SA nevertheless succeeded in continuing its service delivery at an acceptable level and to repay its debt. However, it was not in Agri SA’s interest to keep its principal investment tied up in one building and to spend considerable executive time on managing the building. For this reason, a mandate was secured a long time ago to sell the building should an acceptable offer be received. Agri SA was in the fortunate position to make a balanced decision to sell and is satisfied that the expectations of the founders of the building have been met, namely to protect and grow the organisation’s assets. Agri SA will be relocating to Centurion in September and we hope that this move will contribute to the organisation’s efforts towards functional excellence. a Hans van der Merwe, Executive Director 8
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Agri AUG SEPT 09.indd - Agri SA

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