Official data on South Africa's agricultural sector has increased considerably with Tuesday's publication of preliminary data from Statistics South Africa's survey of large-scale agriculture.
During 2005, Stats SA undertook a survey of units active in the large-scale agricultural sector. This covered the activities of commercial farms with an annual registered turnover of R2-million and above, and which were registered for value added tax and/or income tax for the period ending February 2005.
The agricultural sector is not covered in some of Stats SA's major series, such as the quarterly employment survey (QES) and economic activity survey (EAS). This dedicated survey of agriculture will assist in compiling estimates for the Department of Agriculture's National Accounts as well as inputs to the Gross Domestic Product (GDP) and its components.
Enterprises covered by the survey are mainly engaged in farming activities such as growing of crops, farming of animals, or mixed farming.
the production of milk, wool, pelts/fur, eggs and honey.
Forestry, ocean fishing and agricultural services were not included in the survey. Data in respect of agricultural smallholdings such as vegetable gardens, flower and dairy farms were included only where the products were intended for sale.
The survey found that gross farming income of large-scale farming units for the year ending February 2005 was R51 160-million. The Western Cape province accounted for the largest share of gross farming income (R10 934-million or 21,4% of the total), followed by Free State (R7 433-million or 14,5%).
Just over 47% of the total gross farming income was generated from commercial farming in the animals and animal product division. Horticultural and field crop products provided the second and third largest sources of income in the sector, with contributions of 30,5% and 21% respectively.
In North West (R3 294-million), Free State (R2 960-million), and KwaZulu-Natal (R2 904-million), most of the farming income was generated from animal sales. On the other hand, in Western Cape (R5 965-million), Limpopo (R2 425-million) and Mpumalanga (R1 928-million) most of the farming income was generated from horticultural product sales. Sales of field crop products generated most farming income in Free State (R2 905-million), Mpumalanga (R2 087-million) and KwaZulu-Natal (R1 832-million).
The survey found 614 962 paid employees in large-scale formal agriculture. The Western Cape accounted for 25,3% of these employees, followed by KwaZulu-Natal and Mpumalanga, each with 13,4% of the total number of paid employees. Large-scale commercial farmers paid R7 044-million in salaries and wages, amounting to 13,8% of gross farming income generated in the sector, and 18,9% of total current expenditure.
The number of owners and proprietors totalled 13 302. Total employment (permanent and seasonal employees together with proprietors) was 628 264.
casual and seasonal employees, including occasional and day labourers, but excluding contractors and their employees.
The survey reports that, at the end of the collection period, there were 322 025 full-time workers, 292 937 casual workers, and 13 302 owners and proprietors of farms.
Direct comparison between the results of this survey, and other Stats SA surveys reporting on agriculture, requires caution. For example, 7 687 large-scale farming units participated in the 2005 survey, compared to 5 390 large scale farming units recorded in the 2002 census of commercial agriculture. This does not, however, necessarily reflect growth in this sector of agriculture. It is more likely the result of improvements in the coverage of the sampling frame, based on Stats SA's new business register.
Comparison between enterprises included in both the 2002 and 2005 surveys does, however, provide a valid basis for analysis. Adopting this approach, the percentage increase or decrease in gross farming income for the major divisions within agriculture involved 'field crops' (1,3% decrease from 2002 to 2005), 'horticulture' (29,5% increase), 'animals and animal products' (32,1% increase), 'other products' (50,3% decrease) and total gross farming income (22,1% increase).
Direct comparison of employment data between the 2005 survey and, for example, the labour force survey (LFS) must also be undertaken with caution. There is a difference in survey methodologies (one is a household survey, the other an enterprise-based survey). Coverage also differs, in that the LFS includes employment in small-scale and informal agriculture, while the 2005 large-scale agricultural survey covers enterprises registered for VAT and/or income tax, with a turnover of R2-million or more.
Measurement of agriculture is never easy, with the seasonal nature of activities and the relative isolation of farming units from urban centres contributing to difficulties in gathering reliable statistics on the sector. However, the release of preliminary data from the 2005 survey of large-scale agriculture fills an important gap in South Africa's system of official statistics.
Follow this link to the Publication: P1101.