Market and Trade Policy for Staple Foods in Eastern and Southern Africa
Edited by Alexander Sarris and Jamie Morrison
Chapter 11: Alternative Staple Food Trade and Market Policy Interventions: Country-level Assessment of South Africa
11. Alternative staple food trade and market policy interventions: country-level assessment of South Africa Lulama Ndibongo Traub and Ferdinand Meyer1 1 INTRODUCTION: NATIONAL TRADE AND MARKET POLICY OBJECTIVES Agricultural Policy Objectives Agriculture remains an important sector in South Africa despite its small direct share of the country’s gross domestic product (GDP). In 2004 primary agriculture contributed 3 per cent to total GDP, while accounting for over 10 per cent of all reported employment (OECD, 2006). Between 2000 and 2003 the grain industry contributed approximately 16 per cent to the total gross value of agricultural production (SAGIS, 2005). It comprises all grain and oilseed industries, of which, maize and wheat are considered primary staple commodities. The South African national development goal has two long-term objectives: reduce poverty and unemployment by 50 per cent by the year 2014; and create an inclusive economy through black economic empowerment (BEE) (Mlambo-Ngcuka, 2006). To achieve these objectives the government instituted the Accelerated and Shared Growth Initiative of South Africa (ASGISA). Under this initiative each sector within the economy is responsible for developing a plan to achieve the national development goal. The ‘Strategic Plan for the South African Grain Industry’ (SAGIS, 2005) outlines the grain industry’s goals for establishing a globally competitive and profitable grain sector while allowing for equitable market access and participation. Over the past two decades, both domestic and trade policy interventions within the maize industry have occurred within the context of vast political 284 Alternative staple food trade and market policy interventions:...
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