South African Business 2020 edition

PROFILE INTERVIEW OVERVIEW
Agriculture
South Africa is the world leader in mohair.
While agriculture’s contribution to national GDP is variously given
in the range of 2.0%-2.5%, the upstream and downstream
links to agriculture through sectors such as processing and
logistics mean that the real contribution is more like 15%.
More than one commentator has raised the idea that South Africa
should be ramping up production of foods where the country is already
a world leader in production: macadamia (number one), citrus (number
two) and others such as avocados and pecan nuts. Hilary Joffe wrote
in Business Times that existing turnover for superfoods (avocadoes,
cherries, dates, blueberries, macadamias, pecans and almonds) is at
R24-billion but this could triple with the correct support.
A good example of an existing special strength that belongs to
South African agriculture is mohair, the fibre that comes from Angora
goats. The Eastern Cape is the centre of the global mohair sector. South
Africa produces about 55% of the world’s mohair.
Companies such as SAMIL have divisions covering farming, combing,
trading, spinning and dyeing. The Angora Genetics Laboratory
(ANGELA) was established in 2013 to improve yields.
Wandile Sihlobo of Agbiz believes that South Africa should focus on
horticulture, partly because it is labour intensive. He gives an example
of blueberries, which need 2.64 workers for every hectare planted.
There are signs that his advice is being followed: gross value rose from
R15.8-million in 2008 to R1.25-billion in 2018 with the total area planted
expanding four times. More than 70% of the blueberry crop is exported.
AgriSA states that the amount of agricultural land in South Africa
in 2016 stood at 93.5-million hectares. This represents 76.3% of
South Africa’s total land mass of 122.5-million hectares and about
3% less than in 1994. Following on a research project done by Agri
Development Solutions (jointly funded by AgriSA and the magazine
Landbouweekblad), Agri SA predicted that 80-million South Africans
would be fed by commercial farmers in the year 2035. They also gave
these figures for the sector:
• 34 000 full-time farmers
• 40 000 tax-paying farmers
• 100 000 emerging farmers
• 670 000 semi-skilled and unskilled workers.
Agricultural firm Laeveld Agrochem has made the link between the need
for high-quality soil and better returns if countries in Africa are going to
produce larger quantities of produce and livestock. As a result, a subsidiary
has been created to make soil health products. Called Agri Technovation,
SECTOR INSIGHT
Superfoods could boost
agricultural exports.
the company formulates and manufactures
specialised products that
aim to meet crop-specific nutrient,
stimulant and energy requirements.
In the context of new products
such as these, the need for
highly skilled people in the sector
becomes obvious. The kinds of
innovation and technology that
are needed to improve agriculture
need well-trained specialists.
The South African government
has produced a list of critical
skills in the agricultural sector.
Each of these occupations (such
as agricultural scientist) has additional
areas of specialisation (for
example, soil or pasture scientist)
so the extended list is a long
one. General occupations include
technician, produce inspector, engineer
technologist, mobile plant
operator and veterinarian. Some
specialities include seed research
technicians, abattoir veterinarians
and agri-chemical spray operators.
Black farmers are receiving loans
from the Land Bank in an attempt
to help transform the sector. The
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