Many farmers are investing in new technologies that can help increase production and efficiency at farm level, but the uptake of digital trading technology has been slower. As a result, farmers are losing out on the opportunity to increase their share of profit earned along the agricultural value chain.
It’s hard to believe how far agricultural production has come in the past 40 years. Various sectors, such as farm power and equipment, plant and animal breeding, fertilisers, animal feeding and disease control, have successfully adapted to a world where population growth and consumerism are rapidly increasing. However, there is one crucial part that hasn’t been able to keep up: trade.
Farmers and ranchers of the mid-1980s received only 31c for every dollar their produce earned. The rest was spent on sowing, distribution and all stages in between. Farm productivity has soared in recent decades thanks to intelligent machinery, automated packing houses, farm drones, efficient water systems, and robotic scarecrows, amongst others. This should mean that modern farmers are earning larger profits, as more supply equals more money. Unfortunately, technological innovations have not been favourable for those on the production side of the agricultural equation. Farm profitably has actually decreased to 16c for every dollar earned.
OLD-FASHIONED TRADE
It’s easy to point fingers at big corporations or blame unpredictable weather patterns, but the bottom line is that the actual trade of produce has not evolved to suit modern business practices. Instead, it has remained an industry with an annual value of US$3,1 trillion [about R37 trillion], which relies mostly on non-digital interactions such as paper records, handshakes and verbal agreements. These archaic practices have generated numerous problems including fraud, murky pricing and a dependence on costly intermediaries.
Denne historien er fra April 20, 2018-utgaven av Farmer's Weekly.
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Denne historien er fra April 20, 2018-utgaven av Farmer's Weekly.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Syngenta Seedcare celebrates a decade of innovation
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Small and large farmers recognised at grain awards
The annual Grain SA/Syngenta awards ceremony bears testimony to the quality of farmers in the grain industry.
Growing partnerships: Fedgroup's flexible and innovative approach
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Why fish farms fail, and how to avoid becoming a statistic
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Where history and modernity meet in a luxurious setting
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THE HITCHING POST
I'm a stylish elderly lady with a radiant glow and a good sense of humour that keeps me young at heart.
Cutworms: check the weeds on your fields!
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Does high-density grazing mimic grazing patterns of game?
In their paper on high-density grazing in Southern Africa, professors Angelinus Franke and Elmarie Kotzé from the Department of Soil, Crop and Climate Sciences at the University of the Free State say high-density grazing systems may not accurately reflect natural ecosystems. Roelof Bezuidenhout reports.
Global grain outlook: 2024/25 marketing season
In its latest summer crops report, the Crop Estimates Committee says South African farmers intend to plant 4,47 million hectares of summer grains and oilseeds in the 2024/25 season, up 1% from the previous season. As South Africa exports maize and soya bean, Annelie Coleman reports on the latest trends in the international grain and oilseed markets, amid fluctuations in weather conditions and ongoing armed conflicts.
