Land Reform in South Africa - so, what is the REAL problem?
Wednesday, 22 May 2013
Quoted from South Africa - the Good News
The government has set itself the target of transferring 30% of South Africa's arable land into the hands of emerging farmers. Currently only about 8% has been purchased from existing, successful commercial white farmers on a 'willing buyer-willing seller' basis and transferred to emerging farmers. This has involved some 4 800 transactions. It is estimated by the S.A. Institute of Race Relations that some 80% have "failed" as continuing commercial operations.
Many reasons have been put forward to explain this:
* Lack of financial backing for the new owner
* Lack of experience and expertise of the new owner
* Lack of interest on behalf of the new owner
* Lack of training and guidance of the new owner
Commercial Agriculture in South Africa is a difficult business:
* Over the past 20 years the number of commercial farming units has reduced from approximately 60,938 in 1996 to 39,982 in 2007, and an estimated 30,000 in 2012, a 50% decline;
* An estimated 3000 farmers and farm workers have been murdered since 1994;
* South African farmers are amongst the least subsidised in the world;
* For years South Africa has been a net exporter of food, now it is a net importer. Food security has become a critical issue.
* Farmers are price-takers, presently a sachet of milk sells for R8.99 in the supermarket, the farmer receives R3.60; two years ago the farmer received roughly the same.
* Input costs have risen steeply; the cost of diesel has risen 20% in two years, fertilizer by 22%, and the minimum wage by 50%.
Sad fact is the polito's dont know how hard it is to farm , in fact they know squat about real life becoming so insulated from it .... ThatStinks2 ... only preocupied with the agenda and not the reality . Maybe for them a stint of life education working with a commercial farmer should be a qualifying criteria for holding any portfolio to do with such a crucial to food security industry ??