A constricted agricultural system: Cartels, collusion and corporate farming
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Date
2014-07
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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.
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Keywords
Agricultural system, Cartels, Collusion, Corporate farming
Citation
Swanepoel, S., 2014. A constricted agricultural system: Cartels, collusion and corporate farming [Power Point Presentation]