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Creating a nutritious home for all. WESTERN CAPE AGRICULTURE: FOUNDATION OF A NATION Dirk Troskie Specialist: Agricultural Economics Western Cape Dept.

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Presentation on theme: "Creating a nutritious home for all. WESTERN CAPE AGRICULTURE: FOUNDATION OF A NATION Dirk Troskie Specialist: Agricultural Economics Western Cape Dept."— Presentation transcript:

1 Creating a nutritious home for all

2 WESTERN CAPE AGRICULTURE: FOUNDATION OF A NATION Dirk Troskie Specialist: Agricultural Economics Western Cape Dept. of Agriculture

3 WESTERN CAPE AGRICULTURE: FOUNDATION OF A NATION 1. South Africa 2. The Western Cape 3. Some issues for consideration a) The playing field b) Price of food c) Our heritage

4 WESTERN CAPE AGRICULTURE: FOUNDATION OF A NATION 1. South Africa

5 SOUTH AFRICA

6 POPULATION Departement Landbou | Department of Agriculture | Isebe Lezolimo South AfricaWestern Cape WC as % of SA Number (mil)% Number (mil)% African37,879,4%1,328,7%3,6% Coloured4,28,8%2,551,1%58,3% White4,39,1%0,918,8%20,9% Asian1,12,5%0,040,9%3,7% Other0,080,2%0,010,3%20,8% Total47,7100%4,8100%10,1%

7 PER CAPITA GDP (1995 VALUES) Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: VD Berg (2008)

8 POVERTY HEADCOUNT Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: VD Berg (2008)

9 AGRICULTURE’S SHARE OF THE ECONOMY Departement Landbou | Department of Agriculture | Isebe Lezolimo

10 AGRICULTURE’S SHARE OF THE ECONOMY: WESTERN CAPE (Constant 2000 prices) Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: Wesgro (2008)

11 PRICE / COST PINCHER Departement Landbou | Department of Agriculture | Isebe Lezolimo

12 EFFICIENCY GAINS Departement Landbou | Department of Agriculture | Isebe Lezolimo

13 WESTERN CAPE AGRICULTURE: FOUNDATION OF A NATION 1. South Africa 2. The Western Cape

14 THE WESTERN CAPE

15 PROVINCIAL AGRICULTURE Departement Landbou | Department of Agriculture | Isebe Lezolimo

16 COMPOSITION OF WESTERN CAPE AGRICULTURE Departement Landbou | Department of Agriculture | Isebe Lezolimo

17 HORTICULTURE IN THE WESTERN CAPE Departement Landbou | Department of Agriculture | Isebe Lezolimo

18 CROP PRODUCTION: WESTERN CAPE Departement Landbou | Department of Agriculture | Isebe Lezolimo

19 ANIMAL PRODUCTION: WESTERN CAPE Departement Landbou | Department of Agriculture | Isebe Lezolimo

20 New Primary Producers Communal Farmers Commercial Farmers Farm Dwellers New & existing black agribusiness entrepreneurs Rural Peri-urban Urban Consumers CLIENTS Departement Landbou | Department of Agriculture | Isebe Lezolimo 5 660 5 778 280 717 ??? 4,8 mil

21 NEW PRIMARY & COMMERCIAL Departement Landbou | Department of Agriculture | Isebe Lezolimo

22 FARM DWELLERS (>50% of income) Departement Landbou | Department of Agriculture | Isebe Lezolimo WhitesAfricanColrdAsianTotal Cape Metropole022 0093 355025 364 West Coast2 8913 31230 26857837 049 Cape Winelands9 08218 25598 5400125 877 Overberg5 6279 20031 054045 880 Eden9373 87733 162037 977 Central Karoo5371607 87308 570 Total19 07356 814204 252578280, 717

23 COMMERCIAL FARMERS Departement Landbou | Department of Agriculture | Isebe Lezolimo MaleFemaleTotal Cape Metropole14641186 West Coast1 5101901 700 Cape Winelands1 2142171 431 Overberg763107870 Eden1 0741321 206 Central Karoo34242384 Total5 0507285 778

24 GROSS FARM INCOME Agricultural Census 2002 Departement Landbou | Department of Agriculture | Isebe Lezolimo

25 WESTERN CAPE EXPORTS 2001 - 2003 Departement Landbou | Department of Agriculture | Isebe LezolimoPRODUCTVALUE% of TOTAL CUMUL -ATIVE % % CHANGE FruitR5,18619,4% 75% Wine, beer & spiritsR3,33312,5%31,9%58% FishR2,3118,7%40,6%28,5% Processed foodR1,6846,3%46,9%-2,4% Wood & productsR0,4291,6%48,5%75% Hides, skins, leatherR0,3711,4%49,9%-15,7 MeatR0,2270,9%50,8%-12,5% R13,54150,8%

26 EXPORTS OF WINE Departement Landbou | Department of Agriculture | Isebe Lezolimo

27 TRADE LIBERALISATION: With Market Access (Provide) Departement Landbou | Department of Agriculture | Isebe Lezolimo

28 WATER: FROM AGRICULTURE (Provide) Departement Landbou | Department of Agriculture | Isebe LezolimoINDUSTRY JOBS LOST Grapes127 Deciduous fruit 1 494 Other agriculture 42 Forestry22 Mining3 Manufacturing 1 492 Electricity & water 27 Construction241 Trade554 Transport & communication 122 Agriculture 1 685 Non-agriculture 2 756 Total 4 441

29 PARTNERSHIPS Veterinary Services Farmer Support & Development Sustainable Resource Management Structured Agricultural Training Technology, Research and Development Agricultural Economics Tertiary Institutions National Government NGO’S Other research institutions Organised Agriculture Provincial Government Local Government Agribusiness Consumers Administration Overseas Partners CLIENTS

30 WESTERN CAPE AGRICULTURE: FOUNDATION OF A NATION 1. South Africa 2. The Western Cape 3. Some issues for consideration a) The playing field

31 PRODUCER SUBSIDY EQUIVALENTS (OECD 2006) Departement Landbou | Department of Agriculture | Isebe Lezolimo

32 TOTAL SUBSIDY EQUIVALENTS (% OF GDP) (OECD 2006) Departement Landbou | Department of Agriculture | Isebe Lezolimo

33 PSE PER FARMER (OECD 2003) Departement Landbou | Department of Agriculture | Isebe Lezolimo

34 RSA AGRICULTURAL SUPPORT (OECD 2006) Departement Landbou | Department of Agriculture | Isebe Lezolimo RSA average PSE

35 Each cow in the EU receives at least $2/day in the form of subsidies More than half of the world’s population lives on less than $2/day THE CAP (EU) Departement Landbou | Department of Agriculture | Isebe Lezolimo

36 WELFARE IMPACT OF A WHEAT TARIFF (Provide Project) Departement Landbou | Department of Agriculture | Isebe Lezolimo

37 WESTERN CAPE AGRICULTURE: FOUNDATION OF A NATION 1. South Africa 2. The Western Cape 3. Some issues for consideration a) The playing field b) Price of food

38 GLOBAL PRICE OF FOOD Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: FAO (2008)

39 BFAP BASELINE PRICES: Cereals (R/ton) Departement Landbou | Department of Agriculture | Isebe Lezolimo

40 BFAP BASELINE PRICES: Dairy Departement Landbou | Department of Agriculture | Isebe Lezolimo

41 GLOBAL GRAIN PRODUCTION Annual average 2001 - 2007 Departement Landbou | Department of Agriculture | Isebe LezolimoProductionConsumptionBalanceWheat600613-13,2 Rice410421-10,9 Coarse grains 968973-4,5 Total 1 978 2 007 -28,6 Source: OECD/FAO (2007)

42 SOUTH AFRICAN TRADE BALANCE Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: NAMC, Purchase, Kirsten (2008)

43 COST OF FERTILISER (Selected) Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: NAMC (2008)

44 IMPACT ON THE MOST VULNERABLE: LSM1 (Inflation = 6%; Food Inflation = 12%) Departement Landbou | Department of Agriculture | Isebe Lezolimo Source: Own Calculations based on LSM Data (2007)

45 Food support facilities & population (HSRC estimates)

46 Food support activities and poverty

47 WESTERN CAPE AGRICULTURE: FOUNDATION OF A NATION 1. South Africa 2. The Western Cape 3. Some issues for consideration a) The playing field b) Price of food c) Our heritage

48 REPUTATION WITHOUT PROTECTION = DISASTER

49

50 the end

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