2013/01/21

Interview: S. African land policies, labor conflicts to cause uncertainty to farming sector: expert

Source : Xinhua | English.news.cn

JOHANNESBURG, Jan. 21 (Xinhua) -- South African agriculture production conditions will meet growing food demand this year, but land policies and labor conflicts will cause "considerable uncertainty" to the sector, the Agricultural Business Chamber of South Africa (ABCSA) said Monday.

In an interview with Xinhua in Johannesburg, ABCSA Chief Executive Officer John Purchase said policy issues and current labor protests will "impact negatively" on the South African farming industry.

"The chamber predicts that production conditions will generally be favorable and will meet a growing demand effectively," Purchase said. "But it also predicts that policy issues around land reform and labor unrest will cause considerable uncertainty and impact negatively on the South African Agriculture industry," he said.

South Africa farming industry has been hollowed in deep problems since last year following labor protest that sparked in the Wastern Cape Province.

Early this month, the protest resumed and was marred by violence. Although farmworkers suspended the protest, but sporadic events of protest continued as government-mediated wage negotiations.

Purchase said ABCSA believes that the strike action is not perpetrated by real farmworkers but is primarily pushed by seasonal workers (fruit pickers) that are "generally only employed for three months of the year."

"There are a number of unemployed involved, and even a criminal or anarchist element following their agenda. While there certainly is a political element to this strike and this was even exploited as such by certain elements."

"ABCSA believes the strike is more about poor living conditions, poor service delivery in informal settlements, limited employment conditions outside of the fruit picking season."

Farmworkers are demanding a daily wage of 18 U.S. dollars (R150) from 7 U.S. dollars (R69) and improved living conditions, but very few farmers have since agreed to increase the daily wage to 12 U.S. dollars (R105).

Purchase said ABCSA believes that the minimum wage will be reviewed by government and increased significantly by 20 percent, but this will lead to retrenchments and greater mechanization by farmers as they will need to restructure.

South Africa agriculture has been shedding jobs significantly and continuously over the past couple of years and this trend is now expected to continue, despite various policy efforts to achieve sustainable employment growth in the sector, Purchase said.

ABCSA said the government, farmers and workers are "all three big losers" under the current ongoing strike action. The chamber is calling on all parties to engage constructively and to resolve the disputes.

"This will demand leadership. Strong leadership from all parties is what is required now," Purchase told Xinhua. He said investor confidence in the South African agriculture sector "was most definitely" affected by the strike action.