TLU SA has expressed serious concern about the accelerated implementation of the Agriculture and Agro-processing Master Plan (AAMP) while fundamental questions regarding its economic foundation remain unanswered.
This follows repeated public calls by Agriculture Minister Willie Aucamp for the implementation of the AAMP to be accelerated. In a recent interview with Business Day, Aucamp again indicated that there is insufficient momentum to translate the plan into measurable outcomes. Among other things, he emphasised the importance of profitable farming operations, private investment, property rights and market access.
TLU SA agrees that these principles are essential for a growing and sustainable agricultural sector, but believes they highlight precisely the contradiction the organisation has warned about since the development of the AAMP.
“The question is what the ultimate foundation of this plan is. Is it an economic plan that will be assessed according to profitability, productivity, sustainability and efficiency, or are these economic principles being made subordinate to a transformation agenda?” says Bennie van Zyl, General Manager of TLU SA.
TLU SA raised objections during the development of the AAMP regarding the manner in which transformation is incorporated into the plan. The organisation called for the concept to be clearly defined and warned that transformation objectives cannot be pursued at the expense of economic principles. According to TLU SA, this fundamental concern has still not been satisfactorily addressed.
“Transformation can never be more important than profitability and sustainability. Profitable farms should be the central pillar around which an agricultural master plan is built, including when it comes to the outcomes of land reform. If transformation is a determining component of the AAMP, there must be clarity about what is meant by it and how its economic consequences will be measured,” says Van Zyl.
The AAMP identifies economic growth, job creation, food security and increased participation in agriculture as key objectives. According to TLU SA, these objectives can only be achieved in an environment that promotes productivity, investment and profitable production.
TLU SA emphasises that this position does not mean that new entrants should be excluded from the agricultural sector. In its original comments on the AAMP, the organisation stated that new entrants should be given a fair opportunity and appropriate support to become sustainable commercial producers. Economic sustainability and performance must, however, remain the ultimate measures of success.
According to TLU SA, Aucamp’s own emphasis on profitability, private investment and property rights is therefore important. If these are the principles upon which the agricultural sector is to be developed, they should be applied consistently throughout the AAMP.
“South Africa cannot afford for agriculture’s economic function to be displaced by ideological policy objectives. The success of the plan must ultimately be measured by its economic outcomes and its ability to support a productive, competitive and sustainable agricultural sector,” says Van Zyl.
The organisation believes Aucamp’s view that the AAMP should be regarded as an adaptable plan provides an opportunity to properly address the outstanding issues before its implementation is accelerated further.
TLU SA has already approached Aucamp regarding the organisation’s concerns about the AAMP. Van Zyl says the organisation has found the Minister to be accessible and trusts that there will soon be an opportunity to engage with the relevant role players to properly discuss the shortcomings in the plan.
“We believe there is scope for constructive engagement and that the necessary adjustments can be made to place the AAMP on a stronger economic foundation. It is in the interests of the entire agricultural sector for the relevant role players to come together around the same table and resolve the outstanding issues,” says Van Zyl.
