Agricultural policy reform vital for SA economy
SA neds cautious approach in drafting agricultural policy

The greatest challenge for the Department of Agriculture in South Africa is to establish policies which will ensure that agriculture contributes significantly to the national economy.

The objectives of the policies should be focused on promoting economic growth; reducing income inequalities, especially along racial lines; and eliminating poverty.

Agriculture, since time immemorial, in all industrialized nations, has always been a crucial sector and an important engine of growth for the rest of the economy.

The USA, Canada, and the rest of the West have witnessed a growth in the production of poultry (which has overtaken red meat), eggs, fruit and vegetables.

This is director indicator of successful agricultural policy reforms in these developed nations.

It is in this vein that South Africa must follow suit and work on a comprehensive agricultural reform policy; and move away from the haphazard agricultural practices that are driven by political impetus.

What South Africa needs is thus the promotion of productive small and medium-scale producers, coexisting with large-scale producers, which in the long run would help realize potential, while contributing to the Government's objectives of black empowerment, poverty elimination and a reduction in inequalities.

There is no need to forcefully take land away from the hands of those who are in control, if those who presently have the land are maximizing production.

The role of the Government in agriculture is to create an enabling environment for the development of the sector in such a way that the overall economic, social and environmental objectives described above can be achieved.

The Government must encourage the development of different forms of farmer organizations and, where appropriate, the development of private suppliers, and assist these in providing the services which their members require from the Government.

The economies of the SADC region are mostly dominated by agriculture.

South Africa apart, agriculture employs 70 to 80 % of the total labour force and contributes about 35 % of the region's GNP and 30 % of its foreign earnings.

The present flow of trade between the Southern African Customs Union (SACU) and the rest of the SADC countries shows that SACU has a surplus of agricultural exports over imports to the other countries with the exception of Zimbabwe.

Growth in agriculture, fostered by the move toward a free trade area and by internal market reforms in South Africa and in some of our neighbours, will serve to broaden and support trade and economic development in the region.

The future of South Africa lies in a comprehensive agricultural policy-Nowell Marufu.

Source: bloomberg.com