“The maize price has to increase from its current R1 800/t to R3 000/t for farmers to remain profitable,” said Abie van der Walt, chairperson of Agri Africa Trust. “Production costs are about R7 000/ha to R8 000/ha. Increases in urea (US 000/t), fuel (US0/barrel), chemicals (165% up) and the interest rate mean farmers will have to get more productive to survive.”
At 11 million tons, this year’s forecasted harvest comes close to the 12 million tons SA harvested in 2005, when the maize price plummeted to R500/t. But experts say this surplus will not result in another price crash. The world market has grown beyond the food that’s available, which is causing grain and meat prices to rise beyond people’s means. And according to TAU SA general manager Bennie van Zyl, the biofuel revolution in the US has consumed much of that country’s maize surplus, which used to “be dumped as aid”. But unlike 2005, this year South Africa’s maize surplus looks set to leave our shores. “Kenya has a market shortfall of 300 000t of white GMO-free maize and has asked for tenders of 50 000t,” said Van der Walt.
“It’s rumoured Thailand asked for a specific load of yellow maize, while Zambia has requested 150 000t of white maize.” H e added that to his knowledge, South Africa was currently the only country which was producing a surplus of white GMO-free maize and that two million tons looked set to be exported by September. Van der Walt said that the infrastructure to move such large volumes was available, but that it would come under pressure. “It’s going to be difficult, ‘maar ‘n boer maak ‘n plan’,” he concluded. – David Steynberg
Mixed reaction on Agri-budget vote
Ernst Janovsky, ABSA agribusiness general manager, says government’s budget for agriculture contains some positive aspects. “The one great move is the increase in grants for the Land Redistribution for Agricultural Development (LRAD) programme, which will make land transactions more feasible,” he said. “There is also more focus on extension officers and how they manage the whole scenario.” H e said the LRAD increase would help land affairs minister Lulama Xingwana put more farmers on land. “She is talking about 10 000 farmers in a year. If you do the maths that’s 33 farmers per working day,” he said.
Xingwana’s day in parliament had a sting in its tail. When the opposition parties accused her department of not properly supporting black farmers she lashed out, saying that white farmers are doing nothing to help emerging farmers. “It is not their fault they cannot farm and didn’t go to school,” she yelled, “It’s apartheid!” Janovsky said the minister took her usual defensive stance, blaming her department’s lack of performance on white commercial farmers and apartheid.
“I don’t think she knows what is going on at ground level,” said DA spokesperson Dr Kraai van Niekerk. B ennie van Zyl, TAU SA general manager, was equally annoyed. “The minister must decide whether she and the rest of SA would like to eat or play politics. It does not matter what the budget says – it’s what they do with it that counts,” said Van Zyl. – Robyn Joubert
Agriculture has the president’s ear
There have been more than 24 000 farm attacks since 1989, in which more than 1 600 members of the farming community have been murdered. hese were some of the statistics presented to President Thabo Mbeki and land affairs minister Lulama Xingwana at the presidential working group on commercial agriculture on 20 May. At the meeting André Botha, Agri SA law and order committee chairperson, addressed the president about issues relating to safety and security, such as the phasing out of the commandos and the sector policing plan.
Botha also used the opportunity to explain problems such as the lack of management ability of police station commissioners and their equipment shortages. M olefe Mokoena, Nafu president, said there was a serious need for members of organised agriculture to form a unified front and come up with an action plan for rural safety. Botha agreed, saying it was a shame that organised agriculture still didn’t speak with one voice. “As soon as we get momentum on an issue, one of the parties deviates and slows down the process,” he explained.
“I’m very optimistic that an effective plan supported by the president will force us into the same direction. If we can go into this partnership with a mutual goal and take responsibility for the outcome, we have a future.” ther issues raised at the working group include measures to increase agricultural productivity, such as encouraging commercial and developing farmers to work together. The farming community also raised concerns about the new land expropriation legislation, but we were told to raise their concerns at the public hearings. ssues relating to the impact of water pollution on the agri-business sector were also discussed.
Delegates agreed there was a need to ensure that human settlements don’t impact negatively on natural water resources and food quality. The Departments of Agriculture and Water Affairs and Forestry said they would commission a research project to resolve water-quality problems at municipal level. “It was very constructive,” said Botha. “President Mbeki knows exactly what’s going on. He understands the food security problem.” – Robyn Joubert
Lulama aims for better extension and research
Delivering her budget Vote in parliament last month, agriculture and land affairs minister Lulama Xingwana focused heavily on the need to improve food security, extension services, research facilitation and land transfer. T o address the shortfall of 5 490 extension officers and the need to intensify training and visibility, she announced a R500 million extension recovery plan over the period 2008 to 2011. In the current financial year, she plans to recruit at least 1 000 extension personnel from among young people and women, as well as through a partnership agreement with Kenya.
On land reform Xingwana said 5 million hectares of white-owned agricultural land will be redistributed to 10 000 new agricultural producers through the Land and Agrarian Reform Project (LARP). This would be facilitated by increasing the number of Redistribution for Agricultural Development (LRAD) grants. She also announced that R235 million was to be channelled towards strengthening the country’s biosecurity system. Onderstepoort Biological Products and the Department of Agriculture would strive to implement a contingency plan to ensure sustainable availability of vaccines against animal disease.
During the 2008/09 financial year, the Agricultural Research Council (ARC) would implement a new approach to the distribution of technology. approach will include strengthening relationships with key stakeholders and increasing the participation of black farmers in the Livestock Recording and Improvement Scheme. This means training 1 000 farmers in various technologies and advising them on the development of feedlots. Xingwana said the ARC would continue to focus on identifying and developing solutions to manage the potential adverse impact of climate change.
“We note the progress made by the ARC in identifying wheat breeding lines resistant to stem-rust virus infection and to drought,” said Xingwana. “This is a step towards ensuring wheat production and food availability.” – Robyn Joubert
