Agri SA acknowledges the latest gross domestic product (GDP) figures released today by Stats SA, showing that whilst the national GDP ticked up 0,4% in the second quarter of 2024, the agricultural sector decreased by 2,1% in the same period. The outcome is unsurprising for the sector as it navigated dry spells in key producing areas, coupled with animal health concerns.
“The GDP data reminds us of the importance of agriculture as a cornerstone of the South African economy, particularly for South Africa’s economic health and ultimately food security,” says Agri SA Chief Executive Officer Johann Kotzé. “Farmers are already adapting through technological investment and innovatively mitigating risks both at farm level and across value chains, however, more can and needs to be done. Therefore, farmers should remain focused on driving efficiencies and actively work towards long-term sustainable growth.”
Agri SA also emphasises the need for continuous support from both the Department of Agriculture and the private sectors to maintain the upward trajectory that we have seen in previous data releases, says Kulani Siweya, Chief Economist of AgriSA. “We have noted the progress being made at the Port of Cape Town and are hopeful that this can be sustained. However, many agricultural values remain exposed to decaying road and rail infrastructure resulting in inflated transportation costs and this continues to weigh on growth potential.”
Siweya says that, in various provinces, enhancing the catchment capacity of water infrastructure and climate adaptation should be prioritised. “Heightened coordination between the Department of Agriculture’s Animal Health Directorate and farmers also remains central to addressing lingering animal health concerns.”
Agri SA remains confident that the agricultural value chains are well organised to adapt to the changing business environment and optimise efficiencies, fulfilling its role of consistently contributing positively to GDP growth.
For further information, please contact:
Johann Kotzé, AgriSA CEO
jfk@agrisa.org.za
Kulani Siweya, AgriSA chief economist
Kulani@agrisa.org.za
