In a recent conversation with agricultural economist, Wandile Sihlobo, we elicited his insights on the key priorities and opportunities for South Africa’s agricultural sector. His keys to growth? Exports, mobilising land, and addressing animal diseases.
There are a few things our new government of national unity could focus on to realise sustainable growth in the agriculture sector: We could start by using government-held agricultural land – it really is the first thing we should be doing.
Government has 2.5 million hectares of underused land that could be brought into full production. This could be supported by blended finance from the Land Bank, along with training and infrastructure support from commercial farmers and commodity associations. Developing and using the land appropriately will employ thousands and feed millions, all while transforming the sector.
The second phase would be to expand the market. Domestically, we are restricted in terms of growth, which means we’ll have to expand our exports. Admittedly, that’s much easier said than done; reaching an agreement with another country is a lot like a marriage, and for the last five years, we’ve seen the slowdown in exports partly due to a global shift towards protectionism, making it harder for South Africa to access new markets.
South Africa’s agricultural exports have seen significant growth, increasing from $2,4 billion in 2001 to $13.2 billion in 2023. This success is attributed to the private sector’s production capabilities and the government’s efforts to open new export markets. However, the pace of market expansion has slowed in recent times, and it needs to be accelerated; 70% of our annual fruit production is exported – let’s focus on growing exports for other sectors as well.
Saudi Arabia, China, Egypt, and India are all attractive new markets – we have to collaborate with the DTIC to position South Africa as a leading agricultural exporter.
However, expanding market access will be nigh impossible if we don’t gain better control against animal diseases; vigilant surveillance, improved biosecurity protocols and addressing animal diseases are crucial to maintaining and increasing our agricultural exports.
As 50% of South Africa’s agriculture industry value is livestock-related, we have to do a better job of addressing animal diseases. Improving veterinary services and increasing domestic vaccine manufacturing capacity are essential measures to enhance the sector’s resilience and productivity.
We must bolster domestic vaccine production by revitalising Onderstepoort Biological Products and modernising the Agriculture Research Council. We should primarily focus on vaccine development for the livestock industry (cattle, sheep, goats) and the poultry industry.
In the last few years, South Africa has had cycles of foot-and-mouth disease in the cattle industry, multiple strains of avian influenza in poultry, and swine fever in the pork industry. All these episodes were costly to farming businesses and distracted South Africa from its export ambitions.
Regulators will have to work with private organisations and industry bodies in assessing the possibilities of vaccination, and it will have to do so at speed; We need to build infrastructure and human capital.
In so doing, it is important to respect the role of the regulator when it comes to vaccine development; there are so many potential long-term consequences, from an animal health perspective, consumer health perspective, market restrictions, and industry reputation to think of – it’s better not to rush the process, but to get it right.
But not rushing the process does not make vaccine development any less of a priority. Clear communication within the department is crucial to avoid frustration and ensure expectations are met.
The proposed steps and strategic focus on mobilising government-held land, expanding export markets, and addressing animal diseases, are pivotal for South Africa’s agricultural sector.
If the new government focuses on these areas, it can create a resilient and sustainable food system, ensuring robust growth and global competitiveness.
