Maersk CEO Vincent Clerc has said that the coming months will be challenging for carriers and businesses alike, as the Red Sea situation stretches into the third quarter of 2024. Speaking at a recent online event with customers, Vincent Clerc talked about the challenges the continuing attacks on ships in the Red Sea / Gulf of Aden have created for logistics and supply chains. For the time being, Maersk ships are continuing to divert around the Africa via the Cape of Good Hope in South Africa. He acknowledged the situation is difficult for both carriers and businesses needing their cargo transported. Clerc: "We are faced with these challenges together, and we need to make sure that we stay close to them as we handle the new set of circumstances that continues to unfold in front of us. These disruptions, and the impact they are having on your business, are not something that I, nor any colleagues at Maersk, take lightly. We know it is hard. We know it is difficult for you. We know it puts you under a lot of pressure." Click here to read full article derived from freshplaza.com.

To successfully achieve transformative outcomes in agriculture, state capacity should be reinforced. The various directorates in the government that run the land reform programmes must be bolstered. Also, corruption must be dealt with decisively so that the resources for land reform reach the intended beneficiaries. Iph’indlela (where is the way)? Some among us probably had this question in mind after seeing the Cabinet composition of South Africa’s seventh democratic administration. The splitting of the agriculture and land affairs portfolios into two distinct departments is one of the significant changes. The views about the agriculture portfolio are mixed, judging from some social media posts. But there shouldn’t be a worry, in my view. Agriculture’s potential enjoys universal recognition and its status as a growth propeller is embraced in a way that transcends sectoral interests. Click here to read full article by Wandile Sihlobo for dailymaverick.co.za. 

The Department of Mineral Resources and Energy announces the adjustment of fuel prices based on current local and international factors with effect from the 4th of July 2024. South Africa’s fuel prices are adjusted monthly, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g., shipping costs. The main reasons for the fuel price adjustments are due to - Crude oil prices: The average Brent Crude oil price decreased from 82.98 US Dollars (USD) to 82.24 USD per barrel, during the period under review. The main contributing factors are the increased production by the US and other non-OPEC countries amid slow economic growth globally. Read full statement by The Department of Mineral Resources & Energy here.

On 26 April 2024, the Department of Forestry, Fisheries and the Environment published a draft report on sectoral emission targets for public comment. The due date for comments was 28 June 2024. Agbiz sent in a written submission on the report. These proposed sectoral emission targets form an integral part of South Africa’s climate change mitigation approach. These targets are intended to ensure that South Africa meets its national determined contribution in respect of emissions. These national determined contributions embody efforts by each country to reduce national emissions and adapt to the impacts of climate change. In terms of the Climate Change Bill, the Minister of Forestry, Fisheries and the Environment is required to allocate sectoral emission targets to ensure the country meets the stated greenhouse gas (GHG) emission target as published in the national determined contribution. Click here to read full report by Agbiz Head of legal intelligence Annelize Crosby. 

As the dust settles following the outcome of the May 29 elections and the seventh administration begins its term, the next step will be realigning policy ideas under the Government of National Unity. With respect to agriculture, the major political parties in the Government of National Unity, namely the African National Congress (ANC), Democratic Alliance (DA), and the Inkatha Freedom Party (IFP), appear to be broadly aligned in our assessment. The ANC has been governing under the vision of the National Development Plan, which was recently distilled into the Agriculture and Agro-processing Master Plan. The aim is to grow an inclusive and competitive agricultural economy. The approach is through deep-dive value chains and commodity corridors in various regions of South Africa. The implementation of the plan so far has been scant, but the enthusiasm for it amongst major stakeholders in the sector remains. Read full report by Agbiz Chief economist Wandile Sihlobo here.

South Africa's summer grains and oilseed harvest is in full swing nationwide, and some crops are nearly complete. Thus, the crop size estimates we have at hand are unlikely to change much and possibly represent an actual picture of the harvest. For example, this afternoon, the Crop Estimates Committee lifted the 2023/24 summer grains and oilseed harvest by 0,6% from last month to 16,0 million tonnes. Still, this is down 20% year-on-year, reflecting the severe impact of the mid-summer drought. The monthly slight upward adjustment of the summer grains and oilseed harvest size is mainly because of the notable uptick in the yellow maize production estimate, while other crops remained roughly unchanged from last month. This again confirms our earlier point that the data we have, which is the fifth production estimate, may not be adjusted much from now on. A closer look at the data shows that white and yellow maize harvest could be 6,3 million tonnes (up 0,1% m/m) and 7,1 million tonnes (up 1,3% m/m). These revisions place the total maize production estimate at 13,4 million tonnes (up 0,7% m/m). Click here to read full report by Wandile Sihlobo. Click here to listen to latest Agricultural Market Viewpoint with Wandile Sihlobo on the same topic. 

On 03 July, we were in East London in the Eastern Cape province for the South African Society for Animal Science 2024 Congress. The livestock and poultry industries account for nearly half of South Africa's agricultural economy. Therefore, we must hear from animal scientists who work and research a broad range of livestock industry issues that affect our agricultural economy's resilience. Some of the themes on the agenda today include animal diseases, reproduction, nutrition, climate change and animal welfare. A range of papers from academics and practitioners cover these themes. Our task was to kickstart the day with reflections on the South African agricultural economic conditions and policy options to boost growth in the sector. We view the first half of 2024 as mixed regarding agricultural economic performance. Click here to read full report by Wandile Sihlobo.

South Africa’s primary agriculture sector accounts for nearly 3% of GDP and about 8% when considering the value of agro-processing. But it can contribute even more to economic growth that delivers benefits fairly across society and creates jobs. This can’t happen, however, if new policies and plans keep getting introduced. Fortunately, the views of the new agricultural minister, John Steenhuisen, may not be far from the existing policy path. Steenhuisen is the leader of the Democratic Alliance, the second biggest party in parliament, which has joined a unity government with the African National Congress after the latter failed to win the majority vote. The African National Congress has been governing under the vision of the National Development Plan, which was recently distilled into the Agriculture and Agro-processing Master Plan. The aim is to grow an inclusive and competitive agricultural economy by focusing on specific commodities and their value chains, as well as specific regions. Click here to read full article by Wandile Sihlobo first published in theconversation.com.

As the dust settles after the May 29 elections and the seventh administration begins its term, the next step will be a realignment of policy ideas under the newly formed government of national unity (GNU). Regarding agriculture, the big political parties in the GNU — the ANC, DA and IFP — appear to be broadly aligned. The ANC has been governing under the vision of the National Development Plan (NDP), which was recently distilled into the agriculture & agro-processing master plan. The aim is to grow an inclusive and competitive agricultural economy. The approach is through deep-dive value chain and commodity corridors in various regions of SA. Implementation of the plan has been limited so far, but the enthusiasm for it among big stakeholders in the sector remains high. Click here to read full article by Wandile Sihlobo for businesslive.co.za/bd/opinion.

Agbiz Grain and Afgri recently hosted Terrena, a prominent agrifood group from Northwest France, for an illuminating visit to their silo and farm facilities in Bronkhorstspruit. This collaboration aimed to exchange insights and foster international agricultural partnerships. General Manager Wessel Lemmer and Afgri representatives warmly welcomed the Terrena team, emphasising South Africa's innovative farming practices. Terrena, with over 20,992 farmer members, focuses on sustainable agriculture and global food security. During the visit, discussions highlighted the challenges posed by climate change and the importance of adaptive farming techniques. The event underscored Agbiz Grain and Afgri's commitment to enhancing agricultural productivity through knowledge sharing and collaborative efforts. This exchange represents a pivotal step in advancing sustainable farming practices on a global scale. Report by Agb iz Communications Officer Temba Msiza.

A Cape Town Container Terminal (CTCT) multi-disciplinary team visited the Idea Fruit packhouse recently as part of an initiative to improve fresh produce export performance. The visit formed part of CTCT’s farm-to-port terminal value chain initiative, one of several programmes that have seen the terminal’s management collaborating with the Fresh Produce Exporters’ Forum (FPEF). CTCT said in a statement on Tuesday that the terminal’s management is focused on redesigning a handling service tailor-made for customer and industry needs, as part of its operational recovery process. “The terminal team, made up of employees from the continuous improvement, operations and planning departments, engaged directly with FPEF members to better understand their operational timelines and identify opportunities to improve efficiencies,” CTCT said. Click here to read full article derived from freightnews.co.za. 

Commenting on the announcement by President Cyril Ramaphosa of the new Government of National Unity (GNU) Cabinet tonight, NWU Business School economist Prof Raymond Parsons says: ‘The much-anticipated announcement by President Cyril Ramaphosa of the new GNU Cabinet is, as a whole, good for business and investor confidence. The markets are likely to respond positively as they digest the new mix of Cabinet appointments. Political certainty is essential to underpin the investment and job-rich growth that SA needs. Although there is a tough road ahead, the challenge is to now consolidate a sufficiently powerful guiding and stable GNU that capitalises on the positive momentum that has been generated by the outcome of the 2024 elections. The GNU must therefore expedite the implementation of necessary economic reforms, as the overall election message was a clear instruction to deliver. Click here to read full statement by Prof Raymond Parsons.

It may be the biggest agricultural liquidation in South African history. More than R90-million owed to 28 dairy farmers will not be recovered as the affairs of one of the country’s biggest milk transport companies are being wound up. On Sunday, 23 June, a report in News24 revealed that the business rescue practitioners appointed to save Desmanda Milk and its partner company, Dezmo Trans, from bankruptcy have found the companies to be so heavily indebted that there was no chance of redemption. The only route is liquidation, which leaves affected farmers in the Eastern Cape, KwaZulu-Natal and the Free State with very little hope of recouping any losses. Dezmo Trans has already been liquidated. Flipman — trading as Desmanda Milk — is set to be finally liquidated on 2 July. The delay was caused by an application brought by one of the milk producers in Durban. Click here to read full article derived from dailymaverick.co.za.

South Africa's supply chain handled an average of 8,545 containers daily, up from 8,211 the previous week, despite facing challenges such as congestion, adverse weather, and equipment breakdowns. Key operational issues included vessel ranging in Cape Town and equipment shortages in Durban. The Eastern Cape ports experienced delays due to adverse weather, and the Port of Richards Bay faced rainy conditions. TNPA has issued an RFI for the Port of Mossel Bay's loading facilities, while a power failure in Durban delayed rail operations. Global container shipping continues to face chokepoints due to the Red Sea crisis, leading to vessel diversions around the Cape of Good Hope and creating a supply-demand imbalance. Despite new containership deliveries, a global shortage persists, driving up freight and charter rates. In South Africa, Durban's port congestion has worsened, prioritising imports over exports and impacting export capacity. Meanwhile, the international air cargo market at ORTIA handled an average of 859,417 kg daily, showing an 11% increase compared to last year. Read full BUSA Cargo Movement Update.

Record orange juice prices are expected to escalate orange juice production as growers increase deliveries for processing. Growers are diverting oranges from the export market and local sales towards processing on favourable prices. Good rainfall in the Spring of 2023 ensured sufficient rain for irrigation across all citrus producing regions. Production of all citrus types is expected to improve in both volumes and quality in MY 2023/24. However, the Northern production regions experienced some dry conditions during the growth period which led to smaller sized fruit, reducing the percentage of fruit that meets export specifications. Orange, grapefruit, and lemon exports for MY 2023/24 are revised downwards on smaller fruit size and diversion to local processing. The total area planted to citrus in South Arica declined slightly by 0.3 percent to 95,980 ha in MY 2022/23 from 96,277 on MY 2021/22. Read full Citrus Semi-annual report by USDA here.

The announcement of the Cabinet, which will lead South Africa's 7th Administration, ends the uncertainty about the successful establishment of a Government of National Unity (GNU), South Africans' preferred outcome of the national and provincial elections. The announcement signals that South African leaders are now ready to put aside their party-political differences and tackle the social and economic development tasks at hand, in the national interest. Not everyone will be satisfied with all the appointments, but South Africa must now unite behind the Cabinet, which needs to urgently implement practical, evidence-based policies that will deliver sustainable, inclusive economic development, job creation, investment, and social development. Priorities for BUSA include creating an enabling business environment that will attract domestic and international investment, increasing the professionalisation of the public service, building on successful public-private partnerships, and bringing public finances under control. Click here to read full statement by BUSA.

The agricultural industry has expressed hope that the newly-appointed ministers of agriculture and land reform will prioritise food security, competitiveness, and environmental preservation. This comes as President Cyril Ramaphosa on Sunday night appointed DA leader John Steenhuisen as minister of agriculture, and PAC leader Mzwanele Nyhontso as land reform and rural development minister in the 7th administration. AgriCulture South Africa (AgriSA) CEO Johann Kotzé yesterday said they were committed to playing their role in supporting the GNU by actively engaging with all stakeholders to foster a cohesive and collaborative approach to addressing the sector’s challenges. In line with this commitment, Kotzé said they were focused on addressing three critical areas that were vital to the well-being and prosperity of the nation. Click here to read full article by iolnewsletters.co.za.

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. 

In the latest edition of Keeping it Fresh, the Fresh Produce Exporter's Forum (FPEF)'s newsletter, you will get a summary of the most pertinent information as well as reminders of important upcoming events. Please click here to peruse.

In the latest edition of Fresh Quarterly, you will get a summary of the most pertinent information as well as reminders of important upcoming events. Please click here to peruse.

The Agbiz Congress 2024, held from 5 – 7 June at Sun City, offered a pivotal platform for reflections on domestic and global challenges impacting businesses within the agricultural sector. With the main theme "Sustaining Growth in a Changing Global Landscape," the Congress delved into pressing issues ranging from political uncertainty to emerging geopolitical tensions and ways to expand agricultural markets. Wandile Sihlobo, Chief Economist of Agbiz, remarked, "The selection of speakers and subject focus of various sessions mirrored the challenges of the day, including political uncertainty, rising geopolitical tensions, a desire to expand agricultural markets, economic conditions, and ways of improving the efficiency of network industries." "The Agbiz Congress has become a key event in the agricultural calendar," stated Theo Boshoff, CEO of Agbiz. "Under the theme 'Sustaining Growth in a Changing Global Landscape,' delegates gained critical insights into navigating emerging trends such as geopolitical uncertainty and trade protectionism, as well as unlocking sustainable finance and addressing activist campaigns." Click here to read full report by Agbiz Communication Officer Temba Msiza. Click here to access all images from congress.

• Agbiz is the only organisation that serves the broader and common over-arching business interests of agribusinesses in South Africa.
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