12
e-Newsletter
04/19
1 February 2019
BUSA's Business Economic Indaba drives agenda for inclusive growth and transformation

The Public-Private Growth Initiative has been launched at a Business Unity SA (BUSA) indaba in an effort to revive the economy. The indaba has brought together leaders of business who with government will reflect on sector plans for inclusive growth through the Private Public Growth Initiative (PPGI), explore the scope for collaboration to drive investment and how to address poverty, inequality and unemployment frankly and constructively, as well as map a future vision for the economy. The PPGI - led by Toyota Europe and Africa CEO Johan van Zyl, the Gordon Institute of Business Science (GIBS) Prof. Nick Binedell, and former constitutional negotiator Roelf Meyer - has done work in 22 sectors, several of which made presentations at the indaba.  Andries van Zyl of RSG Geldsake discussed the outcome of the BUSA Economic Indaba with Agbiz CEO Dr John Purchase who also presented at the event. Please click here to listen to the interview.
Measures in place to contain FMD outbreak

In the Agbiz Newsletter of 18 January 2019 it was reported that following discussions with Minister Senzeni Zokwana regarding the foot-and-mouth disease outbreak in Limpopo, three Public-Private Partnership Task Teams, namely a Technical Task Team, a Communications Task Team and a Trade Task Team were set up, to address the various challenges the respective industries face. The task teams met over the past two weeks and can report that constructive progress has been made to contain the outbreak. The affected area is under quarantine and no movement of animals and animal products is allowed. To this effect roadblocks have been established at strategic points to monitor the movement of animals. The Department of Agriculture, Forestry and Fisheries (DAFF), in collaboration with the Limpopo Department of Agriculture, has deployed 23 teams to inspect and vaccinate animals. To date, 11 000 animals have been inspected and it was found that three more villages in close proximity of the original village are also affected. A total of 10 000 animals in the disease management zone have been vaccinated. Going forward, DAFF needs to prove that (i) infected animals have not left the disease management zone, (ii) that the disease is contained in the disease management zone and that the rest of the country's cattle have not been affected and (iii) the disease management zone is cleared from infected animals. Currently DAFF is inspecting animals in the surrounding areas to ensure that the disease has not spread. Agbiz serves in the Trade Task Team and will assist the South African government to negotiate a workable solution with our trading partners in order to ensure continued exports. This includes the option to allow for the certification that products, destined for export, originate from an area where the disease does not exist. DAFF has contacted South Africa's trading partners to inform them about the situation and are in the process of negotiating new certification criteria with various importing countries. Local exporters are advised to convince their trading partners to continue importing low-risk commodities and to request their trading partners to liaise with the importing country's veterinary authorities regarding the issue.
DAFF has assigned designated contact persons in its Import Export Policy Unit to liaise with the industry representatives in the Trade Task Team regarding specific industry related trade issues.All affected industries are urged to work through the government structures and to not rush the process as the integrity of the South African government and its veterinary services could be compromised if the due process is not followed.
POLICY AND LEGISLATION
Competition Laws Amendments: we must not
lose sight of the need to reward innovation
and hard work

Late in 2018 the Department of Economic Development published two draft sets of regulations for public comment. The regulations seek to promote the ability of small and medium enterprises, especially those owned by previously disadvantaged individuals, to compete on an even playing field with larger enterprises when supplying goods and services. The first set of regulations seeks to do this by preventing large businesses from pushing out competitors by offering goods and services as a supplier at rates which smaller businesses cannot compete with. The logic is that large companies can afford to take a 'hit' and offer goods and services at a rate so low that companies with smaller reserves cannot compete. The second set of regulations is the corollary in that it seeks to prevent companies that buy goods and services from using their position to impose conditions that make it impossible for smaller suppliers to compete for their business, thereby abusing their position as a buyer. Where a dominant supplier or buyer truly abuses its power in bad faith to push smaller competitors out of the market, a compelling argument can be made that some intervention is necessary. One can therefore hardly fault the reasoning, but as always, the devil is in the detail and one must be careful not to over-regulate to the extent that innovative and hardworking companies are no longer rewarded for their efforts.  Agbiz head of Legal Intelligence provides more insight in th linked article.
Call for comments on Expropriation Bill

The revised Expro priation Bill was published on the 21 December 2018 for comments. The revised Bill incorporates the qualifications and conditions related to expropriation without compensation.  Agbiz  is in the process of preparing comments in line with our prevailing stance on expropriation without compensation.  The final comments must be submitted on Tuesday 19 February. We therefore kindly request Agbiz members to send through your comments and inputs to theo@agbiz.co.za by Friday 15 February to enable us to incorporate any comments received into the final version.
AGRIBUSINESS RESEARCH
SA maize hectares could be revised down further in the coming months

The Crop Estimate Committee's summer grains preliminary plantings data showed that the area planted to maize is 2.3 million hectares. About 1.3 million hectares is white maize, with 1.0 million hectares being yellow maize. This came as a surprise as we had projection of 1.98 million hectares. We suspect that the late plantings might have been more than anticipated following early January rainfall. While this a welcome development, it is important to stress that these are initial estimates, there could be a revision next month and our view still leans towards a possible downward adjustment.  Agbiz head of Agribusiness Research Wandile Sihlobo provides more insight in the linked article .
Good performance in SA agricultural exports despite the drought 

" Value of (South African) wine exports up despite drought in Western Cape" - this was a headline of an article in Business Day this week. I t essentially refers to the fact that South Africa's wine exports grew by 4% year-on-year in 2018, measured in value terms. But the drought did have an impact when one looks at the volume of agricultural produce in the Western Cape. The uptick in global wine prices, as well as the slightly weaker domestic currency have somewhat countered the decline in volumes. Wandile Sihlobo shares his view in the linked article.
Nigeria surpasses South Africa as sub-Saharan Africa's leading maize producer 

South Africa produced nearly 20 percent of sub-Saharan maize production utilising a relatively small area of 2.6 million hectares. In contrast, countries such as Nigeria planted 6.5 million hectares in the 2017/18 production season, but only harvested 14 percent of sub-Saharan Africa's maize.  The maize production prominence in South Africa can be attributed to technological advancement, particularly the use of genetically modified (GM) crops, which was adopted in the early 2000s. This has had great benefits in terms of yields and savings on inputs cost.  But this year's drought in the western parts of South Africa has resulted in a change in sub-Saharan maize production distributions. Nigeria is poised to overtake South Africa, and become the region's largest maize producer in the 2018/19 production season. Please click here to read Wandile Sihlobo's blogpost.
Zimbabwe needs SA farming skills 

Cross-border knowledge between the South African and Zimbabwean farming sectors is critical for socioeconomic stability in the Southern Africa region.  The collapse of Zimbabwe's agricultural sector from the early 2000s is well documented and largely attributed to ill-conceived land reform policies. Wandile Sihlobo shares his view in the linked article  written for and first published on  Fin24 .
OTHER NEWS
Senwes challenges companies to #braai4farmers

S enwes has challenged all South African companies to answer the call to assist producers suffering from the current drought conditions as well as a drop in red meat prices. AgriSA recently called on South Africans to " braai away the farmers' problems".  Please click here for more information on the Senwes initiative.To follow the buzz on social media with #braaiviriboere or #braai4farmers.
Minister Senzeni Zokwana and Indian Minister of State for Agriculture and Farmers Welfare, Minister Parshottam Rupala held a bilateral meeting in New Delhi, India on 24 January 2019. This bilateral meeting was aimed at strengthening cooperation in the fields of agriculture, forestry and fisheries with focus in the areas of crop and animal production, research, food and nutrition security, agroforestry, aquaculture and agro-processing. Press release
The Ensminger Pig Symposiums follow a rich tradition of over 50 years of sharing up to date information and scientific solutions to the global livestock industry in order to improve various segments of this industry across continents.  In order to keep up with global trends and to achieve a common interest of production efficiency and profitability for pig operations, the Ensminger Pig Symposium brings distinguished international speakers to Johannesburg on 22 to 23 May 2019. The symposium, organised by the Iowa State University, is endorsed and supported by the Animal Feed Manufacturers Association (AFMA) and the South African Pork Producers' Organisation (SAPPO). Themed "Towards Excellence in pig production" the symposium will cover a wide variety of topics centered around the pig genetics, male and female reproduction, feeding and nutrition, welfare, antibiotic reduced production, and increased meat quality. Press release
Maritime, Ports, Transport and Logistics Academy offers various short courses  

The Maritime, Ports, Transport and Logistics Academy (MPTLA), is a partnership between Stellenbosch University's Department of Logistics and STC International, Rotterdam. MPTLA is proud to present short courses and management development programmes. These courses are developed with consideration being given to local and international curricula, and best practices tailored to Southern Africa. Please visit the MPTLA website to peruse the courses on offer.
UPCOMING EVENTS
 
De Kalb Create Conference 2019
5 February 2019 | Graceland Hotel | Secunda
Contact Yolandi Stoltz: yolandi.stoltz@monsanto.com


De Kalb Create Conference 2019
7 February 2019 | Nampo Park | Bothaville
Contact Yolandi Stoltz:  yolandi.stoltz@monsanto.com

First Bi-annual International Soy for Human Health Conference 2019
11-13 March 2019 | St George Hotel | Pretoria

CGA Citrus Summit  
1 2-14 March 2019 | Boardwalk Hotel | Port Elizabeth

Global Cherry Summit 2019
25 April 2019  | Monticello Conference Center | San Francisco de Mostazal, Chile

Ensminger Pig Symposium
22-23 May 2019 | Kopanong Hotel and Conference Centre | Benoni

SA Large Herds Conference
3-5 June 2019  The Boardwalk  Port Elizabeth

13th Agribusiness Africa Conference 
10 July 2019 Premier Hotel | OR Tambo Airport
Concept programme

PMA Fresh Connections: SA Conference and Trade Show 
30-31 July 2019 | Century City | Cape Town
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.

                                      Like us on Facebook            Follow us on Twitter            View our profile on LinkedIn                                    
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.
In this newsletter