The total gross value of agricultural production (total production in the production season, valued at the average basic prices received by producers) for 2006/07 is estimated at R88 781 million compared to R74 245 million the previous year - an increase of 19, 6. This increase can be attributed mainly to a significant increase in the value of field crops. The gross value of animal products contributed to the total gross value of agricultural production 24.7%, crops and horticulture 24.7%.
Net farm income (after deducting all production expenditure, excluding expenditure on fixed assets and capital goods) increased by 107.3% between 2006/07 and amounted to R26 488 million. Intermediate expenditure relates to the value of goods and services purchased for consumption as inputs during the production process. The material price index for basic improvements increased by 6.6%, while the total price index of intermediate production inputs and services increased by 7.3%.
Added value is the value of total production less the value of intermediate consumption during the production period. Land and fixed asset improvements accounted for R100 980 million, machinery and equipment R28 732 million and livestock R34 429 million of the total fixed asset value.
FIELD HUSBANDRY
In South Africa, genetically modified (GM) maize accounted for 48.3% of the total area planted with maize in the 2006/07 production season. At the request of the industry, the South African Grain Information Service (SAGIS) began reporting in 2006 on the percentage of the different grades of maize delivered during the season. For the 2006/07 season, approximately 96.0% of the deliveries of white maize were grade WM1 and approximately 93.0% of the deliveries of yellow maize were grade YM1.
The domestic market is very important to the industry as most of the maize produced in South Africa is consumed locally. Less than 1% of South Africa's arable land is used for growing sorghum. In the 2006/2007 season, this crop contributed approximately 14% to the gross value of the field crops.
Most of the wheat grown in South Africa is bread wheat, but small amounts of durum wheat are grown in some areas. In the 2006/07 season, about 74% of the wheat required for domestic consumption was produced locally, while an estimated 850,000 tonnes were imported. Malting barley is grown mainly in the Western Cape Province (66% of total production, on 85% of the total area planted with barley) and in the Vaalharts and Taung areas of the Northern Cape Province (29% of total production on 13% of the total area).
A portion of the South African barley crop is generally less suitable for malting purposes and is therefore used as animal feed. Sunflower seeds can be sown from the beginning of November to the end of December in the eastern areas of the country and until mid-January in the western parts. The yields obtained during the season have been described as disappointing and are mainly the result of the drought conditions experienced in the summer production areas.
About 69.7% of the total area planted with cotton during the 2006/07 production season was under irrigation. During the 2006/07 marketing year, about 64% of cotton yarn consumed was imported from Southern African Development Community (SADC) countries. The average yield for the 2006/07 crop is approximately 0.8 t/ha, which is a 33.3% decrease from the previous season and is mainly the result of drought that occurred shortly before planting and high temperatures during growth. period.
Mpumalanga and Free State provinces are estimated to have produced 64.8% of the 2006/07 commercial crop. The Dry Bean Producers' Organization is a national trade organization that advocates for the interests of dry bean producers in the country.
HORTICULTURE
The primary objective of the company is to promote sustainable agricultural land reform in support of national transformation goals by achieving 30% black ownership of sugarcane land by 2014. During the 2006/07 season (October to September), approximately 44.9% of soft fruit produced was exported and approximately 71.8% of the gross value of soft fruit was derived from foreign exchange export earnings. In the past five seasons, most of the soft fruits were processed into juice, except for apricots and peaches, which were mostly used for canning.
The dried fruit is mainly grown in the western and southern parts of the Western Cape province and the lower and upper Orange River areas of the Northern Cape province. The increase in vine production was driven by the relative strength of the rand, which had a negative impact on export prices for fresh vine fruit - some growers chose to dry grapes that were ready for export rather than table grapes, especially those that ripen later when the prices are even lower than at the beginning of the season. Wine is mainly produced in the Western Cape Province and along parts of the Orange River in the Northern Cape Province.
Cultivation of some types of subtropical fruit is only possible in certain areas of the country due to special climatic requirements. The main production areas in South Africa are parts of Limpopo, Mpumalanga and KwaZulu-Natal provinces. In 2006/07 (July to June), pineapple accounted for about 65% of the total subtropical fruit intake for processing.
While the volume of most subtropical fruits for processing declined, some significantly, consumption of avocados and papayas increased during 2006/07 - the latter dramatically. ARC-Institute for Tropical and Subtropical Crops (ITSC) is responsible for research in all aspects of tropical and subtropical crop cultivation throughout the country. Some of the organizations involved in the marketing of specific subtropical crops are Banana Growers' Association, Avocado Growers' Association, Mango Growers' Association and Litchi Growers' Association.
Citrus Research International (CRI) commissioned the Citrus Growers Association of South Africa to conduct research and development on technical issues related to improving access of South African citrus fruits to global markets. As shown in the following graph, approximately 53% of the volume of vegetables produced is traded in the main fresh produce markets. Sales at fresh produce markets and direct sales account for approximately 50% of total tomato volume sales.
During the 2006/07 season, the volume of onions exported represented approximately 10% of the total volume of the onion harvest. However, imports must also be taken into account when determining the future of the South African processing industry.
ANIMAL PRODUCTION
Beef cattle make up about 80% of the total number of cattle in the country, while dairy cattle make up the other 20. Most organizations are affiliated with the South African Studbook and Animal Improvement Association. The Milk Producers' Organization (MPO) is the leading producer organization in the South African dairy sector.
Although sheep farms exist in all provinces, these are concentrated in the drier parts of the country. Goats are found mainly in the Eastern Cape, Limpopo, KwaZulu-Natal and North West provinces. The total number of employees in the formal pork production industry in South Africa is estimated to be approx. 10,000, which includes 4,000 agricultural workers and 6,000 workers in the processing and slaughtering sector.
The red meat industry is one of the most important and growing industries in the agricultural sector, contributing approximately 19% of the gross value of agricultural production in the RSA. A small number (8) of major producers provide over 90% of South Africa's total broiler production, while many small production units and the informal sector account for the remaining 10. The industry is experiencing a steady rise in feed prices due to an increase in the price of corn.
However, like the broiler industry, the industry is experiencing a steady increase in feed prices due to an increase in the price of corn. Both of these organizations are key members of the South African Ostrich Business Chamber (SAOBC). The aim of the SAOBC is to facilitate the sustainability and profitability of the ostrich industry in South Africa.
During the 2007/08 season, the number of ostriches slaughtered in South Africa is expected to remain at around 200,000, mainly due to the after-effects of bird flu and the severe drought followed by floods in the main production areas. during 2006. Milk production in South Africa makes a very small contribution to world milk production (around 0.5%); however, in terms of the value of agricultural production in South Africa, it is the fourth largest agricultural industry in the country. Wool is produced throughout South Africa; however, the main production areas are located in the drier regions of the country.