Agriculture sector steps up as state falters

The agriculture sector has again proven its resilience this year, tackling the challenges of government failure and finding opportunity in adversity, a theme highlighted at the Agri SA Atlas congress as industry leaders showed how farmers are shaping their future.

Agriculture sector steps up as state falters
Speaking at the AgriSA Atlas congress in Pretoria on Wednesday, Agri SA CEO Johann Kotzé said the agriculture sector had proven it would not be brought down by state failure.
Photo: Lindi Botha
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Speaking at the congress, held in Pretoria this week, Agri SA President Jaco Minnaar said that while the agriculture sector had faced severe pressure over the past two seasons, including drought, animal disease outbreaks, and a fragile economy, it remained a sound investment.

“Despite all of this, our sector has proven once again that it is resilient. In 2024, agriculture contracted by almost 9%. This year, the Bureau for Food and Agricultural Policy projects that the industry will rebound by more than 5%,” he added.

Minnaar noted that horticulture was a key driver of export-led growth and job creation over the past decade, with citrus, grapes, nuts, and berries expanding plantings and doubling export values.

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“If we invest in logistics, infrastructure, and market diversification, horticulture can continue to be agriculture’s leading job creator,” he said.

Meanwhile, field crops remained the foundation of national food security. Although quality had been affected by erratic weather, improved soil moisture levels offered hope for a better season.

However, Minnaar noted that global grain and oilseed prices were expected to soften, putting local profitability under pressure.

“The opportunity lies in productivity, adopting precision agriculture, investing in soil health, and expanding irrigation where possible,” he added.

The livestock industry also faced a precarious future. “Animal disease outbreaks have significantly undermined farmer confidence. But with an effective national animal health system, South Africa could expand meat exports substantially. Without it, growth will stall,” Minnaar explained.

Agri SA CEO Johann Kotzé said there had been an important shift within organised agriculture, as industry players increasingly took on roles once filled by the state.

“In the past, we defined success by the depth of our expertise and our impact on policy. Today, Agri SA and its members are implementing projects and interventions across agricultural communities and value chains,” he said.

Kotzé added that nearly half of the R1 billion collected annually in statutory levies by commodity organisations was now invested in research and development, while one-fifth supported transformation initiatives.

“Many of these [commodity] organisations are rendering services once performed by the state itself,” he added.

He noted that this evolution was driven by the erosion of state capacity and the recognition that industry must play an active role in driving growth.

“Agri SA can no longer define itself as just the voice of the farmer. We have become strategic enablers of growth across the value chain.

“Agriculture has shown that when the state falters, the sector steps up and succeeds,” he said.

Kotzé and Minnaar called for greater collaboration across the sector to ensure its continued growth and success.

Kotzé added that as a network of organisations, they now faced the challenge of building the capacity, systems, and tools to fulfil a dual role: responding effectively to the realities of the business environment while realising their ambition to be a well-capacitated partner in growth.

“This will increasingly require heightened interaction and coordination. We will need to be clear about the levers of change on all levels,” he added.

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Lindi Botha
Lindi Botha is an agricultural journalist and communications specialist based in Nelspruit, South Africa. She has spent over a decade reporting on food production and has a special interest in research, new innovations and technology that aid farmers in increasing their margins, while reducing their environmental footprint. She has garnered numerous awards during her career, including The International Federation of Agricultural Journalists (IFAJ) Star Prize in 2019, the IFAJ-Alltech International Award for Leadership in Agricultural Journalism in 2020, and several South African awards for her writing.