South Africa-Government help needed for farmers.

SOUTH AFRICA-FARMERS NEED MORE GOVERNMENT HELP.

South African farmers get little government support

Government support for agriculture in South Africa ranks very low compared to several other developing countries.According to a report by the Organisation for Economic Co-operation and Development (OECD) support declined from around 10% the mid-1990s to 7% in 2005 to 2007.

The organisation looked at the measures taken by the governments of Brazil, Chile, China, India, Russia, South Africa and the Ukraine to ease the burden on consumers and ensure food supplies within the context of higher and more volatile prices. According to the report, South Africa hasn’t given in to demands for measures that interfere with the free market.

China, India and Russia resorted to everything from higher interest rates and food and production subsidies to lower import tariffs and higher export taxes. In contrast, however, the South African government only increased spending on the food package programme and lowered its biofuel target level in liquid fuel from 4% to 2,5%.

On the free market

According to Ernst Janovsky, head of Absa AgriBusiness, government support for agriculture has changed significantly. The country used to have marketing councils which protected farmers against price fluctuations, but this led to controlled markets, he said.

In a free market like the one South African agriculture faces now, producers have to look after themselves. There’s no market interference, Janovsky said, but we do want an effective market.

"The focus of agricultural support has shifted," he pointed out. "Money which was previously used for marketing and research is now being used for land redistribution." – Drieka Burger