Agribusiness seeks solutions to food price crisis
6 June 2008

"At the Agricultural Business Chamber (ABC) Congress last week, agribusiness embraced the theme of 'Mobilising agribusiness for growth' for the sector. Given the very real food price crisis being experienced both globally and in South Africa, industry and government need to develop and implement solutions that address the root causes of the problem", said Dr John Purchase, CEO of the ABC.

It is thus heartening to hear that both Mr Jacob Zuma and Minister Trevor Manuel, according to a News24 media report, have indicated the rapidly rising crude oil price to be the core of the problem. While certain supply and demand issues amongst others caused by distorted agricultural trade and protectionist policies, also impact significantly, the ABC supports the view that issues surrounding the price discovery mechanism and cartel formation of OPEC lie at the heart of the problem.

"Unless these issues are not addressed effectively on a multilateral basis, the crisis will deepen even further, also because of the massive influence the petro-chemical industry has on fertilizer and herbicide/pesticide prices. Sudden mass or increased food production will not be the answer if it is not profitable and worth the risk to produce, seeing that input costs for staple food production have already risen on average by 50% to 100% for the next season. That is the risk we face", according to Dr Purchase.

The additional risk in South Africa of new draconian expropriation legislation weighs heavily on the sentiment of the commercial agriculture sector. If Government does not drastically revise its poverty alleviation policy, a lack of confidence will strongly discourage farmers and entrepreneurs from investing in this critical sector, which will further put food security at risk.

At the recent meeting of the Presidential Agricultural Working Group (20 May 2008), the Chairman of the ABC, Mr Corwyn Botha, was at pains to emphasize the need for a positive investment climate and called on President Mbeki to reassure the commercial agricultural community in this regard.

Enquiries: Dr J L Purchase, CEO: ABC 012 300 9502/082 441 2308

Landboubesigheid soek oplossings vir voedselpryskrisis
6 Junie 2008

"By die pas afgelope Landboubesigheidskamer (LBK) se kongres, het landboubesighede die tema van "Mobilisering van landboubesigheid vir groei" sterk aangegryp. Gegewe die enorme voedselpryskrisis wat tans beide in die wêreld en in Suid-Afrika ervaar word, moet die bedryf en die regering oplossings ontwikkel en implementeer wat die kernoorsake van die probleem aanspreek", het dr John Purchase, Bedryfshoof van die LBK gesê.

Dit is bemoedigend om te verneem dat mnr Jacob Zuma en Minister Trevor Manuel, volgens 'n Media 24-berig, aangedui het dat die snel stygende ru-olieprys aan die kern van die probleem lê. Terwyl vraag en aanbod-kwessies, onder andere veroorsaak deur verwronge landbouhandel en beskermingsbeleide, ook beduidend impakteer, ondersteun die LBK die siening dat die kwessies van prysvormingmeganismes en kartelvorming deur OPEC-lande die kern van die probleem vorm.

"Tensy hierdie kwessies nie effektief op 'n multilaterale basis aangespreek word nie, sal die krisis nog verder verdiep, ook as gevolg van die direkte invloed wat die petro-chemiese bedryf op kunsmis- en onkruid-/plaagdoderpryse het. Skielike massa of versnelde voedselproduksie sal nie die antwoord wees nie as dit nie winsgewend en die risiko dit werd is om te produseer nie, in aggenome dat insetkostes vir stapelvoedselproduksie met tussen 50% en 100% vir die volgende seisoen gaan styg. Dit is die risiko wat ons in die gesig staar", aldus dr Purchase.

Die addisionele risiko in Suid-Afrika van nuwe drakoniese onteieningswetgewing lê ook swaar op die gemoed van die kommersiële landbousektor. As die Regering nie drasties sy armoedeverligtingsbeleid hersien nie, sal daar geen vertroue in die sektor wees vir boere en entrepreneurs om in hierdie kritiese sektor te belê nie, wat verder voedselsekuriteit op risiko sal plaas.

By die onlangse Presidensiële Werksgroep vir Landbou-vergadering (20 Mei 2008) het die Voorsitter van die LBK, mnr Corwyn Botha, dit beklemtoon dat 'n positiewe beleggingsomgewing in die landbou krities noodsaaklik is en het hy 'n beroep op President Mbeki gedoen om die kommersiële landbousektor die nodige versekering in die verband te gee.

Navrae: Dr J L Purchase, Bestuurshoof: LBK 012 300 9502/082 441 2308