Event Overview

Smallholder farmers in Africa have historically been precluded from the mainstream agricultural markets owing to various factors, chiefly, a non-existent enabling environment and lack of support from the government and/or relevant agencies. The post-1994 changes in the South African economy, and in particular in the agricultural industry, brought about the phenomenon of preferential procurement and contractual arrangements in agricultural value chains.

Value addition is a central theme in agriculture. The concept involves adding value at every step, from production to delivery of a product. This creates opportunities for smallholder farmers to find competitive advantages. It also has the potential to improve food security and create employment. South Africa’s government has recognised the potential that value addition has to improve small-scale agriculture and, in turn, national food security. In 2021, for example, about R1.2 billion was allocated to the agriculture and food sector budget to support smallholder farmers through various initiatives related to value addition.