South Africa's Commission Advocates for Less Dependency on Agricultural Imports

Synopsis

A recent report from the Competition Commission of South Africa highlights the country's troubling dependence on imported agricultural inputs. The findings call for local industry support and strategies to build domestic capacity in fertilizers and agrochemicals, aiming to improve local competitiveness and reduce market uncertainties.

Key Takeaways

South Africa heavily relies on imported agricultural inputs.
The report emphasizes local industry support.
Collaboration is needed between government and private sectors.
Reducing imports could enhance local farmers' competitiveness.
New farmers require government support for financial challenges.

Johannesburg, Jan 13 (NationPress) The Competition Commission of South Africa released a report on Monday, expressing alarm over the nation's significant dependence on agricultural imports such as fertilizers, agrochemicals, and seeds.

The report, entitled Fresh Produce Market Inquiry, indicates that this reliance on imports "exposes the fresh produce supply chain, and the agricultural sector broadly, to global price fluctuations. This creates uncertainty in the market and has the potential to hinder, limit, or distort competition."

It suggested that "the Department of Trade, Industry, and Competition should enact measures to bolster the local or domestic fertilizer sector, where local capabilities exist." South Africa's Trade, Industry and Competition Minister Parks Tau acknowledged receipt of the report in Johannesburg and committed to presenting it to parliament.

The report also emphasized the need for enhanced collaboration between the Directorate of Agriculture Inputs Control within the South African Department of Agriculture and private entities to bolster local capacity and diminish import dependence, according to Xinhua news agency.

The Fresh Produce Market Inquiry, initiated on March 31, 2023, aimed to investigate South Africa's fresh produce market, uncovering several issues including competition barriers, elevated input costs, and systemic entry challenges for small-scale farmers. It stressed that lessening reliance on imported inputs could reduce costs and enhance the competitiveness of local farmers.

During a media briefing on Monday, Hardin Ratshisusu, Deputy Commissioner of the competition commission and chair of the Fresh Produce Market Inquiry, noted that the report sheds light on the problems and challenges facing the local market.

Wandile Sihlobo, Chief Economist of the Agricultural Business Chamber of South Africa, disclosed that the nation imports roughly "80 percent of its annual fertilizer consumption of two million tonnes, and 95 percent of various agrochemicals."

"This exposes farmers to various global shocks and increasing input costs. For new farmers with limited resources, this could pose a challenge. Therefore, government support or affordable financing is needed for new farmers at the outset," he informed Xinhua.