The Department of Agriculture, Forestry and Fisheries; expresses concern over the ongoing loss that is experienced by the agricultural, forestry and fisheries sectors as a result of the deadlock between Transnet and the unions.
In the past year, this sector has shed more than 100 000 jobs. In the first quarter of this year alone, 30 000 jobs were reclaimed. These jobs are now under threat as the sectors themselves are facing production losses.
While we acknowledge that this is the season for salary negotiations and that the workers have rights, we are concerned that the prolonged strike action is negatively impacting on agriculture and adversely affecting our economic potential.
The estimated loss in the fruit industry alone is running into R1 billion and can be felt in the potential drop in markets and jobs. These figures are looking into the fruit industry. The consolidation of the losses in the entire sector remains to be calculated. This will include grain, livestock, fisheries and forestry and other related industries.
Initial estimates by the citrus industry indicate that due to bunched marketing, a loss of approximately R650 million is anticipated. A further loss of R50 million due to storage costs is possible.
Last week alone, a port congestion surcharge for the over 70 000 pellets was imposed on the citrus cargo currently awaiting loading. This penalty amounted to R80 million. At the moment the 2010 deciduous fruit industry is peaking in the apple and pears commodity groups. In addition, the agricultural sector is entering the citrus and avocado season. This means that a backlog of apples and pears in storage will impact on the future harvests of other fruit.
While the loss of jobs remains our biggest concern, a further challenge is the potential compromise of customers and international markets. The industry is bound by contractual obligations for example freshness and prompt delivery. Failure to adhere to our contractual agreements has the potential of impacting negatively on our reputation as a competitive and efficient player on the global market.
I am hoping that a deadlock breaking mechanism is soon found so that our local producers could still comply with their contractual obligations, and that we avert further job losses.
For enquiries
Tsotso Sehoole
Tel: 012 319 6043/7317
Cell: 083 265 8728
E-mail: HCM@daff.gov.za
Issued by: Department of Agriculture, Forestry and Fisheries
25 May 2010
Source: Department of Agriculture, Forestry and Fisheries (http://www.daff.gov.za/)
