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

South Africans are resilient people who are always ready to seek solutions for problems, even if the trials they face are caused by events that are beyond their control. An empowering example of this approach to life is the use of grocery stokvels...
In response to rising food costs, The SPAR Group offers practical tips for beating food inflation through savvy shopping and creative cooking.
By: Myles Illidge – MyBroadband South Africa’s Road Accident Fund (RAF) tax and General Fuel Levy (GFL) add between R272 and R483 to the price of a tank of fuel, depending on the size of your car’s tank.
By: Shaun Jacobs – Daily Investor Major changes are coming to VAT in South Africa, with the government looking to expand the range of food items exempt from the tax. 
By: Hanno Labuschagne - MyBroadband An anticipated strengthening of the rand and slipping global oil prices could result in lower petrol prices at the pumps next month.