Skip to main content

Food may become “unaffordable”

| Economic factors

South Africa's agriculture sector, which has been ravaged by the worst drought in recent times, has seen its input to gross domestic product (GDP) shrink by 14 percent.

This has prompted the Democratic Alliance (DA) to warn food may become “unaffordable”.

DA shadow minister of agriculture, forestry and fisheries, Annette Steyn, on Wednesday said: “If we do not unite in actively fighting the drought, South Africa's economy will be brought to its knees, placing food security at great risk and leading to unaffordable food price inflation”.

Reacting to the drop in GDP figures released by Stats SA, Steyn said the DA was deeply concerned about the future of the agriculture sector in South Africa.

Steyn said: “The figures show an agriculture sector shrinking at an alarming rate, a culmination of inadequate government planning and economic stimuli, deepened by the effects of the current drought gripping the whole country”.

According to the report, the agricultural sector shrunk by 14 percent during the 4th quarter of 2015, and by 8.4 percent from 2014 to 2015.

This is the largest decline in the sector since 1995. Steyn said since the outbreak of the drought, 37 000 jobs in agriculture had been lost. She said there had also been a knock-on effect on the manufacturing sector, where 36 000 jobs have been lost, mostly in food processing.

 “The DA therefore again urges government to declare the current drought a national disaster in order to provide a coordinated response to the disaster,” said Steyn.

Pin It

Related Articles

By: Jason Woosey - IOL Expect to pay more for fuel from Wednesday, February 5, with month-end data from the Central Energy Fund (CEF) pointing to significant increases for both petrol and diesel.
By: Ashley Lechman - IOL The National Energy Regulator of South Africa (Nersa) has approved a significant 12.7% increase in electricity tariffs, set to come into effect on April 1.
By: Yogashen Pillay - IOL Energy experts and the Southern African Faith Communities’ Environment Institute (SAFCEI) have called for the National Energy Regulator of South Africa (Nersa) to be wary of the impact of their decision on Eskom’s tariff a…
Despite ongoing economic pressures, South African consumers turned out in record numbers to capitalise on Black Friday deals, driving notable growth in payment volumes and showcasing a clear preference for digital payment platforms and online shoppi…
By: Dieketseng Maleke - IOL South Africa's Retail Sector Shows Promise for Final Quarter of 2024, Despite Economic Challenges