Farm mechanisation after the farm low wage increase

[kwagga]

Surely good news for companies like Invicta. One of the current star performers in my portfolio.

[phd]

Even cheaper than mechanisation is simply to import food. Don't think that more expensive farming is going to be a good thing for anyone.

[Wino]

And the fresh produce? I feel that a shakeup in the industry is well overdue. Cheap labour does not necessarily lead to better productivity and, face facts, R69/day was just not sustainable. So now agri will be forced to re-think, more mechanisation and less but better trained/qualified personnel that are more productive = improved efficiencies. However, one must balance this with the fact that farming is high risk business due to weather dependecy, variable markets and subsidised imports. It was relatively easy to re-trench staff to reduce costs in poor production years but not so easy to pay for that machine parked in the "waenhuis" when there is little income. Invicta, I agree, is well positioned to capitalise on this shift and could also form an agri-rental company nuch like the old co-op days.

[CHATTYCHAT]

Agreed on all your high-lighted factors. To get to the equilibrium is the challenge. All having been said, producers (farmers) will have to abandon their comfort zone filled with excuses (high risk = weather) and so on. Business is risky, employment equals increased risk factors, and so on. Farmers should implement sound business practice (employment contracts, evaluation of labour output and disciplinary action where necessary) and so on. If food prices have to rise because of higher input cost, so be it. Rather pay mote because of higher input costs than having to pay more beacuse of reduced supply as result of uproar and damage. Maybe the time has come to lead a rebellion against the OUTLET bodies, selling off for instance water melon at around R60 a piece as opposed to around R35 from the street vendor. (On the side - those expensive paw-paws not sold beacuse of the R12,99 price tag, gets dumped for the pig farm - what a waste!). Another problem with farmers: they keep hammering the bell "we give free housing, a bag of maize meal, whatever". Translate all these goodies into cash, pay a universally acceptable wage and let the workers do their own buying - even if they have to pay at a premium at the nearest spaza or farmer's cafe. Nothing as bad as to always be satisfied with hand-me-downs, which is what is mostly happening on a farm. Part of the upliftment process...

[barry_1]

Unfortunately if you don't give the workers a bag of maize meal monthly they go to work hungry.Their family is then forced to pilfer from his employer....Some of my family were farmers. How ever this should not prevent the farmer from paying a living wage.

[CHATTYCHAT]

I hear you, however I find that paying a decent wage AND handing out the bag of maize keeps the ball rolling. The maize is not handed out when the worker pitches with a hangover...

[prancing_horse]

An inept government meddling with market forces - recipe for disaster- nothing to do with "a living wage"............watch this space

[THRESHOLD]

The large farms would need their collective head read to invest in capital in this place. The small farmers will run for the hills. Mechanisation is a de facto effect of marginal erosion as the production swings to the larger operation with the scale to support automation. Pricing power of the large producers will be enhanced. They will sweat their assets. South Africa will import the extra demand which will further damage the balance of trade. The Rand will continue to slide. BUT - not to worry - the government will compensate the workers for the decline in the buying power of their wages by - WAIT FOR IT - DRUM ROLL... raising the minimum wage level.!

[Rams]

maybe they are trying to squeeze Malema out of his cabbage?