e-Newsletter
41/2021
22 October 2021
Agriculture is key to boosting growth in South Africa
South Africa is currently in its rebuilding phase from the economic shocks of Covid-19. Agriculture is the one sector of the economy that maintained positive growth momentum in 2020 and into 2021, which policymakers identified as part of the sectors to drive economic recovery and job creation. This sector’s potential is also true for much of the African continent when one considers the constraints faced by the manufacturing sector, combined with challenges presented by domestication or regionalisation of global supply chains in manufacturing. Decision-makers must position agriculture more deliberately as a sector that could contribute to economic growth and job creation. This article limits itself to the growth possibilities of agriculture in the South African context. Agbiz chief economist Wandile Sihlobo shares his insights in the linked article written for the Wilson Center.
Municipalities can play a key role in South Africa’s economic development
Local economic development and better municipal service delivery are vital if South Africa wants to broaden economic participation and reverse its unemployment trend. To achieve these objectives, it is necessary to strengthen municipal finances and investment. Good municipal governance is a prerequisite. Intermediate city municipalities have an important role to play, because urban development is critical for growth and investment. It may also reduce the pressure caused by urbanisation to metros. Read more in the linked article by Prof. Johann Kirsten and Helanya Fourie of the Bureau for Economic Research, first published on The Conversation.
Nedlac TIC receives presentations from Productivity SA and DTIC on master plans
This past week Productivity SA presented to the Nedlac Trade and Industry Chamber (TIC) on Threats to Industrialisation and Economic Recovery, a presentation worthwhile perusing. At the same meeting, the chief economist of DTIC presented on Progress Update: Priority Sector Master Plans, including in the agriculture and agro-processing space. Please click on the links to peruse.
AGRIBUSINESS RESEARCH
South Africa's standing in the global food security ladder
This past week, The Economist released its Corteva-sponsored Global Food Security Index
results for 2021. South Africa is now at 70th position out of 113 countries, from 69 in 2020
and 44 in 2019. At face value, this decline may be seen as worrying. However, when one
looks at the index scoring's technical position, it becomes clear that South Africa is not doing
as badly as the headline ranking suggests. In this case, South Africa's scoring remained
unchanged from 2020, following a point drop in 2020 from 2019. The score came in at 57,8
in 2021, which is the same level as 2020, and down by 1,4 from 2019 in the Global Food Security Index. Relative to 2019, other countries have improved notably, resulting in the seemingly alarming deterioration in South Africa's ranking to 70. Read more in the linked article by Wandile Sihlobo.
Rising fuel prices to add pressure on SA's agriculture sector in 2021/22 summer crop planting period
The planting season for South Africa's 2021/22 summer grains and oilseeds started positively in the eastern and central regions with favourable rains that improved soil moisture. The weather outlook for the coming months is positive, with prospects of above-normal rainfall, which should support the crop in this new season. The one concern that farmers currently have to contend with is the rising input costs. We have recently written about the fertilizer and agrochemical prices which in October 2021 were over 40% higher compared with 2020 levels. The increasing fuel prices are an additional cost that farmers and agribusinesses currently face. Wandile Sihlobo discusses the latest data in the linked article.
Improved soil moisture in eastern regions of South Africa will boost 2021/22 summer crop plantings 
South Africa's summer crop planting season is underway in the eastern and central regions. The rainfall and soil moisture will be crucial from now until February 2022, when the crop pollinates. A recent report from World Weather Inc shows that soil moisture has improved noticeably in the eastern regions of the country following rainfall of the past few weeks. Importantly, this builds on already good soil moisture levels from the rainy
2020/21 summer season. These favourable soil moisture levels provide conducive conditions for planting, germination of seeds and after that, growth of the crop. More so, as the near-term weather prospects also show the likelihood of widespread rains between this week and the first week of November. Wandile Sihlobo discusses this subject in the linked article.
AGBIZ GRAIN
This is how the EU lowers fungus contamination
Grain
At the recent Agbiz Grain Symposium, Jaap Rommelaar from Zoomagri said 3 billion tonnes of grain and oilseeds are handled worldwide annually. Artificial Intelligence (AI) providers have been looking for solutions to the problems of the handling and storage sector. One example is the Toolbox project of the European Union (EU) in which researchers from the University van Wageningen participated. Read more in the linked article by Agbiz Grain general manager Wessel Lemmer, written for and first published in Landbouweekblad.
COVID-19 VACCINATION DRIVE
B4SA vaccination myths document
Common myths around the Covid-19 vaccines include 'Covid-19 vaccines aren’t safe because they were developed too quickly' or 'I’ve already had Covid-19, so I don’t need a vaccine'. Business for South Africa (B4SA) has drawn up an extensive document debunking common myths around Covid-19 vaccination, which is available for you to use in your own vaccination communications. Please click here to peruse.
OTHER NEWS
Future trajectories of China-Africa relations
China Foresight, published by the London School of Economics, focuses on the internal drivers and global implications of Chinese foreign policy and strategy. On the one hand, this includes understanding the domestic policymaking processes and ongoing debates among Chinese academics and senior policymakers. On the other, the programme analyses the global implications of China’s rise across different regions and sectors. By making use of its affiliation to a world-leading
research university, China Foresight aims to deliver policy relevant and actionable advice to strategic circles in the UK and beyond to further a better understanding of Chinese foreign policy and help formulate constructive
policy responses by connecting academic knowledge of diplomacy and strategy with the people who use it. Please click here to peruse.
On the economic geography of climate change
Climate change is a defining challenge of our times. This linked column introduces a special issue of the Journal of Economic Geography on climate change, which provides foundations for well-informed policymaking by addressing two main themes of the economic geography of climate change. First, climate change yields heterogeneous effects across space. Second, a crucial aspect of human adaptation to climate change is geographic mobility. As a consequence, limitations to mobility will worsen the socioeconomic costs of climate change. Other margins of adjustment covered in the issue include fertility, specialisation, and trade.
Receiving finance is key to SA’s climate adaptation and mitigation plan, says Minister Creecy
While global leaders prepare to head to the global climate action conference COP26 in Glasgow, Scotland, at the end of October, South Africa has made it clear that climate financing is essential for it to achieve any of its climate goals. South Africa has pleaded with developed nations to provide a breakthrough in climate financing at the COP26 negotiations in Glasgow, Scotland, at the end of this month. The plea was made by Barbara Creecy, Minister of Forestry, Fisheries and the Environment, at a national stakeholders meeting where the department announced its COP26 position. South Africa’s key standing of a breakthrough in climate financing was alongside the need for COP26 to set ambitious targets and implement actions to achieve those targets with the necessary support and cooperation. Read more in the linked article, first published on Daily Maverick.
BFAP brief on September 2021 Stats SA food inflation
Food Inflation
Headline inflation surprised at a higher than anticipated 5%, with the main contributing categories transport, housing and utilities, and food. In terms of the latter, numerous drivers highlighted in our previous inflation briefs remain relevant. These include high red meat prices on the back of lower slaughter numbers and rising world prices, as well as firm chicken prices as a result of strong global prices and the depreciation of the exchange rate through the end of quarter 3. Despite its small weighting in the food basket, oils and fats are also still a key contributor with year-on-year inflation of 22.4%. This is driven by global factors which include supply constraints for products such as palm oil and sunflower oil, combined with strong demand for oilseeds for animal feed and biofuel feedstocks. This linked report by the Bureau for Food and Agriculture Policy (BFAP) gives an overview of food inflation dynamics, its associated causes and the cost of basic healthy eating for September 2021.
BUSA Covid-19 cargo movement update
Exports
The BUSA Covid-19 Cargo Movement Update – the 60th of its kind – contains a consolidated overview of the South African supply chain and the current state of international trade. Operationally, container port throughput levels remain relatively low, as has been the case in the last six weeks or so. In fact, on Thursday, the Port of Cape Town was empty of any ships at the major terminals. Equipment issues this week revolved around the lack of available mobile harbour cranes in Durban and Cape Town, with Durban also operating with a sub-optimal number of straddle carriers. Furthermore, the issue with a lack of tugs at Eastern Cape ports also persists. Also, adverse weather resulted in minor delays across the country. On the rail cargo front, throughput remains steady, despite another derailment on the north-coast line. Furthermore, productivity was slowed due to equipment failure and further incidents of cable theft. Please click here to peruse.
More collaboration needed to address ‘devastation’ of South Africa’s rail infrastructure
Road-to-Rail
Presented against the backdrop of a world-altering pandemic, Transport Deputy Minister Sindisiwe Chikunga on 20 October said this year’s State of Safety (SOS) report published by the Railway Safety Regulator (RSR) indicated that the Covid-19 pandemic “led to major operators across the country producing significantly fewer train kilometres” when compared with previous years. This has resulted in a net decrease in combined traffic levels, as well as a “considerable rise in theft and vandalism” during the lockdown periods. Read more in the linked article first published on Engineering News.
Rolls-Royce, Boeing and World Energy further demonstrate the viability of green aviation fuel
UK-based industrial technology group and renowned aeroengine manufacturer Rolls-Royce announced on Tuesday that it had successfully test flown one of its Trent 1000 turbofan engines, using only 100% sustainable aviation fuel (SAF). The test flight was conducted in the US, with the assistance of leading airframer Boeing and green energy company World Energy. Read more in the linked article, first published on Engineering News.
Agri SA president tells annual congress that private property rights are non-negotiable
Addressing the annual congress of industry group Agri SA, the organisation’s president, Pierre Vercueil, said private property rights and the willing buyer, willing seller model were “non-negotiables”. His brief speech was mostly devoted to the issue, which gives a pretty clear indication of the concerns of commercial agriculture. Like so much else, uncertainty reigns, and it’s not just the weather. Vercueil pulled no punches in his address on Thursday, where he was preaching to his converted audience of mostly commercial farmers, the key interest group represented by Agri SA. Read more in the linked article, first published on Daily Maverick. 
MEMBERS' NEWS
Agri retail manager development programme
The agricultural retail environment is being remodeled. The typical producer-oriented rugged trade branch setting is transforming to align with the opportune fast-paced, customer-centric, modern retail trends; the growing competitive marketplace; and the digital advancement that is advancing wholesale accessibility to farmers. At Peritum we think forward and work with our clients to design and shape a future-ready workforce. Peritum's Agri Retail Management Development Programme is uniquely designed to enable agri retail managers to step up to the challenge. Join the journey. Harvest the future. Please click here for more information.
Get the latest news from the FPEF
Keeping it Fresh, the newsletter of the Fresh Produce Exporters Forum (FPEF) contains all the recent relevant news and developments. Please click here for the latest edition.
Weekly newsletter from CGA
The Citrus Growers' Association of Southern African, shares the latest news in the citrus industry in its weekly update - From the desk of the CEO. Please click here to peruse.
The latest news from the pork industry
Read more about the latest developments and news in the pork industry in the South African Pork Producers' Organisation's (SAPPO) newsletter, SAPPO Weekly Update.
UPCOMING EVENTS
Loadshedding and power cuts: what is really going on?
25-26 October | Online event

Intra-African Trade Fair 2021
15-21 November 2021 | Durban

2nd Drone Users Conference: Conservation and Agriculture
29 November-1 December 2021 | Elsenburg | Stellenbosch

Agbiz Congress 2022
22-24 June 2022 | Sun City
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.
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