Written by Wandile Sihlobo, Presidential Envoy on Agriculture and Land, Chief Economist at the Agricultural Business Chamber of South Africa, senior research fellow in the Department of Agricultural Economics at Stellenbosch University
Happy World Food Day! Today we celebrate the founding of the United Nations’ Food and Agriculture Organisation (FAO) in 1945.
This day also gives countries globally an opportunity to assess their food security conditions.
So, I thought I should revisit some points I have discussed in the past about South Africa’s food security.
At the national level, South Africa is considered food secure; however, this looks different at the household level, where many families still struggle with food insecurity. We read daily about families’ painful experiences.
Food insecurity in our country has many different explanatory factors. Income poverty is one driver of household food insecurity in South Africa. Many people are out of work, and this continues to create pressure.
Moreover, inefficient logistics and higher energy prices, among other factors that shape the economy’s cost structure, create persistent cost pressure in the food value chain. These add upward pressure to food production costs, even in times of ample harvests. We are seeing this now with higher energy prices, although food price inflation is at its lowest level in 16 years (0.7% in August and 0.6% in July; we last saw these levels in 2010).
Still, our robust agricultural sector, with surpluses, helps significantly boost food security at the national level. Had we not had an ample harvest as this year, we would be having a different conversation about food prices and food security in our country currently.
Indeed, South Africa remains a conundrum: the country is food secure at the national level yet a net exporter of roughly half of its agricultural and food products annually in value terms. Yet these household pressures of food insecurity remain.
Clearly, household food insecurity is not just an agricultural matter; it requires a broader economic policy response. This is especially true because household food insecurity largely stems from inadequate household income.
Therefore, economic growth and job creation likely have a greater impact on reducing poverty than focusing on agriculture alone.
This is not to negate the role agriculture can play. Indeed, the sector could play a positive role in creating jobs, especially for the rural poor, where other sectors of the economy tend to be much smaller.
But the sector alone cannot change the South African household food insecurity challenge. Policymakers should focus on economic reforms that stimulate growth across sectors, boost investment, and increase employment.
It could be argued that South African households, although not experiencing food prices rising at a faster pace than in other countries globally, still pay reasonably higher prices for specific products. As stated above, value chain-associated costs are a key driver of food-system costs, among other factors.
Therefore, agricultural commodity prices alone are not a sufficient indicator of food prices. Other notable food costs include the processing and distribution of food products nationwide.
In addition, South African households spend a substantial portion of their wages on transport costs because the public transport system has deteriorated. Therefore, public transport is another area that requires closer focus.
Ultimately, South Africa should address constraints on growth, investment, and employment to alleviate rising poverty.
The focus on agriculture is one aspect, but the policy response will need to be broader and focus on strengthening income security, particularly for the most vulnerable households.
This article first appeared on AgriView. Find it here.
