Archive for the ‘Agriculture’ Category
Agriculture is big business
The average turnover of a farm in 2002 was R1, 2 million, census shows. If one considers that about 51% of the farms have a turnover of less than R300 000 per annum had, it means 49% of the farms have a lot more than the average of R1, 2 million. South Africa’s farmers operating large enterprises. It is not far fetched to say that farming in the larger businesses in the country hereof. It can not but consider that the assets of an average farm about R2, 14 million worth. Agriculture is complicated by product prices that are continually changing, driven by domestic and international market forces and uncertain factors, such as the rand’s exchange rate. Not from the weather to speak.
Statistics SA’s latest agricultural figures, the result of 2002′s Agriculture Census confirmed that farming is not the kind of venture as an entry level business can be. No one today can start farming without knowledge, and finances. It is therefore difficult for new entrants into commercial farming to attract. The challenge of providing adequate food and fiber to the country’s growing urban population, can not be experimented. Urban unrest could follow if not enough agricultural produce. Redistribution of land is not equal to the redistribution of farm business will not succeed. So it is pleasing that all of the major instigators of Land Affairs started acknowledging the argument not just about farming but rather on land for a livelihood. It is my opinion, a matter that is very clear to the Government to be transferred in response to the Minister of Agriculture’s AgriBEE document. There are doubts about the reliability of the 2002 Agriculture Census’s. All farmers had not submitted returns it. However, the figures in it of value to various uses. This is the only information that is broken down to province level. Hopefully the full report, published in December will be the information on a regional basis available. Many companies use the information for planning marketing campaigns and market development. Read the rest of this entry »