The power-hungry technology requires policies to help expand electricity supplies, incentivize alternative sources, and help contain price surges. Artificial intelligence is an emerging source of productivity and economic growth that’s also reshaping employment and investment. AI has the potential to raise the average pace of annual global economic growth according to scenarios in our recent analysis, included in the IMF’s April 2025 World Economic Outlook. AI, however, needs more and more electricity for the data centers that make it possible. The resulting strain on power grids has major implications for global electricity demand. The world’s data centers consumed as much as 500 terawatt-hours of electricity in 2023, according to the most recent full-year estimate by the Organization of the Petroleum Exporting Countries. That total, which was more than double the annual levels from 2015-19, could triple to 1,500 terawatt-hours by 2030, OPEC projects. Click here to read full report by imf.org.

China and the United States on Monday released a joint statement on China-U.S. Economic and Trade Meeting in Geneva. The following is the English translation of the full text of the joint statement: Joint Statement on China-U.S. Economic and Trade Meeting in Geneva. The Government of the People's Republic of China ("China") and the Government of the United States of America (the "United States"), Recognizing the importance of their bilateral economic and trade relationship to both countries and the global economy; Recognizing the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship; Reflecting on their recent discussions and believing that continued discussions have the potential to address the concerns of each side in their economic and trade relationship; and Moving forward in the spirit of mutual opening, continued communication, cooperation, and mutual respect. Click here to read full article.

There’s an assumption in the agricultural industry that the yields and prices of crops will vary according to local conditions as well as supply and demand in local and international markets. As a result, farmers understand that not every year will be profitable but over the long run, all things being equal, the good years should outnumber the bad. But is climate variability and risk changing? The answer is yes. Scientific evidence which has become more robust over the past decade points increasingly to this reality. So, what is changing and what can be done about it? Climate risk and climate resilience both need to be considered. If climate risk is increasing, resilience must be built up through measured and effective responses. The most important climate change risk is increased temperature. This affects rainfall and seasonal patterns on a global scale. It also affects plants’ phenological growth (phases in the plant’s development which require certain thresholds of sunlight, heat and moisture) and physical growth, as well as animal growth and exposure to pests and diseases. Read dull article here.

The White Paper on Local Government, which hails from 1998, is currently being revised. A three-year consultation and revision period is being envisaged. A discussion document was published by the Department of Co-operative Governance in March 2025. A NEDLAC process is currently underway to provide input for the development of a new White Paper. Agbiz is represented on the Business task team in NEDLAC. Two constructive engagements have already taken place in NEDLAC. The intention is to publish a revised Local Government White Paper in March 2026, following an extensive and inclusive process of consultation based on the published discussion document. The discussion document provides a very honest analysis of the state of local government in the country There is an admission that over the past three decades local government performance has generally regressed due to a variety of administrative, governance, service delivery, infrastructure, financial, structural, and systemic challenges. These challenges have persisted despite multiple previous attempts at reform. Click here to read full article by Agbiz Head: Legal Intelligence Annelize Crosby.

The Minister of Employment and Labour gazetted the final employment equity sectoral targets on 15 April 2025. This was the last step in a process that started in 2018 when the amendments to the Employment Equity Amendment Bill were discussed in NEDLAC and then in Parliament from 2020. The Bill was finally signed into law on 5 April 2023 and commenced on 1 January 2025. The Department of Employment and Labour conducted some consultations on the proposed targets, but agriculture was lumped together with the forestry and fisheries sector and although Agbiz engaged throughout and submitted a number of comprehensive submissions, the final targets are not at all in line with what Agbiz regards as realistic. The final targets are as follows: Top Management: 34% from designated groups with 20,8% female and 13.2% male, Senior management: 52,6% from designated groups, with 21.6% male and 31% female, Professionally qualified: 76.4% with 34.7% male and 41.7% female, Skilled technical: 93.8%, with 49.8% male and 44% female, Disabled people: 3%. Click here to read full article by Annelize Crosby and Thapelo Machaba.

As of April 2025, designated employers who employ fifty or more employees must navigate an expanded Employment Equity (EE) landscape under the amended Employment Equity Act and its regulations. The hallmark of this regime is the introduction of ministerial sectoral targets, which mandate that each industry align its workforce composition with targets by the Minister of Employment and Labour by 2030. For agriculture, the Department of Employment and Labour requires 34.0% black representation in top management, increasing to 93.8% at entry levels or rather skilled employees?. Failure to demonstrate progress, or to provide a justifiable reason for non-achievement of the targets jeopardises an employer’s EE compliance certificate which is essential for bidding on government contracts. At the April Agbiz Council meeting, Thembi Chagonda from Global Business Solutions shared some advice with members on steps that need to be taken towards compliance with the regulations. In order to comply, companies must begin with a gap analysis. Using the new EEA12 form, they will need to map their current demographic profile across all occupational levels and compare it against their sector’s end-state targets. Click here to read full article by Annelize Crosby and Thapelo Machaba.

There is optimism in South Africa’s agriculture. We know this from various indicators, such as the Agbiz/IDC Agribusiness Confidence Index (ACI), which has increased in the first quarter of 2025 compared to the end of last year. The ACI increased 11 points from the last quarter of 2024 to 70 in the first quarter of 2025. This is the third consecutive improvement, placing the Index at its highest level since the quarter of 2021, a year of La Niña rainfall that boosted agricultural output. The current level of the ACI implies that South African agribusinesses remain optimistic about business conditions in the country. This was done in February based on surveys of various agribusinesses nationwide. And yes, the results may have changed somewhat compared to the time of the survey. However, appreciating that favourable agricultural conditions underpinned the optimism from the start, there is reason to believe things wouldn’t be as different even if the survey were done now. Click here to read full article by Wandile Sihlobo.

The livestock and poultry industries comprise nearly half of South Africa’s farming fortunes. Because of this large size, we worry about the sector when these industries encounter challenges. One of the persistent challenges of the South African livestock industry is the prevalence of animal diseases. We experienced this challenge most severely from 2022 through 2023 when the cattle industry was affected by foot and mouth disease, the poultry industry by avian influenza, and the pig industry by African swine fever. For a moment, at the end of 2024, it seemed as if we were receiving a breather from these challenges. But we are not out of the woods. The foot and mouth disease continues to spread in the cattle industry, while thankfully, the pig and poultry industries are in better shape and have somewhat recovered from the disease outbreaks of recent years. On May 10, South Africa’s Department of Agriculture issued a formal notice about the spreading foot and mouth disease in the cattle industry. Click here to read full article by Wandile Sihlobo.

China is one of the countries that quickly placed a temporary ban on purchases of South African beef after the formal announcement of the foot and mouth disease outbreak. But in today’s environment, where trade policy matters can be easily viewed with suspicion, or frankly are political, some have already asked if China is taking a strong stance because they have recently agreed to increase beef imports from Australia. My answer to this would be: no. What China has done is generally aligned with the typical practice of countries when there is an outbreak of animal diseases. It is mainly for protecting themselves against any possible risks. Of course, not all of South Africa has foot-and-mouth disease cases. We only have this challenge in a few provinces and certain farms, mainly in KwaZulu-Natal, Mpumalanga, Eastern Cape, and Gauteng. Under these circumstances, it is fair to argue that temporary export restrictions should be imposed on the affected regions, not across the country. Click here to read full article by Wandile Sihlobo.

We have been saying for some time that 2025 will be a recovery year for South Africa’s agriculture, mainly highlighting the gains in grains, soybeans, and horticulture yields. But I was particularly pleased yesterday, May 8, when I received a report from South Africa Wine (SA Wine) indicating that we will have an excellent harvest in 2025. SA Wine and Vinpro forecasts South Africa’s wine grapes harvest to be 1.244 million tonnes, an 11% recovery from the exceptionally poor harvest in 2024. Importantly, the quality promises are also to be excellent. The essence of it is captured well by this statement from SA Wine: “Mild, dry weather created near-perfect ripening conditions, yielding fruit with superb balance, flavour, and structure — the foundation of premium wine production.” With the harvest like this, our preoccupation for the coming months will continue to be the export markets and logistics. Click here to read full article by Wandile Sihlobo.

We continue to see encouraging agricultural machinery sales in South Africa. For example, tractor sales increased for the fourth consecutive month, up 5% year-on-year in April 2025, with 527 units sold. The combine harvesters' sales were even more encouraging, up 77% year-on-year in April, with 46 units sold. As we stated in the previous notes, the substantial increase in sales primarily reflects the positive sentiment in the sector about the 2024-25 crop and horticulture harvest due to favourable weather conditions and the base effects, given the weak sales in 2024. Indeed, the heavy rains in April have caused concerns about the crop quality. Still, there remains optimism about the yields, which supports the robust sales. For example, the Crop Estimates Committee forecasts South Africa's 2024-25 summer grain and oilseeds production at 18.01 million tonnes, 16% higher than the 2023-24 production season, representing a decent recovery from drought. If we reflect briefly on the past few years’ performance, it is fair to say that the poor agricultural machinery sales performance in 2024 resulted from three major factors. Click here to read full article by Wandile Sihlobo.

My first step into grain handling and storage was at MKB (now part of Overberg Agri) in Moorreesburg, Western Cape more than 20 years ago. As a young agriculturalist, I was assigned to take dust samples in the silos as part of a Southern African Grain Laboratories (SAGL) project to monitor the silos for karnal bunt. I not only got to know the darkest crevices of a silo, but developed a passion for this wonderful industry. From there, my path in grain administration and marketing led to me overseeing the grain division at MKB. NWK in Lichtenburg was the next stop on my grain journey, where I was the regional manager and responsible for compiling the budgets of the grain handling division. Silobags, bunkers, and dams became an alternative method of storage at the beginning of the 21st century. I learned more about these storage methods at Suidwes Landbou in Leeudoringstad, where establishing new depots was part of my responsibilities. Click here to read full article by Dr Charl van der Merwe, newly appointed general manager of Agbiz Grain.

The May 2025 issue of Agbiz Grain Quarterly is now available, offering fresh insight into South Africa’s grain handling and storage sector. This edition features early impressions of the soya bean multiple reference point location differential trial and explores the Bureau for Food and Agricultural Policy’s (BFAP) analysis of malting barley. Readers can also delve into critical topics such as the role of grain storage in national food security and the economic outlook stemming from South Africa’s 2025 budget. The Industrial Development Corporation’s (IDC) role in advancing industry development is unpacked, alongside a comparison of grain bags versus bulk carriers for sea transport. Other key features include best practices for preventing grain losses in silos, the benefits of square or rectangular silos, updates on land reform efforts, and an overview of labour law reform developments from Nedlac. Whether you're an industry stakeholder or an agri-policy enthusiast, this issue offers valuable knowledge and insight. Click here to read.

The Minister of Agriculture, John Steenhuisen, has conveyed his deep satisfaction with the South African avocado industry's active pursuit of international markets, which is evidenced by the season’s first shipment reaching Shanghai, China. One of Minister Steenhuisen’s priorities is to improve market access for South African agriculture. Since market access is essential for the profitability and sustainability of the agricultural sector, it is therefore of utmost importance that the Department of Agriculture plays a key role in expanding existing markets and opening new markets for South African agricultural products. The expansion of markets stimulates the demand for South African products, and this demand in turn, drives economic growth and job creation across the sector. “This “early bird shipment” to China is a testament to the hard work, innovation, and strategic foresight within our avocado industry. “South Africa is positioned as a major player in the global avocado market thanks to the investment made by businesses like ZZ2 in cutting-edge packhouses and nurseries, Core Fruit’s well-established expertise in exports, and Mission Produce’s global reach,” Minister Steenhuisen said. Click here to read full statement.

During the Freedom Day weekend run-up, the Minister of Finance withdrew his proposal to increase the VAT rate. On Freedom Day — Sunday, 27 April — the Cape High Court also issued an order prohibiting the Minister from proceeding with the VAT hike. The Budget meets a new political reality. The reversal of the VAT increase marks a new experience for South Africans: for the first time, parliament's balance of forces genuinely affects Budget decisions. In my earlier note on the Budget, I highlighted that the first decision on the Budget, the approval of the fiscal framework, was already a ‘damn close-run thing'. The majority was only 12 out of 400, but 24 members were absent when the vote was taken. Since that approval on 2 April, parties that supported the fiscal framework stood back from their decisions. Thus, the Minister could not assume a majority in the remaining three voting rounds. Any case, the High Court ruled the approval of the fiscal framework invalid and set it aside. Hence, the new Budget is now due on 21 May. Before and after 1994, South Africa’s parliament could approve or reject a Budget, but could not amend it. Click here to read full article.

The Minister is highly concerned about the ongoing Foot and Mouth Disease (FMD) outbreaks in KwaZulu-Natal and the recent spread to Mpumalanga and Gauteng. Two new cases, outside of KZN have been confirmed. One farm in Mpumalanga which was identified as part of trace-forward exercises from a positive auction in Utrecht, KwaZulu Natal. Although these animals showed no clinical signs of disease, further investigation have confirmed that the virus has spread to adjacent camps on the same farm. There are no indications that other farms have become infected, but veterinary services are continuing with clinical inspection and testing of livestock on farms in the area. Another farm was reported in Gauteng. Clinical signs suspicious of FMD were noted in a feedlot that received animals from an auction in Heidelberg, samples were collected and prioritised for testing. Laboratory results for these samples are positive and confirmed that this is the same virus that is circulating in parts of KwaZulu-Natal. Click here to read full statement Issued by the Department of Agriculture.

The FAO Food Price Index (FFPI) was on an increasing trend for most of 2024 and increased from January 2024 to December 2024 by 7.9% from 117.7 index points to 127.0 index points. The dairy index is the main contributor to the increased levels. Over the same time the dairy index increased by 17.0% from 118.7 index points to 138.9 index points. The FFPI continued with the increasing trend in 2025 with March up by 6.81% YoY, the FAO Dairy Price Index increased by 19.92% and the FAO Meat Price Index by 2.61%. The March 2025 FAO Cereal Price Index decreased by 1.08% YoY and the FAO Sugar Price Index by 12.37%. The ZAR strengthened by 2.82% in March 2025 YoY, softening the USD increases that occurred in dairy product prices in March 2025. The average butter price for the 12-month period April 2024 to March 2025 versus the 12-month period April 2023 to March 2024 was 29.37% higher, for SMP 1.77%, Cheddar 6.03% and FMP 13.07% higher. The ZAR appreciated by 2.60% over the same period. The March 2025 USD price for butter, is up by 16.75%, SMP up by 12.20%, FMP by 24.30% and Cheddar by 16.29%. Click here to read full report by Milk SA.

As rail reforms continue to take shape in South Africa, particularly with Transnet having published a Network Statement paving the way for private operators in December last year, Transport Minister Barbara Creecy recognises that logistics remains a binding constraint on economic growth and job creation. She addressed delegates in a keynote address at the Africa Rail 2025 conference, in Gauteng, on May 13, confirming that the rail network would ultimately remain State-owned to control pricing in a favourable manner. The Department of Transport is working on a Rail Masterplan as an evidence-based framework that will be published for public comment later this year. The masterplan will outline the developments in freight and passenger rail planned from now until 2050, particularly as more stakeholders opt for rail as a more environment-friendly and cost-effective mode of transportation. Additionally, Creecy confirmed that rail access tariffs and a Network Statement for 2025/26 were being drafted, as well as a request for information (RFI) for passenger rail, which would be released in coming weeks. Click here to read full article.

IGD forecasts changes to the convenience retail sector, with sales projected to exceed US$1trn by 2029. Market analyst IGD has released its Global Convenience Trends Report 2025, in which it predicts ”significant changes ahead” for the convenience retail sector. Sales are projected to exceed US$1trn by 2029, driven by a compound annual growth rate (CAGR) of 4.1 per cent. This growth will be fuelled by five key trends, it said, namely tech evolution, food mission, shifting space, targeted value and striving for better. ”Retailers need to adopt new convenience models, enhance store formats, and integrate digital tools, while suppliers need to adapt product strategies to emerging food trends and convenience needs,” IGD stated, The analyst said that while the convenience channel remains the third-largest modern trade channel over the next five years it faces strong competition, impacting its growth. Click here to read full article.

This week’s Cargo Movement Update by BUSA and SAAFF highlights ongoing pressures and progress across South Africa’s logistics landscape. Port operations faced weather and equipment disruptions, particularly in Durban and Cape Town. Despite a 1% drop in weekly TEUs handled, new equipment rollouts at key terminals signal long-term improvements. Air cargo volumes declined for the second consecutive week, with African carriers facing a steep 13.4% drop, and the Africa–Asia route down 40%. Cross-border delays eased slightly, though key posts like Kasumbalesa remain strained. Globally, freight rates and capacity are in flux, driven by new US tariffs on Chinese imports. Strategic investment and coordination remain critical to strengthening South Africa’s supply chain resilience. Full update available here.

The World Union of Wholesale Markets conference takes place next week in Johannesburg, a fitting locale to discuss the importance of wholesale food markets, says Dr Justy Range of Freshmark Systems, the marketfloor trading data platform at twenty municipal markets. South Africa's municipal market system is unlike any other in the world, he says, and expressly set up to integrate a broad range of farmers, ranging from new ones to those fully established, into formal food distribution networks. Direct and stabilising impact on food security "Farmers are only as strong as their markets are efficient," Dr Range remarks. "Efficient in selling their produce in a transparent system at a market-related price." The power of the South African model, he explains, lies in its ability to provide an open and transparent sales platform that 'discover' the most optimal price depending on the ultra-specific conditions reigning during the point of sale. The market authorities and market agents, often specialists in their fields, take an ad valorem commission, while the farmer receives payment in as little as 24 hours. Click here to read full article.

The Animal Feed Manufacturers Association (AFMA) shares the latest feed sales performance in its January 2025 report, offering key insights into market trends and production dynamics impacting the industry. The report reveals an 11.4% year-on-year growth in total feed sales, highlighting a strong upward trajectory. However, a 2.4% month-on-month dip from December 2024 reflects seasonal and market-related fluctuations. For full statistics and detailed analysis, click here to read the full report.

In the latest edition of Keeping it Fresh, the Fresh Produce Exporter's Forum (FPEF)'s newsletter, you will get a summary of the most pertinent information as well as reminders of important upcoming events. Please click here to peruse.

The Animal Feed Manufacturers Association (AFMA) hosted its Media & Industry Day on 6 May 2025 at the Grain Building, Agri-Hub Office Park. The event convened key stakeholders from across the feed and livestock value chains, offering a valuable opportunity to engage on industry developments and AFMA’s strategic vision. Stay informed on the priorities shaping the future of South Africa’s animal feed sector. Click here to read the full media release.

BUSA Sustaining Progress Conference 2025

29 May 2025 | Focus Rooms, Modderfontein

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Potatoes SA Innovation Symposium

23 & 24 July 2025 | CSIR Convention Centre, Pretoria

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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

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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.
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