26 September 2007
Programme director:
Leaders and members of the AEASA
Esteemed representatives of the business sector
Invited guests
Ladies and gentlemen
I feel honoured to have been invited to this important conference and to be given an opportunity to share some thoughts on the importance of an organization such as AEASA.
I first wish to thank the organizers of this event for inviting me to participate, gain more insight into the world of the agricultural economy and learn a thing or two directly from the experts. The one area of knowledge that I certainly would benefit from revolves around computation of the country's statistics, especially as these relate to the broad agricultural sector and its contribution to the country's gross domestic product.
Reading the South African Institute of Race Relations' booklet titled Fast Facts, we are informed that agriculture, including fishery and forestry, contributed, during 2006, 2.7% to the country's GDP. Reading the South Africa Year Book 2006/2007, we are informed that primary agriculture contributed 2.8 to the GDP during the same period. To confound understanding, we are informed that, because of forward and backward linkages, the sector's contribution to the GDP stands at 15%. I pose the challenge of effective interaction with the country's statistics precisely because available information always constitutes the basis of all sound decisions. Given incorrect information leads to inappropriate decisions.
Asking the same question perhaps differently, what is the role of agricultural economists to the country's Strategic Plan for South African Agriculture - a strategy that was adopted in 2001? The strategic thrust of this strategy is to enhance global competitiveness and profitability. The strategy also envisages sustainable resource management and equitable access for all.
Building on this strategic plan and also relying on the White Paper on agriculture, we have developed the Gauteng Agricultural Development Strategy (GADS). This plan aims to, among others, accelerate development of the biotechnology and the agro-processing industrial sectors. To this extent, we have completed our provincial biotechnology and agro-processing strategies. We now are focusing on strengthening public/private partnerships to kick-start implementation and to ensure maximum impact.
The key focal areas of our biotechnology strategy include development of resources for agricultural and environmental biotechnology. Through this strategy, we also aim to expand research. Utilising the provincial agro-processing strategy, we envisage further boosting available provincial agricultural infrastructure and the beneficiation of agricultural outputs.
On the international plane, I am informed that agriculture accounts for almost 9% of the total value of our country's exports, mainly to European countries, which absorb almost 50% of our country's agricultural exports. Only 26% of agricultural exports are sent to African markets.
It would certainly be a gross oversight not to mention the foremost challenges facing our country - eradication of poverty maximizing use of available resources, including agricultural resources, to improve the living conditions of all the people of our country.
Given this scenario, I am inclined to pose the same question that I posed earlier, perhaps in a slightly different way this time. The question I am inclined to pose is - together as partners, what can we do to achieve these goals? What else can we do to alter the race and gender patterns of ownership and leadership in the agricultural sector?
Ladies and gentlemen, I know that your agenda is quite tight and my brief really is to wish you well in your deliberations. In doing this, I wish to assure you that our communities, especially those most marginalized, look forward to the successful conclusion of this congress, especially as it takes resolutions that will contribute to the betterment of their lives. I also look forward to more positive relations between our institutions.
I thank you.