Supporting KZN’s agricultural sector is key to turning the provincial economy around
6 June 2019
The recent StatsSA agricultural statistics which reveal that agriculture in the country recorded a decline of 13.2% - the highest of any sector – during the first quarter of 2019, points to a crisis and a lack of political and policy leadership in a key industry of the economy. The decrease is attributed to, amongst others, the drop in the production of field crops and horticultural products.
Agriculture contributed 5.1% towards employment in KZN in 2017 while contributing 4% towards the province’s GDP during 2018 – a figure which it is expected to maintain this year. It is the up-stream and down-stream opportunities, created by this sector and which underpin KZN’s economy that have huge potential to curb unemployment and inequality in the province, particularly in rural areas. However, this can only occur if the agricultural sector is properly supported and developed.
The DA believes that in order to begin to see substantial and sustainable gains within the agricultural and agri-processing sector the following issues must be addressed as a matter of urgency:
- Policy certainty – a clear way forward is needed in terms of land expropriation without compensation;
- Ever-increasing input costs - government must intervene, particularly when it comes to costs related to labour, fuel, electricity, water and the recently instituted sugar and carbon taxes;
- Dumping of agricultural goods – government must curb this phenomenon which directly impacts on the competitiveness and profitability of agriculture in KZN;
- Small-scale farmers – those on land under tribal authority must be given security of tenure and proper support structures must be set up to train, mentor and provide resources for emerging farmers to enable them to participate in the economy;
- Access to financing must also be made more easily and readily accessible to commercial and small-scale farmers;
- Emerging businesses and farmers must be given better support in accessing the agricultural value chain and; and
- The safety of people living in rural areas must be prioritised.
The DA is in the process of drafting a revised plan for agriculture in the province. Stakeholders and interested parties are invited to make contributions by emailing [email protected]
We remain committed to playing a constructive role in turning around the economy of the province through developing the agricultural sector. This will directly impact on food security, employment and rural development.
Issued by Chris Pappas, DA KZN Spokesperson on Agriculture, 6 June 2019
