'Zuma backs farmers'

Potchefstroom - The government under President Jacob Zuma is on the farmers' side, says Dr John Purchase, executive director of the Agricultural Business Chamber (ABC).

On Wednesday at a Nedbank conference in Potchefstroom Purchase said there was a greater understanding for the key role that agriculture, which indirectly produces 30% of the country's gross domestic product (GDP), can play in the country's development.

Food security is high on government's agenda, which is "very positive" for farmers. Although tremendous emphasis is placed on affordable foodstuffs, within the ANC and the government there is an understanding that it is essential for farmers to remain profitable. Government realises that closer co-operation with the private sector is vital, Purchase continued.

For instance, an investigation is currently under way to increase import duties on wheat, which could help these farmers compete with cheap, subsidised wheat imports. He noted that farmers' big challenge was not the Department of Agriculture - it was other issues, such as the cost and supply of electricity, water and transport.

Fifteen years ago 90% of the country's entire maize and wheat harvest was transported to mills by rail, but the figure is now 25% to 30%. Farmers have no option but to use road transport, even though it is 30% more expensive than rail.

The cost and availability of water and electricity are becoming ever more significant, with a negative impact on South Africa's competitiveness.

The local industry also needs an urgent financial injection into its research capacity. Purchase said that South Africa needs to ensure that its agricultural research is world-class - essential if it is to remain competitive. At the moment, for instance, the country is receiving cultivars from Brazil and Argentina, which are blotting its copybook.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.