The global economic outlook has worsened and the risks of a meltdown are high – so now is not the time for high-risk ventures.
Agriculture has largely relied on retailers to inform consumers. Unfortunately this has created serious misconceptions about farming and food production.
Higher food prices are on the way, but government can do a lot to mitigate their effect on consumers.
Despite what some believe, farmers don’t create food inflation – often they actually absorb price increases.
Maybe it’s time government provided unused tribal and state-owned land for commercial farmers to produce food.
Farmers are frequently blamed for high food prices, and this is just one of several misconceptions that have to be urgently addressed.
The ratio between input prices and the price farmers receive for their products is steadily narrowing. Farmers must take this into account in future plans.
The probability of producer prices remaining at current levels, or even increasing somewhat in the next year, remains strong.
If the euro weakens, South African farmers may see lower prices, but they mustn’t forget the vast potential of other developing countries in Africa.
All indicators point to a long-term agricultural boom. There are ways farmers can benefit from this.
It’s high time the department of agriculture drops the rhetoric and gives us a few straight answers to questions about our animal bio-security.
Some 27 countries in Africa will need help with food security in 2012. To meet this demand we need more government-funded research in SA.
