Agri SA says South Africa's agricultural sector is facing a decline due to a rapid national minimum wage increase. The organisation warns that unless the wage increases align with inflation, the sector could contract, causing devastating effects on employment. According to a statement the sector has shown resilience despite crises like the Covid-19 pandemic, but the pressure is beginning to show. The sector grew by 17.8% in 2020 but only 7.4% in 2021 and a marginal 0.9% in 2022. This decline according to Agri SA have affected all areas including the ZF Mgcawu district that is largely known for planting, growing and harvesting grape vines. Agri SA explains that farmers are price takers with no control over prices beyond the farm gate, and local and international retailers set prices without considering cost increases. This dynamic is exacerbated by market access challenges, resulting in a greater surplus of produce on the local market.
Journalist: Thulani Sigonya
Email: e.sigonya@gmail.com