“BEE Policies and Export Regulations: A Threat to Farmers and Food Security in South Africa”
The Department of Agriculture’s Black Economic Empowerment (BEE) requirements for exporting fresh produce under the Economic Partnership Agreement with the United Kingdom and Ireland, combined with the Competition Commission’s report on fresh produce market competitiveness, have created significant uncertainty among farmers, posing serious risks to food security.
These BEE requirements are seen as harmful, unconstitutional, and inconsistent with international trade agreements. The South African Agricultural Initiative (Saai) has engaged the World Trade Organisation (WTO) to raise awareness of potential violations of WTO rules regarding racial discrimination and the Universal Declaration of Human Rights. Additional complaints may follow.
Farmers are particularly frustrated with the department’s lack of transparency and shortcuts in public consultations. Many critical questions remain unanswered, including:
- How should BEE policies apply to family farms?
- What are the moral and legal justifications for preventing a family from trading based on race?
- What are white farmers expected to do with unsellable produce if denied export opportunities?
- What will be the economic impact, including rural job losses, if export licenses are restricted?
The department’s failure to clarify these issues mirrors a similar situation from 2013 when the BEE Charter Council did not resolve disputes over BEE requirements on land claim farms. Farmers are left with unresolved dilemmas, including whether family relationships should be manipulated or if production levels should be reduced to meet racial quotas.
Food Security at Risk
South Africa’s longstanding status as a net exporter of food is under threat. Every crop planted represents a high-risk investment, and the lack of certainty surrounding BEE requirements undermines investor confidence. Farmers need clarity and stability, but current policies foster confusion and unpredictability.
Competition Commission Missteps
The Competition Commission’s report on access to fresh produce markets highlights a fundamental misunderstanding of how these markets operate. Fresh produce markets are uniquely merit-based environments where small-scale and large-scale farmers compete equally based on price and quality—not race or gender.
The commission’s recommendations, driven by political considerations rather than economic expertise, risk creating a less competitive market. Appointing racially motivated analysts instead of economic experts has exacerbated the problem.
The Need for Action
South Africa cannot afford to gamble with food security. Policymakers must adopt evidence-based approaches that prioritize agricultural sustainability, market fairness, and food security over racial quotas. Without urgent reforms, these policies may lead to a decline in agricultural productivity, economic instability, and increased unemployment in rural areas.