The Orange River (Photo: Provided)
The role of organized agriculture in a time of economic pressure, climate change and increasing regulatory challenges came under the magnifying glass on Wednesday during the Orange River Agricultural Union’s (ORLU) 46th Congress at Upington.
Farmers from across the region gathered in large numbers to reflect on the future of the industry and discuss solutions to the sector’s growing challenges. Although speakers were honest about the pressure producers are under, a strong message of cooperation, resilience and hope emerged throughout the proceedings.
‘Our time is different’
Wilco Fourie, chairman of ORLU and himself a farmer in the region, says that modern farming increasingly requires producers to adapt to rapidly changing conditions.
“We live in difficult and uncertain times. Every generation has had its challenges, and I’m certainly not trying to say that our time is more difficult than that of our ancestors. But our time is different.
Wilco Fourie, chairman of ORLU and himself a farmer in the region. (Photo: Janice du Plessis/Maroela Media)
“The pace of change, the administration, the regulations, the pressure of markets and the constant uncertainty not only affect our businesses, but also our families and our state of mind,” said Fourie.
Changing weather patterns are also forcing farmers to think differently about sustainability and planning.
“Extreme conditions occur more often, and we have to adapt to something that we don’t even fully understand yet. Farmers have always had to fight against droughts and price fluctuations, but today we also fight against policy, perception and bureaucracy. We need each other very much. No one can walk the road alone. God deliberately did not give one person all the knowledge,” he said.
During the congress, Fourie was re-elected as chairman of ORLU, while Salmon Becker was elected as the organisation’s new vice-chairman.
‘Producers deserve a monument’
The leading South African economist dr. Roelof Botha said in his speech that despite current challenges there is still strong reason for optimism about the South African economy and agricultural industry.
According to Botha, local producers deserve special recognition for their ability to continue producing under difficult conditions.
Dr. Roelof Botha said in his speech that despite current challenges there is still strong reason for optimism about the South African economy and agricultural industry. (Photo: Janice du Plessis/Maroela Media)
“Optimism about our economy was very high at the start of this year, then came this flattened war which is a great irritation especially with regard to the fuel prices and the temporary suspension of the falling interest rate trend of the monetary policy committee.
“However, it is important to remember that the war will come to an end. We have already seen a 20% drop in Brent crude oil prices this week, which indicates that the end is indeed in sight. The price of petrol and the price of diesel will drop again,” said Botha.
He believes that several economic indicators already indicate that the country’s economy is gradually starting to recover.
“We’ve seen record retail sales every quarter now for about ten consecutive quarters. We’re seeing the S&P global purchasing managers’ index (PMI) stay above the 50-point level for South Africa and we’ve had interest rate cuts.
“Hopefully, interest rates will start to fall again within the next three to four months. Ultimately, the demand in the economy is determined by demographic factors and we don’t have a problem with that.”
According to Botha, greater cooperation between the private sector and the government is already beginning to yield positive results.
“The greater cooperation between the private sector and the government with the renovation, repair and expansion of our infrastructure is beginning to bear fruit. I believe we will again see a 2% to 3% growth in our economy within the next year or two.”
He specifically referred to improvements at the Durban port.
“We are already seeing its positive effects at Durban’s port where the number of cargo containers handled at the semi-privatized quay has increased by more than 100% in the last few months. So there are signs everywhere that things can get much better.”
Botha says the excellent summer grain harvest further contributes to the positive sentiment in the agricultural industry.
“We had a fantastic summer grain harvest. Farmers just have to keep up the courage and keep planting. With the good summer grain harvest it is not difficult to be optimistic about the future. There is a lot of hope.
“There will be droughts, there will also be La Niña phenomena again with above average rain. However, the fact of the matter remains that our agriculture is strong and healthy. Despite the challenges, we remain the 32nd largest food exporter in the world.”
(Photo: Janice du Plessis/Maroela Media)