The Agricultural Business Chamber of South Africa (Agbiz) emphasises the importance of a collaborative approach to drive agriculture and agribusiness forward. Amid significant challenges of high unemployment, weak economic growth, poverty, and inequality, divisive events that harm the farming community are disheartening and counterproductive to rebuilding an inclusive South Africa. Agbiz calls on political leaders to condemn divisive language and promote cooperation for the country's progress. We urge support for the farming and agribusiness sectors, which are vital for economic recovery, food security, and job creation. Click here to read full media statement.

India's announcement of severe curtailment of some rice exports triggered panic buying among the Indian diaspora in the United States, fearing a shortage of their food staple. The export ban on non-Basmati white rice varieties was imposed to ensure sufficient availability and control domestic market prices, following production woes caused by a brutal monsoon season and earlier than expected El Niño. The ban led to confusion and panic buying initially, with some Indian groceries experiencing shortages and long lines. The ban does not apply to Basmati rice, but economists warn it may hurt food supplies globally, prompting calls for reconsideration. In the US, imported rice from India is still available, but a long-term ban could deplete the stock, requiring adaptation and substitution for consumers. Read full article first published on abcnews.go.com here.

Dilma Rousseff, the president of BRICS' New Development Bank (NDB), expressed that there are no barriers for developing countries to adopt national currencies for their foreign trade operations. She made this statement during a meeting with Russian President Vladimir Putin in St. Petersburg, ahead of the second Russia-Africa Summit. The NDB, established in 2014 by Brazil, Russia, India, China, and South Africa, aims to provide financial support for infrastructure and sustainable development projects in BRICS countries and other emerging markets. President Putin emphasized that BRICS members do not cooperate against third parties, including financial matters, and highlighted the increasing use of national currencies for settlements among the BRICS nations. He also mentioned the NDB's potential role in promoting this direction of joint work. BRICS consists of Brazil, Russia, India, China, and South Africa, with several other countries expressing interest in joining the economic bloc. South Africa, the current BRICS presidency holder, will host the 15th BRICS summit in August. Click here to read full article first published on iol.co.za.

CEOs from over 115 leading South African corporations have signed a pledge, expressing their collective belief in the country's potential and their commitment to achieving sustainable, inclusive economic growth. The CEOs represent diverse sectors and companies with a combined value of over R11 trillion and employing 1.2 million people. The pledge acknowledges the current challenges faced by the nation, such as low economic growth, collapsing infrastructure, crime, corruption, inequality, and unemployment. These business leaders are determined to reverse the current trajectory and use their resources and expertise to partner with government and other initiatives. The collaboration between business and government aims to address key priorities in areas like Energy, Transport, Logistics, Crime, and Corruption. The CEOs emphasize the importance of long-term investment for sustainable growth and improvement in socioeconomic conditions. The CEO pledge is seen as more than symbolic; it represents a concrete commitment to driving change and making a positive impact on South Africa's communities and citizens. The collaboration between business and government seeks to bring about transformative actions that can profoundly impact the nation's future. Read full statement by Business Unity South Africa (BUSA) here.  

The concept of "degrowth" is gaining attention among some European politicians and was discussed at the European Parliament's "Beyond Growth" conference. Advocates, such as Jason Hickel, define degrowth as a planned reduction of energy and resource use to balance the economy with the environment and improve human well-being. The movement criticizes other approaches like green growth and sustainable development goals, calling for radical political change to displace capitalism and implement degrowth in the West, exempting the global South. However, critics argue that degrowth may not be an effective solution to ecological crises or the shortcomings of democratic capitalism. Reducing GDP in developed countries may not significantly impact the world's overall material footprint as emissions primarily come from developing countries. Furthermore, degrowth proposals may inadvertently stimulate economic growth and consumption. It could also harm developing countries due to global economic interdependencies and exacerbate global inequality. Critics see degrowth as politically unfeasible, potentially leading to rejecting democracy and adopting authoritarianism. They argue that social progress has accompanied economic growth and that degrowth's goals may not be achieved without negative consequences. Read full article first published on theconversation.com here.

This afternoon the South African Weather Service released its Seasonal Climate Watch update highlighting that “the El Niño-Southern Oscillation (ENSO) is currently in an El Niño state and, according to the latest predictions, is expected to persist through most summer months. ENSO’s impact is still limited for the initial forecast period, with early summer forecasts indicating to manifest its impact during the summer period.” I thought it would be helpful to stress again that forecasts of an El Niño occurrence in the 2023/24 summer season do not necessarily equate to a bad agricultural season. The upcoming season of possible below-normal rainfall, i.e., El Niño, follows a rare consecutive four years of heavy rains that have improved soil moisture and natural grazing veld. This means there is a natural cushion for agricultural activity even if the rains are below the average (typically around 500 mm) in South Africa. What will be necessary, however, is for the showers to fall in critical periods, such as seed germination and pollination stages of growth, which are all essential for crop growing. Read full article by Agbiz Chief Economist, Wandile Sihlobo here.

Chief Economist at Agricultural Business Chambers Wandile Sihlobo was on Newzroom Afrika to weigh in on the current situation of food markets feeling the pinch. India's decision to restrict non-basmati rice exports due to rising food prices and Russia's withdrawal from the Black Sea grain deal, preventing Ukrainian grain from reaching global markets, are expected to have significant impacts on food prices. Stay tuned to gain valuable insights into the implications of these developments on the global food supply and market dynamics. Click here to watch full discussion.

A lot has happened in the agricultural markets over the past few weeks. First, Russia decided not to renew the Black Sea Grain Deal, which is essential to facilitating exports out of Ukraine and has contributed to a decline in global grain prices. Second, India has banned the exports of non-basmati white and broken rice on fears of inflation. Both these events have been quite disruptive to the grain trade. But a few days before these announcements, I wrote a piece mainly distilling the 2023/24 global grain production forecasts, which I felt were solid and still do. I feel the need to post the article here as its core message is that there are a lot of grains and oilseeds in the world. So, we see the price reaction mainly because of the events I mentioned above, not the tight supplies. So, on July 12, 2023, the United States Department of Agriculture (USDA) released its monthly flagship report, the World Agricultural Supply and Demand Estimates report. The report's focus has shifted from the 2022/23 season to the 2023/24 season, currently underway in the northern hemisphere and starting around October in the southern hemisphere. Click here to listen to full Agricultural Market Viewpoint with Wandile Sihlobo.

Agbiz Grain will hold its symposium from 5 to 8 September 2023 daily from 09:00 - 12:00. Building certainty, creating sustainability" is the symposium's theme. The symposium will include panel discussions on profitability and investment priorities, supporting a world-class agricultural derivatives market, traceability of grains and oilseeds to meet consumer food safety concerns, and ensuring the insurability of the sector. Click here to register.

Proagrica's new research emphasizes the importance of integrating digitization to future-proof the agriculture supply chain. The independent white paper highlights the industry's progress in digital adoption but notes untapped potential in data analytics that could optimize the supply chain. Market consolidation is exacerbating the issue, leading to operational and informational silos within organizations. External challenges, such as distribution strategy rethinking and supply chain future-proofing, are also identified. To ensure profitability, the industry must prioritize customer-centric approaches, compliance management, and risk mitigation. Proagrica aims to equip businesses with insights for success and agile solutions to unlock the full potential of their data in the evolving agriculture supply chain landscape. Click here to read full article first published on fruitnet.com.

Oxford Analytica, in partnership with HealthforAnimals, released a new report titled "Animal Health and Sustainability: A Global Data Analysis," exploring the relationship between animal health and environmental, economic, and social sustainability. The report's unique regression model revealed significant findings, including a 60% global vaccination rate for beef cattle leading to a productivity rise of over 50%, a 10 percentage point reduction in livestock disease associated with an 800 million tonne decrease in greenhouse gas emissions, and every two vaccinated cattle being correlated with one person avoiding hunger globally. The report includes case studies highlighting livestock disease's annual production losses amounting to $358.4 billion and the potential to feed over 9 billion people while minimizing emissions through expanded animal health practices. A five-page summary of the report can be accessed here, with the full 60-page report also available for download here.

The agricultural sector's black economic empowerment (BEE) performance has been mixed, with improvements in ownership and skills development, but challenges remain in management and control. The Sanlam Transformation Gauge report revealed that listed companies outperformed unlisted ones in some areas, but unlisted companies excelled in management and control. However, a persistent issue is the low number of businesses reporting on their B-BBEE compliance, making it difficult to assess sector transformation. Agbiz Agricultural Economist and Policy Analyst Thapelo Machaba highlighted barriers to BEE participation for family-owned farms and the need for affordable funding to drive transformation. Coordinated efforts and better execution of transformation plans were called for by industry leaders. In the forestry sector, compliance has improved, but there is still a lack of diversity on boards and challenges in attracting young talent to rural locations. Read full article first published in the Sunday Times here.

The South African Sugar Association is providing a lifeline of R176 million to growers amidst a crisis in the milling sector. R60 million of this funding will go to black and small-scale growers in the 2023/2024 season, with additional payments in November 2023 and January 2024. An additional R51 million is allocated for black growers and joint ventures delivering more than 1,800 tons of cane, mainly land reform growers. Small-scale growers were severely impacted by financial defaults by Tongaat Hulett and Gledhow sugar mills, reducing the final price of sugar. Business rescue processes for both mills are ongoing, and Tongaat Hulett has announced the selection of a strategic equity partner. The funding is crucial to support growers amidst rising debt and input costs, especially for small-scale growers facing challenges in accessing finance. SA Canegrowers is committed to protecting the industry and supporting vulnerable growers. Read full statement by Andrew Russell Chairperson at SA Canegrowers here. 

The World Trade Statistical Review 2023 presents recent international trade trends amidst geopolitical and macroeconomic strains and technological challenges impacting the global economy and supply chains. The data covers merchandise and services trade, including geographical origin, product groups, and key economic indicators. Director-General Ngozi Okonjo-Iweala notes that the global economy faced successive crises, leading to trade growth slowdown in 2022 and early 2023. However, global trade growth remained positive, supporting economic recovery and resilience. Yet, numerous downside risks, from geopolitical tensions to financial instability, cloud the medium-term trade and output outlook. In 2022, world merchandise trade volume rose by 2.7%, while trade value increased by 12.4% due to higher prices in primary commodities amid geopolitical tensions. Commercial services trade grew by 15%, driven by digitally delivered services. The report's analytical chapters are complemented by statistical tables providing further insights into merchandise trade and trade in commercial services. Click here to download full publication by the World Trade Organization.

The lint price for South African farmers has decreased slightly to reach an average reference price of around R32,72 per kg lint for Strict Low Middling 1 1/16” (for the last week in June, ending on 30/06/2023. The 6th crop estimate indicated that hectares planted under irrigation are somewhat lower, but the seed cotton yield per hectare increased by just over 100 kg per hectare in comparison with the 5th estimate. The estimate for dryland hectares decreased, but the seed cotton yield per hectare also increased to 185 kg per hectare. The number of lint bales is up, with around 5 489 lint bales. Click here to read full report by Cotton SA.

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.