Thursday 24 January 2013

Predictions for Agriculture in 2013

Some popular agricultural experts raise the point that people need to eat and so there will always be a future for agriculture. It is easier to get on with life when there is optimism, and we will go with this sentiment and merely point to a cloud or two in the sky above agriculture.

The first cloud is related to the issues which stem from our divided past – labour, land reform and ensuring that our developing farmer programmes work.

The second, ever-present cloud is staying profitable. Unless a farmer can make money, his operation will not continue. In the same way that people think food comes from supermarkets, they also assume that farmers have money (and so of course can pay higher wages and afford higher input costs!) Particularly significant among input cost increases to plan for are labour, electricity, water, and fuel. Toll fees and shipping costs will apply to some producers.

The experts say that global prices for agricultural commodities look set to hold at high levels – good news for agriculture – and the weakening exchange rate helps the country against imported produce and being on the receiving end of goods being dumped here.

Find "More predictions for agriculture 2013-14" written in July here.