Government failures constrain farmers and agribusinesses

AGRIBUSINESS PERSPECTIVE

- Wandile Sihlobo

Agriculture and agribusiness stakeholders are profoundly affected by the deterioration of municipal services, corruption in the public sector, and the failure of network industries such as roads, rail, water, electricity and ports. These increase the cost of doing business and put the brakes on investment in agribusiness activities.

Other challenges brought about by governmental neglect include regulatory constraints caused by the dysfunctional State Veterinary Service, and the outdated Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies Act No. 36 of 1947.

At one stage, South Africa embraced scientific progress and led the continent in agricultural productivity, benefitting from the adoption of critical agrochemical, seeds and livestock remedies. But today it lags behind its competitors due to the delays and backlogs in the Registrar of Act No. 36 of 1947’s office. This results in important productivity-enhancing inputs not being released to the agriculture sector.

The failures in national vaccine production also remain an issue, and the livestock industry is again at risk as the summer rainfall season starts.

AGRI EXPORTS NOT SUPPORTED

Exports are another aspect where challenges abound. Overseas markets need to be expanded to accommodate the increasing output of the country’s fruit and livestock industries. And, as has so often been said, the performance of South Africa’s ports needs to be substantially improved.