As South Africa grapples with alarming levels of food insecurity, with reports indicating that up to 20 million citizens are severely affected, the emphasis has never been greater for farmers to innovate and adopt new methods.
According to the latest PwC Agribusiness Thought Leadership report released yesterday, there has been a concerning decline of more than 3% in the volume of food and beverages sold per capita nationwide over the past year.
PwC said this decline can be linked to the tightening of consumers’ purchasing power amidst soaring inflation.
Andrew Dale, PwC Africa’s Agribusiness Leader, highlighted how the economic situation has forced many South Africans to cut back on their food purchases.
“People were simply able to do less with their salaries and wages as their income failed to keep up with inflation,” Dale explained.
He also pointed out that agribusinesses must elevate their efforts to meet increasing food demands while maintaining sustainability.
The PwC report posits that the agricultural sector in South Africa is at a critical crossroads. Despite an enduring history of rising agricultural production, the nation faces a stark contradiction—it remains a hungry nation.
The dire need now is to enhance farm production without compromising sustainable practices, which necessitates that farmers embrace innovative approaches and emerging technologies in their operations.
This sentiment resonates with findings in the Shoprite Holdings 2023 Sustainability Report. The report outlines how worsening socio-economic conditions—including escalating interest rates and the ongoing war in Ukraine—have significantly affected product affordability. Increased costs across agricultural inputs, packaging, manufacturing, and transportation have weighed heavily on both local and imported goods.
PwC’s reprot also drew historical parallels from the first Green Revolution post-World War II. During that time of global food scarcity, innovative strategies such as high-yielding cereal grains, hybrid seeds, and modern farming techniques emerged as solutions to food security challenges.
Dale stressed that while South African farmers remained at the forefront of adopting these methods, the country’s paradox of hunger persisted. He said approximately 20 million South Africans were grappling with severe food insecurity, a reality underscored by diminished food sales in supermarkets and grocery stores. As a result, there is an urgent demand for enhanced food security measures both locally and globally.
Nqaba Ndiweni, PwC Africa's Consumer, Industrial Products and Services (CIPS) Industry Leader, said a collaborative effort was fundamental to accelerating production growth and supporting agricultural trade.
“The government, private sector, labour, and community organisations must join forces to develop and implement effective policies,” Ndiweni said.
Moreover, as farmers and food companies strive to ensure food security, safety, and quality, the concept of traceability emerged as a critical aspect of good food management practices.
Dale noted that traceability offers an opportunity for food companies to differentiate their products and gain a competitive edge through enhanced visibility over their food supply chains. He explained that the breadth of necessary data collection for effective traceability includes every stage, from production to sales.
Additionally, the National Agricultural Marketing Council (NAMC) reiterates the agricultural sector's vital role in securing food supply, bolstering the economy, and generating much-needed employment in rural communities.
Recent NAMC reports revealed a significant increase in statutory levies—jumping from R896 million in the 2022/23 financial year to R1.022 billion in 2023/24—which demonstrates a commitment to fostering a thriving agricultural landscape in South Africa.
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