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Product information
25
The hundred year picture, 1900 to 2020
In the long term, real agricultural prices are declining for all commer-
cial producers around the world. Productivity must be boosted for
producers to stay in the game.
Production cost comparisons highlight the fact that South African
producers are paying approximately $10/ton more for inputs, e.g.
higher fertiliser prices, which instantly puts local producers on the
back foot when competing with countries like Argentina, Brazil,
Ukraine and the US.
The benchmarking of value chains becomes important in order to
highlight the area of competition from international markets. Al-
though we have a free market, it is not always fair, so this is where
calls for intervention become necessary.
Agro-processing
Soybean production has become a game changer since significant
investment has been made into local crushing capacity. The value
chains are highly competitive nonetheless good opportunity exists
for soybean production in the next few years.
Trade routes
These must be monitored constantly, e.g. new export opportunities
may arise where other countries experience drought and need to
import maize and Zambia has become a surplus producer of maize
to supply the Zimbabwean market.
Prof Meyer concluded:
Nothing replaces consistent and focussed research and devel-
opment. A universal trend is seeing a shift towards private
sector investment, but governments are providing the catalyst
investment.
Partnerships must emerge between government, private sector
and academics.
Training and education must be promoted in partnership with
educational institutions. It is important to recognise the process
is slow and requires long term commitment and investment.
Investment into building comprehensive databases which will
inform strategic planning and ensure a co-ordinated action and
implementation must continue.
Critical investment into the country’s water infrastructure
and road, rail and ports need maintenance and expansion is
essential.
All of the above need a politically stable environment.
Exclusive Grain SA App
for members
Dr Dirk Strydom (manager: Grain Economy and Marketing,
Grain SA) explained to Congress members how to set-up their
member exclusive Grain SA App.
With this app members get:
Exclusive information,
agricultural conditions,
planting intentions,
harvest progress, and
rain data in their region and nationally.
To register go to
app.grainsa.co.za
and follow the steps.
Prof Ferdi Meyer, Dr Marinda Visser and Dr Dirk Strydom discussed
grain economics and the policy environment, benchmarking and the
Grain SA App at Grain SA’s Congress.
Graph 1: Main opportunities for job creation.