Agriculture continues to be an essential industry and a major development driver for the South African economy, which is why investing in the modernisation of the sector is crucial.

According to 2022 statistics from the Department of Agriculture, Land Reform and Rural Development, agriculture accounts for approximately 3% of GDP and 5% of total employment and exports, respectively, and South Africa's agribusinesses are among the most productive and competitive in the world.

The South African agricultural sector is characterised by a mixture of large-scale commercial farms and smallholder subsistence farms, all contributing at different scales to food and nutrition security, export performance, employment and livelihoods.

Given the ongoing significance of the sector, a recent survey, which indicates that more than two thirds of South African agribusinesses were actively involved in innovation activities between 2019 and 2021, is good news.

The survey, conducted on behalf of the Department of Science and Innovation (DSI) by the Centre for Science, Technology and Innovation Indicators at the Human Sciences Research Council (CeSTII-HSRC), shows high levels of innovation in South Africa's agribusiness sector.

The survey covered sectors such as animal and crop farming, forestry, and fisheries, and assesses the extent to which commercial agribusinesses in South Africa have implemented new or improved products and business processes.

This research was conducted in collaboration with sector stakeholders, including Statistics South Africa.

Among the key findings, 67,1% of all agribusinesses in the target population engaged in innovation activities.  Innovation activities include all developmental, financial and commercial activities undertaken by a company that are intended to result in an innovation for the company.

Training, acquisition of machinery and equipment, and acquisition of computer software were the top three activities that innovation-active agribusinesses engaged in, according to the survey.

Medium-sized agribusinesses made up the largest proportion of innovation-active businesses (72,9%), followed by large agribusinesses (70,8%).  Small businesses had a moderately lower innovation activity rate of 66,4% while 57,2% of very small agribusinesses were classified as innovation-active.

While the survey shows promise that innovation is on the increase, the agricultural sector has faced a plethora of challenges in recent decades, impacting its influence on the economy and broader society.  These include drought and extreme weather events, rising input costs, logistics bottlenecks, load shedding, increased global competition, and low levels of government support.

All these challenges point to the immediacy of innovation as a medium to advance the overall performance of sector value chains in line with the objectives set out in the  government's Agriculture and Agro-Processing Master Plan.

Recent innovation policy developments in South Africa reinforce the centrality of innovation as a driver of inclusive and sustainable development.  Central to this are the principles outlined in both the 2019 White Paper Policy on Science, Technology, and Innovation (STI) and its accompanying STI Decadal Plan 2022-2032.

In particular, the White Paper highlights the importance of technological innovation for the modernisation of agriculture in South Africa and its increased global competitiveness.

Adopting advanced technologies such as precision agriculture, robotics and other related information and communication technologies, together with implementing sustainable farming and land use practices can maximise productivity on farms, reduce wastage, minimise negative environmental impacts and reduce greenhouse gas emissions.

The modernisation of the sector continues to be a priority for the DSI, which Minister Blade Nzimande emphasised in his 2024/25 Budget Vote address on 23 July 2024.  The tabling of the R10,562 billion vote was the first of the 7th Administration.

In line with the Economic Reconstruction and Recovery Programme, the Agriculture and Agro-Processing Master Plan and the STI Decadal Plan, the DSI is contributing to the growth and competitiveness of agriculture.  Through the Agriculture Bioeconomy Innovation Partnership Programme (ABIPP), it has invested in many projects on product and prototype development, value chain analysis, value chain development and digital agriculture, among other areas; leveraged significant co-funding; and fostered strong sector-wide partnerships.

In 2023/24, ABIPP funded 14 multistakeholder programmes in the agriculture sector, including wheat breeding for climate resilience, cassava and cotton plant health, an Oil and Protein Seeds Development Trust project aimed at creating job opportunities in soy planting and agroprocessing for food sustainability, and red meat industry research, leveraging a total of R91,32 million in co-funding.

Ten ABIPP-supported technology prototypes/demonstrations were also completed.  One project focused on the expansion of orange-fleshed sweet potato enterprise development through the commercialisation of processed products, resulting in the development of six prototypes.  Another project, run by the Council for Scientific and Industrial Research and focusing on advanced agroprocessing technologies in dairy waste beneficiation, has developed three whey prototypes, designed with affordable flavourings to appeal to the target market.

The survey indicated that innovation-active businesses accounted for the highest percentage of those employed in a sub-sector, with 82,4% of employees in the animal and crop farming subsector working in innovation-active businesses, 69,8% in fisheries and 59,1% in forestry.

The DSI intends to continue making investments into research and development initiatives in the sector to encourage modernisation, which will result in increased competitiveness and sustainability.