Minimum wage rise clobbers South African fruit and veg growers
South African farmers want the government to adopt more flexible labor laws in the wake of 6,500 recent jobs losses in the commercial sector, due in part to difficult weather conditions and a steep rise in the minimum wage. 
The tomato sector has been particularly badly hit with one of the largest farmers switching to cattle farming, causing the loss of 600 jobs.
Agri SA transformation chair Dr Theo de Jager, predicts fruit farmers too will start laying off workers once harvests are in.
"They can't lay people off now - they have to wait for harvest time to finish. The avocado industry, for example, is harvesting now and will continue until August. We will start seeing this happen from October onwards."
The minimum wage for agricultural workers from the beginning of this month increased 8.5% to ZAR7.71 (US$0.99) per hour with increases over the next two financial years calculated at 1.5% above the consumer price index.
Dr Jager fears labor intensive fruit farmers will move to Botswana, Mozambique and Zambia where land leasing and labor costs are lower.
South Africa's largest tomato grower ZZ2 executive director Philip van Zyl, agrees that growers will be tempted to up sticks.
"I think the minimum wage is an issue because it's way out of line with surrounding countries. It's putting pressure on South African farmers and they are finding it diffiicult to compete against production from neighbouring countries."
He also said rigid labor laws were deterring employers from taking on staff in a country where unemployment among the working age population is 30%.
"They must relax their labor legislation. They must have more respect for the economically active population and make it easier to grow and conduct a business," he said.
Dr Jager estimates a third of the recent job losses have been in tomato farming, followed by forestry and then fruit.
"Black farmers are suffering much more as they don't have the resources, they are new to paying lots of fees and they don't have the capacity to buffer the impact of the minimum wage."
Agri SA has unsuccessfully brought up subsidies with the Labor Department but said that the Agricultural, Forestry & Fisheries and Rural Development and Land Reform departments were more sympathetic.
"They offered to help with joint ventures where they subsidize partnerships with emerging farmers where the labor becomes part of the management," said Dr Jager.
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