By Nico van Burick
The Department of Agriculture and organised agriculture groups will establish a committee to ensure a more accurate assessment of agricultural conditions.
The committee’s provisional name will be the Agricultural Conditions Committee (ACC). Its formation follows a recent finding by the Bureau for Food and Agricultural Policy (BFAP) that agricultural GDP figures for the third quarter of 2024 were significantly better than Statistics SA’s (SSA) calculations, which showed a 28.8% decrease.
The ACC will be established this month, says Wandile Sihlobo, the chief economist of the Agricultural Business Chamber of South Africa (Agbiz). Agri SA, Agbiz, and BFAP will serve on the committee. Further details will be made known once the committee has been assembled.
He earlier told News24 the primary purpose of the committee, which will be housed in the Department of Agriculture and include agricultural organisations and academics, will be to ensure reliable data on agrarian conditions and insights into farmers’ operational circumstances.
“This will help improve the general public and policymakers’ understanding of the sector’s conditions.”
In December Agri SA and Agbiz asked BFAP to review SSA’s data after SSA found that the agricultural sector decreased by 15.5% in the first nine months of the year and by 28.8% in the third quarter – the highest decreases since 1970. SSA found this led to a 0.3% decrease in the overall economy compared to the preceding quarter.
According to BFAP’s review, the decrease in the first nine months was between 5% and 6%, not 15.5% as calculated by SSA.
BFAP believes SSA should consider adjusting agriculture’s gross domestic product (GDP) upward by R10.8 billion to account for inflation.
Johann Kotzé, CEO of Agri SA, said the purpose of the planned committee is to get input from industry members to verify statistical findings.
“The experience of farmers on the ground must align with what is presented statistically. We must remember that what is experienced at farm level and in communities is sometimes far removed from the officials in Pretoria.”
He says the accuracy of agricultural GDP data is essential for monetary policy and measuring agriculture’s health and food security. “What stands out is organised agriculture and the Department of Agriculture’s limited ability to provide timely, accurate and geographical data about agriculture and food systems. Our fragmented industry knowledge creates room for dangerous, subjective opinions that sometimes lead to emotional decision-making.”
He says establishing the committee is a vital first step in Agri SA’s effort to act more proactively in consultation with the Department of Agriculture.
