Director-General Ngozi Okonjo-Iweala emphasised the pivotal role of trade policies in combating the climate crisis during the launch of "Trade Day" at COP28 in Dubai. She urged world leaders to leverage trade as part of the climate action toolkit, emphasising its potential to achieve greater emission reductions and redirect harmful subsidies. The Director-General highlighted the need to review and rebalance import tariffs, rethink government procurement by integrating low-carbon criteria, and facilitate trade through measures like the WTO Trade Facilitation Agreement. Trade is a featured theme at COP for the first time, with a Trade House hosting discussions on how trade policies can address climate challenges. DG Okonjo-Iweala's intervention was followed by a panel discussion involving government representatives, international organizations, and the private sector, emphasizing the importance of sustainability in trade policies. Click here to read full article by wto.org. The full stream of the Trade Day launch at COP28 can be watched here.

Statistics South Africa (Stats SA) reported a minimal 0.2% contraction in the country's gross domestic product (GDP) for Q3 compared to Q2, with a 0.7% contraction compared to Q3 2022. The economic statistics deputy director-general, Joe de Beer, characterised this as a "sideways movement" due to various sectors making negligible positive or negative contributions. The primary sector recorded a 4.4% contraction, with agriculture down 9.6% and mining down 1.1%. The secondary sector also saw a 1.3% decline, driven by manufacturing and construction contractions. The tertiary sector experienced mixed results, with an overall increase of 0.4%, showing growth in transport and finance. Overall expenditure on real GDP decreased by -0.1%, with household consumption contributing to negative growth. In the household consumption category, durable goods, non-durable goods, and services experienced decreases, with semi-durable goods being the only positive contributor. The main negative contributors were transport and housing-related expenditures. General government expenditure increased by 0.3%, mainly driven by higher compensation for employees. Total gross fixed capital formation decreased by 3.4%, primarily influenced by machinery and other equipment. Stats SA reported a R44.5-billion drawdown of inventories, and net exports contributed negatively to GDP expenditure. While exports increased by 0.6%, imports decreased by 8.6%. Overall, the Q3 GDP reflects an economy oscillating around zero, lacking a clear growth trend. Click here to read full article first published on engineeringnews.co.za.

When structuring growth-enhancing reforms, there is value in crafting a unifying overarching vision where each role-player has a sense of ownership, responsibility and clarity about the possibilities of success. When such a vision is implemented, each party should continuously communicate successes and glitches along the way. The success stories offer encouragement and a sense of progress while outlining the snags in the process, assisting other stakeholders in knowing that there is work under way, helping them understand the challenges, and even collaborating to resolve them. When all this is missing, a vital economic reform plan may fail to receive much-needed support and full implementation. The responsibility for any collaborative reforms lies on all parties involved to check in with one another and ensure supportive energy and focus from all sides. When there is a sense that one party is not applying themselves fully, the challenge should be rectified quickly to maintain momentum in implementation. This also helps ensure that all stakeholders keep an eye on the broader vision or outcome of the policy or programme reform. Click here to read full piece by Agbiz chief economist Wandile Sihlobo for dailymaverick.co.za.

South Africa's agricultural exports amounted to US$3.9 billion in the third quarter of this year, up by 4% y/y (according to data from Trade Map). This quarter, the products that dominated the export list were citrus, maize, apples and pears, nuts, wine, soybeans, sugar, and fruit juices. This solid export activity was both a function of improvement in volumes and prices, specifically of fruits. This more than offsets the effects of lower grains and oilseed prices, which have declined notably from their 2022 levels. Overall, South Africa's agricultural exports amounted to US$10,2 billion in the first nine months of the year, up 1% from the same period in 2022. This export activity was mainly before the intensified challenges at the South African ports. Given that the inefficiency challenges at the ports and in railway lines are not new, the agricultural export's success resulted from continued collaboration between the industry and Transnet to improve the logistics at the ports. The South African agricultural industry has established forums to continuously engage with Transnet and enhance communication about problems at the ports so that the response could be swift to drive the exports of high-value and perishable products. Still, as evidenced by the worsened logistical efficiency since the start of the fourth quarter of this year, more work and investment are needed to improve the efficiencies. Read full report by Wandile Sihlobo here. 

Following an encouraging recovery of 2,8% quarter-on-quarter (seasonally adjusted) in the second quarter of 2023, South Africa's agricultural gross value added contracted by 9,6% in the third quarter. These figures were a surprise as we thought the ample field crop, whose harvest was a month behind the typical schedule, would still be reflected in the third-quarter data. For example, the 2022/23 maize harvest is at 16,4 million, which is 6% higher than the 2021/22 season's harvest and the second-largest harvest on record. Soybean harvest is at a record 2,8 million tonnes. South Africa's sugar cane crop is forecasted to be 18,5 million tonnes in 2023/24, up 3% y/y. Other field crops and fruit harvests were also decent this year. Ultimately, the base effects and headwinds in the livestock and poultry industry weighed on the sector. The livestock and poultry industry, which accounts for nearly half the sector's value, has been hit by animal diseases such as foot-and-mouth, avian influenza and African swine fever. Also worth noting is that South Africa's agriculture quarterly gross value-added figures tend to be quite volatile; hence, our communication always focuses on the annual performance. Importantly, with the downbeat growth figures of the recent quarters, we now think the sector could show mild contraction this year instead of the solid growth we initially anticipated. Read full report by Wandile Sihlobo here.

Over the past few weeks I have travelled across most regions of SA for meetings with agribusinesses and framers, which was also an opportunity to view the summer crop planting progress. Positively, in many areas farmers planted early in the season, with soil preparation having started as early as September, particularly in the eastern and central parts of SA. Planting is now in full swing in these parts of the country, with mainly the western regions yet to see notable progress. On the upside, the season started with favourable soil moisture from the past season. Furthermore, the rains of the past couple of weeks improved field conditions and added to optimism about the outlook for the season. Still, concerns over El Niño have not gone away. Farmers are keeping a close eye on things and are worried about its potential impact. What has provided comfort so far is the favourable early rainfall. And weather forecasts consistently paint a promising picture that rain may continue until early March, which is when the El Niño-induced dryness is expected to start. The farmers we interacted with were not deterred by these concerns. Click here to read full article by Agbiz chief economist Wandile Sihlobo first published in businesslive.co.za.

The data released this past week by the Crop Estimates Committee continue to paint a reasonably positive picture of South Africa's winter crop harvest, albeit with minor downward monthly revisions of the crop size. The primary issue on farmers' minds is perhaps not crop size but the deterioration in quality following heavy floods in the Western Cape in September. The Western Cape is a significant producer of winter crops, accounting for roughly two-thirds of South Africa's total winter crop output. The Crop Estimates Committee, in its fourth production estimates for the 2023/24 season, lowered the wheat harvest by 0,7% from October to 2,15 million tonnes. The marginal downward revision was mainly on the Western Cape's crop. Still, this projected overall harvest is 2% up from the last season. Broadly, the provinces behind the current robust national wheat harvest forecast are the Western Cape (53% of the overall harvest), Northern Cape, Free State and Limpopo. Admittedly, while the Northern Cape and Free State are still amongst the leading wheat producers, their expected harvest is less than the 2022/23 season. Click here to listen to full episode on Agricultural Market Viewpoint with Wandile Sihlobo.

Deputy Director-General Jean-Marie Paugam highlighted the pivotal role of ongoing WTO agriculture negotiations in fostering fairer and more sustainable food markets. Speaking at the Food Systems Pavilion during COP28, Paugam underscored the urgency of addressing hunger, malnutrition, and environmental challenges facing the agricultural sector. Agricultural trade reform within the WTO's agenda is crucial for achieving these goals. Paugam outlined the challenges, including a rising global population facing hunger, the hidden costs of unhealthy diets, environmental degradation, and substantial greenhouse gas emissions from agriculture. He emphasised the need for trade policies to create fair and equitable markets, reduce carbon footprints, and support climate-smart agriculture innovations. Paugam called for collaboration at national, regional, and global levels, emphasising the importance of revitalising agricultural trade reform at the upcoming WTO ministerial conference in February 2024. Click here to read full article by wto.org.

South Africa is preparing to export avocados to China, anticipating the necessary protocols to be in place by February. The move aims to diversify export destinations beyond the UK and EU, where oversupply challenges exist. China's avocado imports have surged, reaching 50,000 tonnes in the first nine months of this year. The per capita avocado consumption in China is currently low at 100g per year, offering growth potential. Industry experts emphasise the importance of understanding protocols, including methyl bromide usage, for successful exports to China. South Africa expects to send around 5–10% of its 20 million 4kg cartons of avocados to China initially. Kenya's success in the Chinese market serves as an encouraging example. The strategic location of South Africa for serving Southeast Asia adds logistical advantages. Understanding Chinese consumer preferences, particularly among the younger generation, will be crucial for success in the avocado market. Click here to read full article first published in FreshPlaza.com.

This week's update provides a comprehensive overview of the South African supply chain and international trade status. Commercial ports witnessed a slight decrease in daily container handling, impacted by operational challenges such as adverse weather and equipment shortages. Durban's waterside congestion remains a concern, with numerous vessels awaiting anchorage. Globally, merchandise trade volume saw a marginal increase but declined year-on-year. Carriers are adjusting fleets amid rate pressures, focusing on North-South routes. Air cargo volumes to and from South Africa decreased, following global trends. Cross-border road freight trade experienced varying queues and transit times. The joint statement by the Presidency and B4SA emphasises the urgent need for logistics reform, with initiatives focusing on Transnet's recovery plan and private sector collaboration for socio-economic growth. Read the full update in the latest BUSA Cargo Movement Update. 

Namibian grape growers have initiated large-scale grape exports through Walvis Bay's new container terminal, opting for a quicker and more efficient shipping route compared to Cape Town. Capespan, in collaboration with the Namibian Grape Company (NGC), led the first significant export via the MSC Sweden container ship, saving approximately four days in shipping time. This alternative route is anticipated to provide fresher fruit for customers, avoiding delays and productivity issues experienced at Cape Town port. Capespan plans to export over 275 containers from Walvis Bay this year, contributing to a total of 1,000 containers exported by MSC, marking a third of Namibia's crop. The move aims to streamline logistics and enhance the competitiveness of the export hub. Namibian Grape Company (NGC) and Capespan Namibia, recognised leaders in table grape production, spearheaded discussions with the Mediterranean Shipping Company (MSC) to trial the shipping of table grape containers via Walvis Bay. The celebrations for the inaugural export were attended by dignitaries, including government officials and industry representatives, emphasising the significance of this logistical shift for Namibia's agricultural exports. The presence of Namport CEO Andrew Kanime further highlighted Walvis Bay's commitment to providing world-class service and positioning itself as a preferred choice over South African ports for future cargo volumes. Despite challenges such as longer truck trips, the competitive logistical solution of Walvis Bay is expected to attract more cargo, possibly extending to South African fruit in the future. Click here to read full article derived from FreshPlaza.com.

Agbiz Chief Economist, Wandile Sihlobo, collaborates with Tinashe Kapuya in Chapter 4 of the newly released Thabo Mbeki Foundation volume, shedding light on Africa's escalating struggle with hunger and food insecurity. Examining both short-term crises like the Ukraine-Russia war and COVID-19 disruptions, and persistent issues like low domestic focus on food security, poor agricultural productivity, and climate change, the authors propose vital policy measures. Recommendations include enhancing land governance, fostering a conducive policy environment, attracting long-term agricultural investments, addressing informality, and leveraging global commitments such as the Green Climate Fund. Sihlobo advocates for a dedicated G20 mechanism to combat hunger and poverty in Africa, coupled with a special financial package. The chapter presents a holistic strategy to drive agricultural growth in Africa amidst multifaceted challenges. Click here to read full publication and see page 52 for the feature. 

Emerging from the COVID-19 pandemic in 2020, the hope for an extended period of global stability was swiftly shattered as a conflict erupted in the Black Sea region. Subsequently, we have witnessed escalating global conflicts that have triggered significant shifts in the geopolitical landscape. This has prompted nations to reassess measures that disrupt worldwide trade, including export restrictions and pricing controls that impact global supply chains. Concurrently, the international community grapples with combating critical plant and animal diseases while grappling with the looming spectre of climate change. However, the imperative remains for businesses to persevere and adapt to the evolving global terrain. In echoing Charles Darwin's theory, it is not the strongest species that survives, but rather those that prove most adaptable to change. In light of these challenges, the 2024 Agbiz Congress theme intentionally recognises the evolving global panorama and redirects its focus towards sustaining growth in this uncertain environment. Esteemed speakers will share their perspectives on how to navigate and adapt to the complexities posed by geopolitical, environmental, and social instability. Aligned with Agbiz's ethos, the Congress aims to seek solutions that will propel the sector towards prosperity. To learn more and register for the event, we have launched our 2024 Agbiz Congress website, where you can find comprehensive information and details about this vital gathering. Visit the website to stay updated and secure your spot at this essential event. Learn more and register for the 2024 Agbiz Congress here.

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. 

Discover the latest updates in Berries ZA's December 2023 Newsletter! Click here to read and stay informed about the berry industry's highlights and upcoming events.

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.

• 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.