Organised agriculture has evolved and shifted from being merely the “voice of the farm” to enablers of growth, with increased involvement in the value chain and innovation through cross-value collaboration, such as with State-owned power utility Eskom.  

Industry body AgriSA opened its 2025 Congress, on October 15, by pointing out how climate change, which is already being acutely experienced in Southern Africa, and State capacity erosion, have necessitated farmers stepping up to mitigate risks on a wider scale.

AgriSA CEO Johann Kotzé said the historical focus on core competencies, lobbying, advocating and influencing policy in the agriculture sector had not changed; however, spontaneous involvement in the value chain had increased, involving people beyond farmers – which is a significant change from the past.

He cited the example of how industry leadership had been a positive driving force of change, particularly considering municipalities’ worsening capacity to reliably deliver services such as water and road maintenance.

The practical opportunities that had emerged as levers of change in the country, including collaboration with Eskom and State-owned freight utility Transnet, demanded deep coordination and alignment, but could ensure the future success of the industry, Kotzé stated.

He implored the congress delegates to understand the current reality and the role of organised agriculture in enabling growth.

NEW INVESTMENT

To this point, AgriSA outgoing president Jaco Minnaar added that global market challenges, including import tariffs and stringent environmental standards, necessitated investments in logistics, infrastructure and market diversification.

He added that more climate-resilient investment across the agriculture value chain was needed to mitigate risks of animal disease outbreaks owing to increased temperatures, droughts as South Africa became dryer and hotter, as well as more intense and erratic rainfall patterns that caused flooding.

German Embassy to South Africa deputy head of mission Enrico Brandt confirmed that South Africa was already seeing the effects of climate change through higher temperatures, prolonged droughts and changes in rainfall patterns.

He committed Germany’s continued support for regenerative, climate-smart technology deployment in South Africa.

University of the Witwatersrand Global Change Institute climatology Professor Francois Engelbrecht added that Southern Africa was warming at twice the global rate, with daily average temperatures in summer already being 2 ˚C hotter compared with a century ago.

“We will see higher frequency of heat waves and dry periods and displacement of frontal systems that, for example, bring winter rainfall in the Western Cape,” he said.

Minnaar explained that extreme weather events and unpredictability influenced planting and harvesting seasons, with more demand now being placed on farmers to improve efficiencies across farm operations to maintain profitability.

“Technological advancements, optimised operations and smart water use can help protect margins and increase genetic yield potential,” he noted.

Another important area of collaboration and new investment for farmers was the national animal health system, which was critical to maintain competitiveness internationally, food security locally, jobs and rural development.

For Minnaar, agriculture stakeholders ought to focus on efficiency, smart investments and strategic capital allocation to strengthen margins and secure the sector’s long-term resilience.

MORE PARTNERSHIPS
For industrywide growth and resilience, Agriculture Minister John Steenhuisen emphasised the importance of partnerships, particularly with industry bodies such as AgriSA. 

For him, collaboration among members in the agriculture value chain could strengthen export diversification and improve rural infrastructure, while reducing costs.

Steenhuisen acknowledged that the success of farmers would lead to the success of AgriSA, the Department of Agriculture (DoA) and, ultimately, the country.

The Minister also mentioned how partnerships had helped ensure greater efficiencies at ports and in getting rail services back up and running, which helped to lower risk and costs for farmers across the country.

Following the ethos of increased partnership aboard, Steenhuisen mentioned he was visiting China, Vietnam, Singapore and Malaysia to expand South Africa’s markets and trade relationships.

The Minister is marketing South African products globally in recognition that export diversification is a crucial strategy to improve the viability, sustainability and profitability of the agriculture sector.

OTHER CHALLENGES

AgriSA incoming president Willem de Chavonnes Vrugt listed major impediments to the South African agriculture sector as being rising energy costs, with electricity tariffs having increased by 450% between 2007 and 2022, far outpacing inflation; rural crime; increasing minimum wages; skill shortages; water scarcity and infrastructure challenges.

He called for practical solutions through partnerships to ensure sustainable growth in agriculture and rural employment, including a review of the electricity tariff structure to ensure fairer prices.

De Chavonnes Vrugt also emphasised the need for a review of the National Rural Safety Strategy to ensure stronger implementation, accountability and resources to this end.

He called for more cross-government collaboration to address the crisis of poor road conditions in rural areas, as well as the protection of private property rights, market-driven land reform and blended finance initiatives to drive development in the sector.

For DoA director-general Mooketsa Ramasodi, a pressing challenge was that of increasing food insecurity in South Africa despite agriculture having more than doubled its gross earnings since 1994.

He attributed the sector’s growth to the liberalisation of agriculture in the 90s and advancements in technology, which had contributed to increased productivity, however, he was concerned about the accessibility, affordability and stability in food production and distribution in the country.

Business Leadership South Africa CEO Busi Mavuso, who was a passionate advocate of structural reforms in South Africa, said economic reforms had helped to decouple the economy from politics and more reforms should be pursued to mitigate the negative impact of poor political leadership.

She expressed concern that South Africa’s economic growth had declined from 6% in 2007, and unemployment at the time of 27% had expanded, all owing to poor political leadership.

“Government dominance has plagued the country for years. Reforms, however, ensure that institutions function independently of political influence, promoting competition, transparency, accountability and efficiency,” Mavuso stated.

Only through independent institutions could corruption be combatted and a conductive environment for foreign investment and economic stability be created, she concluded.