Agriculture Minister, John Steenhuisen, delivered his inaugural budget address in a mini plenary in Parliament in Cape Town on Tuesday (16/7). According to Agbiz, his speech underscored a message of continuity from the previous administration, with a renewed focus on relentless implementation.

Steenhuisen articulated that the Agriculture and Agro-processing  Master Plan (AAMP), adopted in 2022, would remain the guiding framework for inclusive growth within the agricultural sector. “The AAMP adoption process has enjoyed broad sectoral support, and I wish to clarify that I have no intention of reinventing the wheel. Instead, the focus will be on accelerating the implementation of the objectives of the AAMP and ensuring that my department upholds its commitments contained in the plan.” 

Agbiz supports this approach, particularly praising the “value chain deep dives” within the AAMP, which focus on each commodity's challenges and opportunities.

Agbiz noted the critical importance of the commodity corridor approach, especially for regions like the Eastern Cape, Limpopo, and KwaZulu-Natal, which have been on the periphery of agricultural progress. The underutilised government-owned farms, acquired through the Pro-active Land Acquisition Strategy, also hold significant potential. The implementation of the AAMP is seen as crucial by Agbiz.

The organisation stressed the need for clear communication of the AAMP's renewed ambitions with all stakeholders across all levels of government. This should occur alongside engagements with various organised agriculture leaders to reassure that the AAMP remains the country's guiding policy. Agbiz called for a delivery process with timelines to rebuild confidence, as some stakeholders may have doubted the implementation.

Agbiz highlighted the necessity of inter-departmental cooperation and alignment, given that many interventions required by the AAMP rest on other government departments and cabinet ministers. The successful implementation of the AAMP relies heavily on partnerships with the private sector, labor, and other social partners. Steenhuisen said: “The collaborative approach we need involves leveraging the skills, resources, and knowledge already available in the private sector, industry, and agribusiness to work hand in hand with the government.”

‘This scheme involves grants from the state’

Financial support is another critical aspect of the AAMP's success, particularly for new entrant farmers. Steenhuisen addressed this in his speech, mentioning the Blended Finance Scheme designed to increase access to affordable finance for black producers in the agriculture and agro-processing sector. This scheme involves grants from the state and loans from private finance institutions. Agbiz stressed the importance of continuing this and other financial programs.

Agbiz also underscored the vital role of scientists and breeders in South Africa's agricultural progress, advocating for intensified efforts in innovation and the adoption of new breeding techniques and technologies. The Minister's commitment to prioritising innovation, research, and development was welcomed by Agbiz, which supports complementary reforms promoting local innovation.

‘Animal health was another critical area highlighted’

The importance of biosecurity, particularly animal health, was another critical area highlighted. The livestock and poultry industries constitute roughly half of South Africa's farming economy. Improved animal health is essential for the country's ambitions to grow its red meat and wool exports. Private sector-government collaboration in this area is encouraging and should continue, according to Agbiz.

Agbiz deemed Steenhuisen's Budget Vote Speech positive for the agricultural sector. However, they noted that the success of the AAMP, particularly in empowering new entrant farmers, also relies on collaboration with the Departments of Land Reform and Rural Development. The proposed Land Reform Agency, with a primary focus on releasing land, is seen as an efficient instrument for achieving fundamental transformation in South Africa's agricultural sector.

OFM Agri dg