PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
RedGekko
 
Comments: 0
Article views: 2258
 
 
Latest Badges:

 
View all RedGekko's badges.
 

Brexit could benefit South African farmers and consumers

28 June 2016, 07:15

A number of arguments have recently been made stating that South African agricultural producers will suffer as a result of the Brexit vote.

According to Wandile Sihlobo of the Agricultural Business Chamber “In principle, South Africa’s agricultural exports to Britain would immediately face generally higher tariffs set at the Most Favoured Nation (MFN) applicable under the World Trade Organisation (WTO).”

However, Viccy Baker of the consumer price comparison website Retail Price Watch says higher export tariffs could mean more agricultural products on the local market with a subsequent positive effect on local prices in the short term.

Whatever the other negative effects, Britain’s exit from the EU will force it to relook the pernicious system of agricultural subsidies which permeates Britain’s agricultural life.  Despite all South Africa’s links with Britain, such as a common language, heritage, strong communications, investment and tourism, Britain is not even in the top five of South Africa’s export trading partners.

A change to the application of farm subsidies might well increase the competitiveness of South African products in British markets, thereby freeing up our markets and allowing for expansion of the agricultural sector.

More than three billion GBP in subsidies annually goes to British landowners (they do not even have to farm the land) some of whom are the richest people in the country, from the EU’s Common Agricultural Policy.

While some pro-Brexit politicians have made promises that British farm subsidies will remain or even increase, it is difficult to envisage how these subsidies and concessions, which currently make up more than one half of a British farmer’s income, would remain at this level if funded solely by the British taxpayer.  

In the meantime, a kilogram of Granny Smith apples today costs R43 in Tesco and Sainsbury’s British supermarkets, while the same kilogram costs around R13 in Pick n Pay and Checkers in South Africa. 

While there is far less of a price differential in many other fresh foods (Sainsbury’s 2l fresh milk is R21.41 today for example as against Shoprite’s price for Clover of R29.99) this too can be explained by the lack of competition in both markets which gives market manipulators free rein to set pricing levels in their respective areas.

EU subsidies to British farmers meant less efficient production and higher prices to their own populations. While it is impossible to predict exactly how a change to those subsidies might affect South African farmers, it surely cannot be worse than the current stultifying situation.

Many South African farmers are low cost highly efficient producers. They are straining at the gate and the agricultural sector is withering away while the average British farmer collects taxpayers’ money whether he is producing or not.  

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.

 

Read more from our Users

Submitted by
Leon Vorster
The incompetent within...

An incompetent president is the ignition that sets the rot in motion in a nation.  Read more...

0 comments 1073 views
Submitted by
Sanele Sano Ngcobo
Ramaphosa has betrayed the fight ...

As Deputy President and Chairperson of the South African National Aids Council, Comrade Ramaphosa should be leading the fight against immorality. Read more...

0 comments 1597 views
Submitted by
Audrey Ngobeni
Why is the opposition so afraid o...

While the opposition makes vague and baseless allegations against the man, it is they who are using all sort of technologies to ensure that the honest voices of people cannot be heard. Read more...

0 comments 1885 views
Submitted by
Thubelihle Dumakude
Burundi stuggles to get rid of Nk...

It is now clear to everyone in the world that Burundi is facing a dilemma struggle when it comes to governing the country and choosing true political leaders. Read more...

0 comments 267 views
Submitted by
Zeke Wareley
What is happening to our beloved ...

The ANC are choosing a man who has no values over its people who voted for them. I am so disappointed.  Read more...

0 comments 2489 views
A personal narrative of the Bafan...

As the minutes ticked by – a glimmer of hope – a goal from our team, the remaining audience went wild with shouts of joy and encouragement... Read more...

0 comments 237 views
 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

TV Get us in your home, on your television.

 
Interactive Advertising Bureau
 
© 2017 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.