• SA cities need foreigners

    We need to protect our cities' cosmopolitan nature, says Mzwandile Jacks.

  • Am I a racist?

    Does hating government's arrogance, nepotism and greed make me a bigot, asks Anton Ressel.

  • Recipe for disaster

    Malema's flames of frustration are fuelling white extremism, says Leopold Scholtz.

See More

SA farmers lack competitiveness: PwC

Feb 01 2011 15:19 Sapa

Related Articles

SA farmers to explore Georgia

New farm bill may dampen hiring

Govt won't pay for flood-damaged crops

SA seeks new markets for its food

Minister slates technocrats

Agri fund over-subscribed


Johannesburg - Local farmers are not internationally competitive and not generally profitable, shows a survey released on Tuesday by PricewaterhouseCoopers (PwC).

"Due to the strength of the rand and the support schemes that agricultural producers in developed countries enjoy, local agricultural producers find themselves in an uncompetitive position," PwC said in its sixth Agribusinesses Benchmarking Survey.

"Together with these factors, the devastating effects of the worldwide financial crisis and the consequent economic recession have also had adverse effects on the agricultural industry."

PwC said this was aggravated by the over-production of grain.

The initial high input costs of producers had been followed by a sharp decline in product prices.

The survey, which looks at the period from March 2009 to September 2010, found that the profitability of agribusinesses over this time declined by 19%, compared with an increase of 53% in the previous period.

Trade turnover declined by 4%, compared with an increase of 11% in the previous period.

Grain transactions decreased by 11%.

Agribusinesses were also negatively affected by the drop in commodity prices, which led to stock write-offs and falling turnover.

As farmers had less purchasing power they were forced to curtail their capital expenditure programmes, which caused tractor and implement sales to fall considerably.

PwC said the "most important single pointer in the survey is the growth in the agribusinesses' debtors' book" and its financing.

"Of extreme concern is that due to the growth in farmers' debt levels, agribusinesses were compelled to take on additional financial commitments and even consolidate them into long-term debt.

"Long-term facilities are thus being used to finance the short-term debt of producers," said the compiler of the survey, Kobie Bekker, of PwC and national leader of the Agri Industry Group.


pwc  |  agriculture  |  farming


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Must see! The most luxurious dog house!

This dog house comes with a treadmill and hot tub, you have to see it!


Luxury living

Exciting new luxury SUV arrives in SA!
Ridiculous demands people with too much money make
8 of the priciest places to dock your yacht

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Government’s call for the private sector to add power to the grid is:

Previous results · Suggest a vote