NEWS
THE IMPACT
OF LOCKDOWN ON THE FLOWER INDUSTRY ’ S BOTTOM LINE
The agricultural sector has been lauded as one of the sectors that has kept the economy afloat during the difficult months following the hard lockdown that commenced on 27 March 2020 .
Kefiloe Manthata Senwes Journalist
Along with agriculture being
declared an essential service , good weather conditions boosted crop prospects , allowing farmers to plant 7 % more hectares of grain and oilseed crops .
In many ways , some sections of the sector have indeed flourished , which is reflected in the latest StatsSA update showing that agriculture , forestry and fishing made had a 0,5 % positive contribution to the country ’ s GDP .
THE OTHER SIDE OF THE COIN For some agricultural businesses , however , the news has not been so good . One of the hardest hit industries within the agricultural sector has been floriculture . Restrictions placed on events and mass gatherings had a ripple effect on several businesses across the event supply chain . An entire industry was brought to an abrupt halt overnight and now farmers in the floriculture industry are facing eminent disaster if the restriction on events do not ease soon .
Flower production ranks as one of the most efficient contributors to development and growth in the South African economy . A Department of Agriculture report estimated the value of the local flower market at R240 million with export revenue valued at about R280 million . The labour-intensive industry employs an estimated 17 500 people whose jobs remain on the line until business can resume .
Floriculture is a perishable supply chain which means that farmers have a short timeframe to make maximum profits off their flowers before they wilt . The abrupt lockdown meant tremendous losses for farmers . Parties , functions and weddings were called off and event planners shut down their operations and with that came the cancellation of all orders of flowers . This inevitably meant that farmers would have to discard most of their harvests , losing thousands of rands .
THE ROAD TO RECOVERY There was renewed hope when the President announced that the country is moving to level 1 restrictions , which eased restrictions on events and awakened the flower industry from its extended slumber . It ’ s a long road ahead , but the future of the South African flower industry is set to bloom again .
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SENWES SCENARIO | SOMER � SUMMER 2020