Commercial farming among black South Africans continues to grow at a snail's pace, with the department of agriculture conceding in parliament that it has grown by less than 2% since 2019.
In response to questions by EFF MP Nthako Matiase, agriculture minister John Steenhuisen quoted statistics from the 2019 study by the National Agricultural Marketing Council (NAMC), which measured black farmers' contribution to total commercial production.
The NAMC established that between 2015 and 2019, about 8.1% of commercial agricultural production was from black farmers, and the rest was by white farmers.
He said this had gradually increased to 10.3% between 2019 and 2023.
Industries such as sugar, red meat, wool and mohair had a relatively high production volume from black farmers, while fruit and grain commodities were lagging.
“This partly illustrates the high barrier costs emanating from land and capital requirements to enter grain and fruit production compared to the animal industry,” he said.
Steenhuisen, who is seen by allies of the ANC as a neoliberal whose interests do not align with the transformative agenda, faces a mammoth task to improve these figures under a microscope from opposing parties, including the EFF and MK party.
The DA leader has already stated that he intends to prioritise black farmers during his time in the ministry. In a recent interview with the Sunday Times, Steenhuisen said he would be obsessed with turning small farmers into big farmers to increase their product yield and profitability, as well as their ability to employ more people.
“You would be crazy as the agriculture minister not to be putting out more extension services and assistance to smaller farmers to get them to improve their crop yield and grow so that they employ more people,” he said.
Steenhuisen is in China as part of President Cyril Ramaphosa’s delegation, where the GNU has signed a new memorandum on trade relations.
China is among South Africa’s biggest trade partners, with two-way trade between the countries of more than R900bn in 2022 and Chinese investment in South Africa totalling close to R200bn.
However, statistics revealed in parliament by Steenhuisen indicate that a lot more needs to be done by the government to improve matters for black commercial farmers.
The export value of agricultural products surged to R55.8bn in the first quarter of 2024, marking a 14.4% increase relative to 2023, he said.
He said the strong export earnings were attained despite obstacles in ports and key export markets.
“On a quarter-on-quarter basis, South Africa experienced a notable 9.2% growth in net exports of agricultural commodities. While comparing 2023 and the first quarter of 2024, South Africa recorded a notable 31.9% growth in net exports of agricultural commodities.”
He said the 31.9% growth in net exports of agricultural commodities is driven by a 14.4% increase in exports of grapes, apples and maize, which are emerging as the top export products.
Agricultural Business Chamber of South Africa's chief economist Wandile Sihlobo says that the sector must not be a casualty of politics, arguing the GNU must keep the agricultural sector uppermost in its mind.
“This is a sector that should offer an avenue of convergence across the political spectrum: it is crucial for rural development, food security and employment creation. To successfully achieve transformative outcomes in agriculture, state capacity should be reinforced. The various directorates in the government that run programmes associated with land reform must be bolstered, and corruption must be dealt with decisively so that the resources for land reform reach the intended beneficiaries.”
He said an important programme for driving change in the sector is blended finance, adding that it must be expanded to reach more beneficiaries, primarily to expand black commercial farmers.
He said South Africa must do all it can to move beyond a country of two agricultures and introduce more efficiencies in programmes aimed at supporting new-entrant black farmers, unleashing the transformative possibilities of the land reform programme, providing financial assistance, and giving new-entrant farmers greater technical support while enabling them to connect to markets and root out corruption in government programmes.
Data from Trade Map indicates that South Africa was the world's 32nd-largest agricultural exporter in 2023 and the only African country in the top 40 of the world's largest agricultural exporters in value terms.
“Broadly, South Africa now exports just over half its agricultural products in value terms. In 2023, South Africa's agricultural exports reached a record $13.2bn (R235.8bn). The increase in agricultural output is why South Africa is now ranked 59th out of 113 countries in the Global Food Security Index, making it the most food secure in Sub-Saharan Africa.”
He said the lacklustre performance of black farmers in commercial agriculture could not be blamed solely on historical legacies.
“The task, then, is how to make South Africa's agricultural sector more inclusive and transformative. I think this will need both the private sector and the government to craft a common vision for the sector with clear rules of engagement and monitoring systems.”
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