2. WET EN ORDE/LAW AND ORDER
3. GRONDSAKE/LAND AFFAIRS
4. BEELDBOU EN TEGNOLOGIE/CORPORATE IMAGE AND TECHNOLOGY
7. BOERDERY BESTUUR/FARMING MANAGEMENT
9. NATUURLIKE HULPBRONNE/NATURAL RESOURCES
10. JONGBOERE/YOUNG FARMERS
11. STREEKVERGADERINGS/REGIONAL MEETINGS
BELANGRIKE DATUMS/IMPORTANT DATES
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“Die probleem is dat insetkostes aanhou styg (selfs in reële terme) wat die effek van die koste-knyptang op winsgewende boerdery vergroot,” aldus Jooste. Die probleem is ’n gevolg van die ekonomie wat onder geweldige druk is wat grootliks te wyte is aan volgehoue arbeidsonrus (stakings) en die vermoë van Eskom om aan die vraag na elektrisiteit te voldoen (veral vir die nywerheidsektor). Dit lei tot ’n verlangsaming in die ekonomie wat daartoe lei dat reële besteebare inkomste van verbruikers ook onder druk kom. Dus, in ’n samelewing waar huidhoudelike skuld reeds op baie ongesonde vlakke is, gaan dit nog meer druk plaas op verbruikers se besteding.
Jooste sê die grootste waarskynlike verloorders is dan tipies luukse produkte. “Dié landbouprodukte wat grootliks staatmaak op verbruikers wat sterk inkomste groei toon gaan waarskynlik oor die kort- na mediumtermyn die ergste geraak word. Voedsel wat binne die stapelkompleks val sal voordeel trek uit die situasie.”
“Aanduidings is daar dat die wisselkoers na die einde van die jaar kan versterk wat baie welkome verligting sal bring vir produkte op die plaaslike mark, maar aan die ander kant sal dit ‘n negatiewe impak hê op die uitvoerverdienstes van uitvoer geörienteerde bydrywe. Dit sal ook die mededingendheid van ingevoerde landbouprodukte bevoordeel,” verduidelik Jooste.
Pressure on primary agriculture’s income expected:
Consumers are currently experiencing more and more burdens on their income, and this may influence primary agriculture’s profitability over the short term. Prof. Andre Jooste, chief executive officer of Potatoes SA and an agricultural economist, predicts that industries that are very dependent on the use of electricity, labour and fuel during the production process – and can not use alternatives – will especially feel the effect of the cost squeeze.
“The challenge is that input costs are on the rise (even in real terms) and it increases the cost squeeze on the profitability of farming enterprises,” says Jooste. This problem is the result of the enormous pressure that the economy is experiencing because of continued labour unrest (strikes) and the ability of Eskom to meet the demand for electricity (especially in the industrial sector.) It causes a delay in economic growth which causes pressure on the real spending ability of consumers. Thus, in a society where household debt is already on unhealthy levels, this situation will cause more pressure on consumer spending.
Jooste says usually the biggest losers in this situation are luxury products. “Agriculture products which mainly rely on consumers’ strong economic growth will be influenced the most over the short and medium term. Staple food groups will mainly benefit from this situation.”
“According to market indicators the exchange rate will strengthen by the end of the year which will bring welcome relief for the local market, but will have a negative impact on the export earnings of export oriented industries.
This will also better the competitiveness of imported agriculture products,” says Jooste.