Minister of Economic Opportunities, Alan Winde, yesterday visited those farms eligible to receive drought support from an emergency fund established by the Western Cape Government. He also spoke with farmers about the impact of the drought, as revealed in a recent report.
Applications to the emergency fund are being processed this week. The fund was established to support eligible emerging animal farmers in the West Coast and Central Karoo municipal districts.
Minister Winde outlined the department's support package during his site visit to emerging farmers in the Swartland yesterday (16 February 2016): "In December I approved emergency funding for grain farmers who anticipated a more than 50% loss in harvest as a result of the drought. This funding has been designated toward partially covering the salaries of employees at the farms.
"Shortly, we will also release funding to cover the costs of feed and repair of stock watering for livestock. In total, we are committing R11 million to ensure our emerging farmers are supported through this difficult period."
This funding is separate from the drought relief funding request submitted to the National Treasury. The department's request for R88 million is still under consideration.
Minister Winde yesterday discussed the impact of the drought with farmers.
A grain farmer in Gouda described how his harvest fell from the expected 2.5 tonnes per hectare to 600 kg. Another admitted he had contemplated selling his farm as the enterprise battled to make ends meet during the drought.
Meanwhile, a new report released by the Bureau for Food and Agricultural Policy (BFAP) shows that South Africa's poorest consumers this quarter will pay nearly 30% more for a basket of staple foods when compared to the same period last year.
The Policy Brief on the 2015/16 Drought notes that consumers have already started feeling the effects of the drought.
Minister Winde said BFAP’s basket of staple foods included maize meal, brown bread, white bread, rice, potatoes and wheat flour.
“These calculations show the effect of the drought on food prices and particularly how they impact the poorest 50% of our population. Analysts compared prices from January 2015 to January 2016 and noted a 19% year-on-year increase. In simple terms, this means the cost of the staple food basket increases from R282.91 a month in the January 2015 to R336.54 a month, one year later.”
Minister Winde said the goods in the staple basket made up 24% of the average household’s food expenditure.
“Meat accounts for 25% of household’s annual food expenditure. Researchers noted that beef prices typically decline in January. They also observed an increase in slaughter numbers. This means we could see inflation in this food category as farmers start to rebuild herds. In the medium to long term, we can expect to see meat prices further driving food inflation.”
Minister Winde said in light of the threat to food security, BFAP had made several recommendations. This included calling for a decision from National Government on whether to import white maize from the United States of America to supplement the supply from Mexico.
“This policy report highlights research and the creation of an attractive investment destination as key in sustaining the sector. The Western Cape is already prioritising both of these areas.”
The full report can be accessed here http://www.bfap.co.za/documents/research%20reports/BFAP_Drought%20Polic…
For media queries, kindly contact:
Bronwynne Jooste
Spokesperson: Alan Winde, Minister of Economic Opportunities
Tel: 021 483 3550
Cell: 060 970 4301
E-mail: bronwynne.jooste@westerncape.gov.za
Twitter: bronwynnejooste
