AgriSA: Budget speech must reflect govt support of agriculture

"The Minister of Finance, Mr Pravin Gordhan, has the challenge to promote economic growth and meet increased demands for social spending whilst sluggish economic growth constrains government's income," Möller says, adding that in the Medium Term Budget Policy Statement (MTBPS) of 2011, Gordhan mentioned the new course in development of rural livelihoods "and we assume that a pivotal role is assigned to the agricultural sector in this regard."

"We are [therefore] looking forward to a budget which will make adequate resources available to boost agriculture's competitiveness as well as investment in the sector, and subsequently in food production and job opportunities." According to Möller's statement on Politicsweb, the agricultural sector is making efforts "to ensure decent employment opportunities for those involved in the sector," he stresses, however, that there is a "direct correlation between net farm income and the ability of farmers to enhance quality employment opportunities." For that reason, he says, it is imperative that the sector's developmental constraints are addressed, in order to improve competitiveness and profitability before further improvement in the quality of rural livelihoods can be attained, Möller adds.

Although the number of employees in the agricultural sector has shrunk in recent times, Möller continues, there remains untapped potential, especially in irrigation farming, which could contribute to employment in the sector. The MTBPS focused on a competitiveness support package of R25 billion aimed at industrial development. "We believe that agriculture [should also benefit from this package], given its potential contribution to employment creation, food security and agro-processing." But, Möller said, such support will only make sense if the cost of doing business in agriculture [is] lowered. "This can be achieved with targeted investment in [...] road, rail and harbour infrastructure, on which agriculture is dependent for cost effective access to production inputs as well as to markets." Lastly, Möller called on government to curb the seemingly unabated increases in administered prices.

Read the full article on www.politicsweb.co.za.