Programme 4 Economic Research & Analysis  To collect, collate and manage national agricultural statistics.  To research, analyse and advise on agricultural economics issues and concepts.  To establish norms, standards, instruments and methodologies agricultural economic analysis and planning.

Agricultural Statistics Challenge Deregulation and globalisation have led to an ever increasing demand for accurate and up to date statistics on the sector. Responses  National agriculture census in progress.  Communal agriculture survey completed.  Statistics on sector released on quarterly and annual basis.  Official crop forecasts done and published monthly.  Capacity building and coordination of national statistical functions  Services and advice to the NDA and the rest of government.  Support to international efforts in the SADC, NEPAD and the WTO.

Economic Research Challenge Without statutory controls the government has to appreciate and understand the economics of the sector enough to be able to facilitate and influence its growth and development towards set objectives. Response  Report on effect of food price increases being finalised.  Review of the first five years after deliberation in progress.  Establishment and coordination of econometric models.  Sector economic reviews on a quarterly and yearly basis.  Inputs and advice to NDA on agricultural economic issues.  Coordination and capacity building for PDA’s and Parastatals.  Research and analysis of topical agro-nomic issues and policies

Production Economics Challenge Agriculture is a commercial activity and should be based on sound economic principles if it is to be practised successfully. Response  Review and maintenance of agriculture enterprise budgets.  Finalisation and maintenance of farm financial record systems.  Establishment of farm models and standard business plans.  Facilitation of public-private sector cooperation in farm planning.  Support and services to provincial and local governments.  Coordination and capacity building for PDA’s and Parastatals.

Implementation  Approval and resourcing of proposals on the organisational structure of the function made in terms of the resolution-7 process.  Recruitment and retention of suitably skilled economists to carry out the functions as outlined.  Coordination, capacity building and standard setting and through the Agricultural Economics and Statistics Working Group.  Formalisation of the competencies and role of agricultural economists and agricultural statisticians in departmental processes, PDA’s and Parastatals, as well as training institutions.

Conclusion Opportunity Agricultural economics and statistics are essential in choosing policies and projects that have comparatively more benefits than costs, and they are absolutely essential when such choice have to be made in the face of limited resources and unlimited needs. Constraint For South African agriculture to transform from a tradition steeped static industry to one that is intelligence led and competitive economics and statistics are critical, but contrary to this the function remains a ineffectually small part of the organisational structures of the NDA, the PDA’s and the Parastatals.