At the annual State of the Beer Economy event, held at the Caledon Farm Research & Development Facility in the Western Cape, Minister of Agriculture John Steenhuisen emphasized the critical role partnerships between the government, private sector, and agricultural bodies play in achieving transformation, food security, and export goals in South Africa’s agriculture sector.
In his keynote speech, the Minister highlighted the necessity of collaboration in driving sustainable growth in an industry that is vital to the country’s economy.
Steenhuisen said that partnerships are essential to addressing the two biggest challenges facing South Africa: slow economic growth and high unemployment.
Agro-processing
He noted that the agricultural sector, especially through agro-processing, holds a lot of potential to create jobs and spur economic activity. “Our job as the Department of Agriculture is to create an enabling environment that allows the agricultural sector to flourish,” said Steenhuisen. “When the sector prospers, jobs are created, food security improves, and foreign revenues increase.”
A key aspect of the Minister’s address was the focus on the Agriculture and Agri-processing Master Plan, which aims to align various stakeholders in achieving shared goals.
One of the significant contributors to this plan is South African Breweries (SAB), which has made substantial investments in local agriculture, helping to support both small- and large-scale farming operations.
Steenhuisen praised SAB’s contributions, saying, “They are a quintessential example of how a well-established value chain can lift all boats.”
The role of the private sector in agricultural transformation
SAB’s CEO, Richard Rivett-Carnac, spoke at the event, reinforcing the importance of the beer industry to South Africa’s broader economy. “Beer is not just a product; it’s local, natural, and inclusive,” said Rivett-Carnac. He highlighted that the beer industry directly supports 250,000 jobs across its value chain, with 38,000 of those in agriculture alone.
“Barley, hops, and maize are crucial to beer production, and our commitment to sourcing locally has created an economic impact of R43 billion,” he added.
SAB’s contribution to agriculture goes beyond job creation. The company has significantly increased local barley production, which has risen by 60% since 2021.
In 2023, SAB procured 324,000 tonnes of barley, contributing R1.4 billion to the national GDP. In addition, SAB supports hop cultivation in the George region of the Western Cape—Africa’s only hop-growing region—and sources 230,000 tonnes of non-GMO maize for its beer production, adding R754 million to the GDP.
While the contributions of large private sector entities like SAB are impressive, Steenhuisen stressed that the agricultural sector’s success cannot rely solely on private investment.
“Research and development, mechanization, and partnerships between the government and industry are key to improving yields and profitability in farming operations,” said the Minister. He pointed to international examples, such as Italy’s commitment to African development, as evidence that focused investment in these areas can lead to transformation.
Key goals for agricultural growth
The Minister laid out several goals that South Africa must meet to achieve long-term sustainability and transformation in its agricultural sector. These include:
- Viability: Projects must be economically viable, with the necessary infrastructure and support systems in place.
- Sustainability: Environmental and economic sustainability must be prioritized to ensure that farming practices can be maintained in the long term.
- Profitability: Farmers need to transition from subsistence farming to large-scale operations that can generate substantial profits.
Steenhuisen stressed that partnerships, like those between SAB and local farmers, are vital in making these goals a reality. “A farmer isn’t a farmer unless they have a value chain to feed their products into. You can’t have a field of beautiful cabbages with no market or place to sell them,” he remarked.
Expanding opportunities for youth and women in agriculture
In addition to transformation and food security, the Minister emphasized the importance of creating opportunities for underrepresented groups, especially youth and women, in agriculture.
He noted that while women make up 60-70% of small-scale farmers in Sub-Saharan Africa, they own only 15-20% of the land.
“Empowering women farmers is crucial to the future success of the agricultural sector, and initiatives like SAB’s are helping to bridge these gaps,” he said.
As South Africa gears up to celebrate the International Year of Women Farmers, Steenhuisen called for more efforts to dismantle patriarchal barriers in the industry. “Beer has a strong link to women—traditionally, it was women who brewed beer in ancient societies,” he said, adding that empowering women in agriculture would further contribute to the country’s transformation goals.
