The FAO Food Price Index (FFPI) for September 2024 increased by 3%, reaching 124.4 points. This marks the largest month-on-month rise since March 2022, with all commodity categories showing price increases. Sugar prices surged the most, climbing by 10.4% due to concerns over reduced global supply from Brazil and India. The Vegetable Oil Price Index also rose 4.6%, driven by tighter supplies of palm, soy, sunflower, and rapeseed oils. Dairy prices climbed by 3.8%, mainly due to higher demand for whole milk powder in Asia, while the Meat Price Index saw a modest 0.4% increase, supported by strong poultry demand. In contrast, rice prices fell slightly due to abundant new harvests in India. Despite the recent increases, the FFPI remains 22.4% below its peak in March 2022. Click here to read full World Food Situation by The FAO. Click here to read Wandile Sihlobo’s Quick notes on global food prices.

How can emerging technologies such as Artificial Intelligence (AI) contribute to mitigating and adapting to climate challenges? Among its numerous potentialities, AI can be used to monitor forests and predict natural disasters, facilitating risk management and response planning to environmental crises. In an exclusive article for the G20 Brasil website, researcher Atahualpa Blanchet points out the possibilities of integrating high technology with humanity's urgent need to adapt to increasingly severe climate change in order to avoid even more catastrophic scenarios than the current ones. The climate and environmental crisis has intensified considerably in recent years, with direct consequences for millions of people in different parts of the world. The global average temperature has risen by around 1.2°C compared to the pre-industrial period, according to the Intergovernmental Panel on Climate Change (IPCC). The rise in global temperatures has accelerated the melting of glaciers, increasing sea levels by approximately 20 centimeters over the last 100 years. Read full article by g20.org here.

A Russian missile hit a Palau-flagged vessel in Ukraine’s southern port of Odesa on Monday, killing a Ukrainian national and injuring five crew members in the second such attack in as many days, officials said. Ukrainian Foreign Minister Andrii Sybiha said on X that the two ships were damaged in the Black Sea grain-export hub without giving details on the ships' conditions. He condemned Russia's actions. "We must join forces of all responsible states and organisations to...ensure freedom of navigation in the Black Sea and global food security." Russia's defense ministry did not immediately respond to an email seeking comment. Moscow has repeatedly denied it attacks civilian targets. Odesa regional governor Oleh Kiper, writing on the Telegram messaging app, said the man killed in the latest attack was a port worker. The five injured men were foreign nationals and ship crew members. Click here to read full article derived from reuters.com.

With over 48 million people affected by foodborne diseases each year in the U.S., the Food and Drug Administration (FDA) sought to address the public health impact and economic losses caused by these illnesses. As a result, the Food Safety Modernization Act (FSMA) was passed in January 2011, becoming the first major update to food safety laws in 70 years. Now, nearly 14 years later, the legislation is set for a much-needed update. FreshFruitPortal.com spoke with Food Safety Key CEO Juan Pablo Avendaño, who analyzed the new 204 rule of the FSMA, its application, and potential challenges for supply chain actors. “The FDA estimates foodborne disease-related economic losses at $75 billion annually. By comparison, Chile’s top export product, copper, generates annual revenue of $60 billion,” Avendaño explained. Additionally, he noted, contaminated products can tarnish the reputation of the companies involved and even harm the image of entire countries in international markets. Click here to read full article derived from freshfruitportal.com.

The Citrus Growers' Association of Southern Africa (CGA) would like to clarify that, contrary to media reports, the local citrus industry is not being threatened by a new greening disease. African Citrus Greening (ACG) is under official control in South Africa by preventing movement of propagation material from greening areas to greening-free areas. It is important to note that ACG cannot be spread by fruit or seed, and resultantly there is no restriction on the movement of citrus fruit - and this applies worldwide. Therefore, any suggestions that export citrus can spread this disease is incorrect. Some media outlets are incorrectly reporting that South Africa "faces a new disease threat" in the form of "the African strain of the citrus-greening disease". This also incorrectly conflates two diseases. HLB (Huanglongbing or Asian Citrus Greening, and sometimes casually referred to as Yellow Dragon) is a feared citrus disease and has caused devastation in some citrus producing regions throughout the world. This disease is not present in South Africa. Click here to read full statement. Click here to read article on this by freshplaza.com.

Like many other sectors of the economy, South Africa's agriculture has shown signs of improving optimism since the start of the Government of the National Unity (GNU), which has fuelled confidence levels about the path forward. The Agbiz/IDC Agribusiness Confidence Index (ACI), a sentiment indicator about business conditions in the sector, has risen from its low levels in the second quarter of 2024. The ACI increased by 10 points to 48 in the third quarter. While the index remains below the neutral 50-point mark, the jump by 10 points is encouraging. It signals that things are moving in the right direction. A sustained lift in sentiment matters, especially over the long run, for fixed investment in the agriculture and agribusiness sectors. The ACI also serves as a leading indicator of agricultural growth prospects over time. We can thus expect slightly better farming output data for the third quarter of the year. Several factors underpin the improvement in sentiment. One of them is the better electricity supply in the country. Click here to read full article by Wandile Sihlobo. 

While South Africa’s 2023-24 maize production has, as of 26 September 2024, been lowered by the country’s Crop Estimates Committee by 2% from August to 12.8 million tonnes (down 22% year-on-year), South Africa will continue with its export activity. South Africa’s maize exports could reach 1.90 million tonnes in the 2024-25 marketing year, which ends in April 2025 (up from the previous estimate of 1.85 million tonnes). But this is down from 3.4 million tonnes of exports last year. About 700k tonnes will likely be yellow maize, and 1.2 million will be white maize. What has helped is the higher opening stock of 2.4 million tonnes from the previous season, which boosted South Africa’s supplies, allowing the country to remain a net exporter while we have a bad crop. The expected crop of 12.8 million tonnes and the opening stocks of 2.4 million tonnes from the last season meant South Africa had about 15 million tonnes of maize supplies. Thus allowing exports to continue. Read full article by Wandile Sihlobo for foodformzansi.co.za here. Click here to listen to podcast of the same topic, and click here to watch interview. 

Some often view the Eastern Cape’s economy through the lens of its auto industry, amongst other sectors. However, the province does well in agriculture — in various commodities, including dairy, wool, sheep farming, and citrus. The Eastern Cape is also making encouraging inroads, boosting communal farmers’ output on wool and, soon, hopefully, in other value chains. The efforts for inclusive growth require a collaborative effort between the government and the private sector. On October 7, 2024, with my colleagues at the Agricultural Business Chamber of South Africa, we met with multiple agribusinesses operating in the province for our members’ engagements sessions. One of the things I noticed in our engagements is the rising optimism about the outlook for the sector in the province and the upcoming 2024-25 season. This is important because, for some time, the province has been strained by animal disease and water challenges in some key agricultural regions. Click here to read full article by Wandile Sihlobo.

The Southern Africa region is at the tail end of the most challenging season — the 2023-24 production year in which grains and oilseed production declined significantly. Some countries saw a much sharper decline in their staple maize production, leading to concerns about the potential increase in food insecurity. For example, on 7 June, USAid said that “an estimated 26 to 30 million people are experiencing acute food insecurity throughout the region ahead of the upcoming lean season”. The USAid further stated that: “Widespread crop failure has resulted in heightened food insecurity regionally, eroding affected populations’ ability to access food and safe drinking water and maintain livelihoods, prompting four national governments — Malawi, Namibia, Zambia, and Zimbabwe — to issue drought-related disaster declarations. This assessment is correct, and the effect is severe on livestock. Regarding staple maize, Zimbabwe’s maize harvest declined by roughly 60% year-on-year in the 2023-24 production season, while Zambia’s maize harvest was down by 50%. Read full article by Wandile Sihlobo for mg.co.za here.

“This year, the message is even more urgent as the newly added BRICS+ members also present an opportunity for widening agricultural exports.” South Africa’s agricultural growth in the first 30 years of the democratic era has been supported, among other things, by two pivotal interventions: a deliberate and concerted strategy to invest in genetics for crops, horticulture, and livestock, and a strong push to expand export markets. “As production continues to increase, and there remains capacity for expanding production, these two levers must be accelerated,” says Wandile Sihlobo, the chief economist of agricultural business chamber Agbiz. “The trade issues are not purely economic but political, which means that the South African political leadership must take a clear stand and focus on retaining the existing markets through dialogue with the political leadership of the countries where we continue to experience challenges.” Click here to read full article by ofm.co.za.

Fuel is cheaper and the rand prices of fertiliser products, herbicides and insecticides have fallen. Like many other sectors of the economy, agriculture has shown signs of improved optimism since the government of national unity (GNU) got off the ground, which has fuelled confidence about the path forward. The Agbiz/IDC agribusiness confidence index, a sentiment indicator of business conditions in the sector, has risen from its low of the second quarter, increasing by 10 points to 48 in the third quarter. While the index remains below the neutral 50-point mark, the 10-point jump is encouraging, signalling that things are moving in the right direction. Click here to read full article by Wandile Sihlobo.

The disruptions in the primary grain supplies always spark fear of food security. Indeed, in July 2023, India sparked fresh concerns about global food security as the world was readjusting from the disruptions caused by the Russia-Ukraine war on global grain supplies and prices. The country placed a ban on the non-basmati white and broken rice. This affected category typically accounted for 45% of the 22 million tonnes of rice that India exports to the global market annually. The rationale cited in media articles at the time was that India's government was worried about inflation ahead of the upcoming elections. After that official announcement on July 20, 2023, global rice prices rallied in the following months, as many were concerned about possible supply shortages. The worries were not misplaced. India accounts for roughly 26% of global rice production. Fortunately, there was a quick adjustment of supply chains, and the world did not necessarily face a major rice shortage. Click here to read full article by Wandile Sihlobo. Click here to watch Discussion | India lifts rice export restrictions.

As the planting season for maize and soybeans begins in a few weeks in the eastern and western parts of the country, experts believe it will be a much better season compared to the previous one. According to agriculture economist Wandile Sihlobo, the reason for their excitement is the positive outlook for the weather that global weather analysts are presenting. Click here to watch. And click here to watch Food security in Southern Africa - The Agricultural Business Chamber of South Africa remains upbeat about agriculture as we head towards summer. The Chief Economist of Agbiz, Wandile Sihlobo discussed this with eNCA. 

Africa is home to the world’s largest free trade agreement, in terms of number of countries, territory, and population – the African Continental Free Trade Area (AfCFTA). Fifty-four of 55 African Union member countries have signed up to the deal which covers a market of 1.3 billion people and a combined GDP of $3.4 trillion. It aims to boost economic growth, intra-African trade and investment across the continent, but although it was established in February 2020, implementing the agreement has been slow. According to the Economic Commision for Africa, African countries continue to trade with the rest of the world more than among themselves. Inadequate infrastructure, a lack of finance, and weak governance are often to blame. This week, leaders from Africa’s private and public sector will meet in Kigali, Rwanda, for Biashara Afrika, the second edition of the AfCTFA Business Forum, to discuss the challenges and opportunities of the free trade area. Read full article by edition.cnn.com here. 

South Africa and Botswana have committed to strengthening economic ties between the two countries and reducing the barriers that currently impede the free flow of goods. The commitment was made during a meeting between the Deputy Minister of Trade, Industry and Competition Zuko Godlimpi and the Botswana Minister of Trade and Industry Mmusi Kgafela in Pretoria recently. The two discussed the promotion of trade and investment and committed to addressing key challenges hindering the full potential of economic cooperation between the two countries. They also reaffirmed their commitment to strengthen economic ties, deepening communication on trade relations, and fostering mutually beneficial investment opportunities that contribute to sustainable industrial development and employment creation for both countries. Deputy Minister Godlimpi and Minister Kgafela emphasised the importance of simplifying trade processes and reducing the barriers that currently impede the free flow of goods. Click here to read full article by sanews.gov.za. 

South Africa’s overall emissions will reach their peak this year and will be followed by a downward trend that will culminate in the lowest emissions this decade in 2030, the draft first 'Biennial Transparency Report' (BTR) shows. The BTR, which was published by Forestry, Fisheries and the Environment Minister Dr Dion George on October 7 for public comments, provides critical insights into the country's progress in implementing and achieving its Nationally Determined Contribution (NDC) under the Paris Agreement. South Africa, as a party to the Paris Agreement, and in line with the modalities, procedures and guidelines of the Enhanced Transparency Framework, is required to submit BTRs every two years, with the first submission due by December 31. The BTR tracks progress on the implementation of South Africa’s NDC, including the support needed and received for implementation. The report is necessary for understanding South Africa's progress in light of national circumstances, institutional frameworks and mitigation policies. Read full article derived from engineeringnews.co.za here. 

G7 agriculture ministers have launched a new plan to enhance Africa’s participation in the OECD seed certification scheme, as part of wider efforts to strengthen agricultural activity and its contribution to economic development. The new G7-OECD Joint Initiative: Strengthening seed certification in Africa – launched during a meeting of G7 agriculture ministers in Syracuse on 26-27 September – will improve seed quality, boost yields and farmer incomes, and strengthen agricultural productivity across the continent. The OECD Seed Schemes provide an international framework for the certification of agricultural seeds in international trade, facilitating the movement of seeds across borders by harmonising certification standards and procedures. Sound seed certification improves domestic production, helps develop export markets and provides farmers, plant breeders and authorities with reassurance on seed quality. Sixty-two countries participate in the seed schemes, which have been adopted into national legislation in countries worldwide. Read full article by oecd.org here.

The FAO’s latest Cereal Supply and Demand Brief forecasts global cereal production in 2024 to reach 2,853 million metric tonnes, a slight increase from previous projections but still below 2023 levels. Wheat output is expected to rise to 792.9 million metric tonnes, while coarse grain production has been scaled back, primarily due to adverse weather in the EU. Global rice production is set to hit a record 539.2 million metric tonnes, driven by strong yields in India. Cereal utilisation is projected to grow modestly, reaching 2,853 million metric tonnes in 2024/25. Meanwhile, cereal stocks are forecasted at 888.1 million metric tonnes, with the stocks-to-use ratio remaining stable. Trade in cereals is predicted to decline by 2.7% in 2024/25, though maize exports from Brazil and increased barley demand from China are notable trends. Despite the drop, the rice trade could recover by 2025 with increased imports from Asia and Africa. Click here to read full report derived from fao.org.

In 2024, South Africa faced hot and dry conditions during the autumn and winter months, leading to a reduction in sugar cane production. As a result, sugar production and exports are expected to decline slightly, with domestic consumption also revised downward due to increased prices implemented in September 2024. The South African Revenue Service raised the customs duty on sugar amid falling global prices, further complicating the market landscape. The area under cane production has been reduced to 346,000 hectares for the 2024/25 marketing year, reflecting high input costs and anticipated demand reductions linked to a forthcoming sugar tax increase. Adverse weather significantly impacted yields, particularly in rainfed regions, while irrigated areas suffered from insufficient heat units during critical growth periods. Despite these challenges, sugar cane quality is expected to improve, although overall production is revised downwards to 17.2 million metric tonnes, a 4% decrease from the previous year. The marketing year for sugar cane runs from April to March, and the report indicates that there will be minimal carry-over cane due to yield losses from extreme weather conditions. Click here to read full report. 

A new textbook on finance and farm management is set to be a vital resource for aspiring farmers, as Standard Bank launched the highly anticipated seventh edition of its comprehensive guide. This edition is said to reinforce the bank’s commitment to agricultural education and innovation, arriving at a critical juncture for global farming. The updated Finance and Farm Management textbook introduces new chapters on smart farming, relevant legislation in the South African context, and human resource management in agriculture. These additions aim to prepare the next generation of farmers for the demands of modern agriculture, which include climate resilience and navigating complex trade agreements. In an era marked by climate volatility and food security challenges, Standard Bank’s investment in agricultural education through this comprehensive resource seeks to empower aspiring farmers with essential knowledge and skills. Click here to read full article derived from foodformzansi.co.za. 

Mzansi’s agricultural sector has had its share of ups and downs, but the tide might finally be turning. Agbiz chief economist Wandile Sihlobo says the sector is slowly regaining its footing, and while challenges persist, there are signs of optimism that cannot be ignored. Sihlobo points out that the Agbiz/IDC Agribusiness Confidence Index – a sentiment indicator for business conditions in the agriculture sector – has shown a notable improvement, rising by 10 points in the third quarter of 2024. “While the index still sits below the neutral 50-point mark at 48, the fact that it’s climbed 10 points is huge. It signals a positive shift and shows things are moving in the right direction,” he says. For Sihlobo, this renewed confidence is significant, particularly for long-term growth and investment in the agriculture sector. He adds that the Agbiz/IDC Agribusiness Confidence Index is often a leading indicator of agricultural growth, meaning we can expect some better news in terms of farming output for the rest of the year. Click here to read full article derived from foodformzansi.co.za.

Global cotton production for the 2023/24 marketing year is projected at 24.12 million tonnes, with a slight decrease due to varying yields and planted areas in key producing countries. A stronger recovery is expected for 2024/25, with global cotton production forecast to rise by 9.2% to 26.33 million tonnes, the highest level since 2017/18, driven by rebounds in the U.S., India, China, Brazil, and Pakistan. Cotton mill use is predicted to increase to 25.87 million tonnes, spurred by demand in the textile and apparel industries in countries like China, India, and Bangladesh. The global cotton trade is also set to grow, with the U.S. regaining its top exporter status. However, increased production is exerting downward pressure on prices, which are expected to hit a five-year low. Policyholders are advised to invest in climate- resilience practices and R&D to navigate risks like weather conditions and geopolitical tensions. Click here to read full report.

Improvements at ports are expected but this may come too late in the stonefruit season. Disruptions at South African container ports, especially in Cape Town, will again be an issue during the coming South African stonefruit export season, Hortgro has warned. Other export sectors such as table grapes, including Namibia, as well as early shipments of South African apples and pears, will also be affected. At the same time, representatives of the table grape sector will meet with stakeholders in Spain this week to brief them on the new table grape logistics model, which is aimed at smoothing out the pressure on ports and alleviating logistics problems. In Namibia, the table grape industry previously announced its intention to increase container shipments through the port of Walvis Bay. Shipments through this port yielded good results last year and are set to increase during the coming season. Click here to read full article derived from fruitnet.com.

Southern Europe's solar greenhouse 2024/2025 season has started with the marketing of peppers, tomatoes, cucumbers, zucchini, and aubergines. During summer, producers worked to prepare the soil for the new season. After the solarization, cleaning, and planting processes some crops, such as tomatoes, have already begun to bear fruits and producers have started marketing their first fruits. The solarization process, which consists of covering the soil to control the appearance of pathogens, allows the soil to be cleaned to promote the growth of environmentally sustainable, tasty, healthy, and safe fruit. This is one of the main characteristics of solar greenhouse production that the "It's from the greenhouse. Sustainable fruits and vegetables from Europe", which is entering its second year, showcases to give visibility to a socially, economically, and environmentally responsible and balanced production model. Click here to read full article by freshplaza.com.

South Africa’s first shipment of avocados is on its way to China, and Zimbabwe will soon become another supplier as Beijing turns to Africa to meet growing demand for the superfood. Chinese ambassador to South Africa Wu Peng said the first shipment of 21,210kg (46,760lbs) of fresh South African avocados left Durban on September 14 and was set to arrive in Shanghai around Saturday. “This marks the first shipment to China following the phytosanitary protocol signed last August, and is bound to boost bilateral trade,” Wu said earlier this week on X, formerly Twitter. Wu was referring to an agreement reached on the sidelines of the 2023 Brics summit in Johannesburg stipulating the plant health requirements that South African avocado producers must meet to export to China. In August, Chinese plant protection authorities gave final approval for South African avocado exports to China after the African nation met the strict requirements needed to reach Chinese consumers. Click here to read full article by scmp.com.

South Africa’s logistics network saw a decline in container handling due to adverse weather and equipment breakdowns, with Cape Town, Durban, and Eastern Cape ports facing operational delays. Internationally, the ILA strike in the U.S. has disrupted global supply chains, raising concerns about rising freight rates and shipment delays. On a positive note, global air cargo remains strong, with a 33% increase compared to September 2023. Domestically, air freight volumes have dipped, while cross-border road freight saw slight improvements. Despite the challenges, productivity and efficiency metrics show signs of recovery. However, stakeholders should remain vigilant due to ongoing disruptions and labour actions, which could impact logistics further. Read the full update in the latest BUSA Cargo Movement Update.

The Minister of Agriculture approved a statutory levy for winter cereals (wheat, barley & oats) for the period 1 October 2024 to 30 September 2028. The levies will be administered by the South African Winter Cereal Industry Agency (NPC) (SAWCIA). Click here to learn more.

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

Sustainability Summit to Address Key Global Challenges in Water, Energy, Transport, Agriculture, and Smart City Infrastructure

15 October 2024 | Emperors Palace

Learn more

RPO Conference

17 October 2024 | Nampo, Bothaville

Learn more

Emergency AgriClimate Summit 24

18 October 2024 | Tshwane University of Technology, Pretoria

Learn more

GOSA Workshop: Geared for innovation

24 October 2024 | NAMPO Park

Learn more

SAIAE & PASAE International Symposium 2024

23 – 25 October 2024 | Grabouw, Western Cape

Learn more

AFMA Symposium 2024

31 October 2024 | CSIR International Convention Centre

Learn more

C&I Solar + Storage Summit

19-20 November 2024 | The Maslow Hotel, Johannesburg

Learn more

Shape Africa’s Agricultural Future at the Annual African Agri Investment Indaba 2024

18 – 20 November 2024 | Cape Town International Convention Centre

Learn more

• Agbiz is the only organisation that serves the broader and common over-arching business interests of agribusinesses in South Africa.
• Agbiz addresses the legislative and policy environment on the many fronts that it impacts on the agribusiness environment.
• Agbiz facilitates considerable top-level networking opportunities so that South African agribusinesses can play an active and creative role within the local and international organised business environment.
• Agbiz research provides sector-specific information for informed decision-making.
• Agbiz newsletter publishes members' press releases and member product announcements.