Maize is withering in the heat, and the heavens refuse to pour forth much-needed rain. Although cattle remain in good condition, they are taking strain in the heat. It’s frightening how quickly the fortunes of a farmer can change, and diversification into different farming disciplines, or into the value chain, is essential. Some farmers can afford to buy land in different regions to spread risk, while others have ‘weekday’ jobs to ensure a steady income.
It is not only farmers who have the foresight to diversify. SA companies are increasingly diversifying into the rest of Africa to ensure a return on investment to shareholders. South Africa’s slow economic growth is not conducive to growing revenue, and despite the lower fuel price, cash-strapped and indebted consumers will not increase their spending enough to satisfy shareholders.
This strategy is certainly paying off for Pioneer Foods. The company saw a 25% jump in sales on the rest of the continent, as we report in this issue. Tiger Brands, meanwhile, relies on the rest of Africa for about 25% of its turnover. It is heartening to see local companies succeeding, and should be good news for SA producers, because new markets mean greater product demand.
Improving infrastructure on the continent, coupled with an increase in farmer productivity due to input suppliers and food companies launching projects to this end, will result in food companies obtaining raw materials and produce closer to their processing facilities and stores. This means that costs are lower than they would be if products were transported from South Africa.
The country’s expertise is an export commodity that is increasing in demand on the continent. At a time when we need hands-on mentors to upskill our own smallholder farmers, those mentors are assisting farmers elsewhere. The importance of mentors equipped with practical experience is highlighted in the story of GK Gasekoma, a start-up farmer near Reivilo in North West. At one stage he was assisted by a mentor who seemed to lack practical experience of farming or was not committed to his job. Otherwise he wouldn’t have erected fencing without proper angle support for the straining posts.
In addition, this mentorship model lacked a key element: farmer involvement, where the developing farmer assumes control, learning the ropes while being guided by the mentor. Empowerment should not be about handouts, but developing skills. For, as farmers in North West will tell you, conditions change year after year, and if you’re unable to adapt, you won’t last long in this profession.
