Land reform programme not hitting exports – yet

Concerns over the impact of
the land reform programme
on agricultural exports have
been allayed – for now.
Johan Pienaar, deputy
executive director of
economics and trade at
the farmers’ central body,
AgriSA, says the programme
is not having a noticeable
impact on SA agriexports,
as yet.
This follows marketplace
talk about farmers whose land
was due to be redistributed,
not intensively farming it land
prior to the hand-over.
This, said certain
commentators, could lead
to export-oriented farmland
being allowed to literally go
fallow – and hit SA’s export
potential of that specific crop.
Part of the discussion related
to certain citrus farms which
were involved in the land
claims process.
But Pienaar refused to
confirm this theory.
He had no knowledge of
commercial farmers cutting
back on crop output, he told
FTW. But, he added: “There
have been cases where the
new owners didn’t live up to
expectation.
“It is disappointing that
redistribution has led to less
than optimum usage.
“But there is no impact on
exports as yet.”
The discussion was
also accelerated after
certain Independent Group
newspapers, including the
Sunday Independent, carried
a story about the hand-over of
150 000-hectares of land in
Magoebaskloof in Limpopo
to the Makgoba-tribe, and
the farmland no longer being
commercially productive.
According to the Regional
Land Claims Commission,
119 Magoebaskloof farms
were under claim and were
subsequently gazetted.
At the time, an
executive member of Agri-
Letaba indicated that the
Magoebaskloof area annually
generated an estimated
R550-million; and in another
valuation, the plantations
and tea and fruit farms in the
Magoebaskloof that formed
part of the landclaim of the
Makgoba tribe, were valued
at R3.5-billion.
Such a handover is contrary
to a statement ascribed to the
department of agriculture,
which was reported to have
said that it had no intention
of disposing of productive
farmland.
But such a situation is
certainly of concern
to AgriSA.
In just part of its policy
statement on land claims,
the body said: “For the sake
of greater certainty and
trust, there should be clarity
and transparency regarding
transformation targets and the
future thereof.
“The land redistribution
process and broadening
of access to other
natural resources must
be implemented with
transparency within the
context of recognising
property rights, fair
compensation and the
retention of production
potential. There are
concerns in certain areas
regarding concealed
expropriation without
compensation, with resultant
loss of property rights.”
“The state should use
market value as a norm
when acquiring land for
land redistribution purposes.
This also applies to
expropriation....”
But these factors have had
no significant impact on SA’s
agri-export market up to
now, according to Mike Froy,
MD of perishable air export
specialists, Grindrod PCA.
“None of the products
which we handle have been
noticeably reduced (this
season),” he told FTW.
“But, of course, if less
land was being used to
produce export quality crops,
that would certainly have
an effect.
“However, up to our time
of talking, that negative effect
has not been evident.”