The BRICS alliance has evolved into BRICS-Plus-Six, marking a pivotal moment in reshaping the global order. This expansion aligns the geopolitical and economic agendas of major players around key trade chokepoints like the Suez Canal, Strait of Hormuz, and Bab-al Mandab Strait. The inclusion of new members strengthens efforts to reform the UN Security Council and amplify the Global South's influence on the world stage. Russia's upcoming BRICS presidency emphasises local currencies and payment systems, but the larger membership presents challenges in achieving consensus and managing complexities. Disputes over the Nile River, historical rivalries between Saudi Arabia and Iran, and Argentina's economic uncertainties all add layers of complexity. Iran's inclusion promises a more assertive stance against the West, while the United Arab Emirates and Saudi Arabia increasingly pivot toward Asian commodity markets. These dynamics may strain BRICS democracies' efforts to navigate global geopolitics. Click here to read full article first published in the Council of Councils.

In preparation for COP28, the AU-EU partnership holds the potential to propel global climate change and energy transition agendas forward. The collaboration, as emphasised by ECDPM's Alfonso Medinilla, Afaf Zarkik, and Larabi Jaïdi from the Policy Center for the New South, hinges on several key principles. Firstly, it requires Africa and Europe to establish common ground in order to maximise the benefits and minimise the costs associated with combating climate change and embracing green transitions. This entails a shift from entrenched positions on renewable energy versus fossil fuels to a focus on the opportunities presented by green transition businesses. Secondly, both continents must confront and mitigate tensions that exist between them concerning decarbonisation. Failure to address these tensions could impede progress towards achieving a just energy transition in Africa. Lastly, representatives from Africa and Europe should prioritise tangible outcomes over mere policy signalling, working to swiftly deliver results in areas such as climate finance, energy, and industrialisation. Effective communication on their progress will be crucial in ensuring the success of this collaborative effort as they work towards addressing global climate challenges and driving the energy transition. Click here to read full brief produced for the 'Africa-Europe relations: A balanced narrative and reality check' project, undertaken by ACET, ECDPM, ISS and PCNS.

Cabinet has instructed the Economic Cluster to develop an action plan addressing concerns related to food prices, food security, and access to food in South Africa. Minister in the Presidency Khumbudzo Ntshavheni announced this decision during a media briefing. The Competition Commission has been actively monitoring essential food prices, particularly in response to price gouging concerns raised since the State of Disaster declaration in March 2020. The ongoing monitoring of essential food prices aims to ensure that essential food products remain affordable and accessible to consumers. The Commission has identified a phenomenon known as the 'rocket and feather' effect, where prices rise quickly, often exceeding cost increases, and fall slowly when cost pressures decrease. Additionally, the concentrated nature of the food and retail markets has been flagged as a contributing factor to high food prices. Cabinet has acknowledged the Commission's recommendations, which include conducting market inquiries to address structural issues in the market that result in elevated food prices and limited competition. This action plan underscores the government's commitment to addressing food-related challenges in the country. Click here to read full article first published on SAnews.gov.za.

Agbiz chief economist, Wandile Sihlobo, has a new book that is available nationwide. The Book, A Country of Two Agricultures, focuses less on history and more on the present and the future, explaining why dualism has persisted in the democratic era in South Africa’s agriculture, and what it will take to overcome it. It aims to contribute to a better understanding of the variety of agricultural forces, taking into account both questions of domestic political economy and external factors, as well as to bring to light new risks and opportunities. Wandile Sihlobo offers insights into the role of agriculture in the South African economy from an agricultural economy perspective, and provides political economy insights that are rooted in the experiences of farming communities on the ground and right through the value chain. Beyond insights on the realities this book offers the government, the private sector, and anyone interested in the betterment of the South African economy, tools to grapple with this duality, and proposes a framework for bolstering the black farming segment for growth and competitiveness – and ultimately food security. Click here to purchase.

This past week, the South African government voiced concerns about the higher food prices and instructed the cabinet's economic cluster to implement a food security plan to cushion consumers. We have yet to see the government's strategy and approach. But it is worth highlighting that South Africa's consumer food price inflation has started to decelerate from the high levels of 14,4% we saw in March 2023. In July 2023, consumer food inflation was recorded at 10,0%, from 11,1% in the previous month. The product prices underpinning this deceleration in recent months are primarily bread and cereals; meat; fish; and oils and fats, which are crucial for low-income households. Notably, as the cabinet's economic cluster prepares to start its work, it is vital to have a common understanding of the key drivers of food prices in recent years and an appreciation that this is a global challenge, not unique to South Africa. For example, two primary drivers of global food prices existed before the covid-19 pandemic. First, the drought in South America in the 2019/20 season reduced the harvest notably, primarily in Brazil and Argentina. These countries collectively account for 14% and 50% of global maize and soybean production. The drought has spread for roughly three seasons since 2019/20, further exacerbating the grain price increases from 2020 to the end of 2022. Secondly, China's continuous imports of grains and oilseed as the country was rebuilding its pork industry after a devastating African Swine Fever also added to the surge in demand at a period when global stocks were tight. China's growing demand had a consequential impact on global grain prices because of its share size of imports — for example, the country imports about 60% of globally traded soybeans. Click here to read full article by Agbiz chief economist Wandile Sihlobo.

The Kingdom of Saudi Arabia was mentioned as one of the countries that are set to join the BRICS in January 2024. This is a major development, and one that offers another avenue for diversifying the geographic destinations of South Africa’s agricultural exports. There is no doubt that South Africa’s agriculture stands to benefit enormously from close cooperation with Saudi Arabia. As chair of the 15th BRICS Summit, South Africa championed the need to deepen trade and investments amongst the BRICS countries, a point that other members overwhelmingly supported. The agribusiness working group of the BRICS Business Council, in particular, raised the trade aspect and the need to resolve non-tariff barriers that would distort agricultural trade amongst BRICS countries. Initially, South African agribusinesses had their eyes on China and India as countries with reasonably higher tariffs on some agricultural products and a range of non-tariff barriers. With the inclusion of Saudi Arabia in the BRICS, South Africa would now look at three significant markets to broaden agricultural exports. It is important for a country like South Africa to push for geographic diversification of trade especially in the light of intensifying geoeconomics tensions and the growing protectionism in traditional markets. Click here to listen to Agricultural Market Viewpoint with Wandile Sihlobo.

Agbiz Grain Quarterly is a unique magazine featuring distinctive articles and content designed to keep the grain handling and storage industry informed of the latest news and issues of managerial and operational importance. The August issue focusses on the current topic of conversation in the grain industry – traceability. This subject will be front and foremost during the Agbiz Grain Symposium and these articles set the table for the debate and discussion at the symposium. Experts in this issue also address aspects relating to procedures surrounding injuries on duty as well as the latest developments around employment equity regulations. Also in the August issue are articles on the latest procedural requirements for water use licence applications as well as an overview of some new and unique approaches to physical grain trading. We look at losses in the malting barley storage sector and discuss Australia and America's views on grain traceability, along with a local perspective on the same. Download your free version of this exciting publication here. 

Deputy Director-General Jean-Marie Paugam highlighted the role of trade in addressing global food security and sustainability at the upcoming WTO Ministerial Conference (MC13) in Abu Dhabi. He urged China, a significant agricultural producer, to contribute to combating food insecurity and called for collaborative efforts among WTO members to resolve the agricultural negotiations stalemate. Paugam stressed the escalating food security crisis, driven by climate disasters, the COVID-19 pandemic, and conflicts, with up to 783 million people experiencing hunger in 2022. He emphasised trade's vital role in reversing these trends, lauding China's success in reducing hunger through trade. Paugam outlined three key areas for action: immediate responses to the food crisis, reforming agricultural trade distortions, and addressing climate and sustainability challenges. He urged leaders to seize the unique opportunity at MC13 to strengthen global food security and sustainability through trade, with China's active engagement being crucial to achieving these goals. Click here to read full article first published on wto.org.

South Africa's land reform program faces monitoring issues, skewing perceptions of its progress. The National Development Plan aimed to redistribute 30% of agricultural land to black South Africans by 2030. Land reform encompasses various initiatives, including state acquisition leased to aspiring entrepreneurs. This article delves into the challenges affecting state land acquisition, drawing from reports, farmer insights, and the author's extensive agricultural economics experience. Proposed government steps include transferring land management, prioritising successful lessees for land acquisition, deducting lease payments, and financing purchases at preferential rates. Furthermore, implementing a 10-year moratorium on land resale with the government's first right of refusal may help address the program's shortcomings and promote the success of black commercial farmers. Click here to read full article first published on theconversation.com.

Business Unity South Africa (BUSA) released its 151st update provides a comprehensive overview of South Africa's supply chain and global trade status. Commercial ports handled around 8,198 containers per day in the maritime sector, impacted by weather, equipment breakdowns, load-shedding, and congestion. Concerns arose over the Richards Bay helicopter's workload as it went out of commission. Global container industry sentiment shifted as carrier rate hike attempts faltered, weakening their position for upcoming increases. International air cargo to/from South Africa slightly decreased, with Cape Town down by 11.1% and Durban up by 17.6%. Domestic cargo remained below 2022 levels but increased by 3% week-to-week. Regional cross-border road freight trade saw varied transit times and border crossing improvements. The need for a multi-modal logistics approach is crucial due to high freight demand, and rail infrastructure recovery could take years, during which trucking jobs aren't immediately threatened. Shared responsibility is key for effective logistics infrastructure. Read the full update in the latest BUSA Cargo Movement Update.

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. 

• 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.