How effective agriculture import and export can improve jobs

Agriculture can potentially save S.A from an unemployment crisis

The agricultural sector is one of the most important sectors in any economy as it not only provides food security but it also provides a host of various employment opportunities. South Africa is currently faced with a 29% unemployment rate however the agricultural sector has remained fairly stable when compared to other sectors in that only about 1 000 jobs have been lost since the first quarter.

What the department needs to focus on

The department needs to focus on improving food security which could potentially create much needed jobs. In doing so it will also increase the contribution of the agriculture, forestry and fisheries sectors to gross domestic product (GDP). Another focus for the department is that of enhancing primary animal healthcare services and enabling trade in the global economy.

The numbers don’t lie

In 2017 the South African economy grew by +1.3%, exceeding National Treasury’s expectation of +1.0% growth which was announced during the National Budget Speech in February of 2017. The strengthening in economic activity in 2017 was partly driven by the agriculture, forestry and fisheries sectors which was recovering from one of the worst droughts in South Africa’s recent history. In 2017, the sectors’ contribution to the GDP was 2.4%. 

The total volume of South African agriculture production for 2017 was estimated at 62.9 million tonnes compared to 50.8 million tonnes in 2016, an increase of around 24%.

This information provides us with the assumption that the agricultural sector is of vital importance to the South African economy. It also adds to economic development and can contribute significantly to household food security.

“The figures show that agriculture could be the proverbial light at the end of the tunnel,” said Jahni de Villiers, head of policy at Agri SA’s Centre of Excellence: Labour and Development. “Policy uncertainty, like expropriation without compensation and poor economic growth, is an obstacle to real job creation in the agricultural sector.”

According to Statistics South Africa’s 2017 General Household Survey, only 15,6% of South African households were involved in agricultural production. Most crop production took place in backyard gardens, and those statistics proved that most of that agricultural activity was food production.

That food production mentioned above consisted of fruit and vegetables (53,4%), grains (51,8%), livestock farming (47,1%) and poultry (35,3%). The problem however is that according to the statistics, only 11,1% of the households involved in agricultural activities reported getting support from the government. On a national level, slightly more than 2,2% of the households reported receiving training and 7,0% received dipping/livestock vaccination services.

 

What the department has planned

The department aims to promote food security through the Fetsa Tlala Programme, which is said to form part of the National Food and Nutrition Security Policy. The programme aims to focus on assisting susceptible households, subsistence and smallholder producers to produce their own food. The aim to by ensuring that 1 million hectares of land is used for production by the year 2030.

Rural households are expected to benefit from food production initiatives, including the provision of production inputs such as fertilisers, seeds, seedlings, breeding animals, machinery and equipment. This process will be made possible by the Ilima/Letsema conditional grant, which is set to receive an estimated R1.8 billion over the medium term. The department aims to help about 145 000 black commercial, subsistence and smallholder producers per year.

Over the medium term, the department plans to create 3 481 full-time equivalent jobs through the projects. The Land Care Programme which forms part of the plan aims to promote sustainable land and soil management practices which will help prevent land degradation and desertification in rural areas, it will also contribute to job creation.