The purpose of this study is to investigate the effect higher wages have on the South African maize sector. Furthermore, to determine whether there is a relationship between higher labor cost and increased mechanization in the maize sector. Quantitative and qualitative research techniques were utilized to address the research problem.
READ MORE - Reflections on Mechanization in Sub-Saharan Africa – Lessons from recent trends
The findings of the study include that the higher wages do not have a significant effect on the maize sector as it is less dependent on manual labor and therefore more tolerant to wage increases. Furthermore, it was determined that there is a relationship between the maize sector's level of mechanization and the impact of higher wages.
It was found that the maize sector is more developed and mechanized than other agricultural sectors. Notwithstanding, it is recommended that the sector should maintain the investment in mechanization to increase global competitiveness.
The World Economic Forum ranks SA as the second-most difficult country to operate in when it comes to labour relations. This sad reality drives an ineluctable move to mechanise in an economy suffering chronic unemployment. Mechanisation has been especially aggressive in maize and wheat farming. “SA is now up there with countries such as the US,” Mechanisation in other agricultural sectors is also forging ahead. The wine industry is among the leaders. VinPro says 59% of grapes are now mechanically harvested.
Penetration of Mechanization and Agriculture Support Policy: The mechanization of agriculture in South Africa was in its emerging stage during the 1950s and 1960s as the country continued to be a large food importer during that period. South Africa’s transformation into a contemporary and highly viable agriculture nation is largely due to the dawn of democracy and end of apartheid in 1994. During the 1950s and 1960s, the government invested heavily in research and development, infrastructure, extension services, direct subsidies for conservation works and debt relief, and the settlement of white commercial farmers all of which led to the sector expansion.
Progression from Manual and Animal Farming to Precision Farming: Before the 1960s, farms in South Africa relied profoundly on manpower and animal power for their farming needs. Tools such as sickles, plows, drag harrows, flails for the reaping, threshing and planting of crops were used for farming. The 1970s were a period of rapid growth in the South African economy as a whole, supported by high gold prices and high agricultural growth. After the recession in 1976, the country set in motion a process of liberalization of trade and deregulation of agriculture that was only partially completed by the early 1990s. Farmers in South Africa have increasingly mechanized their farming procedures and agricultural equipment is currently used is all sectors of agricultural production since the 1960s. In the last 10 years, there has been an escalating use of precision technology.
What is the General Overview of the Agriculture Sector in the country?
South Africa has a dual agricultural economy, with both well-developed commercial farming and more subsistence-based production in the deep rural areas. South Africa covers ~ million square kilometers. Drought is a severe problem in the country and due to aridity, around ~% of the land can be used for crop production, among which only ~% is considered as high potential land. The limiting factor in agriculture in South Africa is the availability of water. South Africa is one of the world’s largest producers of chicory roots, grapes, maize, castor oil, pear, fibre crops and sisal. Maize contributes to ~% of gross value of the South African field crops. Major Crops include Maize, Wheat, Soybean, Sunflower, Sorghum and other sectors include peanuts, groundnuts, Lucerne, Macadamia nuts, Avocado, Litchi, Citrus fruits, figs and nuts. South Africa's climatic conditions generally range from Mediterranean in the southwestern corner of South Africa to temperate in the interior plateau, and subtropical in the northeast. A small area in the northwest has a desert climate. Most of the country has warm, sunny days and cool nights with average rainfall varying across the country. Majority of the farmers have started adopting intensive farming in South Africa, thereby driving the demand for mechanization. Thus, South Africa has favorable crop production conditions with the only limiting factor being water and seasonal calamities. South African cropping pattern is more manual than mechanized. The farmers use tractor and implements for the initial farming and the soil preparation.
In 2021- South African Commercial farmers are keen to use more technologies to make farming more profitable and more productive- Mechanization is in full swing and this will have a huge effect on labour.
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