Contribution of agriculture to the SA economy

The role of small-scale farmers

The role of large-scale farmers

Main products produced: home / export markets

Factors that favour agricultural development

Factors that hinder agricultural development

Importance of food security in SA

Case study related to food security in SA

Agriculture in SAR

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Contribution of agriculture to the SA economy

Agriculture forms part of the primary activities that contribute to the South African economy and has shown a steady decline in its percentage contribution to the GDP due to other sectors increasing their shares of the GDP as skill levels in the country have increased.

Source: Platinum textbook

Agriculture contributes to the economy directly as it:

• Contributes a percentage to the GDP.

• Contributes a percentage of the workforce employed in labour.

• Contributes a percentage from exports to the GNP.

Agriculture contributes to the economy indirectly as it:

• promotes growth in the other economic sectors as it provides raw materials for the industry.

• promotes growth in the transport sector by using transport for receiving agricultural goods.

• is a major employer of South Africans as 19% of people are directly/indirectly dependent on agriculture for their income.

• has been a good exporter and derives income from countries that import South African agricultural products.

The roles of small-scale farming

Source: Top Class textbook

The roles of large-scale farming

Source: Top Class text book

Main products produced: home/export markets

Products produced for the home market

• Maize(corn)

• Dairy products

• Tea

• Cotton

• Sunflower seeds(used for vegetable oil)

• Soya beans(used for protein supplements)

• Sugar

• Vegetables

Products produced for the export markets

• Citrus

• Sugar

• Grapes

• Maize

• Fruit juice

• Wool

• Deciduous fruit

• Dairy products

Factors that favour agricultural development

Source: Top class textbook

Factors that hinder agricultural development

Source: Top class textbook

Importance of food security in SA

Food security refers to the availability of well-balanced meals on a regular basis.

South Africa has high unemployment levels and high poverty levels. Hence, many individuals and families have no food security at all.

South Africa faces moderate risk of food insecurity along with a number of other African states.

Source: Platinum textbook

Factors hindering food security in South Africa

Factors favouring food security in South Africa

Social factors•Population growth

Social factors•Empowering women

Physical factors•Poor soils•Environmental degradation

Physical factors•Planting a variety of crops•Diversity of climate regions

Political factors•Uneconomical farm units•Government corruption•War and conflict

Political factors•Role of government•Sustainable agriculture•Land reform programs & land re-distribution

Economical factors•Lack of capital to purchase equipment•Shift to biofuel production•Trade policies

Economical factors•strong trade relations•Diversification of rural economies•Processing crops