Agricultural sector’s adaptability praised at Nampo

By Annelie Coleman |17 May 2024 | 5:14 am

Although the agricultural sector’s contribution to GDP is calculated at just under 3%, its extended impact on GDP stands at between 10% and 12%.

During the past 30 years the industry and its role players have shown resilience and adaptability to changing circumstances and climatic conditions. This was according to John Hudson, Nedbank’s agriculture head.

The industry’s ability to adapt has been proven by, among others, the fact that the country showed record exports during the past three years. Agricultural products to the value of R283,22 billion were exported during the past year.

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The growth in agri-processing also underscored the adaptability of agriculture in South Africa. Currently, agri-processing amounts to one-third of the total industry.

“The agricultural sector recently showed a contraction despite the record export earnings. This can be ascribed to the elevated risk the industry is exposed to, such as continuing climate perils and geopolitical risks. However, these factors are countered by the sector’s ability to navigate challenges and change,” he told Farmer’s Weekly during an interview at the 2024 Nampo Harvest Day.