FAO welcomes adoption of UN Pact for the Future | |
The Director-General of the Food and Agriculture Organization of the United Nations (FAO), QU Dongyu, has welcomed the adoption of the Pact for the Future, an agreement among UN member states designed to turbo-charge the implementation of the Sustainable Development Goals. In his address to the summit’s plenary in New York, the FAO Director-General underscored the pact's provisions for more equitable agrifood systems, recalling that hunger has risen since 2015, with more than 730 million people facing hunger in 2023. “We are not on track to achieving any of the global SDG targets, and we see that huge inequalities persist along various dimensions – including wealth, gender, rural areas, and in accessing assets and opportunities,” Qu said. “The future will be determined by more equitable agrifood systems, and I am pleased that this is recognized by the Pact for the Future.” Click here to read full article by fao.org.
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America’s dairy farms are disappearing, down 95% since the 1970s − milk price rules are one reason why | |
Milton Orr looked across the rolling hills in northeast Tennessee. “I remember when we had over 1,000 dairy farms in this county. Now we have less than 40,” Orr, an agriculture adviser for Greene County, Tennessee, told me with a tinge of sadness. That was six years ago. Today, only 14 dairy farms remain in Greene County, and there are only 125 dairy farms in all of Tennessee. Across the country, the dairy industry is seeing the same trend: In 1970, over 648,000 U.S. dairy farms milked cattle. By 2022, only 24,470 dairy farms were in operation. While the number of dairy farms has fallen, the average herd size – the number of cows per farm – has been rising. Today, more than 60% of all milk production occurs on farms with more than 2,500 cows. This massive consolidation in dairy farming has an impact on rural communities. It also makes it more difficult for consumers to know where their food comes from and how it’s produced. Read full article derived from wired.com here.
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Business confidence in South Africa: how a 70-year-old survey has given early signals of the economy’s pulse |
| | Business tendency surveys provide very useful indicators of trends within an economy. The information is available well before the official statistics, such as GDP growth, and provides insights into business dynamics that cannot be found elsewhere. For 70 years the Bureau for Economic Research at South Africa’s Stellenbosch University has been conducting business tendency surveys. Indeed, South Africa remains one of the few countries where these surveys are conducted by a non-state agency. The surveys cover a range of questions, tracking everything from activity to demand, selling prices to inventories, investment and also the constraints holding back investment. But the most important question is very simple: are you satisfied with prevailing business conditions? Respondents can only respond with a yes or a no. There is no scale, no maybe, no but. It is a pure gut feeling. This is the only true measure of business sentiment in South Africa. Click here to read full article derived from theconversation.com.
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Steenhuisen outlines vision for growing and modernising SA’s agriculture ecosystem |
| | Newly appointed Agriculture Minister John Steenhuisen is pushing a renewed focus on structural reforms, biosecurity and improved trade relations with other countries as the Democratic Alliance leader takes charge of the department as part of the Government of National Unity (GNU). In an exclusive interview with Engineering News & Mining Weekly, Steenhuisen highlights that other prioritised areas are more road-to-rail shifts in agricultural logistics, and the more widespread adoption of technology to reduce crime and increase productivity. Some agri-economists are optimistic that he will be able to advance the prospects of the industry, a mainstay of growth for the South African economy, having grown by 13.4% and created 21 000 new jobs in the first quarter of this year. Since 2008, its growth rate has averaged 7.5% a year. Industry bodies, such as the Agricultural Business Chamber of South Africa (Agbiz) and Agri SA, welcomed Steenhuisen’s appointment in July and his subsequent maiden Budget vote, which the organisations say is focused on valuable interventions and relentless implementation. Click here to read full article derived from creamermedia.com.
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SA agriculture must refresh its export strategy for this new era | |
Does South Africa's agriculture have any future in global markets in the face of deepening geopolitical frictions among major economies? It all depends on what the country's leaders do to prepare for an uncertain future. Success is not guaranteed. It is a product of the combination of a clear reading of today's trends and how these will shape the future of global markets, how they envision South Africa's place in this fast-changing global economic order, the choice of policy actions, and daring speed. What made us successful yesterday may not be adequate for the challenges ahead. South Africa stands at a crossroads where a bold, export-driven strategy is no longer optional but essential. As the global trade landscape shifts, with nations forging ahead through plurilateral deals and free trade agreements, the urgency for South Africa to secure its place in an uncertain global economy has never been greater. Click here to read full Agricultural Trade Digest by Wandile Sihlobo.
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SA must focus on China and the Middle East for agricultural trade and investments | |
Now that President Cyril Ramaphosa has concluded his state visit to China, a country with much promise for deepening agricultural trade, the next stop should be the Middle East. But before we transition to the Middle East let’s briefly examine China’s agricultural trade. Trade data provides SA with some signposts of what to do next: aggressively drive exports to the Chinese market. This is a market of more than $200bn of agricultural imports a year, and SA remains a small player at just 0.4% of that market. From now on the focus should be on nudging China to lower import tariffs on various agricultural products and address the phytosanitary barriers that exist for some products. This effort will build on the success of the existing export market possibilities for SA beef, avocados and wool, among other products. Read full article by Wandile Sihlobo for businesslive.co.za here.
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The decline in global rice prices will benefit the South African consumer | |
The disruptions in the major grain supplies always spark fear of food security. Certainly, in July 2023, India sparked fresh concerns about global food security as the world was readjusting from the disruptions caused by the Russia-Ukraine war on global grains supplies and prices. The country placed a ban on the non-basmati white and broken rice. This affected category typically accounted for 45% of the 22 million tonnes of rice that India exports to the global market annually. The rationale cited in media articles at the time was that India's government was worried about inflation ahead of the upcoming elections. After that official announcement on July 20, 2023, global rice prices rallied in the following months, as many were concerned about possible supply shortages. The worries were not misplaced. India accounts for roughly 26% of global rice production. Read full article by Wandile Sihlobo here.
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South Africa's agricultural fortunes contracted in Q2, 2024 |
| | After a robust expansion of 13,5% quarter-on-quarter (seasonally adjusted) in the first quarter of 2024, South Africa's agricultural gross value added contracted by 2,1% in the second quarter. This is unsurprising. South Africa's agriculture has gone through the severe impact of the El Niño-induced drought in February and March, which weighed on crop yield. For example, South Africa's 2024-25 summer crop harvest is down 22% from the previous season, estimated at 15,69 million tonnes. Moreover, the livestock industry, which accounts for nearly half the sector's value, faces relatively higher feed costs and lingering animal diseases (particularly foot-and-mouth disease), which all explain the underperformance this quarter. The drought impact has already weighed on sentiment in the sector. For example, the Agbiz/IDC Agribusiness Confidence Index (ACI) remained depressed in the second quarter of 2024, reaching 38 points from 40 points in the previous quarter. Click here to read full article by Wandile Sihlobo.
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South African agriculture needs to crack the Chinese market | |
South Africa’s agricultural sector has more than doubled in value and volume terms since 1994. This success has been linked to international trade. Exports now account for roughly half (in value terms) of the annual agricultural production. Other drivers have been improvements in productivity through crop and animal genetics. Exports are largely to the rest of the African continent. In 2023 these accounted for 38% of South Africa’s agricultural exports. The EU is another important market for South Africa’s agricultural sector, accounting for a 19% share in 2023. In recent years, Asia and the Far East, in particular China, have been identified by the agriculture sector and policymakers as the key growth frontiers. Asia and the Middle East accounted for a quarter of South Africa’s agricultural exports in 2023. But huge pockets of opportunity remain, in terms of products and countries. Click here to read full article by Wandile Sihlobo.
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Some brief comments on South Africa’s agriculture in this snowfall |
| | We have had one of the challenging weekends in the regions of the Free State, Eastern Cape and KwaZulu Natal with the heavy snowfall. These are also agricultural-endowed provinces; thus, we typically worry about the impact on farming during natural disasters. The subsectors of agriculture that we continue to worry about are livestock – cattle, sheep, and goats. These harsh weather conditions are not ideal for the farming community. However, it has not been possible to assess the impact of this snowfall in these regions. With travel restrictions and difficulty driving around, understanding the consequence of the snowfall on farming may take some time. But cattle, sheep, and goats are certainly the farming activities we must watch closely. The communal areas, where livestock is generally not in good health in some regions in winter because of reduced feed and dry grazing veld, are a significant concern. Read full article by Wandile Sihlobo here. Read Additional comments on the snowfall impact on South Africa’s agriculture here.
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Hopeful about South Africa’s new season crop |
| | Recently the South Africa’s Crop Estimates Committee — the body of researchers in government and independent organizations tasked with forecasting the country’s grains and oilseed production — will release its eighth production forecast for the 2023-24 summer grain production. They will also release their 2nd production estimates for 2024-25 winter grains and oilseeds. We know the 2023-24 summer grains and oilseed harvest took a major hit from the mid-summer drought. The current production estimate is 15,69 million tonnes, down 22% from the 2022-23 season. There are significant crop declines in maize, soybeans, and sunflower seeds, amongst other grains. And to be clear, the 15,69 million tonnes estimate is for all summer grains and oilseeds – maize, soybeans, sunflower seed, sorghum, groundnuts, and dry beans. Still, South Africa is fortunate to have been able to meet its local needs and have a surplus for the neighbouring countries in dire need of maize supplies. Click here to read full article by Wandile Sihlobo.
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South Africa’s agricultural machinery sales remained weak in August 2024 |
| | South Africa’s tractor sales were down by 18% year-on-year in August 2024, with 574 units sold. The combine harvester sales are down by 79% year-on-year, with five units sold. These weak sales are unsurprising and in line with what we have been observing since the start of the year. We have long anticipated that there would be some correction after a long period of strong tractors and combine harvesters sales in South Africa. The replacement rate of new machinery was bound to slow. The sales of the past few years were a function of both years of ample grains and oilseed harvest, coinciding with high commodity prices and boosting farmers’ incomes. For example, we have previously stated that South Africa’s tractor sales for 2022 amounted to 9,181 units, up 17% year-on-year. This was the highest annual sales figure in the past 40 years. The combine harvesters also had an excellent performance of 373 units in 2022, up 38% year-on-year. This was the highest yearly sales figure since 1985. Click here to read full article by Wandile Sihlobo.
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What message should SA agriculture take to Kazan for the BRICS+ summit |
| | South Africa's agricultural growth in the first thirty years of the democratic era has been supported, among other things, by two pivotal interventions. The first was a deliberate and concerted strategy to invest in genetics for crops, horticulture, and livestock. The second intervention was a strong push to expand export markets. As production continues to increase, and there remains capacity for expanding production, these two levers must be accelerated. The trade issues are not purely economic but political, which means that the South African political leadership must take a clear stand and focus on retaining the existing markets through dialogue with the political leadership of the countries where we continue to experience challenges. The Department of Trade Industry and Competition and the Department of International Relations and Cooperation must be at the forefront of these efforts, supported by scientific insights from the Department of Agriculture. Click here to listen to full podcast – Agricultural Market Viewpoint with Wandile Sihlobo.
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Investing in Africa’s food future | |
South Africa’s agricultural sector has more than doubled in value and volume terms since 1994. This success has been linked to international trade. At the same time, there is a growing call for greater financing of Africa’s agriculture sector in order for it to play a transformative role in reducing hunger across the continent by improving food production and transform Africa's food systems. Joining CNBC Africa for this discussion is Wandile Sihlobo, Chief Economist, Agbiz and Ben Leyaka, CEO, African Agri Council. Click here to watch interview.
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The importance of minerals for agriculture | |
Long-term trends over several decades indicate a strong correlation between global population growth and the increase in world production of staple foods. The economic growth resulting from the extraction of platinum-group minerals and the anticipated rise in consumer incomes offer the promise of increased local consumption of higher-value South African agricultural products. This also applies to the export of products to countries like China. A fair-trade agreement with China could provide South Africa with unlimited market access for agricultural products in exchange for exporting unprocessed platinum minerals. Click here to read full article by Agbiz Grain General Manager Wessel Lemmer for Landbouweekblad.
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G-20 nations agree to push for reform of global governance institutions | |
Group of 20 nations agreed to push for overhauls of the United Nations, the World Trade Organization and multilateral lenders in a breakthrough following one-and-a-half months of negotiations. A call for reforms will be launched on Wednesday during a meeting of G-20 foreign ministers proposed by Brazil on the sidelines of UN General Assembly, according to a draft communique seen by Bloomberg News. It’s the first time that the world’s 20 largest economies formally agree to make a joint effort to modernise global governance institutions that were created about 80 years ago, reflecting a post-World War II reality. “There is a growing perception that the United Nations, the Bretton Woods Institutions and the World Trade Organization are in urgent need of reform,” reads the draft of the communique that will be released during the G-20 meeting, which for the first time will be open to all UN member states. Read full article derived from business-standard.com here.
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Shipping lines brace for potential US strike |
| | Shipping lines are bracing for the growing likelihood of a strike at US ports along the East and Gulf coasts as the deadlock between the International Longshoremen’s Association and the US Maritime Alliance drags on. Major carriers have announced surcharges to confront the potential disruptions and expect continued strong cargo traffic during the peak season, but have warned of congestion at ports around the world. According to think tank Sea-Intelligence’s latest analysis, a one-week strike at US ports in early October could result in backlogs in the country until mid-November, while a two-week strike could impact operations until 2025. Hapag-Lloyd and CMA CGM have followed Mediterranean Shipping Company’s earlier notice to clients of their intent to impose surcharges on imports and exports through these affected ports. This is in line with the Federal Maritime Commission rules which require a 30-day notice period to customers of additional fees. Click here to read full article first published in freightnews.co.za.
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‘Intensive agriculture is the way to go’ – Schlettwein | |
Water, agriculture, and land reform minister, Carl Schlettwein believes that intensive agriculture is the way forward. According to Schlettwein, there is a need for a policy shift from over-reliance on rain-fed agriculture to de-risking the sector to protect against climate change and to improve variety. He made these remarks on Thursday in Windhoek, during the 25th Annual Symposium of the Bank of Namibia, themed “Agricultural Global Value Chains for Inclusive Development: How can Namibia position its Agricultural Sector?” “Global Value Chain related trade, rather than conventional trade, has a positive impact on investment, productivity, income per capita, and economic performance,” he said. Schlettwein said that the symposium should provide practical strategies for positioning the agricultural sector in domestic, regional, and global value chains. Click here to read full article.
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Berries ZA casts its net wider in the East |
| | As South African blueberry exports to traditional markets move into full gear, there are also efforts to increase access in the East. The South African berry industry, which has for so long depended on Europe and the UK, has been working behind the scenes to gain improved access to the East for some time. While China and India have been on the radar, industry body Berries ZA says it is now also looking at access to Japan. In the October-December period exporters are ramping up volumes as the largest production region in the country, the Western Cape, moves into its peak season. “Our total target for shipments still stands at 23,000 tonnes, after the export crop had previously been adjusted downwards from 25,000 tonnes,” said Berries ZA chief executive Brent Walsh. “We still have good volumes coming out of the north of the country, but volumes are now picking up significantly as growers in the South increase their harvesting activities.” The market remained short, he noted, so there is very high demand for South African blueberries. Click here to read full article derived from fruitnet.com.
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Europe’s orange protocol causes “enormous destruction of value” | |
This has been the second season of sending out South African oranges under Europe's cold steri protocol, and the chill damage on organic oranges on arrival can be estimated at between 5% and 20%, reckons Paul Marais, organic citrus farmer and chair of SOGA, representing a group of four organic farmers in the Sundays River Valley. The protocol came into effect in 2022 in order to, according to the European Commission, safeguard European citrus growers against the African false codling moth, a quarantine pest, commonly referred to as FCM. Still, Marais notes, similar amounts of organic oranges continue to be sent to Europe because consumers are looking for fruit with lower residues, but it's an unedifying exercise. "Not having access to the heavy waxes and fungicides used on conventional fruit, we have quite a bit of chill damage when the fruit arrives, which is," he maintains, "an unnecessary destruction of value." Click here to read full article by freshplaza.com.
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Global table grape trade records lowest levels of exports in four seasons | |
Rabobank report forecasts trade to rebound next season with weather-affected countries showing signs of recovery. Weather events have plunged global grape exports to their lowest levels in four years according to a new report from Rabobank. However, the agribusiness banking specialist’s Table Grape Update 2024 does provide some optimism for the category, noting trade is expected to rebound next season with most weather-affected countries showing signs of recovery. “Last season, global table grape exports reached 4.2 m tonnes, the lowest export amount in four seasons,” the report said. “This decline was mainly due to weather events in Europe and the Americas – and higher exports from Chile, China, and other major producers couldn’t offset this.” According to the report, the share of exports from the Americas has declined from 45 per cent to 36 per cent over the past ten seasons. Click here to read full article by fruitnet.com.
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Mooi River farmer named 2024 KZN Kwanalu Young Farmer of the Year | |
The KwaZulu-Natal Agricultural Union, Kwanalu, has announced Mooi River Beefmaster cattle and maize farmer, Guy English, as the 2024 KZN Kwanalu Young Farmer of the Year. English, 35, will go on to represent Kwanalu and all KZN farmers at the 2024 Toyota SA/ Agri SA National Young Farmer of the Year Competition later this year. Competing against top farmers from across South Africa, he stands a chance to secure the coveted national title and drive home in a brand-new Toyota Hilux Single Cab. “Year after year, we are amazed by the innovation and dedication of our province’s young farmers who forge new paths in an ever-evolving industry. Their stories are shining examples of the resilience, passion, and forward-thinking that will carry KZN’s agricultural sector into a sustainable and productive future,” says Sandy La Marque, Kwanalu CEO, Sandy La Marque. Click here to read full article.
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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. | |
September | South Africa Wine News | Explore the latest developments in the South African wine industry. Click here to read the August issue and stay updated on key insights and upcoming events. | |
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Artificial Intelligence in Agriculture Conference
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