Agbiz lauds the pragmatic approach of President Cyril Ramaphosa’s 2022 state of the nation address (SONA) and is ready to partner for inclusive growth and job creation. According to Agbiz chairperson, Francois Strydom, “The recognition that an enabling environment for business is critical for attracting investment and helping to solve the unemployment and low economic growth challenge in South Africa is significant. We have heard similar notions before, but the focus on energy security through embedded generation, investment in port infrastructure and the call for third-party operators on rail show that business’ concerns are being heard at the highest level. The agribusiness sector is ready and willing to partner with government to take these initiatives beyond rhetoric and translate them to action.” Please click here for the full Agbiz media statement. The linked article on landbou.com outlines President Ramaphosa's emphasis on agriculture.

The South African Chamber of Commerce and Industry's (SACCI) Business Confidence Index (BCI) rose by just over two points in January to 94.1. But it was down 0.4 points from January of last year, an indication that confidence remains fragile. Noting the change from January last year, SACCI said that “this is a reasonable start to 2022”. Confidence has actually returned to and exceeded pre-pandemic levels for some time. In 2019, the last full year before the Covid-19 pandemic struck, the SACCI BCI averaged 92.6. In 2020, when South Africa’s economy contracted by 6.4%, it averaged 86.5. In 2021, the average was 93.9, above the 2019 levels. Please click here for access to the complete SACCI report.

It is not unreasonable to assume that mass unemployment will remain a permanent feature of South Africa’s economy. This has been the case for the past 25 years and, given the state of politics and the course of technological change, it is hard to see how an effective programme to challenge the structural foundations of inequality and stagnation will emerge. It seems sensible, therefore, to design social policy on the assumption that a large share of workers will remain permanently excluded from formal employment. This is the argument James Ferguson makes for basic income support in southern Africa. As a social policy, it is a compelling argument. But does it make economic sense? In the linked article, published on Econ3x3, Prof.Michael Sachs, adjunct professor at the Southern Centre for Inequality Studies of the University of the Witwatersrand argues the government faces some hard trade-offs to ensure that the fiscal risks a basic income grant poses are minimised and that other social spending is not compromised.

The South African Local Government Association (SALGA) is taking Eskom, the Ministers of Mineral Resources and Energy and Co-operative Government and Traditional Affairs (COGTA) and others to court. Why? Because they want municipalities to be the only lawful distributor of electricity to consumers within their municipal area. It is not often that you see government departments or state entities litigating against each other in a formal court process. This is more than just a gentleman’s agreement; the Intergovernmental Relations Framework Act requires state entities to follow every possible avenue to resolve an issue before it goes to court. This issue must therefore be serious, and it is. Agbiz CEO Theo Boshoff discusses this subject in the linked article, written for and first published in Farmer's Weekly.

In 2019, the Presidential Advisory Panel on Land Reform and Agriculture recommended that the Minister of Agriculture, Land Reform and Rural Development appoints a land tax inquiry to consider a national policy or regulations to the Municipal Property Rates Act of 2004. The recommendations were for the minister to explore the possibility of imposing a tax on agricultural land that is unutilised/underutilised, to encourage its productive use. The suggestion to introduce a land tax was rejected by Cabinet and Minister Didiza in 2019. Hence, it came as a bit of a surprise then when the ANC decided its recent lekgotla that “The process of equitable land redistribution should be accelerated together with supportive measures to assist in the success of black landowners involved in large-scale and small-scale farming activity. A balanced and effective land transformation process should be pursued and land reform instruments should include a tax on underutilised land.” In the linked article, Agbiz head of Legal Intelligence Annelize Crosby and Agbiz public policy and advocacy intern Thapelo Machaba explore this subject.

Higher input costs, which have been the dominant feature of South Africa’s agricultural sector over the past year, will probably prevail in the coming months, with negative effects on farmers’ financial conditions. First, for the crop farming sector, prices of fertiliser, herbicides and insecticides were up by more than 50% during the planting period of the 2021-22 season. Hence, the crop losses in parts of the country caused by floods proved costly for farmers who had to replant or forego extremely wet areas this season. Second, the poultry and, to an extent, the livestock sector also had to contend with higher grains and soybeans prices since 2020, which have squeezed farmers’ profitability. Improved grazing veld conditions resulting from heavy rains will, to some degree, be beneficial to the livestock sector. Read more in the linked article by Agbiz chief economist, Wandile Sihlobo, written for and first published in Mail & Guardian.

South Africa's summer crop growing regions have received excessive rains since the start of the season in October 2021, except for a few regions of one province, the Eastern Cape. This province's southern and far western regions remain relatively dry and have not benefited from the recent heavy rains. Suppose one peruses the dam levels data that the Department of Water and Sanitation releases weekly; the Eastern Cape has the lowest average dam water levels compared with all provinces of South Africa. Wandile Sihlobo shares his insights in the linked blog post.

The typical feature of the La Niña weather event is above-normal rainfall in Southern Africa and dryness in the East Africa region. The East Africa region has been drying to the extent that there are fears of increased hunger in this continent region, specifically in Somalia, Kenya, and Ethiopia. Within the Southern Africa region, the picture has somewhat been mixed. For example, although South Africa usually receives higher rains that are not as destructive to crops, the 2021/22 season has been notably different from other La Niña years. This season is characterized by heavy rains that were unusually disruptive in provinces such as the Free State, North West, parts of KwaZulu-Natal and the Eastern Cape. Read more in the linked article by Wandile Sihlobo.

The Covid-19 pandemic did not only impact the production cost of grains and oilseeds, but also the cost of grain storage. Grains and oilseeds are some of the commodities mostly stored for future consumption. Cost-effective storage of grains and oilseeds, therefore, plays an important role in food security. Agbiz Grain general manager Wessel Lemmer discusses this subject in the linked article, first published in Landbouweekblad.

World food prices rebounded in January and remained near 10-year highs, led by a jump in the vegetable oils index, according to the FAO. The FAO Food Price Index averaged 135.7 points in January, 1.1 per cent higher than in December. The index tracks monthly changes in the international prices of commonly-traded food commodities. The FAO Vegetable Oils Price Index led the rebound in January, increasing by 4.2 per cent month-on-month and reversing its December decline to reach an all-time high. Referring to the latest vegetable oils price increase, Boubaker Ben-Belhassen, director of FAO’s Markets and Trade Division said: “Reduced export availabilities on top of other supply-side constraints, especially labour shortages and unfavourable weather, largely pushed vegetable oil prices up to an all-time high. There is a concern the impacts of these constraints will not ease quickly.” Read more in the linked article published by the FAO.

Agbiz seeks to employ a new manager for its Fruit Desk. Working under the direction of the Agbiz CEO, the Fruit Desk manager must give effect to the mandates and policy direction determined by the Agbiz Fruit Desk Steering Committee. The purpose is to develop and grow the South African fruit industry through a trade-enabling focus and through effective policy advocacy. This includes top-level and professional engagement with key role players and stakeholders in government and business on behalf of Fruit SA and Agbiz. Agbiz has contracted Signium to recruit a suitable candidate. Enquiries and applications can be directed to them. Please click here for more information on the position. Kindly send applications to info@signium.co.za before 14 February 2022.

Covid-related disruptions to supply chains have driven global prices to near-record prices this season and is at a level not seen in more than 10 years. The current high price of cotton is causing anxiety with spinning and textile mills that are reluctant to secure large volumes of cotton at such high prices. While it is encouraging that demand for cotton products remains high, the availability of raw cotton at an affordable price will undoubtedly play a role in the decisions made by mills. There is adequate cotton to supply demand, but the logistical complications are delaying the supply of cotton. The question remains: Will the shipping and transport problems be resolved in time for spinning and textile mills to meet consumer demand? Read more in the linked Cotton Market Report published by Cotton SA.

The Department of Agriculture, Land Reform and Rural Development (DALRRD) urges farmers to adjust their bait spray applications. Following the high volumes of rain experienced in most provinces of South Africa, there are associated increases in oriental fruit fly (OFF) populations and the resultant washing off of bait sprays. In addition, male annihilation technique (MAT) blocks should be placed in host crops at the registered rates. Protein bait stations may be placed along with bait sprays as they are less prone to leaching in rainy weather if set up correctly. Read more in the linked advisory issued by DALRRD.

Earlier this week, the Department of Agriculture, Land Reform and Rural Development (DALRRD) announced that fresh pear fruits from South Africa can now be exported to China. The South African government and the General Administration of Customs of the People’s Republic of China (GACC) have signed the protocol of phytosanitary requirements for the export of fresh pears from South Africa to China, effective from 17 January 2022. The signed protocol for phytosanitary requirements gives guidance on procedures and processes to be followed for the exportation of the aforementioned fruit. The initial request for market access of fresh pear started simultaneously with that of apples in 2008. However, the pest risk analyses (PRAs) for these products were separated and the GACC started with apples. Read more in the linked DALRRD media statement.

In the latest issue of Harvest SA: The future of farming depends on the Agriculture Master Plan, but how will it be implemented? Agbiz chief economist Wandile Sihlobo discusses this subject. For further guiding insights, take a look at our weather forecast and prospects for land reform going forward. Enjoy inspiring stories of leadership, transformation, innovation, and impact investment. Get tips on plant nutrition, precision agriculture, and agritourism, and take in the latest product news. Please click here to peruse.

Prof. Danie Brink, dean of the Faculty of AgriSciences at Stellenbosch University would like to invite you to participate in the African Food Dialogue on 23 February 2022. The dialogue will be presented at the Lanzerac Hotel and Spa, 1 Lanzerac Road, Stellenbosch, as well as online via the MS Teams platform. You are invited to join either in person or via MS Teams. The African Food Dialogue is one of the initiatives of the Southern Africa Food Lab where public lectures are coupled with facilitated dialogue on African food systems. It brings together diverse, influential stakeholders in Southern Africa food systems to respond to systemic issues in creative ways and to inspire change in how we think and act on complex social challenges. For more information and to register, please click here.

South African exporters of blueberries believe they have not fully tapped into the potential of the German market. And although South Africa expects to ship some 3 000 tonnes to Germany this season, the country has long-term ambitions to boost its share of the market through trade media and digital and print advertising, highlighting South Africa’s beautiful fruit and outstanding taste credentials. The campaign will be visible throughout the season and in the run-up to the Fruit Logistica trade show in Berlin, where Berries ZA will be on hand to meet key industry contacts and develop new relationships. Read more in the linked article, first published on FreshPlaza.

The Hortgro Annual Review for 2021 highlights the various functions and focus areas being dealt with in Hortgro and other industry structures. It summarises the range of activities that required attention to ensure an enabling environment within which our diverse range of stakeholders in the value chain can thrive. Download your copy here.

The Fresh Produce Exporters’ Forum, based in Century City, Cape Town, seeks to recruit a logistics manager who will be responsible for managing the logistics environment of the fruit and vegetable export industry. Reporting to the COO, the logistics manager will be responsible to troubleshoot and provide operational solutions for logistic challenges. Please click here for more information on the vacancy and how to apply.

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.

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.

Read more about the latest developments and news in the pork industry in the South African Pork Producers' Organisation (SAPPO) newsletter, SAPPO Weekly Update.