Food production at risk: Grain SA warns against 50percent land-split proposal by Land Reform Minister Nkwinti, urges that State gives black farmers titledeeds to the land

Grain South Africa: warns that food production will be put at risk by the "50% farmland split" proposal by Land Reform Minister Nkwinti: September 29 2014: Media statement by Louw Steytler, chairman of Grain-SA on the Land 'reform' proposals: enquiries Mr Jannie de Villiers, CEO, Grain SA tel 086 004 7246 Louw Steytler: "We would like to state clearly that we do not support the proposal of Minister Nkwinti, Minister of Rural Development and Land Reform, to give 50% of each farm to the workers without compensation to the current owners . We are convinced that such a decision will immediately not only put food security at risk, but also lead to massive food price increases, higher inflation, increase in interest rates and eventually manifest in slower economic growth. Slower economic growth will put more people out of a job and poverty will become a stark reality for many. South Africa can ill afford to destroy wealth by irresponsible government intervention into a free-market system that in actual fact has produced cheap food and fibre for consumption of its people. The (hunger suffered by mineworkers' families) during the three month strike at the platinum mines was a good indicator as to what will happen if farmers are not allowed to exercise their constitutional right to produce food in a free market environment. In this case it will last much longer and could lead to anarchy as we experienced in North Africa and the Middle East ,in 2008. It all started with food prices and food shortages.Graincrop production is financed by the commercial banks and agribusinesses and the land is used as collateral to secure the necessary funds to procure feed, fertilizer chemicals and diesel. Without the title deeds of the land ,there is no finance. Without finance there is no production. The greatest impediment for black grain farmers is access to finance, by virtue of the fact that they DO NOT HOLD THE TITLE DEED OF THE LAND THEY WORK. In South africa, most of the land belongs to the State and by affording these (black farmers) the title deed , you enable them to acquire financing from commercial banks and agribusinesses. The Minister’s implementation proposal will logically reduce the hectares under crop production by at least 50% which could curtail the production capacity with immediate effect. By implication a shortage and massive price increases will be the order of the day . Prices will increase by virtue of international price determination,from export to import parity. The maize price will logically increase by plus - minus R1400 per ton (70%) and will accelerate by the demand exceeding the supply and that in turn will raise general inflation above the Reserve Bank’s targets. South African ports are not geared to import huge quantities of grain and food shortages will become a reality. Food shortages throughout the world also have the ability to create political instability, which South Africa can ill afford. There is enough research to indicate that there is a strong correlation between high food prices coupled with food shortages and absolute anarchy. This could surely not be on the Minister’s mind! Every political imperative has its consequences. These consequences are not desired outcomes as to the constitution of the Republic of South Africa and f or that matter the Freedom Charter. We as South Africans should give careful consideration to the socio-economic consequences thereof to be experienced by all, especially the poorest of the poor,who spend as a percentage of their income on food, more than other income groupings. This would compound their plight to a far greater extent than any other income group.“This is not a wage negotiation!“ Louw Steytler, chairperson of Grain SA, said. “We are dealing with the future sustenance of our nation. ” Grain SA supports land reform in a way that maintains food security as well as political stability. A totally unrealistic proposal such as this (50%split) would further complicate these imperatives and lead to racial polarization rather than the aforesaid aim of deracialising the rural communities /economies and will lead to a deepening of the poverty experienced by so many South Africans, currently. “Trade unionstyle tactics and constant farmer bashing are outdated in a liberal constitutional democratic dispensation in our fledgling democracy, of 20 years ” Steytler said ---- Grain SA would like to warn civil society about the vulnerability of our food security in South Africa, in this very summer grain production year, which our food security was balanced on a knife’s edge. One weather phenomenon , where a cyclone developed over the Indian Ocean and pushed the low pressure cell further to the west then resulted in abundant precipitation that saved the food security of South Afric a. For if that weather phenomenon had not developed,the resultant drought,would have destroyed our food security within the following week on crops already stressed. Is it not apt that in January 2014 we exported 250,000 tons of maize to the Zimbabwean people to stave off the hunger that was experienced by the citizens of that country? Food security in itself is not a right but a privilege , enjoyed by all South Africans and it should be coveted as a national asset. The time has come for South Africans to unite and co-operate as to the challenges that face us as a nation. For our inability to do so ,will simply destroy the fabric of our society, for hungry people are ungovernable. Food imports will further exacerbate the trade deficit which we can ill afford. The dialogue between all interested parties must start in earnest, for there will come a time where the weather will dictate that we cannot produce enough food for ourselves and it will have a direct bearing on all agricultural foodstuffs as to their unavailability and cost. We, Grain SA, appeal to all South Africans to close ranks, for only then will we be able to deal with the challenges that face us as a nation, to ensure that the imperatives are met and in doing so, uphold the letter and spirit of our constitution that is regarded by many as the finest liberal constitution in the world. Grain SA is a willing and responsible participant in the land reform negotiations via AFASA and Agri SA, two of the national agricultural unions. We have noticed that the debate has moved to the media and would like to give direction as to our viewpoint as well as a more realistic outlook from our experience. -- ( The required propagada-blurb which starts off all such statements starts here: "It must be said that the Land Act of 1913 and the subsequent rule of apartheid, an abomination, denied the majority of South Africans a stake in this sector. It denied them their dignity and denied them the right to own land, which deepened the poverty that prevails today. However, pronouncements made by politicians oversimplify the reasons as to why land reform was and still is such a dismal failure. The constitution is blamed, current landowners are blamed and this in itself detracts from the true reasons why thus far land reform has been such a failure. We need to return to the inclusive premise that was handed down by late President Nelson Mandela who set the example of an inclusive process that South Africans of all professions need to re- implement . For only by a deepening of all the co-operation will we reach the necessary success rate. Of equal importance, we need to address the levels of corruption in our society that are undermining , not only the success, but also the sustainability of our economy." The original press release is located on http://www.grainsa.co.za/upload/Land-Reform-statement-25-June-2014.pdf ====================== (NOTE: We shifted the more relevant paragraphs to the problems of food-production in South Africa to the top of the page and moved the 'propaganda-blurb' which inevitably has to condemn apartheid, lavishly praise Mandela and the Constitution to the bottom of the statement.)