Concerns raised over declining agricultural exports

High input costs and low
commodity prices have turned
the tables for South African
farmers who have become net
importers rather than major
exporters of agricultural
products, according to Langa
Zita, the director-general of the
Department of Agriculture,
Forestry and Fisheries (DAFF).
In a presentation to
Parliament recently on the
department’s budget and 2011
strategic plans, Zita said that
farming production was in
decline, and South Africa was
now a net importer of food,
fuelling future food security
fears.
One of the initiatives,
among others, announced
in parliament to tackle the
problems was a proposal to
increase the number of fish
farms in the country from
84 to 96 in four years, with
processing facilities growing
from 60 to 70, and fishing
harbours from 12 to 19, over
the same period.
Concern was also expressed
in Parliament over how
farmers were being squeezed
by higher input costs and low
commodity prices – which is
set to deepen with petrol price
and electricity tariff hikes.
Zita said that the decreasing
share of field crops in
agricultural production was a
factor in the country’s decline
from a net exporter of foods
to a net importer. “The sector
operated in an unregulated
market environment, exposing
it to fluctuations in world
prices, while the growing
dominance of retail chains was
increasing the farmer/retail
price differential.”
Exports declined by around
11% in 2009 and last year
agricultural exports totalled
around R22 billion.
Mlungisi Johnson, the
chairman of the Portfolio
Committee on Agriculture,
Forestry and Fisheries, said
not only were high input
costs and administered prices
posing a major challenge to
commercial farmers, they
were also having to compete
against overseas farmers who
enjoyed huge tariff protection.
“The Government therefore
needs to discuss indirect
subsidies in areas such as fuel,
fertiliser and renewable energy
sources.”