Research paper · note ·
ERSA
South Africa’s agricultural sector is often described as a quiet success story. Over the past three decades, it has more than doubled in real terms, built globally competitive export industries, and established itself as a reliable supplier to markets across Europe, Asia, and the rest of Africa. From citrus and wine to nuts and livestock, the sector has shown resilience in the face of climate shocks, rising costs, and logistical challenges. Yet beneath this success lies a more uncomfortable reality. Agriculture has grown – but it has not created jobs at the scale South Africa needs. Nor has it drawn most rural South Africans into its orbit of opportunity. This is the central contradiction: strong growth and competitiveness on the one hand, limited inclusion and employment on the other. A tale of two agricultures South Africa’s agricultural structure remains deeply unequal. A small number of large, commercial farms dominate production, income, and exports. These farms are highly productive, well-capitalized, and integrated into global value chains. At the same time, many South Africans engage in agriculture in a very different way. These are smallholder and subsistence farmers – often in former homeland areas – who produce mainly for household consumption, with limited access to markets, finance, or technology. The gap is stark. Commercial farmers achieve far higher yields and incomes, while smaller producers remain trapped in low-productivity systems. The result is a dual agricultural economy: one globally competitive, the other largely excluded. Why growth hasn’t meant jobs Part of the explanation lies in the historical foundations of the sector, but part of it also lies in how agriculture has grown. Modern farming is increasingly driven by technology, mechanization, and efficiency. Farmers can now produce more with fewer workers. This is a global trend – but in countries where manufacturing and other sectors are expanding, workers leaving agriculture can
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