The Agricultural Business Chamber
The Agricultural Business Chamber (ABC) is the umbrella mouthpiece of agricultural producers businesses. The ABC therefore stands next to SABEK, the AHI and NAFCOC as a sectoral organisation.
The ABC Office is situated in Pretoria and forms a powerful united front with Agri SA where commercial farmers general, commodity and business interests are co-ordinated within one national organisation.
With agricultural business as their focus, member organisations strive to offer excellent and competitive inputs to the output and/or input side on a sustainable basis so that their shareholders (mainly farmers) can be financially more successful as a result thereof.
Key aspects include the following:
Identification, evaluation and development of business opportunities;
Growth in size and net earnings of the businesses;
Adjustment to changed business environment;
Acquisition of business skills in a highly competitive market.
The Business Chambers mission is to assist its members by creating an environment and attitude whereby they - as outonomous, demand-driven and viable businesses - will be able to support their shareholders in conducting their chosen core business.
The core business of the Business Chamber is agricultural business in particular, i.e. the favourable influencing of the policy and business environment of the respective member organisations and their shareholders and improving their ability to adjust to change and to exploit opportunities.
With agricultural business as the overarching focus area, the Business Chamber focuses on all aspects related to agricultural marketing, agricultural processing, agricultural financing, agricultural production and inputs, agriculture-related research and technical, economic and management extension.
Critical performance areas on national level are therefore as follows:
to make an exploratory study and evaluation of relevant information, legislation, documents, etc. relating to policy changes and opportunities and to communicate the findings to its members (early warning system - what is changing, how does it affect members, what can be done about it?)
to influence the policy and business environment by means of expert inputs during discussions and viewpoint statements; to make use of alliances and to lobby for support (with the help of its partners within organised agriculture but also external partners within Nedlac, etc.).
to promote and develop and provide co-operative support to agricultural industries in collaboration with the National Commodity Chamber;
to negotiate and improve service structures;
to support Agri SA and organised agriculture as a unit and to assist with funding; and
to help member structures to provide similar services.
The Business Chambers point of departure is agricultural business and the farmer in particular;
Approval of membership and determining of membership fees rest with the Executive;
Membership is limited to any undertaking of which the owners are mainly farmers and which strive for agriculture-related objectives.
Congress
Each member (association) may send two delegates to congress and has a certain number of votes depending on the amount paid in membership fees during the previous financial year.
Executive
The Executive is constituted on a specific basis.
The Management Committee
The Management Committee consists of:
the Chairman as elected by Congress.
the Deputy Chairman as elected by the Executive.
additional members nominated by the Executive.
PRIMARY AGRICULTURAL BUSINESSES
The 200 odd local or primary agricultural businesses are the most important roleplayers in the handling of agricultural products, the provision of production inputs and the rendering of various services.
Some of the organisations specialise in limited activities while others practise multi-purpose activities.
Another feature of agricultural businesses on local level is the development of a system of business points. The vastness of South Africa with its extensive farming systems has largely contributed to the development of such a trade network.
The role of agricultural businesses increased in importance, especially after the disappearance of the former marketing boards and the internationalisation of trade.
The objectives of agricultural businesses, with their 2 000 trading points in South Africa, have always been to promote the economic interests of their respective shareholders in respect of their farming units.
Whereas agricultural businesses concentrated on performing its marketing and purchasing function on behalf of farmers, this enabled the farmer to focus on his farming operations, viz to produce as economically as possible.
The economic advantage the farmers enjoys via his agricultural business, makes him less dependent on other economic sectors.
By means of collective action, the farmer has obtained access to the business world. Such participation has given him greater prestige and has strengthened the communal needs of farmers. This has become a powerful instrument for farmers, especially where co-operatives were established and developed at their own initiative.
The role played by agricultural businesses in the storage and marketing of agricultural products, the channelling of financial aid in the event of disasters as well as the dissemination of technical and economic information in conjunction with the relevant state departments is well-known and for the government of the day this is of utmost importance.
Services rendered by agricultural businesses in respect of the utilisation of natural resources, the maintenance and improvement of soil fertility, the improvement of plant material and breeding herds, improved nutrition and care of livestock and the effective control of diseases, pests and infestation are also of national importance.
Although agriculture is based on individual farming operations, its economic activities focus largely on rural communities.
In light of their primary functions, agricultural businesses make a major contribution towards the economic activities of the areas in which they are situated in terms of job creation. This, in turn, stimulates private trading and service organisations.
Surveys show that agricultural businesses employ more than 100 000 people with a disposable income of thousands of millions of Rands per year. Such figures are significant in that they have a direct influence on rural trade and, if combined with the data of farmers and farmworkers, agriculture can rightfully claim that agricultural businesses play an extremely important role, especially in the rural economy.
With regard to the co-operative industry in South Africa, varius issues are currently under discussion, viz
the formulation of a co-operative policy;
the introduction and expansion of co-operative efforts in developing communities;
the place and role of the Registrar of Co-operatives;
assistance to co-operative efforts;
involvement by overseas aid organisations;
the rewriting of the Co-operatives Act;
expansion of an umbrella structure; and
liaison with the International Co-operative Alliance and the International Federation for Agricultural Producers.
In the field of agricultural co-operatives there are important developments regarding the conversion of co-operatives to the company business form.
With regard to the Business Chamber, ideas are being exchanged concerning the structure, i.e. the incorporation of other agriculture related organisations and businesses, and the entire question of creating a favourable, consumer-friendly environment.
Particulars are available from:
The Executive Director
Agricultural Business Chamber
P O Box 1508
PRETORIA
South Africa
0001
Tel.. no. (012) 322-7181
Fax. no. (012) 320-0787
International code: 27 12
E-mail: [email protected]