THE COMMERCIAL AGRICULTURAL ECONOMY OF THE EAST CAPE / Diie kommersiële landbou-ekonomie van die Oos-Kaap

Abstract

The East Cape, and in particular the Smaldeel area, is used to exemplify some of the characteristics and problems of commercial farming over a period of about three decades to serve as a backdrop for the broader theme of normalising South African agriculture. The regional economy is dominated by Port Elizabeth-Uitenhage and East London which account for most of the population and three-fourths of the Gross Geographic Product (GGP). Agriculture accounts for only 10% of GGP, but is one of the most labour intensive sectors in a region with 24% of its population unemployed. The agricultural economy of the region is very diversified, but livestock farming plays the most important part in all areas contributing 72% of gross income. The chief changes which have occured in East Cape farming, as elsewhere, have been the decline in the number of farms and increase in farm size, greater capital investment, increased specialisation and declining employment. There are also indications, though based on limited information, of an apparent decline in the real returns to capital investment from livestock farming in the Smaldeel area. The causes are, inter alia, rising interest rates, inflation and a decade of below average rainfall. The implications for prospective commercial farmers is that the industry will continue to be difficult to enter because of the relatively large capital requirements and low short-term returns Several possibilities, especially in direct sales and alternative labour arrangements may nevertheless enable successful competition.

Uittreksel

Kommersiële boerdery in die Oos-Kaap, veral die Smaldeel gebied, oor drie dekades dien as agtergrond vir 'n bespreking met hooftemadie Normalisering van die Landhou. Die streeksckonomie is deur die Port-Elizabeth/Uitenhage streek en Oos-Londen, verantwoordelik vir driekwart van die Bruto Geografiese Produk (BGP) van die Oos-Kaap, gedomineer. Landbou dra 10 persent van die BGP by van die streek alhoewel dit die mees arbeid intensiewe sektor in die streek, waar 24 persent werkloosheid heers, by. Die ekonomic wan die landbou in die streek is gediversifeer. Veeboerdery, die belangrikste vertakking, dra 72 persent van bruto landbou-inkomste by. Die belangrikste tendense in die Oos-Kaap is die afname in die aantal plase, toename in omvang van plase, stygings in kapitaalbelegging, groter spesialisasie en afname in indiensneming. Daar is ook aanduidings dat daar 'n afname is in reële inkomste van veeboere en die Smaldeel gebied. Dit is onder meer veroorsaak deur 'n verhoging in rentekoerse, inflasie en 'n dekade van ondergemiddelde reënval. Die gevolge van bogenoemde is dat dit die toetrede van nuwe boere verhinder of verminder weens die omvang van kapitaalbehoeftes en die lae korttermyn opbrengs. Daar bestaan egter nog alternatiewe geleenthede wat sukses mag verseker.