Business

Q&A: Shandini Naidoo talks new agriculture leadership, fresh produce exports, and markets

Mzansi Agriculture Talk (MAT) engaged Shandini Naidoo (SN), to discuss the change in leadership at the ministerial level of the department of agriculture. Naidoo is a Trade Lawyer and Director at Avoport. She also serves on the Board of the National Agricultural Marketing Council (NAMC). Naidoo made history by becoming the youngest ever person and woman to serve on the National Agricultural Marketing Council (NAMC) board since its inception.

MAT: Often, when there’s change in leadership in any organisation, many might be worried with the stability and progress of the organisation or its programmes. As a businesswoman in the space, are you worried at all regarding the change in leadership?

SN: With any major change, especially in the political sense, it creates feelings of uncertainty and apprehension. Being a “realist-optimist”, one tends to prepare for the worst and hope for the best. Having said that, I am hopeful that the new administration would want to showcase their capacity and abilities to improve and develop the sector further. As we enter this new era in our democracy, we must allow the new administration time to settle into their respective roles and set the agenda for the next four years. I do believe that in time we would have a better understanding of where the new leaderships focus will turn to. It is imperative for us not to pre-empt and allow for enough time for the sector and the new administration to adjust and adapt. As a businesswoman, to be successful and sustain your business, you have to be flexible and adopt strategies that will allow for your business to continue its operations, develop and grow during time of change and uncertainty.

MAT: The new leadership, though it has not yet pronounced on how it’s going to move with regard to existing government programmes such the Agro-processing and Agriculture Master Plan, how would you advise them to handle such programmes going forward?

SN: South Africa has a strong body of agricultural developmental policy frameworks. It is too early to assume the new administration’s alignment with existing policies and strategies. However, one thing I would emphasize is the need for effective implementation of policy and utilising existing mechanisms to move the sector forward. Also, rectifying the infrastructure woes of the agricultural sector would lead to growth and greater access for role players to markets and networks. This would lead into greater opportunities to attract investment into the sector. The new administration has the responsibility to develop and protect South Africa’s nutrition and food security alongside boosting the socio-economic and commercial growth of the sector.

MAT: Which area in the sector would you reckon is important for the new leadership to focus on as soon as they settle in?

SN: Infrastructure, education and job creation opportunities should be the key areas of focus for the new administration. By addressing a few key target-focused challenges and issues, the new administration would be better poised to have a direct and purposeful impact on the sector.

MAT: Regarding the export of agriculture goods, is there any area where you’d like the incoming leadership to fix or focus on? Any red tapes perhaps that you feel should be dealt with and how?

SN: The ports and borders pose the great challenge that directly impacts exporters and cross border trade. Unlike the protectionist stance that some markets have taken towards the importing of fresh produce, which is not in the control of the South African government. Solving the issues surrounding the ports and borders is something that is in the scope and ambit of South Africa’s government reach. Through boosting greater collaboration with the private sector, this issue can be resolved. With coordinated efforts and sharing of expertise, public-private partnerships, have proven to be successful in infrastructure development and maintenance. International markets are becoming more protectionist in their stance to exported fresh produce and thus it is imperative for our ports to be operating effectively and efficiently for South African exporters to access new and old markets timeously and efficiently.

MAT: Would you say that our fresh agricultural produce is being marketed satisfactorily abroad or more still needs to be done?

SN: My recent trip to Rwanda provided greater insight into intra-Africa trade. Having seen boxes from South African producers scattered across local fresh produce markets was not only exciting but confirmed that intra-Africa trade needs to be made a priority. A greater opportunity can be unlocked across Africa for South African producers, farmers and businesses, by improving our marketing capacities, identifying the market demands and deriving accurate market insights to inform and direct farmers, producers and agro-processors towards more commercially viable lines of produce and products not only for international markets, but regional markets too.

MAT: Is the movement of fresh produce goods from SA to international markets smooth and within deadlines or is there more that should be done to ensure fresh produce arrive on time?

SN: Exporting fresh produce is a complex and diverse process and not to forget a high-risk business to be involved in. South Africa’s fresh produce, especially entering those destined for the European markets has become a greater challenge due to the protectionist stance and the recent protests across Europe, that has indicated the need to diversify our markets. New growth frontiers need to be explored and grown to improve the domestic production. There is a great need to improve the infrastructure across the agricultural value chain. Our ports, border control and the processing of documentation is critical for the sector to grow. The global trading systems are moving into digitisation and smart contracts. Our ICT infrastructure needs to be upgraded to allow for quick and efficient uploading and timely distribution and sharing of information to relevant role players across the agriculture value chain.

MAT: Generally, as someone who is in the export space, which countries with potential markets would you advice the new leadership to try and get business with? It could be to grow the current market or completely get new ones to increase on what we already have?

Recently, a few smaller international markets to South Africa produce have opened up for specific lines of agricultural produce. South African businesses and farmers need to capitalize on the opportunities presented and found within the BRICS group of emerging markets. To make the most of these markets and gain traction in trading in these spaces, agricultural role players need to act in a strategic, target focused and coordinated manner to give South African exporters the best chance of maximising opportunities and successes in maintaining and sustaining market linkages.

Aside from the fresh produce, an opportunity exists for South African agro-processors and farmers to access counter season markets. Boosting our agro-processing sector will create more jobs and more value-added products that in turn would generate more profits.

MAT: Most small-scale farmers may not be export ready. What role do you think the government should play in either helping aggregate the smaller quantities of this farmers or help them in any way to be export ready?

SN: Aside from improving infrastructure, the new administration should seek to build the market capacity of emerging and small-scale farmers by actively engaging in collaboration and cooperation between role players across the agricultural value chain. By providing incentives to boost trade through offering government investment guarantees and arrangements in facilitating the market linkages between importers and growers. This will remove the pessimistic view by importers on small farmers abilities and capacities. By building the capacity of farmers to produce to meet the international standards and expectations, developing farmers reliability, and simplifying the transaction process and logistical hurdles. This would enhance the farmers ability to become grow their farming operations, prepare farmer’s to become export ready and grow high quality fresh produce.

MAT: Is there sufficient training for such farmers to ensure they meet the quality often required by the global markets?

SN: No, more can and should be done. The upskilling, training, certification and accreditations for small-medium scale farmers, should be a top priority of the new administration. Small to medium farmers are excluded from the formal marketplaces due to lack of accreditation, certifications, and training, thus, by offering these enablers to various farming communities and groupings, will better prepare and enable farmers to retain local and national markets, and in turn expand their scope and reach to access regional and global markets.

MAT: Lastly, any comment on the outgoing leadership of Thoko Didiza?

I have had the opportunity to engage with the out-going Minister Thoko Didiza on a few occasions. She was and remains to be one of the most vibrant, open and approachable leaders in our government. Her stories of the struggle days just showcase her understanding of where we have come from as a country and where we are going. It was an honour to have been appointed by Minister Didiza to sit as a Board Member at the National Agricultural Marketing Council (NAMC). I have no doubt that she will take on her new role as Speaker of the House, with grace and integrity that she showcased as the Minister of Agriculture. I wish her all the best in her new role and she will be missed in the Agriculture sector.

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