Many challenges emerge in agriculture after promising start to year

The Herald

3 days ago

This has been a horrific month for the Eastern Cape. The devastating impact of the recent floods on infrastructure, homes and human loss will continue to weigh on the province and the affected families.
Natural disasters also occur at a time when various industries in the Eastern Cape face multiple pressures.
For example, the auto industry faces a challenge of imports from China, among other challenges.
The farming industry faces animal diseases, with foot-and-mouth disease being the most persistent in the province's dairy industry.
However, foot-and-mouth disease is now a challenge nationwide.
We are seeing the pressures across the livestock industry.
I think if you were to ask any cattle farmer in SA, 'How has the year been?' They will likely tell you that this has been a financially challenging year for the industry.
But at the start, the outlook looked promising. We thought the industry would continue its recovery from last year, benefiting from improvements in grazing veld and relatively lower feed prices.
This was after the better summer rains improved agricultural conditions across the country.
The export markets also opened up in the second half of 2024, following temporary closures in the previous year due to the industry's impact from the foot-and-mouth disease outbreak in most provinces.
For example, in 2024, SA's cumulative beef exports increased by 30% from 2023, reaching 38,657 tonnes. About 57% of this was fresh beef and 43% was frozen beef.
The key markets include China, Egypt, the UAE, Jordan, Angola, Mozambique, Kuwait, Qatar, Saudi Arabia and Mauritius, among other countries.
However, the recent outbreak of foot-and-mouth disease on a few farms in various regions of SA presented additional challenges, leading to temporary closures of export markets again in an industry that was still on its recovery path.
The financial pressures on farmers are immense, and we will have clarity about the scale in the coming months.
What has been encouraging is the collaboration between the department of agriculture and organised agriculture in containing the disease and facilitating vaccination on the affected farms.
We can expect the vaccination process to gain momentum in the last week of June.
However, the key to the long-term success of the industry lies in improving animal health, developing vaccines domestically and implementing better surveillance, among other interventions.
Efforts on this vital issue should continue through the collaboration of various stakeholders, including the government, the private sector and organised agriculture.
SA must leverage existing private sector expertise as the process to improve state-owned facilities, such as the Onderstepoort Biological Products, a state-owned vaccine manufacturer, is under way.
We no longer need just one centre of manufacturing, but rather multiple centres where capabilities exist.
This intervention is key not only for preserving the country's share of the industry but also for creating room for new entrant farmers.
It is hard to talk about the integration of black farmers into commercial value chains when the risks of disease remain high and can be financially devastating to businesses.
The recent statements by agriculture minister John Steenhuisen regarding the department's commitment to strengthening animal and plant health are encouraging.
Indeed, in the near term, the focus is on vaccination; however, beyond that process, we must adopt a careful approach to reviving domestic vaccine manufacturing capabilities and involve the private sector.
Thereafter, also nudge the department of public works and infrastructure to assist with fencing to ensure the strict control of animal movement in the country.
In the former homelands regions of SA, the traditional leaders have an essential role to play in managing the movement of livestock.
The task cannot be left solely to the government. Everyone has a role to play in ensuring that SA's animal health is a priority.
The livestock industry is an anchor of the South African farming economy.
The livestock and poultry industries account for nearly half of our agricultural fortunes, with significant contributions by black farmers as part of the inclusive growth agenda.
As I have noted in the past, while we now struggle with foot-and-mouth disease, what we have learnt from recent experience is that this may not be the last outbreak, and there may be future outbreaks of various diseases in other value chains.
Therefore, SA, more than ever, should increase its investment in animal health by allocating better resources to infrastructure and human capital.
For the Eastern Cape, the cattle industry is key and also holds potential for the province's economic recovery, along with other agricultural activities.
• Wandile Sihlobo is the chief economist of the Agricultural Business Chamber of SA.
The Herald