Mining and biofuels ‘drive the need for more efficient farms’

Mining and biofuels are competing with agriculture for land in SA, putting pressure on farmers to become more efficient, particularly through the use of technology.

As a result, SA’s commercial farmers are consolidating into fewer and larger operations to achieve economies of scale and remain profitable, says Nico Groenewald, head of agribusiness at Standard Bank.

Of the 35,000 commercial farmers in SA about 3,000 are responsible for 80% of total agricultural production.

At the same time, arable land is a scarce resource. Only 12% of the land in SA is arable, and only 3% of that is truly fertile. Just 1.5% of the land is under irrigation, Mr Groenewald says, and this land produces more than 30% of SA’s agricultural output. He was speaking at a media briefing in Johannesburg on Wednesday.   READ MORE

Source: www.bdlive.co.za