As South Africa’s agricultural landscape continues to evolve, compliance with tax, health, safety and certification requirements is increasingly shaping the sustainability and growth prospects of farming businesses, particularly among small and emerging producers.
Small-scale farming plays a significant role in the country’s food system. South Africa is home to an estimated two million small-scale or household farmers, compared to about 35 000 commercial producers, underscoring the sector’s importance to food production, employment and rural livelihoods. Despite this, many smallholders remain excluded from formal value chains due to regulatory, structural and information gaps.
Proudly South Africa says compliance is a key driver of growth for niche and emerging farming enterprises. According to Alicia Logan, Membership Manager at Proudly SA, many farmers struggle not because they cannot produce, but because they lack a clear understanding of compliance requirements needed to operate formally.
“Farmers are running businesses, regardless of size,” Logan said during a webinar hosted by Proudly SA.
“Understanding regulatory and SARS obligations, keeping proper records and operating formally gives farmers confidence and opens doors to formal markets, funding opportunities and partnerships.”
Farmers said tax and administrative compliance remains one of the biggest hurdles, particularly for small-scale producers operating in rural and township areas.
Daisy Moleka, the owner of MPBizRabbits, compliance is not just about taxes, it’s about public health.
“I’ve been a rabbit farmer for 24 years now and it’s very important to stay compliant,” Moleka said.
“Especially when you are into rabbit farming, you can slaughter your rabbit at the backyard, you need an abattoir. Because if you don’t, people will get sick or even die. Get an abattoir and have receipts that will show that your rabbit was slaughtered at a registered abattoir,” she said.
She added that compliance also protects your reputation as a farmer.
“Buyers want assurance that the meat is safe and legal. If you cut corners, it can cost your business everything you’ve worked for.”
Greg Mkhize, an organic farmer from Soweto and owner of Siyiwusile Indlala, explained that certification and environmentally conscious practices as part of compliance.
“We always encourage farmers to be certified and be different. Farming goes hand in hand with the environment you are in. Following the rules, protecting the land and being certified gives farmers a competitive edge and ensures sustainability,” said Mkhize.
From a regulatory perspective, Vicas Skippers, a South African Reserve Services spokesperson in Bloemfontein, said farmers are taxed based on income and are required to meet standard compliance obligations like any other business.
“Farmers’ tax responsibilities are determined by their level of income,” Skippers said. “Understanding these obligations helps farmers plan better and operate with certainty.”
He added that compliance enables access to opportunities.
“When farmers are compliant, it becomes easier to engage with formal buyers, apply for funding and participate in structured value chains. Compliance creates credibility and visibility in the formal economy,” he added.
