NATIONAL COUNCIL OF PROVINCES
WRITTEN REPLY
QUESTION 465
DATE OF PUBLICATION: FRIDAY 14 OCTOBER 2011 [IQP No 31 -2011] SECOND
SESSION, FOURTH PARLIAMENT
Question 465 for written reply: National Council of Provinces, Mr K A
Sinclair (COPE) to ask the Minister of Agriculture, Forestry and Fisheries:
Whether the Government is ensuring that the countryâs staple food items
will not enter the market through imports in order to ensure self-
sufficiency and autonomy; if not, why not; if so, what are the relevant
details? CW566E
REPLY:
It is critical to note that since the advert of the dual processes of
deregulation of agricultural markets and liberalisation of international
trade, South Africa now operates in a free market environment. According to
the OECD the opening of the agricultural sector placed South Africa among
the worldâs leading exporters of such agro-food products such as wine,
fresh fruit and sugar. South Africaâs agricultural export revenues now
average 10% of the value of national exports. The effects of deregulation
and liberalisation on the sector were far-reaching and included a shift of
production out of grain to livestock in marginal areas and an increase in
intensive farming in high potential areas, particularly horticultural
production. Deregulation of markets therefore opened up opportunities for
entrepreneurial farmers and led to a more efficient allocation of resources
in agriculture. South Africa now produces and exports products in which it
has a competitive advantage and imports those that cannot be produced
competitively within the country. It is also important to note that the
well managed regulation of imports and exports of all products rests with
the Minister of Trade and Industry and is administered by the International
Trade Administration Commission (ITAC) in terms of the International Trade
Administration Act, 2002 (Act No 71 of 2002).
With the background given above, it is important to focus on the production
of staple food items in South Africa. On average, South Africa is self
sufficient in terms of production of maize and runs surpluses on a periodic
basis. The country is also self-sufficient in the production of fruit and
vegetables. And because the production of wheat is not sufficient to meet
local demand, the shortfall is annually supplemented by imports mainly from
the Americas and Europe. South Africa is also not self-sufficient in the
production of milk and diary products. Imports of poultry products are
mainly from Brazil and the United States of America. South Africa currently
has anti-dumping of duties on frozen meat of fowls originating from the USA
and ITAC is currently investigating alleged dumping of frozen meat of fowls
originating or imported from Brazil. Virtually all rice consumed in South
Africa is imported. This clearly indicates that South Africa uses imports
to ensure the stability of staple foods, especially in products where South
Africa in not self-sufficient.[pic]