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e-Newsletter

49/2024

12 December 2024

Seasons’ Greetings

As the year winds down, the Agbiz team will be taking a break and closing our offices from 20 December 2024 to 6 January 2025. This is also our final newsletter of the year, and our next edition will find your inbox on the 9th of January 2025. 2024 has been a watershed year for South Africa and our agribusiness sector. Challenges remain, especially on the international front, where a deteriorating geopolitical situation, rising protectionism, and political instability will be critical factors in 2025. On the domestic front, great strides have been made to improve our competitiveness. The energy crisis has largely passed; the Government of National Unity has calmed fears following the general elections, and systemic changes are taking place in our logistics system that will hold us in good stead over the years to come. There is certainly cause for optimism, and the fourth quarter’s results for the Agbiz/IDC confidence index mirror this sentiment as confidence in the sector climbed by 10 basis points to 58. On behalf of the Agbiz team, we would like to thank all of our members, stakeholders, and colleagues within government and business for the support and collaboration throughout the year. We wish you a blessed festive season and look forward to a prosperous 2025.

GLOBAL AND LOCAL NEWS

Agbiz/IDC Agribusiness Confidence Index increases further in Q4, 2024

The Agbiz/IDC Agribusiness Confidence Index (ACI) increased by 10 points from Q3 to 58 in Q4. This is the second consecutive improvement and places the ACI at its highest level since Q2 2022. This level of the ACI implies that South African agribusinesses remain generally optimistic about business conditions in the country. This optimism is a result of a combination of factors, including favourable weather conditions, with expectations that La Niña rains will be supportive of the 2024-25 agricultural season. Moreover, the stable energy supply, improvements in port efficiency, and the better political climate following the formation of the Government of National Unity are some of the aspects the respondents cited as key factors underpinning their optimism. This survey was conducted in the last week of November, covering businesses operating in all agricultural subsectors. The ACI comprises ten subindices; five improved notably in Q4 2024, while the rest declined mildly. Here is the detailed view of the subindices. Click here to read full Agbiz/IDC index by Wandile Sihlobo. And, click here to watch interview with GROOTplaas on the 2024 recap.

Chair urges WTO members to forge a new path for agriculture talks

Members should not lose time on process and swiftly resume substantive talks in the new year, said the Chair of the agriculture negotiations, Ambassador Alparslan Acarsoy of Türkiye, in year-end meetings on 4 December. The African Group and the Cairns Group of agricultural exporting countries reported progress in their bilateral discussions, aiming to present a comprehensive package of modalities for agricultural reform before the 14th Ministerial Conference (MC14). The Chair summarized recent efforts to gain support for a facilitator-led process but noted that the approach had failed to achieve consensus among members. He emphasized that, in his view, WTO members ought to bear in mind three considerations as they move forward: proponents should initiate discussions with other members on topics of their interest; members should bear in mind the need for an overall balance in the negotiations, while addressing past mandates and current and future challenges; and members should ensure inclusivity by regularly updating the committee on progress. Click here to read full article by wto.org.

Spaza shop registration: Government needs a rethink to drive sustainable change

Amid a food safety crisis in South Africa’s informal sector, the government announced that all spaza shops need to be registered within the next 21 days, failing which, they will be shut down. While proper regulation is crucial, the requirements that have been currently imposed on entrepreneurs are impractical, go against efforts to reduce red tape in order to promote the creation of new businesses in the country, and have the potential to negatively impact the economy. As per the requirement, all spaza shops must be inspected prior to registration and be issued with a Certificate of Acceptability. Although this sounds straightforward in theory, regulation of spaza shops falls under the ambit of local government – and while large municipalities are equipped to deal with these regulatory requirements, smaller municipalities don’t have the skills or resources to register spaza shops. Click here to read full article first published in abizq.co.za.

POLICY AND LEGISLATION

Agbiz expresses concern about various aspects of the Petroleum Products Draft Bill

The Petroleum Products Draft Bill was published for comment on 21 October 2024. The deadline for comments is 20 December 2024. Agbiz submitted our written comments on the Bill on 6 December 2024. There is an existing Petroleum Products Act dating from 1977. In the 1977 Petroleum Products Act, extensive powers are granted to the Minister to control almost every aspect of the petroleum industry from the use of petroleum products to the price and quantities that may be held. In addition to these already extensive powers, the Bill now provides for more detailed control measures through Regulations, including, “additional powers, duties and functions of the controller, regional controllers and inspectors.” The stated purpose of this Bill is to streamline the licensing and appeals processes, improve compliance and enforcement by increasing the powers of the controller, regional controllers and inspectors. The Bill also prohibits vertical integration and introduces offences for non-compliance with the Act and licence conditions. Click here to read full article by Annelize Crosby Agbiz Legal Intelligence Manager.

South African agriculture faces severe decline amid economic contraction

South Africa’s agricultural sector, a cornerstone of the nation’s economy, is facing a significant downturn. In the third quarter of 2024, agricultural output plummeted by 28.8%, contributing to an unexpected 0.3% contraction in GDP. This decline highlights the sector’s vulnerability to climatic, economic, and market shocks, raising urgent questions about the sustainability of agricultural production in the country. The recent downturn can be attributed to several factors. Severe dry or drought conditions have significantly impacted maize and soybean production, which together account for nearly 70% of South Africa’s field crop output. This has left farmers grappling with reduced yields and heightened financial pressures. The livestock sector has also faced major challenges, including outbreaks of diseases such as avian influenza and foot and mouth, which have disrupted production and supply chains. Click here to read full article by Agbiz Agricultural Economist and Policy Analyst Thapelo Machaba.

AGRIBUSINESS RESEARCH

South Africa's beef exports are improving

After a few years of challenges and a decline in exports, seeing this progress in South Africa's beef exports is heartening. In the first three quarters of this year, the country's cumulative beef exports were up 25% from the same period in 2023, at US$136 million. The key markets include China, Egypt, UAE, Jordan, Mozambique, Kuwait, Qatar, Saudi Arabia, Mauritius, and Seychelles. The exports are also up in volume, not just the price gains. What challenges have we been referring to that have confronted the South African beef industry in recent years? Well, one of the challenges we have focused on this year in South Africa's agriculture is – livestock health. We had roughly three years of animal disease outbreaks across the country – foot and mouth disease in cattle, avian influenza in poultry, and African swine fever in pigs. Sure –animal disease outbreaks are not unique to South Africa and are common across the world, but South Africa's challenges have intensified in the recent past because of some biosecurity weaknesses. Click here to read full article by Wandile Sihlobo.

SA's consumer food price inflation is at its lowest level since October 2010

After slowing to 2,8% in October 2024, South Africa's consumer food price inflation decelerated notably to 1,6% in November, the lowest since October 2010. The slowing down was broad-based, except for "oils and fats" and "fruit", which lifted slightly. As with the previous month, the slowdown was partly driven by base effects, as food price inflation was elevated this time last year. For example, this time last year, vegetable prices were elevated because of supply constraints due to load-shedding-related disruptions in some fields. Moreover, the avian influenza outbreak constrained egg supplies, exacerbating price risks. This was also the case with meat. Thus, this time around, the supply has improved, and the challenges we faced last year have eased. It is for this reason that both vegetables and meat were in deflation in November 2024. Also worth noting is that grain prices faced upward pressure last year following India's rice export ban. This year, India resumed rice exports, and prices slowed generally. We suspect the lower wheat prices have also added to the moderation of grain-related product prices. Click here to read full article by Wandile Sihlobo.

SA's agricultural machinery sales remain weak

We continue to observe relatively weak agricultural equipment sales in South Africa. However, these weak sales data are not necessarily indicators of the farmers' plantings for the new 2024-25 season. There are distinct factors that underpin poor sales. The latest data from the South African Agricultural Machinery Association shows that in November 2024, tractors and combine harvester sales were down by 24% year-on-year and 62% year-on-year to 523 units and 13 units, respectively. This continues the declining trend we have observed since the start of the year, and there are several reasons behind the weak sales. First, the agricultural sector has had higher machinery sales in the past three years, supported by improved farmers' incomes due to ample harvest and higher commodity prices. Thus, there was bound to be some correction period, leading to moderation in sales. Second, after a few good agricultural years, we struggled with a mid-summer drought in the 2023-24 season, changing the farmers' fortunes and worsening sales performance. Farmers are under financial pressure because of the crop losses. Click here to read full article by Wandile Sihlobo.

Why do South Africans talk so much about BRICS agricultural trade?

Some of us in South Africa’s agriculture often talk of the need to grow export markets to BRICS countries. But such statements are not minimizing the relationship South African agriculture has with other regions such as the EU, African continent, Americas, etc. These regions are super important to South Africa’s agriculture, and the country must nurture its relations and agricultural trade with them. The push for BRICS is in recognition of tow things. First, South African agriculture has low trade with BRICS countries. And yes, BRICS is not a trade bloc, but if trade could be deepened, South Africa’s agriculture stands to benefit. At the moment, the original BRICS members only account for 8% of South Africa’s agricultural exports. Yet, the BRICS countries are big agricultural importers. The significant issues are higher import tariffs and phytosanitary barriers. Second, there is growing protectionism in the existing export markets. Remember the EU farm protests earlier this year, they were not all about environmental policies, the farmers also complained of imports. Click here to read full article by Wandile Sihlobo.

Planting progress and heatwave challenges

I am one of the people who remain reasonably optimistic about the possible La Niña rains this 2024-25 summer season. We need the rains to improve agricultural production here in South Africa and across the Southern Africa region. The forecasts for La Niña remain active, and we have received some scattered rains across South Africa, which have helped immensely with the planting so far. We have various regions that have planted much of the crop. However, there are regions in South Africa that have not received much rain at all. The heatwave of this past week has worsened conditions in such areas. Parts of Limpopo, Free State, and even the North West are such regions. If one farms in these regions, it is understandable that they would be downbeat and annoyed at all the talk of La Niña. But I gain comfort from the weather forecast for the next two weeks. It appears that we may finally receive trains in much of the northern regions of South Africa. Click here to read full article by Wandile Sihlobo.

G20 business forum offers agricultural sector a platform to outline goals

SA should discuss sharing insights about technology and investment opportunities. SA chairing the Group of 20 (G20) also means the country leads the G20 business forum, the B20. The G20 comprises 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Saudi Arabia, SA, Russia, Turkey, the UK and US) and two bodies: the AU and the EU. SA’s agenda has the theme “Solidarity, Equality and Sustainability”. The B20 brings together business representatives from the G20 countries and sets out workstreams that take their cue from the theme defined by the government, though its actual work is autonomous. The process for formulating the priorities of the business community should soon be under way. As a critical stakeholder in the B20, the SA agricultural sector will need to outline bold goals. Click here to read full article by Wandile Sihlobo for businesslive.co.za.

Optimism is growing in South Africa’s farming sector

We continue to observe the rising optimism in South Africa’s farming and agribusiness sectors. For example, the Agbiz/IDC agribusiness confidence index (ACI), a sentiment indicator in the sector, increased by 10 points from Q3 to 58 in Q4. This is the second consecutive improvement, placing the ACI at its highest since Q2 2022. This level of the ACI implies that South African agribusinesses remain generally optimistic about business conditions in the country. This optimism is a result of a combination of factors, including favourable weather conditions, with expectations that La Niña rains will be supportive of the 2024/2025 agricultural season. The stable energy supply, improvements in port efficiency and the better political climate since the formation of the government of national unity are other aspects the respondents cited as underpinning their optimism. Click here to listen to the podcast by Wandile Sihlobo for more insights.

AGBIZ GRAIN

Laws and regulations in the agricultural sector

Agriculture is constantly evolving, whether in respect of products, working conditions, or marketing strategies. As technology, market dynamics, and consumer needs and preferences change, those involved in agriculture must adapt to meet market demands and operate sustainably. In this context, the regulatory environment is essential because it provides a framework for promoting fairness, sustainability, and innovation, ensuring agricultural practices align with industry standards, protect resources, and maintain competitiveness in a rapidly evolving market. Over the years, laws and associated regulations have been introduced in the agricultural sector to regulate product quality, ensure food safety, and protect consumers and other value chain participants. Being heavily involved in exports, the grain industry must take into consideration the directives of overseas markets and the needs of their clients, requiring all stakeholders to adapt accordingly. Click here to read full article by Koos du Pisanie, Plaas Media for the Agbiz Grain Quarterly November 2024 issue.

Future-proofing food security

According to an article by Wolfram Schlenker, a professor at Columbia University, and David Lobell of Stanford University, published in Environmental Research Letters, climate change could cause medium-term production declines in sub-Saharan Africa. The implications for this region, where agriculture accounts for 40% of the gross domestic product (GDP) in some countries, could be severe. Furthermore, agriculture is responsible for 80% of employment in some of these countries, making most of the population directly or indirectly dependent on agriculture for their survival. South Africa makes a significant contribution to food security in sub-Saharan Africa through exports. Our country takes the lead in respect of production of grain and oilseeds. From May 2001 to August 2024, South Africa imported only ten million tonnes of maize, compared to total exports of maize and maize products of 47,6 million tonnes over the same period. Of this, a total of 3,4 million tonnes were exported to African countries. Thus, South Africa is increasingly taking the lead in promoting food security in sub-Saharan African countries. Click here to read full article by Wessel Lemmer, general manager, Agbiz Grain for the Agbiz Grain Quarterly November 2024 issue.

Focus on China and Middle East agri trade

With South African president Cyril Ramaphosa’s state visit to China concluded, the next stop should be the Middle East. But before transitioning to the Middle East, let’s briefly examine China’s agricultural trade. Trade data provides South Africa with some signposts of what to do next: aggressively drive exports to the Chinese market. This market, with over US$200 billion in annual agricultural imports, currently regards South Africa as a small player, holding just 0,4% of the market share. From now on, the focus should remain on nudging China to lower import tariffs on various agricultural products and addressing the phytosanitary barriers for some products. This effort will build on the success of the existing export market possibilities for South African beef, avocados, and wool, among others. As technical experts from various departments work on implementing the agreements from the recent state visit, the political leadership of the Department of Agriculture, Department of Trade, Industry and Competition, and the Department of International Relations and Cooperation, should also refresh their focus on the Middle East. Click here to read full article by Agbiz Chief Economist Wandile Sihlobo for the Agbiz Grain Quarterly November 2024 issue.

OTHER NEWS

BRICS+ countries are determined to trade in their own currencies – but can it work?

Using local currencies among BRICS+ countries will lower transaction costs and reduce their dependence on foreign currencies. BRICS+ countries are exploring how they can foster greater use of local currencies in their trade instead of relying on a handful of major currencies, primarily the US dollar and the euro. The forum for cooperation among nine leading emerging economies – Brazil, China, Egypt, Ethiopia, India, Iran, Russian Federation, South Africa, United Arab Emirates – emphasised this determination at their 16th summit in October 2024. Economist Lauren Johnston recently wrote a paper on this development. The Conversation Africa asked her for her insights. There are economic and political reasons to use local currencies. Using local currencies to trade among themselves will lower the transaction costs and reduce these countries’ dependence on foreign currencies. Over the past few centuries, the world’s economy has developed in a way that makes certain currencies more valuable and widely trusted for international trade. Click here to read full article derived from saiia.org.za.

EU-Mercosur trade deal splits opinion

The European Union’s new trade agreement with Mercosur, the Latin American bloc made up of Argentina, Brazil, Uruguay, Paraguay and Bolivia, has divided opinion amongst EU member states. The historic deal, signed on Friday after 25 years of negotiations, will create one of the world’s biggest free trade zones, with more than 700mn consumers. Under the terms of the agreement, the EU will liberalise 82 per cent of Mercosur agricultural imports and Mercosur will remove tariffs on 93 per cent of tariff lines for EU exports. For some products, tariff-rate quotas will apply. Voicing their opposition to the deal, Spanish agricultural unions Asaja and UPA and the Coordination of Agricultural and Livestock Organisations (Coag) claimed it has been drawn up in haste and does not take into account the interests of European producers. Pedro Barato, president of the Young Farmers’ Association (Asaja), told EFE that Spanish farmers “cannot accept any more trade agreements in which European agriculture is the paymaster of other interests”. Click here to read full article by fruitnet.com.

VKB-GWK merger shows progress, reports R608m profit

The integration of agricultural giants VKB and GWK, which merged on 31 May 2023, is showing remarkable progress, despite facing challenging economic and climatic conditions. In the 2024 financial year, ending 31 March 2024, the newly formed VKB Group, including GWK, recorded a normalised profit before tax of R608 million – demonstrating its resilience and commitment to long-term sustainability. VKB Group’s managing director, PG Strauss, expressed his gratitude for the unwavering support of clients and emphasised that the company remains focused on stabilising its business foundation to pave the way for future growth. “Don’t expect fireworks. The merger merely offers a better-balanced foundation with more diversity in the distribution of risk,” Strauss stated. Despite continued climate challenges and economic pressures on agricultural producers and consumers, proactive action plans have been implemented to manage these effects and safeguard the group’s performance. Click here to read full article by foodformzansi.co.za. 

Rising vegetable oil quotations push FAO Food Price Index slightly higher in November

The benchmark for world food commodity prices rose in November to its highest level since April 2023, increasing by 0.5 percent from October, driven by surging international vegetable oil quotations, the Food and Agriculture Organization of the United Nations (FAO) reported Friday. The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 127.5 points in November, up 5.7 percent from a year ago while still 20.4 percent below its March 2022 peak. The FAO Vegetable Oil Price Index increased by 7.5 percent in November from October, marking its second large increase in two months and 32 percent higher than its year-earlier level. Global palm oil prices climbed further amid concerns about lower-than-expected output due to excessive rainfall in Southeast Asia. World soy-oil prices rose on global import demand, while rapeseed and sunflower oil quotations increased as tightening global supply prospects affected their respective markets. Click here to read full article by fao.org.

Creecy steps in to confront Lebombo border crisis

Transport minister Barbara Creecy has intervened in the crisis facing the Lebombo border post to find a solution to decongest the queue of trucks that were waiting to cross into Mozambique at the weekend. Creecy and officials from the department visited the border post on Monday to receive first-hand information on the work that has been done to decongest the queue. “Since 8am on Saturday morning, we received reports of the closure of the border, which had resulted in trucks queuing on the South African side. The queue reached distances of more than 20 kilometres, and this brought other challenges,” Creecy said. She added that the Mozambican authorities had opened the border to allow empty trucks to return and passenger vehicles to leave the country. “Since yesterday, the passenger vehicles have also been allowed to cross the border into Mozambique. To address this challenge, my department is working with the Cross-Border Road Transport Agency (C-BRTA) and other law enforcement agencies to develop a plan to address this dire situation,” she said. Click here to read full article derived from freightnews.co.za.

KZN expands macadamia exports

Kwazulu-Natal (KZN) South Coast macadamia nut producers have doubled volumes over the past four years, capitalising on the growing global demand for the popular nuts. South Africa is one of the world’s leading macadamia nut producers, and while Mpumalanga tops the list for trading, KZN posted a positive macadamia nut trade balance of more than R50 million in 2023, according to Trade and Investment KwaZulu-Natal (TIKZN). The KZN South Coast has established itself as a leading producer of premium macadamia nuts, with exporters like Mayo Macs, Mac Eden, and Coastal Macadamia at the forefront of high-quality production. CEO of macadamia processing, marketing and distribution company Mayo Macs, Cobus Venter, said the coast was one of the best-growing regions for macadamia worldwide. “Mayo Macs have doubled their volumes in the last four years and again expect to double in the next four years, according to the current intake figures,” Venter said. The company owns two state-of-the-art macadamia processing facilities near Nelspruit in Mpumalanga and Paddock on the south coast, with receiving depots located in Empangeni, George and Levubu. Click here to read full article by freightnews.co.za.

South Africa’s logistics network: challenges and opportunities

South Africa’s logistics network continues to face significant hurdles. Port operations experienced disruptions due to adverse weather, oil spills, and equipment failures, reducing container throughput to 10,051 TEUs per day. Durban faced delays from dredging, while the Eastern Cape ports and Richards Bay were hampered by equipment shortages. Rail services between Johannesburg and Pretoria were heavily impacted by cable theft. On the global front, container schedule reliability rose to 51.5% in October, with carriers like Maersk leading the charge, while freight rates and charter markets showed strong recovery, reflecting optimism in global trade. Air cargo volumes at ORTIA showed mixed trends, with outbound cargo up 7%, though overall weekly volumes dipped by 5%. Cross-border road freight saw a slight increase in queue times, though South African border crossings showed a 12% improvement. As the year ends, the spotlight is on the critical need for public-private alignment in the Pier 2 PSP framework and the implementation of the Freight Logistics Roadmap. Tackling inefficiencies and embracing innovation will be crucial to restoring competitiveness in global supply chains. Read the full update in the latest BUSA Cargo Movement Update.

Quarterly insights on South Africa’s dairy industry: A SAMPRO perspective

This quarterly report, published by SAMPRO, offers a comprehensive macro overview of South Africa's dairy industry. It aims to provide market signals for all stakeholders to foster effective market operations, aligning with the Competition Act to benefit consumers, the dairy sector, and optimal national resource utilisation. The report highlights the diverse dynamics within the primary dairy industry (unprocessed milk producers) and the secondary sector (processed milk and dairy product manufacturers). Variations in outcomes stem from factors like production systems, geographic locations, equipment sophistication, and brand reputation. Additionally, seasonal shifts, weather conditions, and complementary agricultural activities like maize and lucerne production influence these disparities. Acknowledging the distinct nature of these industries, SAMPRO underscores that stakeholders respond differently to identical market signals. The report serves as a summary of key market indicators, with further details available upon request. Data reflects information collected up to December 3, 2024. Click here to read full Synopsis of the November 2024 Key Market Signals.

Nigeria wants to jail people for exporting maize

OK, folks, I didn’t think I would have to say anything about Nigeria’s maize market for some time, but here we go. The Nigerian government wants to ban the exports of maize. Since Nigeria is a prominent African country, this has caught some headlines. But, Nigeria is not an essential player in the maize trade. I am looking at Nigeria’s maize export data from 1960; the highest export volume was in 2016, at about 200k tonnes. This is small (by comparison, countries like South Africa export over 3,0 million tonnes of maize in favourable seasons). The reason is that while the country plants maize in 5,5 million hectares (twice the size of maize plantings in South Africa), the yields are poor, and the harvest is typically 12,5 million tonnes. By contrast, South Africa plants about 2,5 million hectares and has harvested over 16,0 million tonnes. The difference is the seed cultivars, fertilizer usage, and farming techniques, amongst other things. Nigeria wants to criminalize maize exports because of the relatively poor yield and higher prices. Click here to read full article by Wandile Sihlobo.

Agbiz team bids farewell to Wessel Lemmer

As the year draws to a close, the Agbiz team will bid farewell to Wessel Lemmer, who will be taking up the position of CEO at Raisins SA. Wessel joined Agbiz in July 2020 to look after the interests of the grain handling and storage industry at the Agbiz Grain Desk. Under Wessel’s guidance, the desk navigated some tricky waters with the publication of Leaf Services’ proposed inspection methodology in 2020. The industry appealed to the minister under the APS Act, where Agbiz Grain made substantial inputs, assisting the appeal board with their decision to set the process aside on procedural grounds. Wessel initiated the development of a malting barley storage protocol, lobbying for a review of the JSE base storage rate and a number of other critical policy issues to ensure the grain storage and handling sector’s voice is clearly heard in policy debates. Aside from policy matters, Wessel piloted a number of unique initiatives to benefit the industry. Click here to read full statement by Agbiz CEO Theo Boshoff.

AGBIZ MEDIA DAY

Agbiz hosts a successful media day highlighting key drivers for 2025

Agbiz hosted a successful Media Day on 6 December 2024, bringing together media partners and stakeholders in South African agribusiness to discuss key confidence indicators, policy priorities, and growth drivers for 2025. The event featured insightful presentations from esteemed experts, including an exclusive first look at the Agbiz/IDC Agribusiness Confidence Index for Q4 2024, compiled and presented by Agbiz Chief Economist Wandile Sihlobo. His analysis revealed encouraging trends in agribusiness sentiment, offering a hopeful outlook for the sector. The event achieved a strong turnout, reflecting the continued support from our media partners, members, and stakeholders. Agbiz extends its heartfelt gratitude for this support throughout 2024 and looks forward to fostering these relationships further in 2025. Click here to read full statement by Temba Msiza, Agbiz Digital Communications Manager and to access all presentations and click here to watch recap video.

Agribusiness Confidence reflects optimism in agriculture for Q4

The Agbiz/IDC Agribusiness Confidence Index (ACI) points to an increase of 10 points from the third quarter (Q3) to 58 points in Q4 in 2024. According to Agbiz, this is the second consecutive improvement and places the ACI at its highest level since Q2 2022. This level of the ACI implies that South African agribusinesses are still generally optimistic about business conditions in the country. The optimism is a result of a combination of factors, including favourable weather conditions, with expectations that La Niña rains will be supportive of the 2024/25 agricultural season. The survey was conducted in the last week of November, covering businesses operating in all agriculture subsectors. Despite the midsummer drought currently experienced in the summer rainfall areas and the fact that the livestock industry continuous to struggle in the Eastern Cape and KwaZulu-Natal, the stable energy supply, improvements in port efficiency, and the better political climate following the formation of the Government of National Unity are some of the key factors underpinning the optimism, Wandile Sihlobo, chief economist at Agbiz, pointed out. Click here to read full article first published in farmersweekly.co.za. 

Agri trade poised to benefit from South Africa’s global positioning next year, but BRICS needs work

With the 2024/25 season expected to benefit from La Niña rains, solid exports having been reported in the year-to-date, food price inflation having come down to 2.8% in October and the Agribusiness Confidence Index having increased by ten points to 58 in the fourth quarter of the year, experts are optimistic that the agriculture sector will grow meaningfully in 2025. During a media day hosted by the Agricultural Business Chamber of South Africa (Agbiz) on December 6, CEO Theo Boshoff said the sector would benefit further from political stability effected by the Government of National Unity, progress with rail reforms, improved energy security and South Africa’s positioning within BRICS and in leading the Group of 20 (G20) next year. The threats to the sector, however, include rising protectionism globally, geopolitical instability that impacts on prices and supply chain activity and green trade barriers. Click here to read full article derived from engineeringnews.co.za.

AGBIZ VIDEO LIBRARY

Agbiz Media Day 2024 Highlights – Wandile Sihlobo

In this video, we give you an exclusive look into the Agbiz Media Day 2024, featuring Agbiz Chief Economist Wandile Sihlobo as he unveils the latest insights from the Agbiz/IDC Agribusiness Confidence Index. Discover how these metrics reflect the resilience and trends within South Africa's agribusiness sector. Click here to watch full video.

Agbiz CEO Theo Boshoff Reflects on 2024 and Sets Sights on 2025

In this insightful interview with Anlie Hattingh, Agbiz CEO Theo Boshoff reviews the key milestones and challenges of 2024 while sharing his vision for 2025. The discussion dives into crucial topics such as Environmental, Social, and Governance (ESG) principles, sustainable practices across agriculture and its value chains, and what lies ahead for the industry. Click here to watch full interview.

Water and Environmental Policy: Agbiz Media Day 2024 Insights by Annelize Crosby

For the Agbiz Media Day 2024, Annelize Crosby, Agbiz Head of Legal Intelligence, highlights the significant policy and legislative focus on water and the environment as we head into 2025. Gain valuable insights into the key developments shaping the agricultural and agribusiness landscape. Watch to understand the implications and opportunities for the sector. Click here to watch video.

Developments in SA's Trade Environment & The Role of Agbiz Fruit – Wolfe Braude

Wolfe Braude, Fruit Desk Manager at Agbiz Fruit, discusses the latest developments in South Africa's trade environment and their impact on the agricultural sector. He also highlights the role of Agbiz Fruit and its contributions to supporting and growing the fruit industry. Click here to watch to learn more about trade insights and Agbiz Fruit’s key initiatives!

The Value and Importance of Agbiz Grain – Wessel Lemmer

In this video, Agbiz Grain General Manager Wessel Lemmer discusses the history and significance of Agbiz Grain, its role in South Africa's agricultural landscape, and the benefits it offers to its members. Learn more about how Agbiz Grain supports the grain sector and fosters growth within the industry. Click here to watch video.

MEMBERS' NEWS

Agbiz Office Move Announcement

We are excited to announce that Agbiz will be moving to our new office in the week of 2 to 6 December. Our new location will be at Agri-Hub Office Park, Block C, First Floor, 477 Witherite Street, The Willows, Pretoria. If you have any questions or need further information, please reach out to Retha at admin@agbiz.co.za.

Agbiz is recruiting for a Manager: Agbiz Grain Desk

Agbiz is currently in the process of recruiting a manager to head up its Grain Desk. Anyone interested in applying for this exciting position, is encouraged to submit their CV and supporting documentation before 24 January 2025. The position is integral to the Agbiz operations and candidates will be working with key policy issues and initiatives to support the grain storage and handling sector. More details can be found in the advertisement here. 

Reflecting on 2024 - SASTA's Year in Review

As 2024 comes to a close, the December edition of the SASTA Newsletter offers a thoughtful reflection on the year’s highlights and milestones. From memorable moments to impactful initiatives, this edition is a testament to the successes achieved with the support of valued members and stakeholders. Click here to explore the full newsletter and join us in celebrating the journey that was 2024.

The latest news from CGA 

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. 

Fresh Quarterly

In the latest edition of Fresh Quarterly, you will get a summary of the most pertinent information as well as reminders of important upcoming events. Please click here to peruse.

Hortgro News

Discover the latest updates and insights from Hortgro in the newest edition of their publication. Click here to read the November 2024 issue of HORTGRO NEWS, featuring the latest industry developments and important information.

UPCOMING EVENTS

NCM 89th AGM & Congress

13-14 March 2025 | Zebula Golf Estate & Spa

Learn more 

AGBIZ MEMBERSHIP
Why join Agbiz?
  • 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.

Please visit the Agbiz website for more information

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The Agbiz Newsletter may contain a few links to websites that belong to third parties unrelated to us. By making these links available, we are not endorsing third-party websites, their content, products, services or their events. Agbiz seeks to protect the integrity of its newsletter and links used in it, and therefore welcomes any feedback.