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Augustus 2015
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Youth needed to take
agriculture into new era of
cross industry integration
A
lthough not necessarily as obvious, the pervasive influence
of agriculture on society is creating an entirely new and
glamorous view of the sector that will attract the pioneer-
ing energies of young people looking for careers as enticing
as those in information technology.
The ways in which technology and social media have changed con-
sumer expectations and the nature of the products and services they
aspire to, have triggered a ripple effect in agriculture.
Wherever you touch the world...
For instance, the convenience that social media delivers is now be-
ing copied in the energy sector, where petrol stations carry fresher
produce than many supermarkets. In order to match that fresh-
ness, supermarkets are re-examining their logistics and cold chains.
The traditional way of bringing produce from outlying districts to a
central distribution centre and then sending it all the way out again,
often to where it was harvested, for sale in supermarkets, is proving
not only costly, but detrimental to shelf quality.
Satellite technology is now being installed in tractors and other farm
equipment in order for producers to more accurately measure and
monitor soil quality and in doing so, crop yields.
Green and renewable energy are being applied to farming opera-
tions not only to reduce energy costs, but in response to society’s
demands for sustainable production in all sectors. However, the
green and renewable industries are still evolving, leaving plenty of
pioneering work to be done.
The debates raging on social media about the merits or otherwise of
genetic modification of seeds and organic farming methodologies
are not only making consumers more particular about what they
buy, but how it is labelled. This calls for much more astute produc-
tion and packaging.
Food sovereignty issues in both the political and social domain are
making local research into indigenous and heritage crops essential
to the sustainability of local producers.
Thinking holistically
These and other issues are bringing agriculture out of its perceiv-
ed sector isolation and meshing it tightly and very directly with
consumer lifestyle requirements well beyond what gets cooked for
dinner tonight. And they are moving agriculture’s economic contri-
bution to GDP, for instance, far beyond the relatively narrow criteria
of employment in and foreign exchange generated by the industry.
Agriculture now has the potential to boost employment across
multiple sectors, many of them unexpected. As just one example,
growth in the logistics sector can be predicated on the ability to
move fresh produce more efficiently. Also, if fresh thinking can be
brought to bear on turning South Africa into a net exporter rather
than a net importer of processed agricultural products, entirely
new industries can be created – bringing with them an influx of
foreign capital.
Innovators in the technology and research sectors can create
more effective ways for South African conditions to be put to work
to increase volume and quality of outputs.
In other words, modern agriculture places almost no limits on
people who wish to make an impact on the way the world works.
Agriculture is no longer about planting crops or running herds of
cattle. It’s about satisfying and successful careers in all sorts of hu-
man activity linked to agriculture.
A new generation
This tipping point in the sector comes at a time when established
producers and agribusiness operators are beginning to age out of
the market. Our own internal research matches those of external
agencies in showing that the majority of commercial producers in
South Africa are in their fifties. Only some 8% are younger than 35.
To some extent, the flow of new entrants to the sector is being di-
minished by uncertainties regarding sector policies. We understand
that legislators are aware that decisions on policies need to be accel-
erated and must have economic benefits for all stakeholders.
Another entry barrier, the severe drought that has plagued parts of
the country for some years, is temporary. It’s just a matter of time
before the weather changes. Still, the drought – and the weather in
general – is another uncertainty. Our established producers have
been on the land long enough to know that farming is a long-term
activity that calls for financial and emotional endurance. We need
our experienced producers to focus on what they have always done
best, which is getting Mother Nature to deliver her bounty.
However, although many of them are innovating, becoming tech
savvy, and getting involved both up- and downstream of their own
operations, we must close the gap that is growing between those
who have been on the land for generations and those coming out of
school now.
Fortunately, Gen Y, now between the ages of 18 and 24, has been
raised on technology innovation and has an appetite for new ideas
in general. These young people understand and relish interconnect-
edness. They are socially minded. They want to make a difference.
Best of all, they don’t all necessarily want to be information tech-
nology whizzes. As long as they’re doing something special, that
benefits the world in general, they will be happy in careers in logis-
tics, retailing, green energy, research, and whatever business disci-
plines that have yet been invented that will impact agriculture.
All we need to do is show them that agriculture is about planting
the seeds of the future – in whatever form feels good to you.
RELEVANT
NICO GROENEWALD,
head: Agribusiness, Standard Bank