The volume of field crop production reflected an increase of 3.1% due to an improvement in the production of summer cereals. Horticulture production decreased by 1.6% mainly due to a decrease in the production of citrus and subtropical fruits, while animal production increased by 8.8% due to an increase in fresh milk production and the number of livestock slaughtered. This decline can be mainly attributed to a decline in the value of field crops.
The gross value of animal products, horticultural products and field crops contributed respectively 23.0% to the total gross value of agricultural production. Producers earned R14 099 million from slaughtered cattle and calves, compared to R13 200 million last year - an increase of 6.8%. Net farm income (after deducting all production costs, excluding expenditure on fixed assets and capital goods) amounted to R37 593 million for the 12 months ended 30 June 2010, which is 12.6% lower than in the previous 12 months.
An increase of 20.6% in the price of seed made the most important contribution to the increase in the prices of intermediate goods and services. In the case of machinery, implements and vehicles, investment decreased by 20.1% and amounted to R6 501 million.
FIELD CROP HUSBANDRY
Most of the corn is harvested from the end of May to the end of August. In the 2009/10 production season, GM maize accounted for 78% or 2.1 million ha of the total commercial area planted to maize. Production levels in the Southern African Development Community region (South Africa is usually the main source of white maize for these countries in times of shortage).
Due to the irregular weather conditions in the country, there are significant variations in local production. Global consumption is expected to be 833.3 million tonnes – 26.8 million tonnes more than the previous year. In the 2009/10 season, this crop contributed approx. 11% to the gross value of field crops.
Sunflower seed can be sown from the beginning of November to the end of December in the eastern part of the production areas and until mid-January in the western part. This is probably the main reason for the popularity of the crop in the marginal production areas of South Africa. The contribution of sunflower seed to the gross value of field crops during the season is approximately 5.6%, compared to 47.6% of maize – the largest contributor.
The decrease in production can mainly be attributed to the decrease in the area planted with sunflower seeds. According to a report by the Bureau for Food and Agricultural Policy (BFAP) of the University of Pretoria, a 14.1% increase in the intended local plantings of soybeans for the 2010/11 production season can be expected. The expansion in the soybean area is mainly driven by the relatively lower profitability of.
During the 2009/10 production season, groundnuts were mainly planted in the north-western regions of South Africa, namely the Western and North-Western Free State Province (43.5%), the North-West Province (34.8%) and the Northern Cape Province (17.4%). In such crop rotation systems, canola usually causes an increase in subsequent crop yields. About 71.2% of the total area planted with cotton during the 2009/10 production season was under irrigation.
The estimated gross value of dry beans for the 2009/10 season amounts to R380 million and is 25.8% less than last season. The Dry Bean Producers' Organization is the national commodity organization that promotes the interests of the nation's dry bean producers.
HORTICULTURE Deciduous fruit
During the 2009/10 season (October to September), about 48.7% of the dairy fruits produced were exported and approximately 76.9% of the gross value from deciduous fruits came from foreign exchange export earnings. The dried fruit is mainly produced in the western and southern parts of the Western Cape Province and in the Lower and Upper Orange River areas of the Northern Cape Province. South Africa is the eighth largest producer of wine in the world, contributing 4.0% to world wine production in 2009.
Wine is produced mainly in the Western Cape Province and along parts of the Orange River in the Northern Cape Province. The production of wine grapes and the income of growers from 2005 to 2009 are shown in the following table at the top of p. The best areas for growing these types of fruit in South Africa are in the provinces of Limpopo, Mpumalanga and KwaZulu-Natal.
In the period 2009/10 (July to June), pineapple accounted for 59.6% of the total intake of subtropical fruit for processing. The quantities of mangoes, papayas and lychees accepted for processing increased in 2009/10, the quantity of granadillas remained almost unchanged, and the intake of other types of subtropical fruit decreased. As shown in the following graph, approximately 46% of the volume of vegetables produced is traded in the main fresh produce markets.
The importance of vegetables in a healthy diet is strongly promoted by all stakeholders in the fresh produce marketing chain. Sales at the fresh produce markets and direct sales amount to approx. 64% of the total amount of tomato sales. For the year ending June 30, 2010, 27% of the total production of tomatoes was taken in for processing.
About 61% of the total production during the 2009/10 season was sold to the major fruit and vegetable markets, compared to 62%. This was mainly because a larger proportion of the onions supplied to the markets were of good quality. Only 1.0% of the total onion production was brought in for processing in the 2009/10 season.
In the 2009/10 season, the amount of onion exported represented approximately 5.0% of the total onion crop. Considering the unfavorable weather conditions in the countries that supply potatoes on the international market, an increase in prices is expected.
ANIMAL PRODUCTION
Cattle are found throughout the country, but mainly in the Eastern Cape, KwaZulu-Natal, Free State and North West provinces. Beef cattle contribute about 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 leading producer organization in the South African dairy sector.
Although sheep farms exist in all provinces, they are concentrated in the more arid parts of the country. Goats are mainly found in the Eastern Cape, Limpopo, KwaZulu-Natal and North West provinces. The total number of workers in the formal pork production industry in South Africa is estimated at about 10,000, including about 4,000 agricultural workers and 6,000 workers in the processing and slaughterhouse sectors.
The red meat industry is one of the most important growing industries in the South African agricultural sector. Commercial ostrich farming in the country began in 1864 with large-scale exports of feathers to Europe. Today, all major stakeholders in the industry are affiliated to either the National Ostrich Processors of South Africa (NOPSA) or the South African Ostrich Producers Organization (SAOPO).
The aim of the SAVBK is to facilitate the sustainability and profitability of the ostrich industry in South Africa. The global economic crisis since 2008 has also affected the ostrich leather industry, as it is a luxury goods – the luxury goods segment has been negatively affected in the established markets for ostrich leather products. The biggest risk to the sustainability of the industry lies in the potential of animal diseases such as bird flu, and therefore the industry works with the government to ensure that international requirements are met in this regard.
A major challenge for the industry remains increasing Black Economic Empowerment and participation in the industry. However, in terms of agricultural production value, 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.
Alternative sales mechanisms, such as contract growth, forward deliveries and futures contracts, have not yet been established in the South African wool industry. Demand for kid goat hair is expected to remain depressed in the short term due to a struggling textile sector worldwide, but prospects look better towards the end of 2010.
