Concerned stakeholders form task team against drought
On 10 November 2015, major stakeholders from organised agribusiness, organised agriculture, government institutions and the banking sector met to discuss the effect of the rapidly deteriorating drought situation on the broader agriculture sector and particularly on food security in South Africa. The drought situation is not limited to South Africa and has an extensive regional reach that will have further socio-economic and food security ramifications at a regional level as well.
©mario bonotto via 123RF
Good rainfall in the summer rainfall region of South Africa over the next months is possible and can still break the drought cycle and ensure relief for crop and livestock farmers especially. However, scenarios are increasingly pointing to a situation where significant imports of maize, as a staple food crop, will become necessary, as well as the provision of fodder for breeding herds of livestock to be maintained.
While agricultural financiers will strive to the best of their abilities to assist farmers to survive the drought through debt consolidation and other means, they are also bound by, among others, stipulations of the National Credit Act in terms of strict lending practices that need to be adhered to.
Given the challenges that the broader sector faces, a task team of the major stakeholders, including Agri SA, Agbiz, Land Bank, IDC and Department of Agriculture, Forestry and Fisheries (DAFF), as well as others to be invited, will draft action plans to assist in mitigating the indicated risks that this serious drought poses. This will include engaging with government to ensure food security and the sustainability of the industry.
