Subsidies will benefit agriculture

WHILE PROGRAMMES for better access to finance, improved trade agreements, fishing quotas and transformation charters have been put in place, this sector will also benefit from firm economic growth, particularly from neighbouring countries, as well as agricultural subsidies from Europe and the US. Standard Bank believes growth will be moderate over the medium term because of the emergent black farmers, investment and government support. “The emergence of biofuels as an alternative energy source means that selected agricultural prices will remain high over the medium term and in fact may change the structure of the sector.” The issue over skills and technology will also have to be addressed.