Food and Agriculture Organization (FAO) director general Qu Dongyu, International Monetary Fund (IMF) managing director Kristalina Georgieva, World Bank Group (WBG) president David Malpass, World Food Programme (WFP) executive director David Beasley and World Trade Organization (WTO) director general Ngozi Okonjo-Iweala issued the following joint statement calling for urgent action to address the global food security crisis. "We call for countries to strengthen safety nets, facilitate trade, boost production, and invest in resilient agriculture. Country-specific needs should be identified and defined through a country-based process that mobilises investments from multilateral development banks to connect short, medium and long-term opportunities. Read more in the linked IMF media statement.

The Agricultural Outlook 2022-2031 is a collaborative effort of the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO) of the United Nations. It brings together the commodity, policy and country expertise of both organisations as well as input from collaborating member countries to provide an annual assessment of the prospects for the coming decade of national, regional and global agricultural commodity markets. The publication consists of 11 Chapters; Chapter 1 covers agricultural and food markets; Chapter 2 provides regional outlooks and the remaining chapters are dedicated to individual commodities. You can access the report at this link.

A major debate is currently raging over the master plan. Is it going to be another white (expensive) elephant, or is it the elephant in the room? One of the main negotiators acknowledges that this is a compromise and does contain shortcomings, but it is an important pointer based on thorough research. Following the launch of the Master Plan for Agriculture and Agricultural Processing, the document elicited polarising comments from various quarters. As an organisation, Agbiz was deeply involved in the negotiations. In the linked article, written for and first published in Landbouweekblad, Agbiz CEO Theo Boshoff discusses this subject.

Global agriculture faces numerous challenges. The most recent one that requires close monitoring is the heat wave in various countries in the Northern Hemisphere. Over the past weeks and months, the US, parts of Europe, and China have all reported cases of heatwaves. There are growing concerns that the heat could negatively impact the summer grains which are still in the early growing stages in these regions. The livestock industry is equally anxious that the extreme heat could lead to increasing animal deaths. For example, in June 2022, over 2 000 cattle died of heat stress in southwestern Kansas. Countries such as Italy and Spain are currently feeling the impact of drought and heatwaves on crops and livestock as farmers struggle to sustain their business operations. Agbiz chief economist Wandile Sihlobo explores this topic in the linked article.

South Africa’s agricultural industries are increasingly pressured by stringent trade practices in their major export markets. The wool industry, which has been closed off from the Chinese market for nearly four months now, is one example. China restricted imports from the local wool industry after the outbreak of foot-and-mouth disease, which remains a significant challenge for the sector. This is a major worry because China is South Africa’s primary wool export market, accounting for roughly 70% of exports in value terms. Other South African wool industry markets include the Czech Republic, Italy, India, Bulgaria, Germany, the US, Malaysia, Japan and Mexico. But these are relatively small and cannot offset the losses resulting from China’s restrictions. Wandile Sihlobo elaborates on the implications for the wool industry in the linked article, written for and first published in Business Day.

Southern Africa’s agricultural sector could be in for another bumper harvest. There’s now a 50 per cent chance of La Niña forming later in the year, which means another rainy summer season that could boost domestic food supplies and export earnings. Wandile Sihlobo spoke to CNBC Africa about the implications for farmers and the agricultural sector. Please click here to watch the interview.

With inflation rising to levels unseen in decades, households across the world are asking themselves how much more they can expect to pay for gasoline, groceries, and other necessities. Their answers may help them make important personal financial decisions. Should they go ahead and buy that new refrigerator, rather than wait until later and risk seeing the price go up? Should they ask their boss for a raise to make up for the loss of purchasing power? The answers won’t affect just individual households but the economy as a whole. The reason: central bankers and academic economists view inflation partly as a self-fulfilling prophecy. If consumers believe prices will rise at a faster pace, they may behave in ways. The linked IMF article, states that a deeper understanding of how consumers think about the economy would help policymakers control inflation.

Russia’s invasion of Ukraine has further darkened the global growth outlook, with the European economy facing a serious setback given trade, investment, and financial links with the warring countries. Now, Europe is enduring a partial cutoff of natural gas exports from Russia, its largest energy supplier. The prospect of an unprecedented total shutoff is fueling concern about gas shortages, still higher prices, and economic impacts. While policymakers are moving swiftly, they lack a blueprint to manage and minimize impact. Three new IMF working papers examine these important issues. They examine how fragmented markets and delayed price pass-through can aggravate impacts, the role of the global liquefied natural gas market in moderating outcomes, and how such factors could play out in Germany, Europe’s largest economy. Read more in the linked IMF blog post.

Genetically modified (GM) cowpea has cleared the first of the three regulatory hurdles in the way of commercialisation in Ghana. If it is commercialised, it will be the first GM crop grown in the country – a major milestone. Biotechnology proponents have been working for decades to integrate GM crops into Ghana’s development agenda. The approval of GM cowpea by the National Biosafety Authority comes amid debate, both inside and outside the country, on the efficacy of GM crops in strengthening food security throughout Africa. Cowpea – black-eyed pea in some parts of the world – is a major source of protein in Ghana and the rest of the sub-continent. It is integral to Ghana’s food security. It is a staple, especially in the northern part of Ghana, where it is second only to groundnut in terms of area cultivated. Ghana is the fifth largest producer of cowpea in Africa. Read more in the linked article, first published on The Conversation.

The FAO's note on the region’s crop balance sheets contains a subset of CCBS data and presents updated cereal supply and demand balances for all sub-Saharan African countries. It complements the information of the FAO/GIEWS Crop Prospects and Food Situation report and is published four times a year with the same schedule. This report is based on information available as of June 2022. The report can be accessed at this link.

Business, under the leadership of Business Unity South Africa (BUSA), is standing by to rally its resources, skills, and capacity to assist with the urgent implementation of focused interventions to address the energy crisis expected to be announced by the President over the coming days. The impact of the current load-shedding cycle has a significant impact on South Africa’s economy, its business community, and its citizens. BUSA is deeply concerned that if this is not remedied urgently, the country and economy will continue to be damaged by negative growth, further rating downgrades and a deeper decline in consumer and investor confidence for many years to come. The apex business body says that while there has been good work done under Operation Vulindlela to address the energy crisis, progress has been slow, and what is now required is the same sense of focus, urgency, and collaboration that the nation saw during the national vaccine rollout. Read more in the linked BUSA media statement.

The South African government has described new requirements for the export of citrus, mainly oranges, from South Africa to the European Union as “trade restrictive” and “unjustified". In a statement on Monday, the Department of Agriculture, Land Reform and Rural Development said the South African government continued to engage with the European Commission (EC) on the new requirements. The department said the publication of the new requirements occurred when South Africa was still engaged in technical discussions with the EC on the proposed measures. The Citrus Growers’ Association of South Africa (CGA) last week raised the alarm on the move, saying the new regulations could see R654 million of SA citrus produce being destroyed as numerous shipments of fruit were already en route to the EU before the new regulations applied. Read more in the linked article, first published on IOL. In an episode of Farmer’s Inside Track on Food for Mzansi, Deon Joubert from the Citrus Growers Association of Southern Africa (CGA), delves into how the European Union’s new legislation regarding refrigerated treatment of African oranges affects local farmers and the sector in totality. Please click here to listen to the interview.

Port operations this past week were mainly impacted by general issues relating to load-shedding, weather delays, and equipment shortages. Our commercial ports were not generally busy or congested; however, equipment availability remains an issue. The Eastern Cape ports are still making alternative plans to soften the blow of load-shedding, having little or no generator backup, while Durban port's helicopter is still out of action due to a fuel shortage. In addition, weather conditions and their accompanying side effects caused several delays, with the most notable example being approximately ten hours lost in Cape Town this week due to vessel ranging. In the Eastern Cape, port operations continued as per normal, except for TFR, as a derailment was reported during the week. Consequently, rail services were halted for three days at the end of the week and were expected to reopen on Sunday. On the international shipping side, the entire landscape of global trade continues to change. The change can be seen with an increase in equipment supply being offset by poorer productivity (due to current port performance) and a change in regulations. Read more in the linked BUSA Covid-19 Cargo Movement Update.

The Citrus Growers' Association of Southern Africa, shares the latest news in the citrus industry in its weekly update - From the desk of the CEO. Please click here to peruse.

Keeping it Fresh, the newsletter of the Fresh Produce Exporters Forum (FPEF) contains all the recent relevant news and developments. Please click here for the latest edition.