Is time for soft pedalling by the aqri sector over?

South Africa's agriculture sector performed well in 2020 and 2021, but continued food security and employment in the sector depend on government support for agriculture, says  Dr Koos Coetzee.

- 

Statistics South Africa (Stats SA) recently published its 2021 Agricultural Survey. Total income earned in the sector was R417,1 billion, up 11,9% from the R372,8 billion of 2020.

The livestock industry produced 38% of total income, followed by the horticultural sector at 26,5% and field crops at 19,5%.

Sales of field crops rose 24,2% year-on-year (y/y), while those of horticultural crops increased by 19%. In contrast, income from livestock increased by only 5,1% y/y.

Total expenditure in 2021 was 10,2% higher y/y, while capital expenditure rose 8,9% y/y. Some 52% of total expenditure was spent on farm requisites and 12% on salaries and wages.

Net farm income (the difference between income and expenditure) was R27,78 billion, 42% higher than the R19,48 billion of 2020. Capital expenditure increased by 18,8% y/y. These figures are summarised in the table below.

OUTLOOK FOR 2022 AND BEYOND