Farmers aren’t among Steenhuisen knockers – he’s “doing the business”
A rather different picture of under-fire agriculture minister John Steenhuisen emerges in this interview with Grain SA chairman Derek Mathews. Steenhuisen has attracted considerable media criticism surrounding appointment in his new department, including from the BizNews tribe's favourite columnist, RW Johnson. But Mathews, a four-decade, fourth-generation farmer from Lichtenberg, says at ground level, the view is very different – Steenhuisen is regarded with great affection, proving adept at delivering concrete results for a sector that believes it has been long neglected. Mathews spoke to BizNews editor Alec Hogg.
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Highlights from the Interview
In this interview, Alec Hogg speaks with Derek Mathews, chairman of Grain SA and a long-standing farmer from Lichtenburg, about John Steenhuisen's performance as DA leader and Minister of Agriculture. Mathews acknowledges the political challenges facing Steenhuisen, particularly his controversial staffing choices, but commends his decisive leadership in improving the Department of Agriculture's functionality. Mathews highlights that despite political noise, Steenhuisen's pragmatic approach has led to tangible progress, especially in addressing issues like biosecurity and agricultural exports.
Mathews also discusses the underappreciated role of agriculture in South Africa's economy, noting its consistent growth and trade surplus despite being overlooked in political discussions. He emphasizes the need for better support and training for the next generation of farmers, as government institutions, like agricultural colleges, have deteriorated.
The conversation shifts to broader challenges, including farm safety, infrastructure issues, and the importance of public-private partnerships. Mathews shares insights into Lichtenburg's economic struggles, particularly in cement production, and expresses hope that new investments by Afrimat could revive the region's economy. Overall, he remains cautiously optimistic about the future of agriculture under Steenhuisen's leadership.
Edited transcript of the Interview
___STEADY_PAYWALL___
00:00:09:07 – 00:00:37:01
Alec Hogg:
Well, the DA leader John Steenhuisen has made an inauspicious start—or so you would believe if you're reading the media, particularly news from favorite columnist RW Johnson. But has it really been that bad? Derek Mathews is the chairman of GrainSA. He is a fourth-generation farmer in the Lichtenburg area and has been farming himself for 40 years.
00:00:37:01 – 00:00:50:19
Alec Hogg:
He's been with organized agriculture since 1994. We're going to get his insights into how Steenhuisen is actually doing from those who are directly involved.
00:00:50:21 – 00:01:16:03
Alec Hogg:
So, Derek, you're also a member of the BizNews tribe. In that capacity, you would no doubt have picked up that RW Johnson is not impressed with Steenhuisen at the moment. He says his staff are in chaos, that the Roman Cabanac appointment was not a good one, and that Steenhuisen had to apply for special permission because some of his staff members are not properly qualified.
00:01:16:05 – 00:01:23:12
Alec Hogg:
It doesn't paint a good picture of the DA leader. Is this what you are seeing from your vantage point?
00:01:23:13 – 00:01:47:15
Derek Mathews:
Yeah, Alec. It was very interesting for me to listen to that commentary. It's true that John's choice of advisors and staff is politically challenging, and it has solicited all the comments you mentioned. For us on the ground, dealing with the Department of Agriculture, the relationship is critical.
00:01:47:15 – 00:02:33:05
Derek Mathews:
I've had a long-standing relationship with the Minister of Agriculture, and we absolutely depend on those relationships being effective. Despite the political challenges John might be facing with those individuals, he's actually doing a great job getting things done. In the past, we would put issues on the table, and you'd hope that by the next time you saw the minister—maybe a year or two later—something would have happened. Since John has been in office, a number of issues have been addressed and executed.
00:02:33:05 – 00:03:01:13
Derek Mathews:
So, irrespective of the political issues, functionally, the department is working. John listens, assesses what is needed, and takes action. From that perspective, he's serving us very well.
00:03:01:15 – 00:03:20:21
Derek Mathews:
He listens carefully, makes an assessment of what is needed, and then he takes action. He decides on what the solution is, what is required, and he executes. From that point of view, he's serving us very well.
00:03:20:23 – 00:03:35:09
Alec Hogg:
It's an interesting portfolio, first of all, for him to be offered, and secondly, for him to have accepted. Why do you think Ramaphosa gave his greatest political rival this opportunity?
00:03:35:11 – 00:04:00:12
Derek Mathews:
That's the question I've spent many hours pondering. I really don't understand it. I don't know if Ramaphosa thought it was less important, or that you could do the least damage in that portfolio—if you want to say that. But honestly, I don't know why he chose it. However, as I said, from our experience in the last three months, things are working.
00:04:00:12 – 00:04:28:12
Derek Mathews:
Last week, I had the opportunity of speaking at the GrainSA Congress in Cape Town. The Director General, Mr. Thoko Didiza, was one of our keynote speakers, and I had a chance to chat with him. I thanked him for what the department has been doing. I told him that ministers may come and go, but it's the functionaries within the department that need to be effective and work well. Right now, we're seeing a marked improvement in what's happening in the department.
00:04:28:12 – 00:05:08:06
Derek Mathews:
At this point in time, the relationships are working well. The department's functionality has really improved. We're seeing results, and the decisive actions being taken are what we've needed for a long time.
00:05:08:08 – 00:05:11:00
Alec Hogg:
They're adapting to the impact?
00:05:11:02 – 00:05:32:01
Derek Mathews:
I think so. My experience with the department is that there's now a great level of decisiveness. When an issue arises, they figure out the solution and they take action. That decisiveness has been lacking for a long time.
00:05:32:03 – 00:05:38:12
Alec Hogg:
That's very good news, given that agriculture is so critical in the South African context.
00:05:38:13 – 00:06:01:06
Derek Mathews:
It's interesting that you say that, Alec. As you know, I've been part of the BizNews tribe, and I've been following various forums, both political and economic. Wherever the economy is discussed, the key topics are energy, raw materials, and, of course, politics, which affects everyone.
00:06:01:06 – 00:06:28:21
Derek Mathews:
Then it's energy, followed by safety and security, and infrastructure. But nowhere is agriculture discussed. Agriculture is the only sector that consistently makes sense. The graph I read this morning shows that since 2003, agriculture has grown by 3%, while the South African economy as a whole has only grown by 2.1%. In terms of agricultural exports, we've had a consistent trade surplus for the last decade, while the rest of the economy has had trade deficits for three out of the past five years.
00:06:28:21 – 00:07:04:10
Derek Mathews:
So, with agriculture being such an important part of the economy, how come nobody is talking about it? Despite the fact that everyone needs to eat three times a day, agriculture is all but ignored.
00:07:04:12 – 00:07:06:16
Derek Mathews:
Agriculture is being completely overlooked.
00:07:06:18 – 00:07:33:06
Alec Hogg:
I drove past the Cedara Agricultural College just over a week ago, and it was sad to see how much it has declined. My brother-in-law, who was driving with me, said it's because everything has been outsourced and privatized. People are no longer going to Cedara to get trained; they're getting private training now. It must be working, though, because South African farmers are highly regarded around the world. But that lack of support from basic government institutions—are you seeing it?
00:07:33:07 – 00:07:49:11
Alec Hogg:
That decline in support from such a fundamental part of government—are you noticing it?
00:07:49:16 – 00:08:37:11
Derek Mathews:
Yes, absolutely. Having been a student at the agricultural college in Potchefstroom myself, and at one point serving on its governing body, it breaks my heart to see the decline. It's just a mirror image of what's happening across South Africa—the decay due to poor management. The bad management is because budget allocations are politically motivated rather than business-oriented, and now we're reaping those unfortunate fruits. Like in most sectors, the private sector steps in to pick up the slack. It's not that things were outsourced—it's simply that if I want my son to get a good agricultural education, there's only one college left where I would send him: Elsenburg in Stellenbosch.
00:08:37:11 – 00:08:59:13
Derek Mathews:
The rest of the colleges just don't have the quality anymore. So, you look to the private sector to fill that gap. That's why we see that it's not purposefully outsourced, but when the quality isn't there, you go find something that does have quality.
00:08:59:15 – 00:09:21:14
Alec Hogg:
Are you hopeful that John Steenhuisen can make a difference there as well? Because growing the next generation of farmers is crucial.
00:09:21:16 – 00:09:27:14
Derek Mathews:
Absolutely, absolutely. If you don't nurture the new generation and create opportunities for new entrants, the industry will die.
00:09:27:20 – 00:09:54:01
Derek Mathews:
At GrainSA, we have a facility in the Free State, where we host an annual agricultural show. It's a massive event, and we are currently looking at starting a training academy at that facility because we have the infrastructure and there's a great need for training. Again, this is a private-sector initiative to ensure farmers are properly trained.
00:09:54:01 – 00:10:19:00
Derek Mathews:
We're making sure the private sector steps in where the government has fallen short. Training the next generation of farmers is essential, and private initiatives like this academy will ensure that happens.
00:10:19:01 – 00:10:33:03
Alec Hogg:
Another big issue the public often raises about farming is farm murders. It's clearly a political hot potato. Do you expect the new Minister of Agriculture to be able to do anything about that?
00:10:33:05 – 00:10:58:10
Derek Mathews:
That's one of the toughest issues. I was a victim of one of those attacks myself, so I understand exactly how it impacts your family and your life. It's indescribable. But…
00:10:58:12 – 00:11:45:23
Derek Mathews:
And don't even get me started on the justice system in South Africa. Policing—fine, we experience world-class policing—but the justice system is absolutely non-existent. It's terrible. Your question was whether John can make a difference. John was one of the speakers at our congress in Cape Town last weekend, and he said, you know, what he can do is be the loudest voice in the room when it comes to these issues: safety and security, infrastructure, roads, rails, harbors—those kinds of things. He promised us that.
00:11:45:23 – 00:12:03:17
Derek Mathews:
John will be the loudest voice in the room. And if John Steenhuisen isn't, then no one will be. So, if you ask me how much of an impact he can make, I don't know. But this is the best I can hope for right now—that somebody is going to carry the baton for us.
00:12:03:18 – 00:12:07:12
Derek Mathews:
And we are trusting John to do that for us.
00:12:07:14 – 00:12:13:05
Alec Hogg:
What are the other big challenges he is facing as the Minister of Agriculture?
00:12:13:06 – 00:12:35:04
Derek Mathews:
Well, if you look at it practically, one of the first things that landed on his desk would have been the foot-and-mouth disease outbreak. So, biosecurity is crucial. Foot-and-mouth disease is just one impediment to growing livestock exports and other agricultural exports.
00:12:35:06 – 00:13:01:23
Derek Mathews:
So, that would be one of the first priorities—biosecurity, ensuring both animal and plant health. It's critically important to the sector, and he's focusing on that. Then, the other thing he needs to focus on is expanding our export markets. As I mentioned earlier, we've been a net exporter for the last 20 years, with a consistent trade surplus in agricultural exports. That needs to expand.
00:13:02:00 – 00:13:30:07
Derek Mathews:
In South Africa, we don't enjoy much government support in the form of subsidies, so we have to be competitive in global markets. To do that, we need access to as many markets as possible. We have to produce at maximum capacity so we can export. Profit margins shrink, and businesses need to grow to remain viable. So, achieving economies of scale becomes essential. This is particularly challenging for small-scale farmers—scaling up and funding them to reach a sustainable level is a huge task.
00:13:30:09 – 00:14:11:04
Alec Hogg:
We know that John Steenhuisen was part of the group that went to China with the president. China, being a massive consumer with over a billion people, presents a significant opportunity. Are you expecting any breakthroughs in that relationship?
00:14:11:06 – 00:14:31:18
Derek Mathews:
I think so. Again, I wouldn't say that's just because of John Steenhuisen. He accompanied the rest of the delegation to China. At Grain SA, we've been working on Chinese export protocols for years. Recently, we opened the soybean export protocol. A few years back, we opened the maize market into China.
00:14:31:19 – 00:15:03:00
Derek Mathews:
While it's normally a government function, the industry has had to get involved to fill the capacity deficit in government and make this happen. We even brought Chinese officials out here and facilitated the conversation and process. It took us about a year to finalize a Chinese protocol. And we're finding more markets opening in the Middle East for our products. We just have to keep at it. It's very much a collaboration between the department and industry.
00:15:48:17 – 00:16:18:06
Alec Hogg:
Public-private partnerships seem to be a theme in South Africa, as we've seen recently. For a change, they are being encouraged rather than discouraged. But looking ahead, Derek, what is going to make this term of the new agricultural minister successful? If you look forward four or even five years, what would you say made him successful?
00:16:18:08 – 00:16:52:21
Derek Mathews:
If agriculture's voice can be heard, that would be a huge achievement. In other words, if agriculture can find its rightful place in the narrative of this country, both politically and economically, then we'll be successful. Despite not enjoying much privilege, we have made significant achievements over the past three years. The industry is sound, quite robust, and very resilient, but it's also extremely volatile. Getting agriculture to its rightful place would be wonderful.
On a more practical note, within the department, there are systems that need to be implemented—like the wheat import tariffs. We are a net importer of wheat, and to protect local producers and the quality of local wheat, there's a tariff system. The tariff system is triggered by a formula, but getting the Minister of Trade and Industry to sign off can take up to six months, costing farmers billions. If we can get these systems to work efficiently, then we'll see real progress in agriculture during his term.
00:16:52:23 – 00:18:21:00
Alec Hogg:
So he's got some markers, and we'll be following this progress closely. Before we close off, I was talking to the CEO of Afrimat last week about your part of the world, Lichtenburg. They've just bought the Lafarge cement factory, and they are determined to turn it around, even though it was in far worse condition than they anticipated. Do you know much about that cement factory and how important it is to the district?
00:18:21:02 – 00:18:45:19
Derek Mathews:
Alec, my granddad was a fitter and turner who was relocated from the Free State to build that cement plant. So, yes, I do know about it. It used to be known as White's Portland Cement, then became Blue Circle, and eventually Lafarge. Now, with Afrimat's acquisition, I've seen the new name go up on the board recently.
00:18:45:23 – 00:19:17:17
Derek Mathews:
Every major industry in town is critically important. Lichtenburg is an agricultural town, but it's also known for the biggest diamond finds in history—there were massive diamond deposits just northwest of here. Agriculturally, it's significant too, as the first agricultural co-op was based in the region. The town is a mix of cement and grain farming, with other mixed farming operations.
We actually have three cement plants now: Afrimat, which you mentioned, another one called Everite, and a third plant, Sephaku, which opened about two years ago. The rich limestone deposits here make it ideal for cement production.
00:19:17:19 – 00:19:56:04
Derek Mathews:
If Afrimat can bring new energy into town and turn things around, that would be fantastic. The town is struggling—there's a tremendous amount of decay. We used to have a beautiful, efficiently run town. Now, we face inconsistent water and electricity supply. The municipality hasn't functioned properly in years. The road to my farm runs through the rubbish dump, and one morning I saw someone dumping a truckload of rubbish on the main road. It's a lack of management, plain and simple.
If we can get some fresh energy and investment into the cement industry, it would be great for the town.
00:19:56:06 – 00:22:24:10
Alec Hogg:
I guess, on a broader scale, if South Africa turns into a construction site, as Dean Macpherson, another DA minister, envisions, Lichtenburg could boom again. Your municipality would have more resources to work with, which could have a direct impact. Derek Mathews, chairman of Grain South Africa, farmer from Lichtenburg, and a member of the BizNews tribe—lovely talking with you. I'm Alec Hogg from BizNews.com.
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