The national government departments, among other things, are primary policy-making bodies. Thus, it is always wise to listen to the leadership of each department when they make significant speeches. Today was one such day where the political leadership of the Department of Agriculture, Minister John Steenhuisen, tabled his Budget Vote Speech. We found the speech valuable, underscoring a message of continuity from the sixth administration, with an added focus on relentless implementation. Minister Steenhuisen stated that "The Agriculture and Agro-processing Master Plan (AAMP), adopted in 2022, is the framework upon which the inclusive growth of the Agricultural sector is premised. The AAMP adoption process has enjoyed broad sectoral support, and I wish to clarify that I have no intention of reinventing the wheel. Instead, the focus will rather be on accelerating the implementation of the objectives of the AAMP and ensuring that my department upholds its commitments contained in the plan." We support this view. Read full press release by Wandile Sihlobo here. Read full budget speech by Minister John Steenhuisen here.

For decades, South Africa has been China's top source for metals such as gold, diamonds and platinum but now Beijing is opening up to more agricultural exports as it moves to reduce its dependency on countries such as the United States and Australia. The newly appointed Chinese ambassador, Wu Peng, told local media that Beijing was implementing measures to fast-track food exports, "This year, we are working hard with the South African side towards signing export protocols for yet more South African goods, including wool, dairy products, pet food, and wild aquatic products," Wu told IOL News. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. Click here to read full article by finance.yahoo.com.

Interest rates in the United States are at 20-year highs and the dollar has appreciated sharply against other world currencies. Given the dollar’s outsized role in international finance and trade—and if history is any guide—emerging markets have good reason to be concerned. We know that rapid monetary tightening in the US and a strong dollar can lead to sudden capital flight and financial crises in the emerging world. The good news is that we have not seen an emerging market crisis. Our latest External Sector Report shows that capital flows into emerging markets have recovered from a post-pandemic low. Net capital inflows into emerging markets—excluding China—rose to $110 billion, or 0.6 percent of GDP, last year. That’s the highest level since 2018. As one would expect during a period of global monetary tightening, emerging markets have seen a decline in more volatile net portfolio inflows, but net inflows of foreign direct investment have been more stable.  Click here to read full article derived from  imf.org.

President Cyril Ramaphosa says South Africa aims to reach net zero carbon emissions by 2050. Speaking at the Climate Resilience Symposium underway at the Council for Scientific and Industrial Research (CSIR) International Convention Centre in Pretoria, President Ramaphosa said the revised Nationally Determined Contribution balances the country’s developmental needs and economic realities. “It takes into account the feasibility of undertaking a climate response through a set of just transition pathways. Importantly, it notes carbon tax as a vital component of our mitigation strategy to lower greenhouse gas emissions,” President Ramaphosa said. By internalising the cost of carbon emissions, the President said the carbon tax incentivises companies to reduce their carbon footprint and invest in cleaner technologies, and also generates revenue for climate initiatives. Read full report by SAnews.gov.za here. 

The Eastern Cape division of the High court handed down judgement in the matter of George Moerasrivier Boerdery (Pty)Ltd v the Director of Animal Health, DALRRD and the Minister of Agriculture, Land Reform and Rural Development. The case dealt with the right of an owner of livestock to compensation when livestock and products are destroyed in terms of a directive issued by the Director to destroy a large number of chickens and poultry products in accordance with governmental avian flu protocol. When the farm owner applied to the Director for compensation in terms of s 19(1) of the Animal Diseases Act, no 35 of 1984, the claim was rejected on the basis that the infected and in-contact chickens have no value and that nil compensation was therefore payable. The court found that the Director’s decision was not administratively fair and not in line with the intention of section 19 of the Act. The refusal to pay compensation was set aside and the claim for compensation remitted to the Director for reconsideration. Click here to read full report by Agbiz Legal Intelligence Manager Annelize Crosby.

The first sitting of the National Assembly (NA) today elected Ms. Thokozile Didiza as NA Speaker and Dr. Annelie Lotriet as the Deputy Speaker. Two candidates, Ms. Thoko Didiza and Ms. Veronica Mente, were nominated for the position of Speaker. Ms. Mente received 49 votes, while Ms. Didiza was elected with 284 votes. Ms. Didiza was the Minister of Agriculture, Land Reform, and Rural Development during the Sixth Parliament. She was first elected to Parliament in 1994 and was the first woman Deputy Minister of Agriculture from 1994 until 1999.The sixth Parliament wrapped up its work during April 2024 and the seventh Parliament started work in June 2024 when the new members of Parliament were sworn in. Annelize Crosby, head of legal intelligence at Agbiz joins Plaas TV to give us a summary of important bills and policies, and the effect that it will have on agriculture. Click here to watch. 

Through the past 30 years of exceptional progress, SA’s agriculture has confronted numerous challenges that have had varying effects across subsectors. This past week presented three challenges, the effects of which will become clearer in the weeks ahead. In the northern regions of SA, particularly Limpopo, the potato crop has suffered losses because of frost after an unusually cold spell. The most affected crops are the ones planted from May onwards. The scale and effects of the damage at national level are not yet clear, but rough estimates and anecdotes from industry players suggest we are unlikely to experience a national supply crisis. Still, the farmers in the affected regions will suffer financial losses. Various regions of the Western Cape have been affected by heavy storms, with reports of infrastructure damage. Whether agricultural activities in the province experienced significant damage remains unclear, but we suspect the effect will mainly be on public infrastructure. Read full article by Wandile Sihlobo here.

The El Niño weather event has ended and we are moving towards a more favourable agricultural production environment. 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 & 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 SA 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. Click here to listen to latest Agricultural Market Viewpoint with Wandile Sihlobo.

While we are still at the start of the 2024/25 global grains and oilseed production season, the International Grains Council (IGC) forecasts a decent harvest. For example, in their latest update, the IGC placed the 2024/25 global grains and oilseed production forecast at 2,3 billion tonnes, up mildly from the previous season. The stocks are expected to be healthy, around 582 million tonnes, although having declined somewhat from the 2023/24 season because of the expected increase in the industrial use of grains. A closer look at the figures shows that the IGC forecasts a 1% year-on-year increase in the 2024/25 global rice production to 528 million tonnes. This is based on an anticipated large crop in all the major rice-producing regions, such as India, Vietnam, Thailand, the US, China, Pakistan, Indonesia, Bangladesh and the Philippines. Subsequently, the stocks could also increase by 1% to 175 million tonnes. Read full report by Wandile Sihlobo here.

Southern Africa continues to face climate-related challenges that place its agricultural sector and food supply at risk. The midsummer drought of 2024 has devastated the regional maize supplies, a staple food crop for the region. So far, the focus has been on the losses farmers are experiencing, but soon, consumer pressures will arise. At the end of February, Zambian President Hakainde Hichilema declared a disaster after realising the country had lost more than half of its maize harvest because of the drought. Zambia’s maize production in the 2023-24 season is down by more than 50% to an estimated harvest of 1.6 million tonnes. The country now has to import a record volume of 1 million tonnes to satisfy the domestic maize needs of 2.8 million tonnes. Zimbabwe faces a similar challenge, with its maize harvest down by roughly 60% from the 2022-23 production season to an estimated 635,000 tonnes. This is the lowest harvest since the 2015-16 production season, another drought year. Read full article by Wandile Sihlobo first published in wandilesihlobo.com here.

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 these, housed in the department of agriculture, land reform and rural development, is the Crop Estimates Committee. This committee benefits on skills from 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. For each season, the committee typically releases about 10 reports. From the fourth monthly report, there is generally some certainty about the expected crop. Click here to read full article by Wandile Sihlobo first published in mg.co.za.

We are two months away from the start of South Africa's 2024/25 maize production season. The focus in the industry is still on finalizing the harvest of the current crop. But I was delighted that the International Grains Council sees South Africa's maize harvest bouncing back by 20% year-on-year in the next season to 16,5 million tonnes (see the table). They base their view on the expected La Nina rains in the next season and the belief that farmers would plant the typical area for maize (around 2,4 million hectares or so). While we haven't come up with any estimates and will only do so when we have a sense of the area plantings, the International Grains Council view is aligned with what some of us believe, assuming the expected La Nina materializes. Read full report by Wandile Sihlobo here.

Our global growth projections are unchanged at 3.2 percent this year and slightly higher at 3.3 percent for next year, but there have been notable developments beneath the surface since the April World Economic Outlook. Growth in major advanced economies is becoming more aligned as output gaps are closing. The United States shows increasing signs of cooling, especially in the labor market, after a strong 2023. The euro area, meanwhile, is poised to pick up after a nearly flat performance last year. Asia’s emerging market economies remain the main engine for the global economy. Growth in India and China is revised upwards and accounts for almost half of global growth. Yet prospects for the next five years remain weak, largely because of waning momentum in emerging Asia. By 2029, growth in China is projected to moderate to 3.3 percent, well below its current pace. Read full report by IMF Blog here.

WTO members continue to introduce more trade-facilitating measures than trade-restricting measures on goods, an important signal of members’ commitment to keep trade flowing despite the current geopolitical uncertainty, according to the latest Trade Monitoring Update issued on 8 July. The Update, covering the period between mid-October 2023 and mid-May 2024, also notes a rapid increase in industrial policy subsidies, particularly in areas related to climate change and national security. Commenting on the findings, Director-General Ngozi Okonjo-Iweala said: “This Trade Monitoring Update underscores the resilience of world trade despite the challenging geopolitical environment. Even in a context of rising protectionist pressures and signs of economic fragmentation, there are governments around the world still taking meaningful steps to liberalize and facilitate trade. This attests to the benefits of trade for people's purchasing power, business competitiveness and price stability. Read full report by wto.org here.

The President of the African Development Bank Group Dr. Akinwumi Adesina has said the decision by Nigeria’s government to allow massive food importation risks destroying the country’s agriculture. This follows the announcement by Nigeria’s Minister for Agriculture Abubakar Kyari on July 10 that the Federal Government would suspend duties, tariffs, and taxes on the importation of maize, husked brown rice, wheat, and cowpeas through the country’s land and sea borders, for 150 days. “Nigeria’s recently announced policy(link is external) to open its borders for massive food imports, just to tackle short-term food price hikes, is depressing,” Adesina told African Primates of the Anglican Church at a Retreat in Abuja, Nigeria, on Friday. He warned that the policy could undermine all the hard work and private investments that have gone into Nigeria’s agriculture sector. Click here to read full article derived from afdb.org.

Five days have passed and the large citrus growing town of Citrusdal is still cut off from the rest of the Western Cape Province in South Africa. Citrus growers and members of the community are waiting on government authorities to make emergency plans to be able to access the town to bring much needed food, medical supplies etc. They also hope the rain and flood water will subside, so that a private road with a low water bridge of a large citrus producer will become available to use later this week. Gerrit van der Merwe Jnr., a grower of ALG Estates and chairperson of the Citrus Growers Association of Southern Africa (CGA), based in the town of Citrusdal says the current plan is to use the private road and bridge of another large citrus producer in the area. "The plan is to use a private bridge of a large citrus producer. The government and the relevant authorities need to come together to discuss the options as well as traffic rules etc.” Read full article first published in freshplaza.com here.

Pan Africanist Congress of Azania (PAC) president Mzwanele Nyhontso – the new Minister of Land Reform and Rural Development – has made no bones about his plans to push for amendments to the Constitution to address land dispossession. Nyhontso wants to scrap section 25 of the Constitution, because the PAC sees it as a hindrance to resolving the question of land redistribution. However, he said the party is not fixated on expropriation of property without compensation. Nyhontso told Daily Maverick that while the PAC accepts that the Constitution is among the best in the world, the entrenchment of property rights in section 25 is skewed against African communities. The PAC, with one seat in Parliament, joined the Government of National Unity (GNU) after the ANC failed to achieve the 50% threshold in the elections on 29 May 2024. Click here to read full article first published in dailymaverick.co.za.

On 29 May 2024 South Africans went to the polls and delivered a strong message to their political leaders: we’re tired of the “same old same old”. They slashed the governing African National Congress’s share of the vote to just over 40%. And put their crosses next to a host of some old – and some new – opposition parties. The general election outcome triggered weeks of high-wire negotiations as parties jockeyed to be part of a coalition government to run the country’s 7th administration. Now that the deals have been done, and the cabinet portfolios allocated, the country’s 400 parliamentarians are finally going to get down to business. On 18 July President Cyril Ramaphosa will deliver his opening address to the new parliament. The Conversation Africa has published a number of articles that provide insights into what lies ahead. Will the government of national unity – made up of 11 parties – work? Click here to read full article derived from theconversation.com.

There’s cautious optimism in South Africa’s agricultural sector as weather forecasts point towards a La Niña event for the upcoming 2024/25 summer crop season. This welcome news comes after a challenging 2023/24 season ravaged by El Niño-induced drought. “We are two months away from the start of the 2024/25 summer crop season,” says Wandile Sihlobo, chief economist at Agbiz. “Early indications of weather prospects are encouraging, showing a firm likelihood of a La Niña occurrence.” Sihlobo cites the International Research Institute for Climate Change and Society at Columbia University, which places the probability of a La Niña at over 50% between now and April 2025. “Such weather events typically bring above-average rainfall across South Africa and the entire Southern region,” he adds. Mzansi farmers are hoping for a return to favourable conditions similar to those experienced four seasons ago. Click here to read full article derived from foodformzansi.co.za.

Opposition leader Peter Dutton might have been hoping for an endorsement from economists for his plan to take Australian nuclear. He shouldn’t expect one from The Economist. The Economist is a British weekly news magazine that has reported on economic thinking and served as a place for economists to exchange views since 1843. By chance, just three days after Dutton announced plans for seven nuclear reactors he said would usher in a new era of economic prosperity for Australia, The Economist produced a special issue, titled Dawn of the Solar Age. Whereas nuclear power is barely growing, and is shrinking as a proportion of global power output, The Economist reported solar power is growing so quickly it is set to become the biggest source of electricity on the planet by the mid-2030s. By the 2040s – within this next generation – it could be the world’s largest source of energy of any kind, overtaking fossil fuels like coal and oil. Click here to read full article by theconversation.com.

Stats SA has defended the quality of the country's latest census, saying concerns raised by scientists earlier this week are "unfounded and misleading". On Wednesday 10 July, the Medical Research Council sounded the alarm about Census 2022, releasing a technical report that indicated it was so flawed that the government could not rely on it for resource allocation or monitoring key programmes. Statistician-General Risenga Maluleke joined sabcnews.com live in studio for more on this. Click here to watch.

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.

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.