Agriculture
From The Report: South Africa 2012
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Agriculture’s contribution to the South African economy has waned in recent years, however the industry is well-placed to address some of the more fundamental needs of the country’s growth trajectory and offers significant potential in a number of key cash crops and export commodities, as well as niche opportunities in segments such as organic produce and wine. While the government looks to create thousands of jobs in agriculture and reverse a trend that has seen the number of farm workers decline significantly over the past few decades, the industry continues to face problems of competitiveness and efficiency, compounded by factors such as soil productivity, input costs, infrastructural impediments and the trade environment.

This chapter contains an interview with Alex Thiel, CEO, Sappi Southern Africa.

Articles from this Chapter

Overview

Fresh focus: Efforts to enhance competitiveness and efficiency and create jobs
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In a strategic position as a driver of economic growth and job creation, the agricultural sector stands as a barometer of a more equitable South Africa. However, the industry faces problems of competitiveness and efficiency, compounded by factors such as soil productivity, input costs, infrastructural impediments and the trade environment. The short-term future of the industry presents a complicated outlook, with sizeable potential but equally urgent challenges. IN CONTEXT: Agriculture’s…

Analysis

Not a poultry sum: Domestic demand drives growth, as competition from imports increases
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Driven by high domestic demand, the poultry segment has been growing consistently and is now the biggest contributor to agriculture’s share of South African GDP. It is without a doubt a national success story, although the segment will have to navigate some tricky issues if it is to continue its trajectory in the coming years. STEADY EXPANSION: According to the 2011 “Poultry and Products Voluntary Report” by the US Department of Agriculture (USDA), the industry’s gross value exceeds…

Interview

OBG talks to Alex Thiel, CEO, Sappi Southern Africa
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Interview:Alex Thiel How can beneficiation be further encouraged? ALEX THIEL: You need stability to feel comfortable investing in a country. The challenges that we face in South Africa include strong volatility in the exchange rate and a shortage of skills, reliable infrastructure and a stable employment climate. I have sympathy for the view that it can be better to take resources and directly ship them abroad to minimise the risks. Still, I think there are opportunities for beneficiation…

Analysis

Adding value at home: Focus on domestic processing to boost exports and create jobs
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Over the past five years, as South Africa’s import cover has diminished, the government has continued to look at ways of shifting the trade balance, boosting exports and addressing rising import volumes. There have been a number of policies from the public and private sectors aimed at improving agriculture’s competitiveness and boosting revenues from the sector. AREA OF POTENTIAL: A primary focus of the Department of Trade and Industry (DTI) in this regard has been attempts to bolster…

Analysis

A sweet deal: Efforts to diversify the sugar industry
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One of South Africa’s larger agricultural commodities, the sugar industry is now looking to maintain its performance in an increasingly competitive global environment. The segment, which is a key contributor to the economy and labour force, has been grappling with a combination of weakening production, fierce competition and declining global prices. A KEY EXPORT PRODUCT: The country has long been a notable global player in the sugar arena, and produced 18.65m tonnes of sugar cane. Raw sugar…