A JOURNEY THROUGH TIME

THE

GRAIN AND OILSEED INDUSTRY

OF SOUTH AFRICA – A JOURNEY THROUGH TIME

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various role-players in their field of farming. They must have a network of support that

will continue once they reach commercial status.

Good relationships have been forged with personnel from the ARC, the Departments

of Agriculture, the Department of Rural Development and Agrarian reform, the input

supply companies for seed, fertiliser, chemicals, lime, diesel, insurance, finance

and mechanisation, as well as provincial and local government. Each of these has a

unique contribution to make to the process of sustainable development.

For many years the programme had concentrated on skills development, training,

empowerment and capacity development through the study groups, demonstration

trials, Farmers Days, Farmer of the Year competition, advanced farmer programme,

training material development, training courses, weekly radio broadcasts and a

monthly newsletter. Progress towards commercialisation had been a slow process

with the focus being on what was considered ’true development’– developing

the individual.

However, the harsh reality of those operating at grass roots level was no longer that

if best practices were implemented and best yields were achieved, that all was a

happy ending for satisfied farmers. Rather, a financing crisis threatening the hard

won farming enterprises was the reality for many developing producers. By 2010

the production cost for grain was in the region of R5 000 p/ha (for direct costs). In

reality the costs for the developing farmerswere generally higher than for commercial

farmers for a number of reasons:

1) The soils were often depleted so the fertiliser requirements were higher;

2) The farmers did not have collateral to secure loans so were forced to take out

input insurance to secure the loans – an added cost;

3) The tractors and implements of the developing farmers were old and worn

costing more in repairs and maintenance;

4) Farmers did not always own all the equipment required for production and

contract work had to be budgeted for e.g. harvesting and planting operations;

5) These farmers did not have the advantages of economies of scale to bargain on

the price of inputs, or negotiate good marketing contracts; and

6) Most farmers needed to borrow money for production which added an interest

burden.

The difference it makes when you know what you are doing – Jobs Fund maize left and a

disastrous result on the right.

Farmers receive fertiliser at the Khum-

bula Nsikazi Stadium.

Jobs Fund maize in Mpumalanga.