The Economic Freedom of the World Index clearly shows the effect of a freer economy, where property rights are properly protected.
Retailers use the concept of ‘sustainability’ to differentiate their products. In doing so, they add to the cost of food to the consumer.
The BFAP has presented a less optimistic outlook for South African agriculture this year.
The SA poultry industry’s compromise with the US will put local producers’ margins under pressure.
Greece’s ongoing financial crisis highlights the danger countries face if government expenditure continues to increase at a faster rate than income.
The South African economy is slowing down, while in Europe a Greek tragedy is unfolding. Farmers will not escape the effect of current economic trends.
Further weakening of the rand is expected. This is a double-edged sword for farmers. But, as always, those able to produce quality products will survive.
The 2015/2016 department of agriculture’s budget is 4,6% smaller than that of the previous year. Both commercial and non-commercial farmers will suffer.
A recent UK study has found that more efficient and profitable farmers tend to have certain properties in common.
Farmers need to carefully consider how they address black economic empowerment strategies.
Higher input prices are on the cards. Farmers who in many cases also face lower crop yield will have to manage costs diligently to survive a difficult year.
To survive the tough times, avoid wastage during times of plenty – and spread your risk.
