South Africa is facing a severe food security crisis, with up to 20 million people experiencing food shortages. According to a PwC report, a decline in food and beverage sales, down by more than 3% in 2023, is directly linked to the increasing pressures on consumers’ purchasing power.
This, according to the report, is leading to a crossroads for the South African agricultural sector, which is struggling to balance growing production demands with the need for sustainability.
Andrew Dale, PwC Africa Agribusiness Leader, explains that the issue of food insecurity is intertwined with economic hardships. “South Africans purchased less food in 2023 due to pressure on their buying power. In other words, people were simply able to do less with their salaries and wages as their income failed to keep up with inflation,” he said. Dale emphasised the need for agribusinesses to explore new methods and technologies to address these challenges without compromising sustainable practices.
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Sustainability and tech key to second green revolution
The solutions to today’s food security challenges are being compared to those implemented during the first green revolution after World War II. This period was marked by innovations such as high-yielding grain varieties, hybrid seeds, synthetic fertilizers, and modernised irrigation systems. However, despite farmers embracing these methods, the country remains “a hungry nation,” as Dale put it.
To reverse this trend, experts are advocating for what has been termed a “second green revolution”—one that focuses on science-based approaches and new technologies, rather than simply new farming techniques. In this context, four key solutions have been proposed for farmers to consider in order to grow their operations while maintaining sustainable practices.
Embracing digital tools and improving management
End-to-end farm management is one of these solutions. This method integrates technologies and systems to manage all aspects of farming operations more effectively, including financial, resource, and supply chain management. By embracing digital tools, farmers can increase efficiency and address challenges such as compliance, sustainability, and operational performance.
“Digital tools provide solutions to some of the biggest challenges that agribusinesses will face in the coming years,” Dale said. As dirt and data intersect, these innovations allow farmers to improve their operations and meet the rising demand for food in the country.
Traceability and the need for impact assessment
Another critical aspect of addressing food security is traceability. Farmers are being encouraged to collect data that food companies require to track and ensure the safety and quality of their products. Technologies such as barcoding, RFID tags, and blockchain are already being used in South Africa to trace products from farm to consumer, increasing food safety and enhancing transparency.
“Traceability is an opportunity for food companies and their suppliers to differentiate the quality of their products,” Dale explained. He added that this system not only supports food safety but also provides a competitive edge in the market.
At the same time, there is growing pressure on agribusinesses to measure and report on the impact they have on society. This includes tracking their economic, environmental, and social effects. Failure to provide robust data on these areas could erode trust and threaten an organisation’s licence to operate, making it essential for farmers to quantify their impact through assessments.
In conclusion, South Africa’s agricultural sector is at a turning point. Farmers are being urged to adopt new technologies and approaches to not only boost food production but also uphold sustainable practices. This shift is essential to combat the ongoing food insecurity crisis and ensure a more food-secure future for the nation.