Agriculture Minister John Steenhuisen
Industry body the Agricultural Business Chamber of South Africa (Agbiz) has described Agriculture Minister John Steenhuisen’s maiden Budget Vote speech to be “valuable and focused on relentless implementation”.
In his Budget Vote on July 16, Steenhuisen said his focus would be on accelerating the implementation of the Agriculture and Agroprocessing Master Plan (AAMP), which he deemed the framework upon which the inclusive growth of the sector would be based.
In response, Agbiz chief economist Wandile Sihlobo said he was encouraged by Steenhuisen’s commitment to upholding objectives contained in the plan, adding that the strength of the master plan was its value chain deep dives on each commodity, which state the challenges and opportunities, as well as interventions, to accelerate growth.
Sihlobo pointed out how there had always been regions in South Africa at the periphery of agricultural progress, hence the need for a commodity corridor approach as set out in the AAMP.
He mentioned that there was untapped potential in the Eastern Cape, Limpopo and KwaZulu-Natal, as well as underutilised government-owned farms across the country.
Agbiz deemed it crucial, however, that the Department of Agriculture (DoA) communicated its renewed ambition on the AAMP with all stakeholders across all levels of government, as well as continued to engage with various organised agriculture sector leaders.
After that, a delivery process with timelines would be required for the department to instil confidence in the sector, as some may have doubts that the AAMP was being implemented.
Many of the interventions required by the AAMP were dependent on other government departments and Ministers; therefore, interdepartmental cooperation and alignment would be vital for the success of the plan, Sihlobo stated.
He added that the AAMP would only be successful if government collaborated with the private sector, labour and other social partners. Sihlobo said he believes Steenhuisen grasped this, in having recognised the necessity to leverage the skills, resources and knowledge already available in the private sector and the industry.
Sihlobo referenced the Minister saying access to finance had proven to be a significant constraint on the ability of new-entrant and smallholder farmers to succeeed, adding that blended finance – the provision of grants by the State and loans by private finance institutions – was the way to go for the industry.
Moreover, Sihlobo emphasised the importance of genetics research, explaining that improved crop and plant yields, as well as better animal genetics, had been at the heart of South Africa’s agricultural progress.
He hopes efforts in this regard will intensify to drive improved productivity, since the agriculture sector has more than doubled in size, value and volume, since 1994.
On the research matter, Steenhuisen said the department would prioritise innovation, and research and development to drive technological advancement and best practices within the sector.
Sihlobo commented that stakeholders in the value chain wanted to see more profound engagement with scientists in the DoA on new breeding technologies.
“Overall, we deem the Budget Vote speech to be positive for the agricultural sector. The one area the Minister could have underscored is that the success of the AAMP, particularly in empowering new-entrant farmers, also depends on the collaboration with the [newly individualised] Department of Land Reform and Rural Development.
“This department should continue releasing more than two-million hectares of State land to beneficiaries with title deeds, as the prior Minister already started doing,” Sihlobo stated.
Agbiz said the Land Reform Agency, which President Cyril Ramaphosa proposed and structured under former Minister Thoko Didiza, would be an efficient instrument for this land release, once launched.
Likewise, Sihlobo concluded that the AAMP’s objective to open up new markets for South African produce required a concerted effort between the departments of Agriculture, International Relations and Trade, Industry and Competition.