John Steenhuisen, the newly appointed Minister of Agriculture from the Democratic Alliance, addressed the national assembly on Tuesday, 16 July 2024. His speech outlined significant policy directions and budget allocations aimed at revitalizing South Africa’s agricultural sector, which is crucial for employment, economic growth, and food security.
Key Highlights of the Budget Speech
Economic Impact of Agriculture
The agricultural sector, inclusive of food manufacturing, contributes approximately 7% to South Africa’s GDP and 6% to total employment. The sector has shown resilience and growth, especially from 2019 to 2023, increasing its value-added by over 25%, creating 113,000 new jobs, and expanding agricultural exports by more than R47 billion despite global challenges.
The Agricultural and Agro-processing Master Plan (AAMP)
Minister Steenhuisen reaffirmed his commitment to the Agricultural and Agro-processing Master Plan (AAMP), emphasizing its role in promoting sustainable and inclusive growth within the agricultural sector. Central to the AAMP is the enhancement of sustainable agricultural practices, which involves the adoption of eco-friendly technologies and methods that minimize environmental impact while increasing crop yield and quality. The plan also aims to widen market access, both domestically and internationally, ensuring that South African products reach broader markets effectively.
A significant thrust of the AAMP is on fostering innovation and technological advancements. This involves substantial investments in agricultural research, where cutting-edge solutions in biotechnology, soil health, water conservation, and pest management are developed. By partnering with academic and research institutions, the plan supports projects that lead to practical, scalable innovations.
Furthermore, the AAMP seeks to develop robust value chains that enhance the efficiency and profitability of agricultural production. Improving agricultural infrastructure is a priority, with upgrades to storage facilities, transportation networks, and digital systems to track and manage agricultural data. These initiatives are supported through public-private partnerships, which mobilize capital and expertise from the private sector to boost infrastructure development and financial accessibility. These partnerships are pivotal in facilitating access to finance, ensuring that farmers and agro-processors can invest in modernizing their operations to stay competitive and sustainable.
Conducive Policy and Regulatory Environment
Minister Steenhuisen highlighted the critical role of the Department of Agriculture in providing a national framework aimed at promoting sustainable food security and creating an enabling environment for agricultural growth. He expressed a strong intent to collaborate closely with the portfolio committee to drive a legislative agenda through the seventh Parliament that focuses on modernizing the agricultural sector. Acknowledging that some existing statutes, such as the Fertilisers, Farm Seeds, and Remedies Act of 1947, are outdated, he emphasized the need to update these laws to ensure they meet the current demands of the sector and align with international standards. This modernization is essential for harnessing new technologies, products, and practices available internationally, allowing South African farmers to remain at the forefront of agricultural advancements and ensuring their global competitiveness.
Ensuring Food Security
Minister Steenhuisen emphasized the crucial role of food security in maintaining national stability and well-being. The Department of Agriculture is tasked with ensuring the availability, accessibility, utilization, and stability of food resources across the country. The focus is not only on increasing food production but also on enhancing the quality and affordability of food available to all South Africans. To achieve these goals, the department is committed to protecting and effectively managing the country’s agricultural land to prevent its loss, which could jeopardize the nation’s ability to produce sufficient food. This comprehensive approach to food security is designed to safeguard against the threats of hunger and food scarcity, ensuring a resilient food system that can withstand economic pressures and environmental challenges.
Strengthening Biosecurity and Phytosanitary Measures
Minister Steenhuisen underscored the critical importance of biosecurity, especially in the poultry and livestock sectors, which continue to face significant threats from diseases such as Avian Flu and Foot and Mouth Disease. These outbreaks not only endanger local production but also pose risks to South Africa’s agricultural exports. The minister highlighted the necessity of intensifying focus on prevention, containment strategies, and rapid response protocols to manage these threats effectively.
Central to the government’s strategy is the enhancement of biosecurity measures through the implementation of a new track and trace system for the movement of animals within the country. This system is essential for meeting international trade standards, which increasingly demand traceability of livestock products back to their origin. This initiative will also aid in combating livestock theft, allowing for the unique tracing of each animal back to its original owner and documenting all subsequent transfers.
In collaboration with the Onderstepoort Biological Products and the Agricultural Research Council, the Department of Agriculture is actively involved in the development and distribution of vaccines and medicines to combat outbreaks. Moreover, the department, in partnership with the Department of Science, Technology & Innovation and private sector entities, is investing R10 million in the National Biosecurity Hub Programme. This program is designed to integrate various scientific disciplines to bolster sanitary and phytosanitary capacities, aiming to establish a robust and comprehensive biosecurity system.
To further safeguard agricultural productivity and uphold the confidence of international trading partners, the Department of Agriculture is also dedicating R22 million in the current fiscal year to enhance pest and disease surveillance. This funding will support ongoing monitoring and intervention efforts targeting key threats such as exotic fruit flies, Citrus Black Spot, Citrus Greening, and Banana Bunchy Top Virus, among others. This comprehensive approach ensures the sector’s resilience and competitiveness in global markets.
Support for Farmers
Minister Steenhuisen expressed a deep appreciation for the nation’s farmers and farmworkers, acknowledging them as pivotal assets to South Africa’s economy and food security. He stressed the importance of providing robust support systems to both established large-scale operations and new entrant farmers to foster self-sustainability and productivity. A significant aspect of this support involves the development of a comprehensive database that catalogues the needs of each farmer, ensuring that tailored assistance is provided effectively.
To address financial barriers faced by new and small-scale farmers, the Department of Agriculture has introduced the Blended Finance Scheme (BFS). This initiative combines grants from the state with loans from private financial institutions to make funding more accessible to black producers in agriculture and agro-processing. The scheme has already facilitated substantial investments in the agricultural sector, enhancing the capabilities of numerous commercial black producers.
Further bolstering farmer support, the Agro-Energy Fund (AEF) was launched in partnership with the Land Bank to aid producers in adopting alternative energy sources, crucial for modern, energy-intensive agricultural operations. This fund supports the purchase of essential capital equipment and infrastructure, promoting energy efficiency in farming practices.
Moreover, the department continues to roll out various farmer support programs, such as the Comprehensive Agricultural Support Programme (CASP), which provides grants to producers who are unable to secure loans. These initiatives focus on providing essential infrastructure, production inputs, mechanization, training, and mentorship. They also ensure that smallholder producers meet safety and quality standards through certifications like the SA-GAP, facilitated by the Perishable Products Export Control Board (PPECB).
Expansion of Agricultural Exports
Minister Steenhuisen emphasized the significant progress made in expanding South Africa’s agricultural exports, which is essential for the sector’s sustained growth and increased contribution to the national economy. Recognizing the importance of maintaining traditional markets, he affirmed the commitment to bolster existing trade relationships and agreements, such as the African Growth and Opportunity Act (AGOA) and the trade agreements with the European Union, which have historically supported the robust growth of agricultural exports.
This year, 2024, will mark the first season where South Africa will be able to export avocados to three new markets: Japan, China, and India. Additionally, new markets have been opened for fresh beef and lamb in Iran, and for table grapes and citrus in Vietnam.
Disaster Management and Interdepartmental Cooperation
Addressing the challenges posed by natural disasters, the Minister stressed the importance of a cohesive approach involving multiple government departments. This cooperative strategy aims to improve infrastructure and security, essential for the agricultural sector’s stability and growth.
Commitment to Inclusive Growth
Minister Steenhuisen concluded his speech by reaffirming his commitment to the agricultural sector, promising to advocate for and support the interests of farmers, farmworkers, and the broader community involved in agriculture. His policies and budget allocations reflect a comprehensive strategy to enhance productivity, sustainability, and inclusivity in South African agriculture.