Farming the "Miracle"

The peaceful political transition of South Africa in 1994 was widely considered to be a "miracle". Now, nine years later, the "miracle" is firmly entrenched in the society. But, how did the average farmer adapt to the changes resulting from this "miracle"? This is the question to be addressed in this paper. Following a brief historical overview, the underlying structural changes will be discussed and building on this basis the major overt changes will be identified. The reactions of farmers will be discussed with the aid of two case studies of which the first will be based on the wheat industry and the second on the wool industry of the Western Cape Province of South Africa. Finally, specific conclusions regarding vertical and horizontal relationships will be made.Farm Management,

Characteristics of the agricultural sector of the 21st Century

The objective of this paper is to identify some of the salient characteristics of agriculture in the new millennium. The driving force behind economic change is technology and information, and information and knowledge will replace land, labour and capital as the sources of wealth in agriculture. The resultant cognitive-technical complex in farm production will lead to the true industrialisation of farming and thus placing the traditional family farmer at a distinct disadvantage. Technology developments combined with inverse population growth and ageing population, will not only negate Malthusian visions, but also lead to downward pressure on farm commodity prices, and thus increase the adoption rates of new technology. However, in reaction to the increasingly complex nature of modern society a demand is developing for terroir-based products. This range of products may not only significantly change some characteristics of agriculture, but also provide a new set of opportunities for farmers. Agricultural policy and development strategies should also be reconsidered in the light of this new environment.Agricultural and Food Policy,

Commercial Agriculture in the Western Cape: Macroeconomic Analysis with a Social Accounting Matrix

A social accounting matrix was developed for the Western Cape to meet growing needs for quantitative analysis of the agricultural sector. Twenty-five farm commodities and seven agribusinesses are explicitly included in the model. The coloured and black populations dominate provincial expenditure on fresh and processed farm commodities, suggesting that future demand growth depends on income increases among these household groups. In the aggregate, agriculture’s contributions to job creation, value added and government revenue significantly exceed those of the nonagricultural sectors; agribusiness exceeds other nonagricultural sectors because of their backward links to production agriculture. Within agriculture, horticulture and livestock subsectors make the most significant contributions to the macro economy. Similar patterns are found with respect to generating household incomes, and in the equality with which such incomes are distributed. Household economic behaviour is explicit. Spending by the poor is found to be more labour intensive than spending by the rich, and generates greater impacts on value added (GGP), gross operating surplus and the demand for most farm and non-farm commodities. A composite ranking of macroeconomic contributions to development is constructed. Nine horticultural enterprises and broilers comprise the ten top sectors.Farm Management,

Linking farmers to markets through valorisation of local resources: the case for intellectual property rights of indigenous resources

Agribusiness,

Farming the "Miracle"

The peaceful political transition of South Africa in 1994 was widely considered to be a "miracle". Now, nine years later, the "miracle" is firmly entrenched in the society. But, how did the average farmer adapt to the changes resulting from this "miracle"? This is the question to be addressed in this paper. Following a brief historical overview, the underlying structural changes will be discussed and building on this basis the major overt changes will be identified. The reactions of farmers will be discussed with the aid of two case studies of which the first will be based on the wheat industry and the second on the wool industry of the Western Cape Province of South Africa. Finally, specific conclusions regarding vertical and horizontal relationships will be made

Implications of deregulated wheat market for the Western Cape Province: Evaluation with the aid of a spatial model

The deregulation of the single channel marketing system for wheat poses new challenges to producers and advisors in the Western Cape Province. This deregulation is simultaneous with a number of other changes in the socio-political, economic, marketing and technological environments. In facing these challenges it is necessary to incorporate such diverse trends as globalisation and individualisation within a single framework. In the first part of this paper the development of a model, combining spatial data, resource attributes, crop characteristics and financial/economic data in an interactive model is described. This is followed in the second part by the evaluation of the impact of certain macro-economic variables on farm-level enterprises. This is done with the aid of six scenarios. It was found that, under certain specific conditions (i.e. low international wheat price, zero tariff protection and 40 percent of production being exported), wheat production in the Western Cape is unprofitable. However, if an import tariff on wheat of 30 percent (fob, ad valorem) is introduced and the marketing mix is changed to only 20 percent of local production being exported, then ceteris paribus, wheat can be profitably produced on 68 percent of the area. This allows the opportunity for structural adjustments and cost reducing practices. If the cost of production is lowered by 20 percent and the import tariff removed, then, ceteris paribus, wheat can be profitably produced on 59 percent of the area. Even more important than the results from the scenarios is the fact that a methodology was developed through which the impact of macro-economic variables on farm level profitability can be investigated. As this methodology allows for the identification of specific areas or farms that will be adversely affected, specific remedial measures can be implemented. This methodology will be an important tool in the hands of decision-makers

Implications of deregulated wheat market for the Western Cape Province: Evaluation with the aid of a spatial model

The deregulation of the single channel marketing system for wheat poses new challenges to producers and advisors in the Western Cape Province. This deregulation is simultaneous with a number of other changes in the socio-political, economic, marketing and technological environments. In facing these challenges it is necessary to incorporate such diverse trends as globalisation and individualisation within a single framework. In the first part of this paper the development of a model, combining spatial data, resource attributes, crop characteristics and financial/economic data in an interactive model is described. This is followed in the second part by the evaluation of the impact of certain macro-economic variables on farm-level enterprises. This is done with the aid of six scenarios. It was found that, under certain specific conditions (i.e. low international wheat price, zero tariff protection and 40 percent of production being exported), wheat production in the Western Cape is unprofitable. However, if an import tariff on wheat of 30 percent (fob, ad valorem) is introduced and the marketing mix is changed to only 20 percent of local production being exported, then ceteris paribus, wheat can be profitably produced on 68 percent of the area. This allows the opportunity for structural adjustments and cost reducing practices. If the cost of production is lowered by 20 percent and the import tariff removed, then, ceteris paribus, wheat can be profitably produced on 59 percent of the area. Even more important than the results from the scenarios is the fact that a methodology was developed through which the impact of macro-economic variables on farm level profitability can be investigated. As this methodology allows for the identification of specific areas or farms that will be adversely affected, specific remedial measures can be implemented. This methodology will be an important tool in the hands of decision-makers.Crop Production/Industries, Marketing,

Characteristics of the agricultural sector of the 21st Century

The objective of this paper is to identify some of the salient characteristics of agriculture in the new millennium. The driving force behind economic change is technology and information, and information and knowledge will replace land, labour and capital as the sources of wealth in agriculture. The resultant cognitive-technical complex in farm production will lead to the true industrialisation of farming and thus placing the traditional family farmer at a distinct disadvantage. Technology developments combined with inverse population growth and ageing population, will not only negate Malthusian visions, but also lead to downward pressure on farm commodity prices, and thus increase the adoption rates of new technology. However, in reaction to the increasingly complex nature of modern society a demand is developing for terroir-based products. This range of products may not only significantly change some characteristics of agriculture, but also provide a new set of opportunities for farmers. Agricultural policy and development strategies should also be reconsidered in the light of this new environment

Commercial Agriculture in the Western Cape: Macroeconomic Analysis with a Social Accounting Matrix

A social accounting matrix was developed for the Western Cape to meet growing needs for quantitative analysis of the agricultural sector. Twenty-five farm commodities and seven agribusinesses are explicitly included in the model. The coloured and black populations dominate provincial expenditure on fresh and processed farm commodities, suggesting that future demand growth depends on income increases among these household groups. In the aggregate, agriculture’s contributions to job creation, value added and government revenue significantly exceed those of the nonagricultural sectors; agribusiness exceeds other nonagricultural sectors because of their backward links to production agriculture. Within agriculture, horticulture and livestock subsectors make the most significant contributions to the macro economy. Similar patterns are found with respect to generating household incomes, and in the equality with which such incomes are distributed. Household economic behaviour is explicit. Spending by the poor is found to be more labour intensive than spending by the rich, and generates greater impacts on value added (GGP), gross operating surplus and the demand for most farm and non-farm commodities. A composite ranking of macroeconomic contributions to development is constructed. Nine horticultural enterprises and broilers comprise the ten top sectors

Analyses of genes encoding Theileria parva p104 and polymorphic immunodominant molecule (PIM) reveal evidence of the presence of cattle-type alleles in the South African T. parva population

Restriction fragment length polymorphism analysis of PCR products (PCR-RFLP) and sequencing of the variable region of the p104 and PIM genes was performed on samples obtained from South African T. parva parasites originating from cattle on farms with suspected theileriosis and from buffalo. p104 and PIM PCR-RFLP profiles similar to those of the T. parva Muguga stock, an isolate that causes ECF in Kenya, were obtained from three of seven cattle samples collected on a farm near Ladysmith in KwaZulu-Natal Province. Amino acid sequences of the p104 and PIM genes from two of these samples were almost identical to the T. parva Muguga p104 and PIM sequences. This result supports findings from a recent p67 study in which p67 alleles similar to those of the T. parva Muguga stock were identified from the same samples. While these results suggest the presence of a cattle-derived T. parva parasite, reports of cattle-to-cattle transmission could not be substantiated and ECF was not diagnosed on this farm. Although extensive diversity of p104 and PIM gene sequences from South African T. parva isolates was demonstrated, no sequences identical to known cattle-type p104 and PIM alleles were identified from any of the buffalo T. parva samples analyzed. 'Mixed' PIM alleles containing both cattle- and buffalo-type amino acid motifs were identified for the first time, and there appeared to be selection of cattle-type and 'mixed'-type PIM sequences in the cattle samples examined