The benchmark for world food commodity prices increased for the third consecutive month in May, as higher prices of cereals and dairy products outweighed decreases in quotations for sugar and vegetable oils, the Food and Agriculture Organization of the United Nations (FAO) reported Friday. The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 120.4 points in May, up 0.9 percent from its revised April level, while it remained down 3.4 percent from its level a year ago and 24.9 percent below its March 2022 peak. The FAO Cereal Price Index rose by 6.3 percent from April, powered higher by rising global wheat export prices, reflecting growing concerns about unfavourable crop conditions curbing yields for the 2024 harvests in major producing areas including parts of Northern America, Europe and the Black Sea region. Click here to read full report by fao.org.

After 14 months of escalating internal conflict, Sudan is now confronting its most severe food security crisis on record. The latest situation report, released on 27 June, reveals a grim picture: more than half the population of 47.2 million is facing acute food insecurity. This signifies severe lack of food, high malnutrition and starvation leading to death. There is also a high risk of famine in multiple regions if immediate action is not taken. Famine is a severe and widespread lack of food that leads to extreme hunger, malnutrition and increased mortality in a population. Food insecurity is measured on the widely accepted five-stage Integrated Food Security Phase Classification (IPC). The five phases range from “minimal” (people have enough food) through “stressed”, “crisis” and “emergency” to “famine” (extreme lack of food, starvation, very high death rates). This scale is intended to help governments and other humanitarian actors quickly understand a situation and take action. Click here to read full article derived from theconversation.com.

John Steenhuisen stands at a crossroads, with the power to either build on Thoko Didiza’s groundbreaking legacy or let it wither. His actions in the coming months will be closely watched, not just by those within the agricultural sector but by all South Africans who yearn for a more equitable future. This week, DA leader John Steenhuisen stepped into his new role as agriculture minister, replacing the beloved Thoko Didiza who has done groundbreaking work in the sector. Didiza was not only a friend to commercial farmers, but also a driving force behind the black farmer development agenda. Steenhuisen’s appointment came as a big surprise, even to him, as he had been aiming for Deputy President in the government of national unity negotiations with the ANC just two days before. A DA agriculture minister caught many new-era farmers off guard, and doubly so because it was a white man. Click here to read full article first published on dailymaverick.co.za.

As economies worldwide strive to reduce emissions and achieve sustainable growth, reliable data is crucial. It forms the foundation for informed decision-making, guiding policy development, implementation, and monitoring. Recognizing this, the Group of Twenty is stepping up efforts to enhance the scope and quality of climate-related data. Through the third phase of the Data Gaps Initiative, it seeks to better integrate climate data with macroeconomic statistics. Doing so allows us to better understand the environmental impact of economic activities and the effectiveness of climate policies. The Chart of the Week highlights one such useful metric: greenhouse gas emission intensities, which measures emission levels relative to industry output. This shows which industries are producing more pollutants per dollar of output and can guide efforts to reduce emissions in the most impactful areas. Click here to read full article by imf.org.

The challenge of decision making by consensus may see South Africa adopting more middle-of-the-road policies on pressing global challenges. South Africa’s political landscape has changed dramatically since the African National Congress (ANC) lost its parliamentary majority on 29 May, compelling it to form a Government of National Unity (GNU). This new political reality could have far-reaching implications for the country’s international relations over the next five years. The recent appointment of Ronald Lamola as Minister of the Department of International Relations and Cooperation (DIRCO) may signal that the broad contours of South Africa’s foreign policy will remain unchanged. International relations will continue to be guided by the Constitution and underpinned by the ANC’s ideological adherence to Pan-Africanism and progressive internationalism. However, questions concerning the nature and trajectory of South African foreign policy under the coalition government may be far trickier to determine. Click here to read full article derived from issafrica.org.

The cannabis industry in South Africa is undergoing rapid growth, driven by substantial legislative changes and burgeoning investment opportunities. The country has made significant strides in integrating cannabis into its economy, particularly in the medicinal sector. To delve deeper into these developments, Food For Mzansi spoke with Thapelo Machaba, an agricultural economist and policy analyst at the Agricultural Business Chamber of South Africa (Agbiz). The conversation focused on the impact of the recently signed Cannabis for Private Purpose Act by President Cyril Ramaphosa. “The Cannabis for Private Purpose Act allows individuals to use or cultivate cannabis in their own personal spaces. However, it does not align with commercial market needs since it prohibits the selling or buying of cannabis products,” Machaba said. Click here to listen to full Farmer's Inside Track podcast by foodformzansi.co.za.

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. 

We are two months away from the start of the 2024/25 summer crop season. Early indications of weather prospects are encouraging, showing a firm likelihood of a La Niña occurrence. The International Research Institute for Climate Change and Society at Columbia University places the probability of a La Niña occurrence at over 50% between now and April 2025. Such weather events typically bring above-average rainfall across South Africa and the entire Southern region. There is hope that after a challenging 2023/24 summer production season, South Africa could transition into a favourable agricultural season, similar to what we experienced four seasons before the 2023/24 season. Given that South Africa had one of the most prolonged periods of La Niña induced rains, from the 2019/20 season to the 2022/23 season, the news of an end to the 2023/24 season El Niño is a welcome development. Read full article by Agbiz Chief Economist Wandile Sihlobo here.

Zambia's maize production in the 2023/24 season is down by over 50% to an estimated harvest of 1,6 million tonnes because of the intense heat wave and mid-summer drought. The country must now import about a million tonnes of maize to meet its domestic annual needs. The government has encouraged the private sector in the country to ramp up its effort to import maize. However, the challenge is that they want only non-genetically modified maize. Zambia still prohibits cultivating and importing genetically modified maize (GMO maize). It is already a challenge to find white maize in the world market regardless of whether it is GMO or GMO-free, as the major producers are the Southern African region (South Africa specifically) and Mexico. Most of the world's maize is yellow maize for animal feed. The drought has hit the entire Southern Africa region. The Southern Africa region's primary maize producer, South Africa, saw its harvest fall by 19% year-on-year to 13,3 million tonnes in the 2023/24 season. Read full article by Wandile Sihlobo derived from politicsweb.co.za here.

Despite the scale of damage caused by the midsummer drought to South Africa’s summer grains and oilseed harvest, from a consumer perspective, the country is not in a crisis regarding supplies of the crops. South Africa’s agricultural sector has various institutions, organisations and committees that play specific roles in supporting the sector’s growth and sustainability. One of the vital committees housed at the Department of Agriculture is the Crop Estimates Committee, which benefits from skills in government, academia and the private sector. Its main task is to provide production forecasts for winter and summer grains and oilseed. These data are crucial to understanding the country’s food security conditions and often influence the market prices of grains and oilseeds in season. Click here to read full article by Wandile Sihlobo dailymaverick.co.za. 

After a slight monthly uptick in May following the NAMPO harvest sales induced optimism, South Africa's agricultural machinery sales slowed notably in June 2024. Tractor sales are down 48% year-on-year, with 487 units. The combine harvester sales are down 67% year-on-year, with 21 units. Admittedly, this is unsurprising, and in line with muted sales we have observed since the start of the year, except for May's slight monthly uptick. As we have stated previously, the persistent decline in sales since the start of the year reflects the normalization of sales after a few years of robust activity. For example, South Africa's tractor sales for 2022 amounted to 9,181 units, up 17% year-on-year. This was the highest annual sales figure in the past 40 years. The combine harvesters also had an excellent performance of 373 units in 2022, up 38% year-on-year. This was the highest yearly sales figure since 1985. Click here below to read full report by Wandile Sihlobo.

I view South Africa’s agricultural economic performance in the first half of 2024 as mixed. One can broadly categorise our farming economy into three subsectors: horticulture, livestock and field crops. Horticulture — fruits and vegetables — had a reasonably positive start to the year, benefiting from improved dam levels for irrigation and a stable electricity supply. All of South Africa’s fruit and vegetables are under irrigation. The livestock industry is recovering after an intense period of animal diseases (although there remain cases of foot-and-mouth disease in some regions of the country). The better grazing veld due to early rains in the season and late rains in April have helped somewhat. The poultry industry is also recovering following an intense avian influenza spread at the end of 2023. Meanwhile, the field crops have suffered from the midsummer drought. Click here to listen to latest Agricultural Market Viewpoint with Wandile Sihlobo on the same topic.

South Africa's new Ministry of Agriculture and Ministry of Land Reform and Rural Development will now be led by four political parties in the new government. This follows the separation of the once merged ministry, which was previously only led by the ruling African National Congress Party. To discuss what this means for farmers and those who voted for a more equitable distribution of the land is Wandile Sihlobo, Chief Economist, Agricultural Business Chamber of South Africa. Click here to watch. In this discussion, Agbiz chief economist Wandile Sihlobo is back to provide a review of the agricultural sector's performance in the first half of the year, and the opportunities and risks ahead in 2024 and 2025. Click here to watch Wandile Sihlobo on Agriculture's growth opportunities.

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 Agbiz Communications Officer Temba Msiza.

South Africa's Ministry of Trade, Industry and Competition will now shared between the ruling African National Congress and the Democratic Alliance, the country's second largest party in the new government of national unity. To discuss what the country's trade priorities should be, following the departure of the previous Minister Ebrahim Patel, who governed the portfolio for more than a decade, CNBC Africa is joined by Trudi Hartzenberg, Executive Director, Trade Law Centre. The need for a comprehensive review and update of South Africa's trade policy strategy to align with current global trade dynamics. Focus on enhancing export performance, smart importing strategies, and strategic trade partnerships to leverage opportunities under the AfCFTA and global trade agreements. Balancing competition policy interventions to address market concentration, anti-competitive practices, and regulatory challenges posed by digital trade advancements. Click here to watch full interview by cnbcafrica.com.

During the announcement of South Africa’s seventh administration’s national executive on 30 June, President Cyril Ramaphosa announced a big shift for the country’s state-owned enterprises (SOEs), dissolving the Ministry of Public Enterprises and moving the portfolio into the presidency. “The coordination of the relevant public enterprises will be located in the Presidency during the process of implementing a new shareholder model,” said Ramaphosa. This move indicates that the new administration intends to pursue the National State Enterprise Bill tabled by Pravin Gordhan, the previous Minister of Public Enterprises. Although the bill lapsed at the end of the last term, it is likely to be revived. According to the South African Legal Academy, if enacted, the bill will: Enable the development of a ‘national strategy’ for state-owned enterprises. Click here to read full article first published in businesstech.co.za.

The triannual Crop Prospects and Food Situation report provides a forward-looking analysis of the food situation across the globe, focusing on the cereal production outlook, market situation and food security conditions, with a particular attention on low-income food-deficit countries. FAO assesses that globally 45 countries/territories, including 33 in Africa, nine in Asia, two in Latin America and the Caribbean and one in Europe, are in need of external assistance for food. The severest levels of acute food insecurity are found in territories affected by conflict, including Palestine (Gaza Strip) and the Sudan, where the local population is also facing the risk of famine. Drought conditions in Southern Africa are expected to worsen acute food insecurity conditions in 2024. The report includes the global cereal production forecast for 2024 that scaled up and is now set to exceed the 2023 level. Click here to read full Triannual Global Report, No. 2, July 2024.

New minister of transport Barbara Creecy has pledged her support to work closely with the private sector and the National Logistics Crisis Committee to turn around Transnet and boost its performance to pre-Covid-19 pandemic levels. Delivering the keynote address at the opening of the 42nd Southern African Transport Conference in Pretoria on Monday, Creecy outlined the status quo of the transport sector, the myriad issues facing it globally, and the work the National Logistics Crisis Committee had done so far to fix Transnet. The conference, attended by business leaders, industry experts and government officials from across the region, runs from July 8-11. Creecy expressed her commitment to working with the industry to face its challenges. “May today serve as the beginning of a new relationship between myself, my office, and the important industry stakeholders assembled here. An efficient and functioning transport sector is the key to a successful economy,” Creecy said. Click here to read full article derived from freightnews.co.za.

At a packhouse at Blydevallei Boerdery, near South Africa’s eastern border with Mozambique, workers pluck unripe grapefruit off a conveyor belt. It’s the best chance of getting them to export markets thousands of miles away before they spoil. The citrus farm is just one of many fruit producers in South Africa threatened by the near collapse of the state rail and ports company, Transnet SOC Ltd. Instead of railing its grapefruit, lemons and oranges to the port of Durban, it sends them on 20-hour truck trips. Then they can spend days in queues outside the harbor before being shipped to countries such as South Korea and nations in the Middle East. “There’s no Transnet, that’s the problem,” says a visibly agitated Gert Cloete, the operations manager at the packhouse, as he watches over teams of workers clad in blue overalls from his mezzanine office and explains how refrigerated trucks can sit in queues of as many as 400 vehicles at the port. “You never seem to win. It’s quite frustrating.” Click here to read full article derived from finance.yahoo.com.

Global cotton production is projected at 24.09 million metric tonnes, with consumption at 25 million metric tonnes. Brazil leads exports with 2.7 million metric tonnes, followed by the USA with 2.57 million metric tonnes. China remains the top importer at 3 million metric tonnes, holding 18.51 million metric tonnes in ending stocks. The ongoing US-China trade dispute has reshaped global cotton and textile markets, pushing the USA to diversify its import sources. Despite decreased US market share, Brazil has emerged as a strong competitor in cotton exports to China. Cotton prices, showing volatility, averaged 101.6 cents per pound in the 2022–23 season, a 22.8% decrease from the previous season. The Secretariat forecasts the 2023/24 season-average A-index to range between 92.00 and 97.00 cents per pound. Notably, global mill use has declined in major consuming countries, influencing the overall market dynamics. Click here to read full Cotton Market Report June 2024.

This update provides an overview of South Africa's supply chain and international trade. Container handling decreased to an average of 7,408 per day, hindered by adverse weather, equipment issues, and congestion. Ports in Cape Town and Durban faced significant operational constraints. Globally, the container ship fleet surpassed 30 million TEU, with notable shifts in routing due to the Red Sea crisis. Air cargo at ORTIA saw mixed trends, with inbound cargo decreasing and outbound cargo increasing. Cross-border road freight times showed slight improvements, with notable changes in queues and transit times. Political shifts, including cabinet reshuffling and new appointments in the transport and trade sectors, are expected to impact the logistics industry significantly. Overall, the industry remains resilient despite ongoing challenges. Read full BUSA Cargo Movement Update.

The July 2024 issue of "Economic and Employment Trends in South Africa" by the National Economic Development and Labour Council highlights critical insights into the country's landscape. Higher unemployment rates have been correlated with lower voter turnouts in recent elections, except in Gauteng. Provinces with higher household access to water and electricity showed higher voter turnouts. Capital deepening from investments is the main contributor to GDP growth, followed by labour force growth. Over the past decade, employment likelihood has decreased across all education levels, with the least drop among those with tertiary education. Spending per school-aged child decreased in most provinces, except for slight increases in the Northern and Western Cape. Eskom’s tariffs have increased by nearly 410% since 2010, outpacing the 200% rise in consumer prices. Significant investment flows were seen in SA Multi-Asset, Bond, and Money Market funds, with substantial growth in funds with foreign exposure. Imports of petroleum oils (excluding crude) surged, becoming the top import category in 2023, while crude oil imports fell. Industry employment showed varying responsiveness to economic growth, with the highest elasticities in the Community and Social Services and Finance and Business Services sectors. Click here to read full BUSA report. 

At the European Central Bank’s annual Forum on Central Banking in Sintra, Portugal, Governor Lesetja Kganyago and the President of the central bank of the Netherlands Klaas Knot discussed issues facing the international financial system. Their conversation covered a range of topics, including the resilience of emerging markets, financial stability risks of high debt levels, and South Africa’s upcoming G20 Presidency. Watch 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.  And, click here to read the CGA Weekly Production and Logistics Report.

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.
• 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.