Farmers’ playing field is “rough” but people still need to eat, says agricultural economist Prof Johan Willemse.

The conditions in which farmers must farm are difficult, but economic growth statistics indicate that agriculture is one of the few sectors that are growing and where there is export potential.

“There is a market for our products, and it’s not just in South Africa. The demand for food continues to grow and exports are essential,” Willemse said on Monday at TLU SA’s national congress.

“About 50% of agriculture’s income comes from exports. If we can make money from Brics and increase export income to 60% to 70%, it will be very important because the domestic economy is becoming increasingly impoverished.”

Willemse said the rand is expected to weaken further. For farmers who can export beef and avocados, this is good news “if you understand what you’re doing in your business”, because at the same time, imported equipment is becoming more expensive.

The local economy is in trouble. Willemse said it is an important factor for him as a cattle farmer. “When the public have money, they buy steaks; when they don’t have money, they buy chicken feet.”

The economy grew by only 0.6% in the second quarter of this year. “This doesn’t put money in people’s pockets. The people who buy our meat are struggling. The next two to three years won’t be better.”

The International Monetary Fund recently expressed concern that the state’s money is running out. Willemse said in the Free State, the Department of Agriculture’s funds are so depleted that they can’t increase salaries, hire people, or travel, and there are significant cutbacks. There will inevitably be no money for roads.

“The state cannot fulfil its role. We will have to do a lot to keep our businesses afloat.” It comes down to de facto privatisation.

In these circumstances, it is important that farmers have a plan for the future.