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THE
GRAIN AND OILSEED INDUSTRY
OF SOUTH AFRICA – A JOURNEY THROUGH TIME
ႄႂ
various role-players in their field of farming. They must have a network of support that
will continue once they reach commercial status.
Good relationships have been forged with personnel from the ARC, the Departments
of Agriculture, the Department of Rural Development and Agrarian reform, the input
supply companies for seed, fertiliser, chemicals, lime, diesel, insurance, finance
and mechanisation, as well as provincial and local government. Each of these has a
unique contribution to make to the process of sustainable development.
For many years the programme had concentrated on skills development, training,
empowerment and capacity development through the study groups, demonstration
trials, Farmers Days, Farmer of the Year competition, advanced farmer programme,
training material development, training courses, weekly radio broadcasts and a
monthly newsletter. Progress towards commercialisation had been a slow process
with the focus being on what was considered ’true development’– developing
the individual.
However, the harsh reality of those operating at grass roots level was no longer that
if best practices were implemented and best yields were achieved, that all was a
happy ending for satisfied farmers. Rather, a financing crisis threatening the hard
won farming enterprises was the reality for many developing producers. By 2010
the production cost for grain was in the region of R5 000 p/ha (for direct costs). In
reality the costs for the developing farmerswere generally higher than for commercial
farmers for a number of reasons:
1) The soils were often depleted so the fertiliser requirements were higher;
2) The farmers did not have collateral to secure loans so were forced to take out
input insurance to secure the loans – an added cost;
3) The tractors and implements of the developing farmers were old and worn
costing more in repairs and maintenance;
4) Farmers did not always own all the equipment required for production and
contract work had to be budgeted for e.g. harvesting and planting operations;
5) These farmers did not have the advantages of economies of scale to bargain on
the price of inputs, or negotiate good marketing contracts; and
6) Most farmers needed to borrow money for production which added an interest
burden.
The difference it makes when you know what you are doing – Jobs Fund maize left and a
disastrous result on the right.
Farmers receive fertiliser at the Khum-
bula Nsikazi Stadium.
Jobs Fund maize in Mpumalanga.