1. Summation of Presentations
AgriSETA Seminar
6 October 2016
Summation of Presentations

2. Impact of the Drought Strategic Importance
Impact on credit ratings, food security, inflation rate
Impact
Directly impacts mostly on field crops, impacts small holder producers, impacts food inflation = impact is felt mostly on staple food supply
Expensive to import maize, not enough available in region, questions around GMOs
Agricultural economy is extremely vulnerable to drought

3. Impact of the Drought Way Forward
Improve technology for water management
Secure outside funding for small-scale farmers
Keep farmers on the land (limit imports, restructure debt, crop insurance)
Manage prices of staple food (allow import of cheap GMOs= maize, identify and support vulnerable households, secure social relief, monitor food prices)

4. The Economy – Threats and Opportunities
Downsides for Agriculture
Threats: infrastructure, land reform, labour, crime, skills shortage, no fiscal support, protectionism, water
Capital stock reducing
Food spend reduced in st quarter
Food inflation higher than CPI

5. The Economy – Threats and Opportunities
Upsides for Agriculture
High capital investment
Increased stability (energy prices, interest rates, etc.)
Food secure, compared to Africa
Real contribution to GDP: R1.5tr
Massive increase of exports to Africa
Net food exporter since 2013 (R1bn surplus in last year)

6. The Economy – Threats and Opportunities
Strategic Role of Agriculture
Employment, processing, pervasive value chain, food security, foreign exchange, tourism
Opportunities
Population growth, income growth, regional growth, diversification, diet revolution, beneficiation, DTI incentives, operating surplus, cooperate to maintain infrastructure

7. What Does This Mean for Us?
Be aware of impact of drought, access information and new technology, incorporate it in what we do
Play our part in transferring technology and information, to all groups of farmers
Be aware of and exploit economic opportunities (tourism, diet revolution, export into Africa, beneficiation)