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Johannesburg - South Africa's food giants have made an earnest call on government to adopt a more agriculture-friendly policy in order to encourage food production and increase the assurance of food production.
This is the first time in South Africa's democracy that the country's food sector has spoken out so unanimously for a more favourable agricultural policy.
This important development follows a Nedlac meeting in which the country's leading food processing companies took part under the banner of the SA Agricultural Processors' Association and where the seriousness of high food prices was discussed in depth.
The association's members include heavyweights like Astral Foods, Foodcorp, McCain Foods, Pioneer, Premier, Rainbow Farms, Tiger and SA Breweries.
At the same time, the association supported government's stated policy of not interfering in the food chain's price-formation mechanism.
Jannie de Villiers, executive director of the association, said after the Nedlac meeting that the country needs more funding for research, information, the improvement of its rail system, better roads, sufficient power supply and the upgrading of its harbour facilities.
"The Department of Trade and Industry should also revise its tariff policy so as to create a friendlier investment environment in agriculture."
He said that the World Bank admits their funding of agricultural projects has fallen from 80% of total loans in 1980 to 12% in 2007. A similar trend in South Africa is now hampering the agricultural sector's ability to produce more food.
De Villiers also said that the association supports government's decision not to use maize (or even wheat) for biofuel production.
"That's not in the interests of an assured supply of food in South Africa."
The food processing sector also supports Cosatu's request to government to increase social security allowances so that the poorest of the poor can obtain food.
"We also commit ourselves to joining Government and the labour sector to find solutions for high food prices."
De Villiers said that they had taken note of the large maize harvest, which will undoubtedly carry South Africa through these difficult times. "We do not expect maize prices to rise higher than the present levels."
Poor weather conditions in Australia and elsewhere, grain used for biofuel, and the growth in China and India are, according to him, the main reasons for the present high international food prices.
In addition, there have been enormous increases in international shipping tariffs. "Three years ago, we imported wheat and maize at about $20/ton (freightage), compared with today's $90/ton. Because of the constantly increasing fuel prices, our distribution costs have also increased."
- Landbou.com