Farming in the eye of the perfect storm

The farming industry has been hit by the perfect storm shaking it to its foundation.

Tens of thousands of farmworkers, whose jobs are already on the line because of a crippling drought, are now facing another employment threat, cheap unskilled foreign labour.

Embattled farmers say the drought has made it tough and that they can no longer afford the prescribed minimum wage.

But farmworker organisations say seasonal workers are facing unemployment not because farmers cannot afford their salaries, but because they choose to hire cheaper foreign workers.

Sizwe Pamla, spokesman for union federation Cosatu, said it had called on the government to place conditions on its aid to commercial farmers.

He said the conditions should protect jobs.

"We have asked the Labour Department for reports quantifying the number of farmworkers that have been laid off."

In 2013 the minimum prescribed wages for farmworkers rose by 52%.

Elize van der Westhuizen, AgriSA's labour relations senior manager, said the adjustment resulted in a structural change to the farming sector, with farmers reviewing their operations, including mechanising some activities and adjusting working hours in some instances.

With the drought and the resultant loss of income, farmers are finding it more difficult to pay wages.

Van der Westhuizen said Stats SA's latest labour force survey showed that this had resulted in a loss of 44000 jobs quarter on quarter.

Wandile Sihlobo, Agricultural Business Chamber's economic and agribusiness research head, said job losses in the farming sector were looming, with the drought a major contributor.

But, he said, farmers had options - including changing their operations, such as moving from crops to livestock - but they were not doing this.

Doug Stern, Agri Eastern Cape president, said wages formed a large part of farming expenses.

The drought had not yet had a significant effect on employment numbers in the province, he said.

But he warned that because agriculture employed a large percentage of unskilled workers, the continued rise of the minimum wage was of great concern.

"The productive capacity from the workforce in question does not go up in relation to the wage increases, which creates a dangerous situation within the labour market."

But, he said, if the drought prevailed for much longer, there would be a real danger of a loss of jobs.

Stern said in extensive areas of the Eastern Cape there was little else farmers could turn to as an alternative to livestock farming.