Farmer's Weekly | Free trade in Africa bad news for local farmers

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Free trade in Africa bad news for local farmers

10:30 (GMT+2), Thu, 16 August 2012

By Lindi van Rooyen

Free trade in Africa could be a reality by 2017, signalling harder times for farmers in South Africa, while those abroad benefit.

A study has shown that Kenya had over a five year period exported horticultural products valued at about R3 billion – six times the value of imports which stood at about R480 million. But Dr Theo de Jager, deputy president of Agri SA, said that free trade could be detrimental to SA. “Products will always flow from countries that are more competitive to countries that are less so and SA is not very competitive at the moment.”

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bd says:
19:15 (GMT+2), Fri, 17 August 2012

Just as consumer welfare is tied to the efficiency of the farm sector, the welfare of South African farmers is indirectly yet intimately tied to the efficiency of South Africa's distribution and processing system. National country efforts to improve marketing efficiency and accessibility as a way to reduce the margin between farm gate prices and retail prices will be a critical prerequisite for the continued viability of the South African farmer under a less regulated regional trading environment.

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