The total gross value of agricultural production (total production during the production season valued at the average basic prices received by producers) for 2007/08 is estimated at R111 760 million, compared to R93 390 million the previous year—an increase of 19.7 . This increase can mainly be attributed to a significant increase in the value of field crops. The gross value of animal products, field crops and horticultural products respectively contributed 24.2% to the total gross value of agricultural production.
The gross income of producers (the value of sales and production for other uses, plus the value of changes in inventory) for the year ended 30 June 2008 amounted to R110 362 million, compared with R91 962 million the previous year—an increase of 20. Income from citrus fruits showed the largest increase of 35% and amounted to R5 318 million, which is R1 380 million more than that of the previous 12 months. Producers earned R12 983 million from slaughtered cattle and calves, compared to the previous R12 514 million—an increase of 3.8.
Intermediate expenditure refers to the value of goods and services purchased for consumption as inputs during the production process. In general, there was an increase in the prices of goods and services purchased for use in the production process.
FIELD CROP HUSBANDRY
In South Africa, genetically modified (GM) maize accounted for 57.2% or 1.6 million ha of the total area planted to maize in the 2007/08 production season. In the past year, a new word, agri-inflation, emerged as a result of unprecedented increases in the prices of grains and oilseeds, leading to huge increases in food prices – the global food price crisis, as it became known. Most of the maize produced in South Africa is consumed locally; as a result, the domestic market is very important to the industry.
The pricing mechanism for these prices is the agricultural products division of the JSE Security Exchange of South Africa. Less than 1% of South Africa's arable land is used to grow sorghum. Over the past five seasons, South Africa has produced an average of 224 903 tonnes of sorghum per year, which is about 2.6 and 12.3% of average domestic maize and wheat production, respectively.
Most of the wheat produced in South Africa is bread wheat, with small amounts of durum wheat produced in certain areas. During the 2007/08 season, approximately 66% of the wheat required for domestic consumption was produced locally, while an estimated 1.2 million tonnes were imported. A part of the South African barley crop is generally less suitable for malting purposes and is therefore used as livestock feed.
Sunflower seeds can be planted from the beginning of November to the end of December in the eastern parts of the country, until mid-January in the western parts. The yields achieved during the season were described as excellent and were mainly due to improved production conditions in the summer production areas compared to the dry conditions of the previous season. 45% of groundnuts produced in 2008/09 are expected to be crushed due to increased food demand.
An estimated 72.9% of the total area planted with cotton during the 2007/08 production season was under irrigation. During the 2007/08 marketing year, approximately 90% of the cotton lint consumed was imported from Southern African Development Community (SADC) countries. The Mpumalanga and Free State provinces produced an estimated 61.8% of the 2007/08 commercial harvest.
The most extensive seed production occurs in the Lowveld area of Mpumalanga province, followed by Limpopo and Northern Cape provinces. The Dry Bean Producers' Organization is the national commodity organization that promotes the interests of the nation's dry bean producers.
HORTICULTURE
In the 2007/08 season (October to September) approx. 47.4% of deciduous fruit exported, and approx. 77.8% of the gross value from leafy fruit came from foreign exchange export earnings. Over the past five seasons, most deciduous fruits have been processed into juice, except for apricots and peaches, which were mostly used for preserves. Dried fruit is produced mainly in the western and southern parts of the Western Cape Province and the Lower and Upper Orange River areas of the Northern Cape Province.
Wine is mainly produced in the Western Cape Province and along parts of the Orange River in the Northern Cape Province. The cultivation of some types of subtropical fruits is only possible in certain specific areas of the country due to certain climatic requirements. The main production areas in South Africa are parts of the provinces of Limpopo, Mpumalanga and KwaZulu-Natal.
During 2007/08 (July to June), pineapple accounted for approx. 56.6% of the total intake of subtropical fruit for processing. 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.
Approximately 9.7% of orange production, 8.7% of orange production and 6.5% of soft peel production were sold in these markets. Citrus Research International (CRI) is commissioned by the South African Citrus Growers Association to research and develop technical issues involved in increasing access to world markets for South African citrus fruits. The relative importance of the main types of vegetables, by gross value of production, during the 12 months to 30 June 2008, is shown in the chart on page 47.
As depicted in the following graph, approximately 53% of the volume of vegetables produced is traded on the most important fresh produce markets. Sales on fresh produce markets and direct sales account for approximately 50% of the total volume of tomato sales. Only 1.4% of the total production of onions was taken in for processing during the 2007/08 season.
During the 2007/2008 season, the volume of onions exported represented about 9% of the total onion harvest. The exported quantities of potatoes increased by 41.7% compared to 2006, while the value of the rand increased by about 11.0% against the US dollar.
ANIMAL PRODUCTION
To meet consumer demand in 2009, Potatoes South Africa is in the process of expanding its local processing plants. Cattle are found throughout the country, however, mainly in the Eastern Cape, KwaZulu-Natal, the Free State and the North West Provinces. Beef cattle make up approximately 80% of the total number of cattle in the country, while dairy cattle make up the remaining 20%.
The Milk Producers Organization (MPO) is the most prominent producer organization in the South African dairy sector. Although sheep farms are found in all provinces, they are concentrated in the drier parts of the country. Goats are mainly found in the Eastern Cape, Limpopo, KwaZulu-Natal and North West provinces.
The total number of employees in the formal pig production industry in South Africa is estimated to be approximately 10 000, including approximately 4 000 farm workers and 6 000 workers in the processing and slaughterhouse sectors. The red meat industry is one of the most important and growing industries in the agricultural sector and contributes approximately 19% to the gross value of agricultural production in RSA. Feed costs have always been an important issue in the poultry industry, especially over the past year.
Today, all major stakeholders in the industry are affiliated with either the National Ostrich Processors of SA (NOPSA) or the South African Ostrich Producers. In the 2008/09 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 flooding in the main production areas in 2006. Milk production in South Africa makes a very small contribution to world milk production (about 0.5%); however, in terms of the value of agricultural production, it is the fourth largest agricultural industry in the country.
Wool is produced throughout South Africa; however, the main production areas are in the drier regions of the country. The wool supply at the end of 2006/2007 was probably close to 75 million kg of clean wool. Alternative sales mechanisms, such as contract farming, forward deliveries and forward contracts, have not yet been introduced in the South African wool industry.
