South Africa’s agriculture has had to contend with several urgent issues in recent months, including the need to manage the spread of foot-and-mouth disease and the uncertainty surrounding US and global trade.
The country is making progress in addressing animal diseases, with vaccination programs having started in some regions. Still, the work of reviving SA’s vaccine manufacturing, collaboratively with the private sector, needs to gain momentum.
The Department of Agriculture, through the revival of the Onderstepoort Biological Products, can have a significant effect, but that will not be sufficient. The times have changed, and disease occurrences have become more prevalent, making it even more urgent to expand risk mitigation efforts.
This can be achieved by also assigning private laboratories to produce the vaccine alongside the revival of Onderstepoort Biological Products.
In terms of trade, SA’s efforts to renegotiate its relations with the US have not yielded much success thus far. The expected 30% tariffs that SA products face in the US from next month are likely to limit their competitiveness relative to other suppliers.
In the case of agriculture, countries such as Chile and Peru are likely to gain greater market share if they face lower tariffs than SA goods. The SA government continues to engage with the US to find a resolution, but there will be clarity about the success or failure of the efforts in the coming weeks as we approach the key date of the inception of tariffs on August 1.
While SA continues to engage with the US, the process of export diversification should start with speed to reduce the risk of concentration. After all, the SA agricultural sector expects an increase in production, which means the expansion of the export markets should be part of the growth agenda.
As with biosecurity, this work should not necessarily be solely in the government’s hands. The private sector could provide key insights and research to support the government’s efforts in selecting priority markets for potential diversification.
Collaboration with the private sector on trade matters is key, as the private sector is aware of regions where they already have easier access to establishing logistical networks essential for goods trade.
While the sector grapples with these two significant challenges, there remains a need for continuous focus on some fundamental work that is key for the long-term inclusive growth of the sector.
In May 2022, agricultural stakeholders, along with government and various social partners, committed to the Agriculture and Agro-processing Master Plan (AAMP). This is by no means a perfect plan, but it highlights the key interventions that are necessary for accelerating growth in the sector. This can only be achieved through a clear focus on the various value chains and commodity corridors.
While today’s environment is very different from when the AAMP was launched, the fundamental challenges of the sector remain the same, and there remains value in continuing to implement the plan.
Some of the AAMP's goals may have already been achieved. There is thus a need for a monitoring and reporting system to track such goals, which would inspire stakeholders to make progress in other outstanding areas. Notably, the biosecurity matters and the trade diversification aspirations were also part of the AAMP interventions.
If the country had started implementing the plan rigorously from the start, perhaps some of today’s pressures would not be as severe, and the sector might have been better placed to cushion them.
Still, the current moment remains relevant for reform in the sector. Moreover, the release of government land also remains increasingly essential. Disappointingly, the Department of Land Reform and Rural Development has made limited progress on this matter despite this being one of the central aspects of the sector’s inclusive growth agenda.
In essence, while we confront many present-day challenges, these long-term reforms of the AAMP and land release must continue for the sector to achieve its inclusive growth aspirations.