How minimum wage strikes and other factors will influence investment in sa agriculture 2014
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How minimum wage strikes and other factors will influence investment in SA Agriculture 2014. John Purchase AMT 30 September 2013. SA economic growth : Tradable goods sectors lag the non-tradable goods sectors. Source: StatsSA Graph: Agbiz. Net Farm Income/Debt Ratio. Source: DAFF, 2013.

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How minimum wage strikes and other factors will influence investment in SA Agriculture 2014

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How minimum wage strikes and other factors will influence investment in sa agriculture 2014

How minimum wage strikes and other factors will influence investment in SA Agriculture 2014

John Purchase

AMT

30 September 2013


Sa economic growth tradable goods sectors lag the non tradable goods sectors

SA economic growth: Tradable goods sectors lag the non-tradable goods sectors

Source: StatsSA

Graph: Agbiz


Net farm income debt ratio

Net Farm Income/Debt Ratio

Source: DAFF, 2013.


Gross capital formation and net farm income 1971 2012

Gross Capital Formation and Net Farm Income: 1971-2012

Graph: BFAP, 2013


How minimum wage strikes and other factors will influence investment in sa agriculture 2014

X R1 000 000

Source: DAFF, 2013.

Graph: Agbiz, 2013


Real value of agricultural assets 1971 2012 2005 constant prices

Real value of agricultural assets: 1971-2012 (2005 Constant prices)

Graph: BFAP, 2013


Take home message

Take home message……..

  • Investment in agriculture steadily been declining in real terms since the 1980’s.

  • Increase in net farm income since 2007 has not changed investment trend.

  • Increased uncertainty around labour situation/regulatory environment and land reform major factors deterring investment.

  • Changed patterns of investment (mechanization) will in all probability also be a reality.


Thank you www agbiz co za

THANK YOUwww.agbiz.co.za


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