SA's farming sector holds steady, but the mix is shifting
South Africa's agricultural sector remains one of the few areas of the economy to consistently generate jobs and income.
Image: Nicola Mawson
South Africa's agricultural sector remains one of the few areas of the economy to consistently generate both jobs and income – yet what gets farmed, where it's farmed, and how the money flows is shifting in notable ways.
In the first quarter of the year, agriculture kept South Africa's economy afloat. Agriculture production increased 15.8%, adding 0.4 of a percentage point to gross domestic product (GDP) in a period when total GDP growth was just 0.1%. Without the boost from agriculture, GDP would have contracted by 0.3%, a Statistics South Africa publication noted.
Although job numbers across the sector have remained broadly stable over the past five years at around 770,000, the make-up of agricultural employment is changing, Statistics South Africa data showed. Horticulture now accounts for the largest share of jobs, outpacing animal farming, which has seen a marked decline.
And while cattle, sheep and poultry are still key contributors to farming income, field crops such as maize, wheat and soya beans are becoming increasingly prominent, especially in provinces like Free State and Mpumalanga, the agency's report into the sector for 2023 – it's latest such publication – found.
Western Cape continues to punch above its weight, employing more people in agriculture than any other province, with Limpopo and KwaZulu-Natal following, Statistics South Africa indicated. But not all provinces have fared equally. KwaZulu-Natal, for instance, has shed a significant number of agricultural jobs since 2018, which is concerning given its strategic role in sugarcane production and access to export markets.
Despite this, national income from agriculture is growing. In 2023, total industry income reached just under R500 billion, growing at almost 7% a year. Most of this comes from farming of animals, but mixed farming and horticulture are close behind, Statistics South Africa data showed.
Interestingly, the strongest income growth came from agricultural services and fertiliser production, although this is a minuscule part of the sector, the data showed.
On the crop side, the past six years have seen steady expansion. Field crops such as maize, wheat, and soya beans have all seen gains in both planted area and production volumes, Statistics South Africa said.
Free State, in particular, continues to lead the country in maize output, while Mpumalanga is not far behind. Sunflower seeds, too, are becoming increasingly important, driven by demand for cooking oil and feedstock.
Wheat production has jumped substantially, with Western and Northern Cape now dominating the national share. Sugarcane remains largely concentrated in KwaZulu-Natal and Mpumalanga and has seen a meaningful increase in output.
However, not all crops are telling a growth story. Despite potatoes remaining the most widely planted vegetable crop, production volumes have slipped, along with yields per hectare. Similar trends are evident for onions and tomatoes. Cabbages are the exception as both planted area and production volumes are up.
There are also clear provincial specialisations emerging. Free State leads not just in maize and potatoes but is becoming increasingly dominant in soya and sunflower too, the data indicated.
Limpopo, while strong in tomatoes and onions, is contributing a growing share of national income despite employing a smaller slice of the labour force. Western Cape continues to deliver outsized returns, reflecting its dominance in fruit, wine and export-oriented crops as well as in value-added services tied to agriculture, Statistics South Africa found.
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SA's farming sector holds steady, but the mix is shifting
South Africa's agricultural sector remains one of the few areas of the economy to consistently generate jobs and income. Image: Nicola Mawson South Africa's agricultural sector remains one of the few areas of the economy to consistently generate both jobs and income – yet what gets farmed, where it's farmed, and how the money flows is shifting in notable ways. In the first quarter of the year, agriculture kept South Africa's economy afloat. Agriculture production increased 15.8%, adding 0.4 of a percentage point to gross domestic product (GDP) in a period when total GDP growth was just 0.1%. Without the boost from agriculture, GDP would have contracted by 0.3%, a Statistics South Africa publication noted. Although job numbers across the sector have remained broadly stable over the past five years at around 770,000, the make-up of agricultural employment is changing, Statistics South Africa data showed. Horticulture now accounts for the largest share of jobs, outpacing animal farming, which has seen a marked decline. And while cattle, sheep and poultry are still key contributors to farming income, field crops such as maize, wheat and soya beans are becoming increasingly prominent, especially in provinces like Free State and Mpumalanga, the agency's report into the sector for 2023 – it's latest such publication – found. Western Cape continues to punch above its weight, employing more people in agriculture than any other province, with Limpopo and KwaZulu-Natal following, Statistics South Africa indicated. But not all provinces have fared equally. KwaZulu-Natal, for instance, has shed a significant number of agricultural jobs since 2018, which is concerning given its strategic role in sugarcane production and access to export markets. Despite this, national income from agriculture is growing. In 2023, total industry income reached just under R500 billion, growing at almost 7% a year. Most of this comes from farming of animals, but mixed farming and horticulture are close behind, Statistics South Africa data showed. Interestingly, the strongest income growth came from agricultural services and fertiliser production, although this is a minuscule part of the sector, the data showed. On the crop side, the past six years have seen steady expansion. Field crops such as maize, wheat, and soya beans have all seen gains in both planted area and production volumes, Statistics South Africa said. Free State, in particular, continues to lead the country in maize output, while Mpumalanga is not far behind. Sunflower seeds, too, are becoming increasingly important, driven by demand for cooking oil and feedstock. Wheat production has jumped substantially, with Western and Northern Cape now dominating the national share. Sugarcane remains largely concentrated in KwaZulu-Natal and Mpumalanga and has seen a meaningful increase in output. However, not all crops are telling a growth story. Despite potatoes remaining the most widely planted vegetable crop, production volumes have slipped, along with yields per hectare. Similar trends are evident for onions and tomatoes. Cabbages are the exception as both planted area and production volumes are up. There are also clear provincial specialisations emerging. Free State leads not just in maize and potatoes but is becoming increasingly dominant in soya and sunflower too, the data indicated. Limpopo, while strong in tomatoes and onions, is contributing a growing share of national income despite employing a smaller slice of the labour force. Western Cape continues to deliver outsized returns, reflecting its dominance in fruit, wine and export-oriented crops as well as in value-added services tied to agriculture, Statistics South Africa found. IOL BUSINESS
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