Does size matter in South African agriculture?
16 August 2018
Wandile Sihlobo, an agricultural economist and head of agribusiness research at the Agricultural Business Chamber of South Africa, raises the question whether size matters in South African farming. According to the expert, the consolidation of farms began in South Africa in the late 1960s and the trend has been maintained since then. The average commercial farm size in South Africa was about 1 640 hectares in 2000, and continued to grow to about 2 113 hectares per farm in 2007. The general view is that South Africa has somewhat of a dualistic economy. Therefore, there is room for both small and big farms. Big farms are key to national food security and driving exports, while small farms serve local markets. The reasons why there are both big and small players in South African Agriculture range from economic viability, traditional business models and other issues. The discussion on the future of agriculture should rather focus on boosting productivity across farms, not particularly farm size. He concludes that South Africa needs both big and small farms.