However, the reality is quite different. There is a decline in agricultural activity in the former homelands. Although the government has launched various programmes to support agriculture in these areas, the sector is still in decline, with one of the major contributing factors being the lack of access to adequate markets, especially for black farmers.
Markets have standards and regulations in place. These measures, such as produce quality standards and grading and farmers’ ability to deliver a constant supply of produce, sometimes exclude the majority of smallholder farmers from participation in the mainstream market. In most cases these farmers cannot meet standards or comply with regulations.
Many smallholder farmers therefore become discouraged as their produce remains unsold or they become victims of intermediaries. Some even look for other means of earning a living.
Market access in the past
According to literature the heyday of South African agriculture, especially in the former Ciskei, was during the late 19th and early 20th century. This boom in the industry could be attributed to increased market demand.
Back then black farmers could access markets through trading stations, which mostly existed in the form of white-owned village shops. Shop owners often acted as intermediaries. They received stock from the farmers in their area and sold it on the farmers’ behalf in exchange for cash from consumers. The shop owner would then receive a percentage of the profit as per agreement or farmers could barter any of the goods that were sold in the shop.
This story is from the February 2020 edition of FarmBiz.
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This story is from the February 2020 edition of FarmBiz.
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