A constricted agricultural system: Cartels, collusion and corporate farming

Abstract

A constricted agricultural system: cartels, collusion and corporate farming Nothing happens in a vacuum, let alone an agricultural system. South Africa’s has been shaped by very particular historical forces: colonisation, apartheid and globalisation. This very particular framework has made it an outlier on the African continent. STATS The region was initially colonised as a settler community as opposed to an enclave community meaning that food production was of primary importance for the domestic market. There was a focus on servicing both the domestic and export market – for the passing ships. In short the emphasis was on commercial food production. During the apartheid era (1948-1994), the country was largely isolated from global trade, which influenced policy decisions around agriculture, among other industries. From the 1950s onwards, the state adopted the “green revolution” philosophy of farming and aggressively pursued this approach, including the use of high-yielding hybrid seed varieties that responded well to irrigation, the heavy application of synthetic fertilisers and pesticides and crops that could be densely planted and easily harvested by machine. State machinery to support and regulate this model included agricultural market boards, which provided essential farm inputs, as well as information and marketing advice. The result was a dualistic farming system: a well-supported commercial farming sector that meets national food requirements and a relatively underdeveloped, unsupported smallholder and subsistence sector that only contributes 20% towards overall production. Additional effects of this mode of farming include increased soil salinisation and resistance to chemicals among pest populations. Traditional crops were also sidelined in favour of those with commercial potential.