The Department of Agriculture, Land Reform, and Rural Development addresses inaccurate media portrayals of AgriBEE requirements for agricultural exports to the EU and UK. Recent gazettes outlined procedures for SACU and Mozambique to benefit from preferential Tariff Rate Quotas (TRQ). The media misrepresented the government's message on the annual export permit application process, leading to confusion. South Africa signed Economic Partnership Agreements with the EU and UK in 2016, offering duty-free access to 96.2% of agricultural exports. The department publishes annual procedural requirements, including compliance with sanitary and phytosanitary standards, rules of origin, and other factors. Quota allocation considers market share, BBBEE status, and other factors, with no specific threshold for BBBEE compliance. The notices apply to specific products and are part of ongoing reviews to enhance trade agreements. The department urges accurate information-seeking to prevent harm to the sector during ongoing discussions and reiterates its commitment to ensuring farmers' access to EU and UK markets. Click here to read full statement by DALRRD and click here to read media release on Clarity regarding permit requirements for EU & UK EPA TQR by Agbiz CEO Theo Boshoff. Click here to watch panel discussion with Theo Boshoff and Theo de Jager on discussing race targets in agriculture, and South Africa's challenges regarding imports and exports.

China has become sub-Saharan Africa's largest single-country trading partner over the past two decades, purchasing one-fifth of the region's exports, mainly metals, minerals, and fuel. However, China's economic recovery has slowed due to a property downturn and reduced demand for manufactured goods amidst global growth deceleration. A one percentage point decline in China's growth could diminish average regional growth by 0.25 percentage points within a year, affecting oil-exporters like Angola and Nigeria by 0.5 percentage points on average. China's reduced economic activity also impacts sovereign lending to sub-Saharan Africa, dropping below $1 billion last year, the lowest in two decades, as it shifts away from large-scale infrastructure financing. Although China is the largest bilateral lender in the region, its share of debt is relatively small—around 6% of the region's overall public debt. To adapt to China's economic slowdown, sub-Saharan African nations must enhance resilience through increased intra-African trade, rebuild buffers, diversify economies, and improve competitiveness through favourable business environments, infrastructure investment, and deepening domestic financial markets. Click here to read the full article first published on the IMF Blog.

Two significant issues in South Africa's agriculture demand thoughtful consideration. Firstly, the recent African Growth and Opportunity Act (Agoa) Forum, a pivotal trade agreement, deserves reflection as it significantly impacts the industry. Despite indications of progress, the persistent challenge of bird flu remains concerning, with ongoing interventions aimed at restoring the industry to full capacity. Agoa has proven to be a game-changer, providing crucial market access to the US for eligible sub-Saharan African nations. Maintaining Agoa status is essential for South Africa's competitiveness, given its consistent and vital presence in the US market, which ranks as the eighth-largest market for South African agriculture. The trade relationship has enabled preferential access, benefiting South African farmers and contributing to economic growth. Simultaneously, South Africa grapples with animal disease issues, notably in the poultry industry. Operational disruptions, cost pressures, and the recent bird flu outbreaks pose challenges to profitability and industry stability. Efforts are underway to alleviate supply constraints, with hopes that new hens will enter the market. Additionally, concerns about foot and mouth disease in cattle highlight enduring biosecurity issues, emphasising the continuous need for vigilant measures and strong protocols to safeguard South Africa's livestock industry. Read full op-piece first published on Mercury here.

South Africa has had a number of outbreaks of animal diseases in recent months that suggest there are weaknesses in the country’s biosecurity system – the measures in place to reduce the risk of infectious diseases being transmitted to crops, livestock and poultry. The outbreaks pose a major challenge for South Africa’s domestic animal farming sector. Fears of weaknesses in the system have been raised by agribusiness for some time, suggesting that pressures and concerns are mounting. Biosecurity breaches are not unique to South Africa. They have become a significant challenge globally. It’s not easy to put a monetary figure on it, but reports of disease outbreaks across the world, and indeed in South Africa, suggest the problem has intensified. In South Africa, reports about foot-and-mouth disease in cattle, African swine fever in pigs and avian influenza in poultry have become frequent. But few countries have had to deal with these disease outbreaks almost simultaneously, as South Africa has. In 2022, six of South Africa’s nine provinces reported foot-and-mouth disease outbreaks. This was the first time in the country’s history that the disease had been spread this wide. All these outbreaks have had a notable impact on South African agricultural exports, and the growth prospects of the sector. For example, South Africa’s beef exports for 2022 were down by 12% year-on-year, according to data from Trade Map. Click here to read full article by Agbiz Chief Economist Wandile Sihlobo.

The solid production conditions in South Africa's agricultural sector continue to be reflected in the employment data. For example, the data released today by Statistics South Africa showed that in the third quarter of 2023, about 956 000 people were employed in primary agriculture, up 10% y/y (and 7% q/q). This is well above the long-term agricultural employment of 793 000. From a regional perspective, the Western Cape, Eastern Cape, Northern Cape, KwaZulu-Natal, North West and Gauteng significantly drove this uptick in sectoral employment. Meanwhile, the Free State, Mpumalanga and Limpopo saw declining jobs. As with the previous quarter, the robust production conditions of various field crops, forestry and aquaculture were behind the improvement in agricultural jobs in the third quarter. Meanwhile, the livestock industry registered a decline, which is unsurprising as the industry is confronted by various animal diseases such as foot-and-mouth, avian influenza and African swine fever. Moreover, we saw a notable decline in the game industry and production of organic fertilizer facilities. Overall, this notable improvement in employment in the third quarter is unsurprising as South Africa has a robust field crop and horticulture harvest following favourable rainfall and farmers' strategic interventions to adapt to load-shedding interruptions. Click here to read full report by Wandile Sihlobo.

International trade is at the heart of South 'Africa's agricultural success. For this reason, any disruptive legislative and logistical constraints to exports are set to constrain the sector's growth and, as such, a deep cause for concern. Equally, the differences in the interpretation of various export-related legislation by industry leaders versus regulators could have adverse effects on the sector or dent sentiment. Therefore, it is critical that the meaning and intent of regulation and policy be clearly articulated and communicated in a way that is commonly understood. A case in point was the weekend papers that misinterpreted the export legislation in the E.U. market and, thus caused panic in the sector. The regulations outlined a procedure for exports from SACU and Mozambique to the E.U. and the U.K., respectively, to take advantage of preferential Tariff Rate Quotas (TRQs) for certain agricultural and agro-processed products contained in an annexure to the agreement. However, they were reported as though they are new stringent BEE regulations for exports. The reality is that these requirements are not new and mirror the previous years' requirements. There is no new BEE threshold or level that an applicant must reach to be awarded an export permit. The critical nature of trade in South Africa's agricultural sector is evident from the fact that the sector has more than doubled since 1994, in both value and volume terms. Admittedly, trade wasn't the only catalyst for growth. Read full article by Wandile Sihlobo here.

With South African farmers signalling a 2% y/y increase in the summer crop and oilseeds planting in the 2023/24 season, one would be forgiven in thinking that the tractor sales would probably also show an upturn from the moderately downward path we have been signalling these past few months. Still, we are convinced that the tractor sales will continue to soften in the months ahead. In fact, with the robust expected area planting, the tractor sales in October 2023 were down 19% year-on-year, with 1 031 units sold. Notably, the decline in sales is not farmers' pessimism about the 2023/24 summer crop season or fears of the looming El Niño but an adjustment in the tractors market after a couple of years of higher sales. The moderating trend would have probably been shown earlier in the year but was shadowed by the delayed deliveries that were mainly reported in the first half of the year tractor sales. In essence, solid sales of the first half of 2023 were primarily a tail-end benefit of the past season when large harvests and higher commodity prices boosted grain and oilseed farmers' finances, and the deliveries occurred later that order period. Over the medium term, the sales will likely remain subdued despite the current 2022/23 large grain and oilseed harvest, but somewhat above long-term average levels. Click here to read full report by Wandile Sihlobo. 

One aspect that remains a major challenge for the domestic animal farming sector and has been raised by our members in various engagements for some time is the weaknesses in South Africa's biosecurity system. Admittedly, biosecurity breaches are not uniquely South African and have become a significant challenge globally. We frequently hear of Foot and Mouth Disease (FMD) in cattle, African Swine Fever in pigs and Avian Influenza in poultry worldwide. However, very few countries have had to deal with the scale of these disease outbreaks almost simultaneously as South Africa has had to do. In 2022, six of our nine provinces reported MFD outbreaks. The conditions haven't changed much. In fact, on November 4 this year, the Department of Agriculture, Land Reform and Rural Development (DALRRD) announced "a suspicion of an outbreak of foot–and–mouth disease (FMD) in cattle in Ramatlabama under the Ngaka Modiri Molema District Municipality in North West Province." The DALRRD added, "At this point, it is just a suspicion of an outbreak based on positive serology results. Epidemiological investigations are underway to confirm the presence or absence of virus circulation." This means that the FMD issue that was identified a year ago remains a challenge. Notably, these outbreaks weigh heavily on the cattle industry's fortunes, and the 2022 massive outbreak led to the suspension of beef and livestock product exports to a range of markets for some time. Click here to listen to full episode on Agricultural Market Viewpoint with Wandile Sihlobo.

A recent eNCA discussion between agricultural economist Wandile Sihlobo and Tumelo Mothotoane delved into the consequences of heavy rains on agriculture amid the prevailing El Niño period. Sihlobo, emphasising the need for clarity, provided insights into the intricate dynamics of El Niño and its significant influence on the agricultural sector. The conversation addressed the recent cold weather conditions that led to both relief and flooding in some regions. Sihlobo's expertise guided viewers through the complexities of El Niño, explaining how shifts in sea surface temperatures and atmospheric conditions impact weather patterns. The discussion aimed to equip viewers with a better understanding of how these factors pose challenges and opportunities for farmers. The dialogue underscored the importance of navigating the current climatic conditions for optimal agricultural practices. Overall, the eNCA discussion was a timely exploration of the intersection between recent weather events and their broader implications for the agricultural landscape. Click here to watch the full interview. 

Agbiz Grain Quarterly is a unique magazine dedicated to keeping the grain handling and storage industry well-informed about the latest developments and challenges in the field. In the November issue, the spotlight shines brightly on the 2023 Agbiz Grain and Oilseeds Value Chain Symposium, an event that brought experts and stakeholders together to delve into pressing industry topics. Panel discussions on profitability and investment, traceability, and food safety concerns were held during this symposium, with detailed summaries featured in the pages of Agbiz Grain Quarterly. This issue also includes expert insights on crucial subjects like silo fumigation and occupational health, addressing critical aspects of grain storage and management. The November issue of Agbiz Grain Quarterly is packed with a diverse range of content. It provides readers with a comprehensive look into the industry, covering profiles of notable figures like Willie Dreyer, who is retiring from the grain industry. Additionally, the magazine delves into the vital functions and roles of South Africa's Maize and Wheat Forums, dissects the silo tariff conundrum, and explores solutions for futures quandaries. Moreover, it sheds light on the importance of traceability, the economic benefits of soya beans in the American context, and offers an overview of policy and legislation for 2023 while presenting an outlook for 2024. The issue also takes a close look at fumigation practices and emphasizes the significance of health and safety in the workplace, ensuring that readers are well-informed on every aspect of the grain industry. Agbiz Grain Quarterly continues to be a valuable resource for professionals in the field. Download your free version of this exciting publication here.

South Africa's Public Enterprises Minister, Pravin Gordhan, along with Transnet's Acting Group Chief Executive, Michelle Phillips, and Transnet Port Terminals (TPT) officials visited Cape Town Container Terminals (CTCT) to address challenges in preparation for the deciduous fruit export season. Minister Gordhan engaged with the fruit industry representatives to comprehend the sector's needs during the harvest season, emphasising the role of well-functioning ports in maintaining competitiveness. As the CTCT plays a pivotal role in South Africa's economy, especially during the deciduous fruit season, ensuring operational efficiency is crucial to prevent bottlenecks and delays in exporting perishable goods. Minister Gordhan expressed concern for current challenges, emphasising the government's commitment to collaborative efforts with Transnet and stakeholders to overcome obstacles and ensure CTCT's smooth functioning. Acknowledging the urgency to address operational inefficiencies, Phillips pledged concrete actions to enhance port capabilities and committed to close collaboration with the deciduous fruit industry and other stakeholders. The visit concluded with a commitment to ongoing discussions, aiming to devise comprehensive mitigation plans, optimise processes, and foster collaboration between the public and private sectors to enhance port efficiency. Minister Gordhan, Phillips, and TPT expressed gratitude to the deciduous fruit industry representatives, assuring concerted efforts to uphold the country's reputation as a reliable exporter of high-quality perishable goods. Click here to read full article first published on freshplaza.com.

Embarking on a study tour facilitated by the Inclusive Society Institute of South Africa, the author delves into personal observations gleaned from their experiences in China. With an emphasis on superb social organisation, the narrative highlights the efficiency of daily life, strict security measures, and remarkable cleanliness throughout the country. The impressive physical and digital infrastructure, coupled with the evolution of China's growth model, reflects a profound transformation over the last four decades. The narrative explores the incredible economic growth in China, driven by a pragmatic approach. The focus on local government initiatives, cooperation with the private sector, and a keen emphasis on economic incentives underscores the uniqueness of the Chinese growth story. As the country shifts towards a changing growth model, emphasising the digital, health, and green economies, the study tour provides valuable insights into China's innovation-driven future. The author reflects on the meritocratic nature of the government, the luxury of government offices, and the deep-rooted Confucian principles that underpin China's political and economic trajectory. The narrative concludes with a note of caution, acknowledging the potential cyclical nature of China's historical trajectory and emphasising the nation's determination to shape its own destiny. Click here to read full article by Political & Trend Analyst JP Landman.

Agbiz Fruit Desk Manager Wolfe Braude addressed concerns in an eNCA interview, emphasizing that there's no specific threshold for obtaining an export permit, and the broad-based BEE status is just one among several factors considered. Over the past two weeks, the Agriculture Department released gazettes detailing export procedures from Southern Africa to the EU and the UK. Industry experts refute sensationalist media claims of new "race-based" quotas affecting the country's fruit exports. Braude's clarification underscores the need to consider multiple factors in the application process, fostering a more nuanced understanding of the situation. The Agriculture Department's proactive communication aims to dispel misinformation and promote transparency in the export industry. Click here to watch full eNCA interview. 

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 upcoming weather forecast indicates a predominantly dry period, with isolated thundershowers expected in the central to eastern summer rainfall region by the weekend. Interior temperatures will be above average, with the possibility of hot conditions. Although mid-next week might bring more widespread thundershowers, forecast models disagree on distribution and amounts. November's strong high-pressure system suggests increased thundershowers, primarily in the central and northeastern parts. Limited upper-air trough movements make extensive rainfall improbable. Recent rainfall varied in the summer grain production area, surpassing expectations in some regions. While isolated thundershowers are predicted for the Free State and Eastern Highveld, widespread rain is unlikely. The summary concludes with an overview of weather conditions, emphasising above-normal temperatures and below-normal rainfall for most areas, with the potential for severe thundershowers. The forecast anticipates warm, dry conditions with isolated thundershowers. Interior temperatures will be above average, with potential heat spells. Disagreements exist in mid-next week's forecast, but a strong high-pressure system suggests increased thundershowers. Click here to read full CUMULUS update by J Malherbe and R Kuschke.

In this comprehensive update on the South African supply chain and international trade, commercial ports exhibit increased throughput, handling an average of 8,329 containers daily, a noteworthy surge from the previous week. Nevertheless, operational challenges persist, with congestion, adverse weather, and equipment issues impacting ports, especially in Cape Town and Durban. The implementation of a "Port Congestion Surcharge" by CMA CGM underscores broader shipping industry complexities. Rail networks report positive developments, with minimal delays and fewer incidents of theft and vandalism. Despite a monthly decrease in container throughput for September, annual figures show a substantial 12.8% increase compared to the same period last year, reflecting the industry's resilience amid challenges. Global maritime trends reveal considerations for scrapping aging vessels to address industry overcapacity. Improved schedule reliability in September (1.2% increase to 64.4%) positions Maersk and Hamburg Süd as leaders among top carriers. Challenges in the bulk industry emerge as El Niño events impact global crop yields, reshaping seaborne gas and oil trading. Droughts affect Panama Canal crossings, with a 13% queue increase, highlighting the broader environmental impact on international trade. The air freight sector in South Africa shows robust inbound cargo but faces an 8% decline in outbound shipments. Regional road freight trade sees improved crossing times, yet challenges persist, including strikes and processing halts. The report underscores the need to address both operational and financial issues at Transnet for overall supply chain enhancement. Read the full update in the latest BUSA Cargo Movement Update.

In a strategic move, the Grain SA Group of Entities, South Africa's premier voluntary industry organisation supporting grain and oilseed producers, has named Dr. Tobias Doyer as its new Chief Executive Officer, effective January 8, 2024. Recognized for his transformative leadership and expertise in driving growth and innovation, Doyer brings a wealth of experience from the agricultural, insurance, and academic sectors. Grain SA Chairperson Derek Mathews expressed confidence in Doyer's ability to lead the organisation to new heights, citing his exceptional skills and industry knowledge. Doyer, with a history of reshaping Agbiz into a proactive contributor to national discussions, envisions a positive contribution from the agricultural sector to South Africa. With a clear vision, Doyer and the Grain SA Group are poised to navigate the evolving agricultural landscape and seize sustainable opportunities for future success. Read full statement 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. 

• 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.