Gamtoos Irrigation Boad
South Africa’s organised agricultural sector has expressed alarm at the rise in the national minimum wage announced on Tuesday, saying the increase in costs will further strain already hard-pressed farmers.
“As the sector battles to contain the costs associated with load shedding, crumbling infrastructure, and high input costs, this increase will further undermine food security and put much-needed jobs on the line,” said Agri SA Executive Director, Christo van Rheede.
He said the increase continues a trend of above-inflation increases for more than a decade.
“Whereas farmers were previously in a position to absorb these increases thanks to the sustained growth in a number of agricultural industries, that period is now over,” Van Rheede said.
Agri SA said the agricultural sector faces extreme headwinds, which on their own threaten food security in the coming years.
“Notwithstanding the challenges that the sector faces, Agri SA made a submission proposing a CPI minus 2% increase in the national minimum wage. This proposal recognised the financial pressure on workers in this inflationary environment,” Van Rheede said.
He said that the government has ignored this balanced position, which was a “devastating blow” not only for the sector but also for the consumers who will eventually see this increase reflected in their food expenditure.
The national minimum wage will increase from the current R23.18 to R25.42 per hour for workers, including domestic and farm workers, starting from 1 March.
