South Africa’s food security is innovative, improving agricultural productivity

South Africa’s food security is tied to the competitiveness of its agricultural products. Therefore, improving productivity through innovation and international best practices supports food security, such as climate change, environmental and water supply problems, as well as logistical challenges. John’s purchase He said.

During the fourth quarter of this year, the South African Agribusiness Trust Index (ACRD) gave an overview of the agricultural trade in South Africa. Although both are below US production, South Africa has remained competitive over the past two to three years compared to Brazil.

This has allowed the industry to remain competitive and remain a net exporter, and the export equity is lower than the international price due to logistics costs for exports. The competitiveness of this agricultural industry has allowed high value-added agricultural sectors, such as meat and poultry, to remain competitive, produce food at relatively low prices, and provide affordable prices to the people.

“Competition is one of the key pillars of food security and we need to improve productivity. This is true in almost every agricultural sector,” he said.

Agbiz said the initiative is aimed at ensuring food security and competitiveness of agricultural value chains, especially through the AAMP initiative.

South Africa’s agricultural sector has increased investment, productivity and value, and has increased exports during the year. A.D. In 2018, South Africa will export $ 10 billion worth of agricultural products, and Agibus is confident that by 2021 it will reach $ 11 billion and trade deficit $ 5 billion.

“The sector is attracting the attention of the government because this competition is based on rand and food security. But can we continue this? There is a purchase.

Index Findings
Agbiz Chief Economist Wandile Sihlobo In the 2020/21 crop year, the sub-index index improved by 92 points due to the increase in the price of good crops and fruits and vegetables as well as cereals and oilseeds.

“Essentially, this large harvest is accompanied by sustained high prices. South Africa is well integrated with the international market and is benefiting from these prices. High prices can partially reduce some input costs, including high fertilizer and 40% high agro-chemicals. “Expenses, which is one of the reasons why the net income sub-index increased by one point to 85 in the fourth quarter,” he said.

Exports have grown by six points to 79 points due to the facilitation of cooperation in the field of crops and horticulture, logistics and transit exports.

Further, employment conditions subindex, while showing a drop of 4% between the second quarter and the third quarter, improved in the fourth quarter to 62 points, with around 829 000 people employed in primary agriculture. This number is 3% higher than the fourth quarter of 2020, Sihlobo said.

“First of all, in addition to the fact that 5% of the workers are employed in agriculture, employment is higher than the long-term average recorded in the last ten years,” he said.

He said the employment sub-index has improved overall agricultural activity, improved rainfall and annual crop growth estimated at 5% per annum, as well as overall growth in fruit and vegetable production.

Surprisingly, the capital investment sub-index has risen from 22 to 79, the highest level since the second quarter of 2014, and evidence of investment in the sector. Much of the cost is spent on strengthening the sector and moving assets such as tractors and combine harvesters.

“Looking at the state of the road, large crops and high-value agricultural business finances have improved spending on machinery. Most capital investments are made on real estate, not long-term fixed investments, and have shown investments in fruits and vegetables. Especially in citrus,” he said.

In the third quarter, the overall agribusiness index improved from 67 to 74 in the fourth quarter. The level above the neutral 50-point mark indicates that agricultural businesses are optimistic about the situation in the country.

“The results reflect a positive outlook for the 2021/22 cropping season. The rise in commodity prices, combined with the positive weather forecast behind Lani and the event, could help farmers make up for the high cost of inputs.”

“We are concerned that the increase in input prices will weaken planting in some parts of the country, but all the high frequency data indicate the opposite. Farmers are growing seedlings and favorable weather conditions and commodity prices are appealing,” he said. Sihlobo

All subdivisions had more than 50 symbols, indicating the health of the South African agricultural sector.

Agbiz expects the sector to grow from 6% to 7% this year, following 13.4% growth in 2020 and its growth is building on a solid foundation. Significantly, the agribusiness sector expects to grow by 3% by 2022, and forecast sustainable, positive activity by the end of next year, Sihlobo said.

The results of the fourth quarter of the index show a positive picture for the next year if the weather conditions remain favorable and logistics works well for export markets.

However, there are a number of challenges, including inefficient biosectomy, including key to facilitating exports such as animal diseases and sanitation; Compliance with agricultural product standards standards; And food branding continues, Sihlobo said.

In addition, fertilizers, fodder, seed and solutions legislation, rural roads and water infrastructure repairs, and water rights distribution should be improved. Similarly, ports and railways are crucial for facilitating exports; He said cost-effective and reliable electricity supply must be ensured.

“Logistics is the key to agriculture, especially agricultural exports. Theo Boshoff.

Exports of the horticulture industry are expected to grow by 51.5% by 2030. Despite logistical capacity constraints, the agricultural export sector is doing well but is crucial to its success in terms of export competitiveness. He said limitations and logistical challenges need to be addressed.

Similarly, service delivery and health of rural municipalities should be improved. Municipalities are important because they are an agricultural area. To address this, various public and / or private mechanisms need to be explored to address the quality of services and infrastructure in municipalities, Boschoff said.

“These are basically agricultural areas and we need to look at them to reverse the decline in the countryside,” he said.

“South Africa needs to understand that the value chain of agriculture and bio-value chains such as food, beverages and fiber are constantly evolving. South Africa needs to update and develop its food system. Recommendations from the Food and Drug Administration say to stay competitive.

He further said that the successful development of the rural economy requires an integrated approach to development, combining opportunities into a comprehensive development program.

This idea is based on a study by the Food and Agribusiness Management Association of the International Food and Agriculture Organization (FDA). Gerhard Schiefer, Published in the International Dietary Journal.

“The study provides a basis for consolidating the concept of modern rural economies by integrating food, bio-value chains and the future of rural entrepreneurship by integrating ecological services including agriculture, remote areas, beaches and urban areas. Rural integration from agriculture and agro-processing. That is what we are trying to do with the Master Plan. ”

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