Boosting growth and prosperity in South Africa |
| | | South Africa is well-positioned to confront significant longstanding challenges that have been holding the economy back: declining real per-capital income, persistent unemployment, pervasive poverty, and one of the highest inequality rates in the world. These outcomes reflect deepening structural rigidities and governance weaknesses, evidenced by the negative contribution of Total Factor Productivity to growth over the past 15 years. A new Government of National Unity, in power since June 2024, has committed to tackle these challenges by providing new impetus to the ongoing structural reforms initiated in 2020. “We are steadily removing the obstacles to meaningful and faster growth... [through] economic reforms that we are implementing as part of Operation Vulindlela,” South African President Cyril Ramaphosa recently remarked. Major electricity sector reforms are underway, allowing for private-sector participation in electricity generation, including from renewable sources. Reforms to the logistics sector are also ongoing, allowing for private sector participation in freight rail and port operations. Click here to read full article by imf.org.
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40 days that changed the world |
| | | It is now just more than 40 days since Donald Trump became president. In those 40 days he has changed the world order fundamentally – for the worse. Probably one of the most significant American diplomats of the last 50 years, Henry Kissinger, once remarked, ‘To be an enemy of America is dangerous, to be a friend fatal.’ It has never been as true as now. From Ukraine to that most loyal of all neighbours, Canada; from Europe to the millions kept alive by USAID funding; from the Middle East to Southeast Asia, all can now attest to the profound accuracy of Kissinger’s words. Trump is tearing up agreements and relationships agreed over decades. He re-negotiated the North American trade agreement with Canada and Mexico in his first term. Now, he claims it was a bad agreement and simply slaps 25% import tariffs on both. Breaking agreements breaks trust, respect and power. The ‘rules-based international order’ the Americans are so fond of preaching, is out of the window. The envisaged land grabs of Greenland, Panama, Canada and Gaza are beyond breathtaking. Click here to read or listen to full piece.
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Agriculture is a vital part of our growth story | |
| | | Agriculture is one of the most important sectors in our economy. The goods and services produced across the agricultural value chain underpin our country’s food security and account for a significant portion of South Africa’s exports. According to data from the Agbiz, last year South Africa’s agricultural exports reached a record $13.7 billion. These agricultural exports are diverse, with 44% of these products exported to other African countries, 21% to Asia and the Middle East, 19% to the European Union and 6% to the Americas. The value and volume of the farming sector has more than doubled since the dawn of democracy in 1994. This is testimony to the ongoing efforts of both Government and industry to ensure that South Africa products access as many export markets as possible. Beyond the role of expanded export markets, agricultural economists have attributed the sector’s growth to Government’s embrace of science, allowing the private sector to register better seed cultivars and genetics to boost productivity. Click here to read full From the desk of the President.
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Food security trends in South Africa |
| | | A report by Statistics South Africa examines food security trends based on the General Household Survey. Using the Food Insecurity Experience Scale (FIES), it tracks moderate to severe and severe food insecurity from 2019 to 2023. Findings show a rise in food insecurity, with female-headed households, large households, and social grant recipients being the most affected. Rural areas and provinces like Northern Cape and North West had the highest food insecurity rates. Surprisingly, households involved in agriculture faced higher food insecurity, suggesting economic vulnerability. Urban households and those with higher-educated heads had lower food insecurity levels. Employment status also played a major role, with unemployed households experiencing significantly greater food insecurity. The report underscores the need for economic stability, education, and policy interventions to improve food security in South Africa. Click here to read full Food Security in South Africa in 2019, 2022 and 2023: Evidence from the General Household Survey.
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China's agricultural trade friction with The U.S. presents opportunities for other exporters | |
The first week of February 2025 was eventful for global agriculture. Following U.S. President Donald Trump's announcement of further tariffs on China, China retaliated. On 4 March, China announced retaliatory tariffs on U.S. agricultural products, imposing a 10% tariff on sorghum, soybeans, pork, beef, aquatic produce, fruits, vegetables, and dairy products, alongside a 15% tariff on chicken, wheat, corn, and cotton. During President Trump's first term, when China imposed retaliatory tariffs targeting agriculture, U.S. farmers were among the most affected due to the significance of China in their exports. This time around, it will be no different. One would even argue that China is now more prepared than in the past, as it has been building its domestic agricultural production for the past few years and switching to new suppliers of vital farm products in South and Latin America. Click here to read full article by Wandile Sihlobo.
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The conundrum of rising agricultural output and worsening food security in South Africa |
| | | South Africa has the contradiction of being the leading agricultural exporter in Africa, and a swelling number of households that is food insecure. Without proper policy engagement of this challenge, the sector face the risk of more waves of misconceptions about its export-driven growth drive while many South Africans are impoverished. We believe that an accurate diagnosis of the problem and its underlying causes is critical to formulating a suitable policy response. In February 2025, Statistics South Africa released the Food Security Report for 2019, 2022 and 2023 (COVID-19 affected the ability to collect data in 2020 and 2021 ). The report utilized data from the General Household Survey (GHS) for those years. The report's most striking observation was that ‘the proportion of households in South Africa that experienced moderate to severe food insecurity was estimated at 15,8% in 2019, 16,2% in 2022, and 19,7% in 2023. Over this period, the proportion of households that experienced severe food insecurity was estimated to be 6,4%, 7,5%, and 8,0%, respectively’. Click here to read full article by Wandile Sihlobo.
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Discussion | SA will suffer a blow should it be expelled from AGOA | |
If South Africa is expelled from the African Growth and Opportunity Act (AGOA), the country could face significant setbacks. Tariffs would average around 3% on exports to the United Sates will hurt South Africa’s access to the American market, further weakening its competitiveness. This is according to Wandile Sihlobo from the Agricultural Business Chamber of South Africa. He spoke amid growing international pressure and uncertainty surrounding the country’s trade relationship with the US. Despite the concerns, Sihlobo remains hopeful that South Africa will still be part of AGOA when the agreement is up for renewal later this year. He says the US remains a vital role player for the country's exports despite only accounting for four-percent. The Agricultural Business Chamber of South Africa attributes this to the exports being concentrated to a few industries like citrus, grapes, wine and nuts. Click here to watch discussion on eNCA.
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China presents enormous opportunity for South Africa's agriculture |
| | | I just read a piece in the ChinaDaily about China's efforts to improve food security. I thought it would be helpful to comment on how South Africa could participate in China’s journey toward food security. China will continue to be a priority for South Africa's efforts to enhance its agricultural exports. While we currently lack extensive access to China for our agricultural products, tremendous potential exists. The latest comments by China's Agricultural Minister, Mr Han Jun, that their grain supplies remain tight and food security remains a priority again underscores the importance of the Chinese market. Indeed, China's long-term ambition is somewhat self-reliance. The Agricultural Minister, Mr Han Jun, stated today, March 8, that: "As a nation of 1.4 billion people, we must rely on ourselves to feed our population. We cannot depend on others," ."Food security is a priority, and we must always remain vigilant." Still, as a country that accounts for 11% of global agricultural imports, China's reality of being an importer won't change soon. Click here to read full article by Wandile Sihlobo.
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South Africa's consumer food price inflation continues to slow |
| | | South Africa ended 2024 with a slowing food inflation path. The start of 2025 has continued on a similar path. The recently released data by Statistics South Africa shows that consumer food price inflation slowed to 1.5% in January 2025 from 1.7% in December 2024, writes Wandile Sihlobo. An important clarification is necessary here: we must remember that lower food inflation does not equate to lower prices. Inflation is the pace of price changes or increases. Therefore, while that pace has slowed to 1.5% in January 2025, some food item prices are still rising. For this reason, some people tend to dismiss the slowing inflation figures and say they don't feel such price inflation moderation in their spending. Now, back to the data, this deceleration was underpinned by most products in the food basket, particularly "meat," "fish and other seafood," "milk, other dairy and eggs," and "fruit and nuts." Essentially, the base effects and the recovery in supplies of various products continue to be the primary drivers of the slowing rate of food price increases. Read more.
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PODCAST: South Africa’s agricultural exports hit record level | |
South Africa’s agriculture exports set a record of $13.7bn in 2024, up 3% from the previous year. This reflects an increase in the volume of agricultural exports as well as higher prices of some products. The top exported products by value include citrus, grapes, maize, apples and pears, wine, nuts, fruit juices, sugar, berries, dates, pineapples, avocados, wool, apricots and peaches, ciders, and beef, among others. Click here to listen to the podcast for more insights.
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Agbiz Grain SHEQ seminar exceeds expectations |
| | | The Agbiz Grain SHEQ, or safety, health, environment and quality, seminar held in Pretoria last year brought together industry leaders to discuss critical issues pertaining to the grain storage sector. The key topics included the Agbiz Grain SHEQ compliance audit, alcohol and substance abuse in the workplace (especially cannabis use), workplace injuries and challenges such as medical practitioners refusing to treat injury-on-duty (IOD) cases, employees faking IODs, and navigating compensation under the Compensation for Occupational Injuries and Diseases Act, 1993 (Act 130 of 1993) or COIDA. The first session addressed the need for audit criteria tailored to the grain storage sector. Due to the industry being unique with distinct risks and mitigation methods, a sector-specific audit document needs to be created. This document, developed by a sector committee with external input, will cover all compliance aspects for grain storage facilities. Click here to read full article by By Christal-Lize Muller, Plaas Media.
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Final Network Statement: A step closer to moving grain by rail again |
| | | Over the last 20 years, there has been a steady shift from rail transport to road transport in South Africa. The transport of bulk agricultural products such as grains, sugar cane, and timber are well suited to rail transport but reliability issues in the past have led to companies switching to road transport, thereby prioritising reliability over costs. This trend is not good for the country as it leads to increased costs in the value chain and puts significant pressure on our road system. Moving to a competitive system. Since the current trend is not sustainable, the presidency convened a core group of experts under the banner of Operation Vulindlela to reverse the trend. The team’s proposals were captured in the Freight Logistics Roadmap adopted by cabinet towards the end of 2023. The roadmap recommended a fundamental shift towards an open, competitive system between different train operating companies (TOCs). Click here to read full article by Theo Boshoff, CEO, Agbiz for Agbiz Grain Quarterly – February 2025 issue.
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U.S. agricultural exports in fiscal year 2025 forecast at $170.5 billion; imports revised upwards to $219.5 billion |
| | | U.S. agricultural exports in fiscal year (FY) 2025 are projected at $170.5 billion, up $500 million from the November forecast, as higher grain and feed exports offset reductions to the oilseed outlook. Grain and feed exports are projected at $37.7 billion, up $1.2 billion from November, led by higher corn exports, which increased $1.4 billion on higher volumes and unit values. Along with higher feed and fodder exports, these increases more than offset moderately lower wheat, sorghum, and rice exports. Oilseed and product exports are forecast at $32.4 billion, a $1.1-billion reduction from the previous quarter, primarily due to lower soybean unit values resulting from strong South American competition. Cotton exports are forecast down $200 million to $4.1 billion on lower volumes. Exports of livestock, poultry, and dairy are forecast up $400 million to $39.7 billion on increases to beef and dairy products. Horticultural product exports are unchanged at $41.7 billion. Ethanol exports are forecast at $4.2 billion, unchanged from the November outlook, as higher volumes offset lower export unit values. Read full article by ers.usda.gov here.
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U.S. faces $49B agricultural trade deficit as imports rise | |
The U.S., traditionally an agricultural leader, is facing a projected $49 billion trade deficit in agriculture this year, according to the U.S. Department of Agriculture (USDA) trade outlook report. Increased imports of produce like avocados and coffee are key contributors. Concurrently, American staple crops are losing global market share. The U.S. has been importing more food than it exports since 2023, a reversal from its historical trade surplus. Previously, deficits were recorded in 2019 and 2020 during the trade conflict with China, and sporadically before 1960. Mark Powers, president of the Northwest Horticultural Council, expressed concerns at the USDA's Agricultural Outlook Forum, stating, "What we're seeing is not reassuring when it comes to increasing our reliance on a small number of markets." He emphasized the importance of focusing on North American markets, noting increased U.S. apple exports to Canada and Mexico. Read full freshplaza.com here.
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How talent fuels growth: harnessing potential for global innovation | |
Human progress has always been driven by ideas, but these ideas emerge from people, particularly the most talented minds. Talent is a valuable resource that drives innovation, and nations that develop and empower top talent gain a competitive edge. Unfortunately, many developing economies fail to identify and nurture young geniuses, leading to untapped potential. Research highlights the importance of equal access to education, family income, and social networks in helping individuals realise their potential. Artificial intelligence could amplify or restrict innovation, depending on how it’s used. Countries that attract and retain top talent are better positioned to address challenges like ageing populations. Expanding education and access to opportunities can reduce inequality and foster creativity. Smart policies that nurture talent can significantly change societies, driving growth and innovation to solve global challenges. To read the full issue, click here (PDF).
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FAO food price index update: February 2025 | |
The FAO Food Price Index (FFPI) rose by 1.6% in February 2025, driven by increases in sugar, dairy, and vegetable oil prices. The index stood at 127.1 points, 8.2% higher than the previous year but still 20.7% below its March 2022 peak. The Cereal Price Index rose slightly by 0.7%, with wheat and maize prices increasing due to tight supplies and adverse crop conditions. Vegetable oil prices surged by 2%, largely due to palm, soy, sunflower, and rapeseed oil price hikes. Meat prices remained stable, while dairy prices rose significantly by 4%. Sugar prices increased by 6.6%, driven by concerns over global supply shortages and weather impacts on crops. These fluctuations highlight ongoing challenges in global food commodity markets, impacting food security and trade dynamics. Click here to read full World Food Situation report.
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Big week ahead for South African citrus |
| | | An important meeting of citrus growers in South Africa, a delayed budget speech by the national minister of finance, and the court case between International Container Terminal Services (ICTSI) and shipping giant Maersk are all key events this week that affect the citrus business. The grower meeting takes place with several major challenges on the horizon this year, and will also determine the crop forecast for 2025. After a 2024 season in which exports fell short of predictions, the industry is expected to announce a further increase in production along its path of growth towards 250mn cartons within ten years. Last year’s reduced export shipments was not due to a smaller citrus crop, but rather competition from the juicing sector, which saw a spike in prices and resulted in higher volumes diverted to the sector. Experts agree that shortages on fruit for the juice sectors are likely to continue this year, but they also feel that organic growth in the South African fresh orange sector will be sufficient for the industry to resume export increases in the fresh citrus sector. Click here to read full article derived from fruitnet.com.
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Ag trade deficit hits record as food imports soar |
| | | The U.S., known for being a global agriculture powerhouse, has never imported so much food. Inbound shipments of everything from avocados to coffee and sugar are expected to drive the country’s agriculture trade deficit to a record $49 billion this year, the U.S. Department of Agriculture said in its trade outlook report. At the same time, America’s most widely grown crops have been losing overseas markets over the past decades. It’s a stark turnaround for a nation that once used its abundant food supplies as a tool of statecraft, with the U.S. now facing a future of persistent agricultural trade deficits. The country imported more food than it exported every year since 2023. Before then, the only other annual deficits were in 2019 and 2020, during President Donald Trump’s trade war with China, and several years prior to 1960. “What we’re seeing is not reassuring when it comes to increasing our reliance on a small number of markets,” Mark Powers, president of the Northwest Horticultural Council, said at the USDA’s Agricultural Outlook Forum on Thursday. Click here to read full article by farmprogress.com.
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Mexican exporters pause avocado harvests due to 25% tariff |
| | | Although the 25% tariff on Mexican avocado exports to the United States had been temporarily suspended on March 6 2025 after only three days in force, producers and exporters have expressed concern that it could become a permanent policy. According to Salvador Miranda Aguilar, a representative of Grupo Sanell, the uncertainty caused by the tariffs has led to a halt in shipments to the United States. "Almost the majority stopped harvesting because we didn't know how the final price would be affected. Producers and packers were waiting to renegotiate terms with U.S. buyers," he said. Prior to the implementation of the tariffs, the price of exports to the U.S. was approximately 10 to 15 Mexican pesos higher than that offered in the domestic market; however, with the new 25% tariff, the profit margin has been significantly reduced, forcing exporters to reconsider their sales and distribution strategies. To facilitate comparison with other markets, the exchange rate is estimated at 20 Mexican pesos per dollar. Click here to read full article by freshplaza.com.
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Equipment revival at South African port terminals underpinning move from stabilisation to recovery | |
Transnet Port Terminals (TPT) CEO Jabu Mdaki believes the steady flow of new equipment, together with improved relations with key original equipment and part suppliers as well as shipping lines, has resulted in a stabilisation of operations at terminals that faced unprecedented and costly congestion little over a year ago. At one stage, the vessel backlog at the Durban Container Terminal’s (DCT’s) Pier 2, the country’s biggest and busiest container terminal, stood at 20 and at the start of 2024 the prognosis for recovery looked bleak. The associated congestion costs were significant, with the South African Association of Freight Forwarders estimating them to be at least R124-million a day. While Mdaki admits that risks persist, particularly during periods of inclement weather, he tells Engineering News that he is cautiously optimistic that the 10 000-employee Transnet unit has now moved firmly from stabilisation to recovery. Click here to read full piece by engineeringnews.co.za.
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SCTC announces retaliatory tariffs on US agricultural products | |
On March 4, 2025, the Ministry of Finance State Council Tariff Commission (SCTC) announced that China will impose retaliatory tariffs on U.S. agricultural products. According to the SCTC announcement, the duties would apply to anything not shipped out of the United States by March 10 and that had not arrived in China by April 12. A 10-percent tariff will be applied to commodities such as sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products, while a 15percent tariff will be imposed on items including chicken, wheat, corn, and cotton. The report provides an unofficial translation of the SCTC announcement and includes tables listing the affected commodities. FAS China provides this analysis and reporting as a service to the United States agricultural community, and to our farmers, ranchers, and rural communities in support of a worldwide agricultural information system and a level playing field for U.S. agriculture. Click here to read full report.
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What works for women at work |
| | | Across the globe, I’ve met countless men and women driven by the conviction that when policies work for women, societies move forward. Here is a world tour of policies that are opening the gates to greater economic empowerment of women. For the benefit of all. Women grow nearly half of the world’s food, yet less than 15% of them own the land they farm. In Benin, until recently, a woman could farm the same land for years—only to lose it when her husband passed away. But a nationwide effort changed that. Through land planning and the formal demarcation of community lands, the country is strengthening women’s rights to property. By clearly mapping land boundaries and recognizing customary ownership, these reforms have given married women more decision-making power and ensured that widows can remain on their land. This is changing long-standing norms, opening the doors for women to invest in their communities, access credit, and grow a future. Many mothers face the difficult decision of settling for lower-paying jobs or stepping away from the workforce entirely. The consequences—lost income, stalled careers, and slower economic growth—are too big to ignore. Click here to read full article by blogs.worldbank.org.
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BUSA Cargo movement update: logistics trends & trade challenges |
| | | South Africa’s logistics sector faced disruptions, with port volumes down 9% due to adverse weather and equipment shortages. Rail cargo from Durban dropped 13%, while global shipping reliability remained low at 51.5%. Air cargo saw a 4% year-on-year increase, but freight rates declined. The country recorded a R16.4 billion trade deficit in January, underscoring trade vulnerabilities and the need for diversification. Despite these setbacks, new port equipment investments and rail reforms signal progress toward improved efficiency. Border crossing times at South African and SADC posts increased, leading to logistical delays. The Lebombo Border Post reported steady truck volumes, but cross-border transit times rose by nearly an hour. Road freight faced additional challenges from strikes and adverse weather. Policymakers and industry leaders must address these inefficiencies to sustain economic growth and strengthen South Africa’s global trade position. Click here to read the full BUSA update.
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The Real Economy Bulletin Q4 2024: economic growth, trade & employment trends | |
South Africa’s GDP grew by 0.6% in Q4 2024, supported by agricultural expansion, while most sectors, including mining and manufacturing, experienced declines. Weak global commodity prices continued to impact exports, with mining revenues down 12% since 2022. Employment, however, showed resilience, growing by 2.1% year-on-year, driven by informal and manufacturing jobs. Infrastructure challenges persist, with electricity demand falling due to tariff increases and improved off-grid solutions. Rail and road freight volumes remained low. Despite a 1% drop in total investment, private investment showed slight growth. Foreign Direct Investment (FDI) saw R56.7 billion in new projects, primarily in renewable energy and data centres. Policymakers must address structural issues to sustain economic recovery. Click here to read full report by TIPS.
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Peritum Agri Institute celebrates another milestone opening ceremony |
| | | Peritum Agri Institute proudly hosted its official opening ceremony at Leopard and Lace Venue, marking a significant milestone in agricultural education. With Directors Emmie Pietersen and Belinda Louw at the helm, the event celebrated the institute’s continued commitment to developing skilled professionals in the agricultural sector. This year marks the inaugural rollout of the Higher Certificate programme, complementing the well-established Diploma programme in both Animal Production and Plant Production. Additionally, Peritum Agri Institute has expanded its offerings with the introduction of the Occupational Certificate in Grain Depot Management, addressing a crucial need for specialized training in the grain storage and logistics industry. The more than 180 attendees, amongst them were parents, students and lecturers, were reassured by Nihan Olivier, who opened the ceremony with scripture referring specifically to the need for hard work and dedication, with reference agriculture. Click here to read full statement by Peritum Agri Institute.
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Agbiz CEO Theo Boshoff unpacks the Expropriation Bill | In this insightful discussion with Anlie Hattingh on AgriXtra, Agbiz CEO Theo Boshoff unpacks the newly signed Expropriation Act, shedding light on its implications for land reform and property rights. While some see the legislation as a step forward, others fear its impact on private ownership. Boshoff provides a balanced perspective, separating fact from fiction and exploring what this means for the agricultural sector. Click here to watch the full interview. | |
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! | |
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. | |
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. | |
Discover the latest updates and insights from Hortgro in the newest edition of their publication. Click here to read the March 2025 issue of New Roots, featuring the latest industry developments and important information. | |
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Grain Handling Organisation of Southern Africa (GOSA) Symposium 2025
18-19 March 2025 | Mossel Bay
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Mzansi Young Farmers Indaba
1-2 April 2025 | Lavender Kontrei Market, Pretoria North, Gauteng
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Transforming Poultry Productivity and Empowering Sustainability in Africa
29-30 April 2025 | The Garden Venue, Johannesburg, South Africa
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BUSA Sustaining Progress Conference 2025
29 May 2025 | Focus Rooms, Modderfontein
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3rd Annual Food Waste Solutions Summit
26-27 June 2025 | Hotel Sky, Sandton
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International Fresh Produce Association’s Southern Africa Conference
23-24 July 2025 | Pretoria, South Africa
Learn more
South African Sugar Technologists’ Association Congress 2025
12-14 August 2025 | ICC Durban
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- 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.
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THIRD-PARTY WEBSITE LINKS TO THIS NEWSLETTER | |
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. | | | | |