He said all but two respondents experienced operational challenges because of the state of roads, with an estimated average of 16% in turnover losses during the last financial year.
The survey included participants from the five worst-affected provinces, with 19% in horticulture, 30% in agronomy and 51% in animal production.
Siweya said the consequences of the challenges related to deteriorating roads are varied and costly for food producers.
“The costs incurred range from engine and trailer damage to shorter vehicle lifespan and accidents. The increased transport and maintenance costs ultimately affect the consumer, determining how much consumers pay and how fresh the produce is when they receive it. All this constrains the potential of the sector to contribute to SA’s GDP and employment.”
While the sector contributes R128bn to GDP, Siweya said this can grow if determined and urgent action is taken to address problems with transportation infrastructure.
Dr Jack Armour, commercial manager at Free State Agriculture, said the cost of provincial roads being brought to suitable standards is estimated at more than R23bn, according to consultations with engineers in 2020.
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Poor road infrastructure 'untenable for small-scale farmers': Agri SA
Image: Supplied (Agri SA report)
President Cyril Ramaphosa and the presidency’s investment and infrastructure office have been sent an SOS by the agriculture industry to address deteriorating road infrastructure.
Agri SA chief economist Kulani Siweya said a survey of industry role players revealed participating farmers relied on road transportation to move an average of 94% of their produce.
On average, participants transported an estimated R23m worth of agricultural produce by road in the last financial year for a combined total of more than R7.1bn, he said.
Siweya said 13% of respondents relied on road transportation weekly and more than 87% relied on roads daily.
“This explains why 69% of respondents had at some point attempted to fix affected roads themselves.
“The respondents on average incurred repair and other related costs of more the R200,000 per participant. While this may be affordable for the biggest sector players, it is untenable for small-scale farmers,” he said.
Image: Supplied
He said all but two respondents experienced operational challenges because of the state of roads, with an estimated average of 16% in turnover losses during the last financial year.
The survey included participants from the five worst-affected provinces, with 19% in horticulture, 30% in agronomy and 51% in animal production.
Siweya said the consequences of the challenges related to deteriorating roads are varied and costly for food producers.
“The costs incurred range from engine and trailer damage to shorter vehicle lifespan and accidents. The increased transport and maintenance costs ultimately affect the consumer, determining how much consumers pay and how fresh the produce is when they receive it. All this constrains the potential of the sector to contribute to SA’s GDP and employment.”
While the sector contributes R128bn to GDP, Siweya said this can grow if determined and urgent action is taken to address problems with transportation infrastructure.
Dr Jack Armour, commercial manager at Free State Agriculture, said the cost of provincial roads being brought to suitable standards is estimated at more than R23bn, according to consultations with engineers in 2020.
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