THE wider agricultural industry could hold the key to addressing many of the social and economic difficulties South Africa faces – if government takes the necessary steps to allow all farmers to be optimally productive, writes agricultural economist, Dr Kobus Laubscher, consultant to Agility Agri.
South African agriculture is strategically fit to create jobs and help build President Cyril Ramaphosa’s vision for growing a more sustainable and inclusive economy to benefit all through improving household food security.
A most encouraging message in the president’s recent State of the Nation Address is the sense of a new paradigm in collaboration.
The private sector’s ability to create employment largely depends on how enabling the environment is. Give agriculture a chance, and the freedom to work without the yoke of bureaucracy weighing the industry down, and what a difference it could make to the country’s prosperity.
“We have consensus that the power crisis, potholes, an underresourced state healthcare system, and other crumbling infrastructure are all constraining productivity and the potential for growth, and that this needs to change,” said Laubscher. “The knock-on costs of getting perishable fresh produce harvested and to domestic markets, let alone the more lucrative export market, are alarming.”
These costs are largely borne by farmers, pushing up food prices and the cost of living and chipping away at the feasibility of earning a living from the earth. It may not be easy for commercial farmers and the industry behind them, but for newcomer farmers it is even harder to survive and scale up their operations.
Government cannot do everything for everybody, however the extent of assistance provided to new farmers is not adequate and investment must be prioritised in the best interests of promoting economic growth. A farmer will never let their neighbour down, and many established agricultural operations and suppliers are eager to help emerging farmers learn and succeed.
“There is a lot of goodwill, and commercial agriculture is well capacitated to develop working partnerships that will provide knowledge and experience to those entering the space. Add to this the ever-evolving technology and advances in agricultural science being embraced in our country, and the sky is the limit as to what we can achieve relatively quickly – if we aren’t ensnared with too much red tape,” said Laubscher.
The employment this could give rise to – not only in farming directly but in the plethora of associated industry, from supplies and processing to equipment and trade among others – would be considerable.
This would contribute to strengthening rural economies and building the GDP, and it would create a vehicle to help address the root cause of the desperation that drives crime and social ills: poverty.
As the unemployment rate drops, it will be possible for a substantially greater number of people to benefit from private healthcare as employers in the sector are increasingly seeing the advantages of providing some form of employee health, well-being and benefits cover.
The entire agricultural value chain could further enhance productivity through proactively managing human capital risk, as looking after the health and well-being of experienced staff is one of the most worthwhile investments in an industry that remains highly labour-intensive.
It is crucial that any employee benefits and rewards are accessible in the rural areas where most agriculture takes place. Agility Agri provides the industry a fully integrated human capital risk management and employee benefit solution tailored to the specific requirements of South African agriculture, where it operates, and flexible to fit the needs and budget of any employer.
In this environment, attracting and retaining quality staff is imperative, employee benefits are highly prized and contribute to improved agricultural employee relations, reduced absenteeism and a healthier, more engaged workforce.
South African agriculture is well organised and motivated to keep putting safe, affordable food on the table and driving economic expansion and transformation, but the difficulties they face require urgent government intervention. Farmers are sincere about living their vocation every day and building the potential of their neighbours.
They could do even more if permitted to ‘run their own races’, and deserve credit for their tenacity, creativity and commitment to our nation’s continuing food security.
– ISSUED BY MARTINA
NICHOLSON ASSOCIATES ON BEHALF OF AGILITY AGRI
