Recent bank failures, notably Credit Suisse and US banks, highlight the ongoing challenge of addressing "too big to fail." While progress has been made, critical issues persist, including taxpayer risk and liquidity management. Intrusive supervision and flexible resolution regimes are essential, along with stronger deposit insurance frameworks. The IMF is actively supporting member countries in bolstering their banking systems through initiatives and technical assistance. Further efforts are needed to strengthen early intervention, liquidity support, and deposit insurance to mitigate systemic risks. Last year's failures underscore the importance of continued reform to ensure financial stability and protect taxpayers. Click here to read full article by IMF Blogs.

In 2023, U.S. agricultural exports soared to $174.9 billion, reflecting the strength of American farmers and agribusinesses globally. Initiatives by the USDA's Foreign Agricultural Service (FAS) expanded market access and removed trade barriers, boosting exports by $6.4 billion. Efforts included opening new markets, increasing ethanol exports, and eliminating tariffs in key regions like India. The USDA's advocacy in international forums ensured U.S. growers maintained access to essential tools like pesticides. Trade missions and food pavilions organised by FAS facilitated billions in projected sales, fostering connections between American producers and global buyers. Additionally, the Regional Agricultural Promotion Programme (RAPP) targeted emerging markets, promoting diversification and growth opportunities. Addressing global food insecurity remained a priority, with investments of $442 million in feeding programmes across 47 countries. Looking ahead to 2024, USDA aims to build on these achievements, focusing on diversification and expanding access for U.S. agricultural products worldwide. Read full report by the U.S. Department of Agriculture here.

The 2023–24 UN Human Development Report highlights a record high Human Development Index (HDI) post-COVID-19 pandemic, yet reveals widening disparities between rich and poor nations. UNDP Administrator Achim Steiner warns of a reversal in the trend of reducing inequalities globally. UN Secretary-General António Guterres emphasises the urgent need for international cooperation to tackle pressing global challenges. The report identifies a "democracy paradox" where support for democracy coexists with acceptance of leaders undermining democratic principles. Political polarisation and inward-looking policies exacerbate societal divisions and hinder progress. UNDP head Steiner underscores the interconnected nature of global challenges and the necessity for collaborative solutions. Neglecting investment in each other poses a threat to collective wellbeing and security. The report ranks Switzerland, Norway, and Iceland at the top of the HDI, while the Central African Republic, South Sudan, and Somalia lag behind. North Korea and Monaco were not included in the country rankings. Click here to read full report by news.un.org.

The National Council of Provinces, with eight provinces for and the Western Cape against, has adopted the Expropriation Bill. However, the legislation must return to the National Assembly for changes to be approved. That means its 16-year legislative journey is unlikely to be completed before the May elections. Time is against the National Assembly to properly process the largely technical changes the National Council of Provinces (NCOP) made to the Expropriation Bill and then to bring the legislation for a vote. Only five working days remain on the parliamentary calendar before the House rises on 28 March ahead of the elections. If it runs out of time, the option of reconvening the National Assembly remains, even if MPs are on the elections campaign trail, particularly if a fully virtual sitting had to be called. Once the House approves, the Expropriation Bill goes straight to the presidential in-tray. But politically it’s an awkward pickle. If the National Assembly fails to finalise the Expropriation Bill, it lapses come the 29 May elections. It would be up to the post-poll incoming MPs to revive the legislation and finalise it. Read full article first published on dailymaverick.co.za here.

Over 5000 assistant agricultural practitioners (AAP) left hanging after the Department of Agriculture and Land reform terminated graduates' contracts, are hoping that the president will come to their aid and reinstate them to their jobs. The Department of Agriculture, Land Reform and Rural Development developed a program for three months to appoint 10 000 unemployed agricultural graduates as AAPs to assist the government to reach the target of one extension officer to 250 farmers. The 5000 graduates were to be recruited in the first cycle of 2022/23 financial year, with them placed at the different provinces and deployed with various agricultural institutions in the sector including Agricultural Research Council (ARC), the Association of Veterinary and Crop Associations of South Africa (AVCASA), Grain SA, and the South African Sugar Research Institute and the South African Poultry Association, among others. Click here to read full article first published in The Star.

Agbiz hosted a workshop on 13 March 2024 in Pretoria on the subject of campaigns that are aimed at bringing about change in the agricultural sector. The workshop was attended by members, some in person and some attending online. The aim of the workshop was to create awareness amongst members of the role and impact of campaigning by non-governmental organisations in the policy and implementation space in the sector. By way of background, Agbiz has, as one of its core objectives, a role to try and create and maintain an enabling environment for our members to function in. Agbiz is therefore very involved in the policy space. There are however many other actors that are also active in the policy space and sometimes their views are diametrically opposed to that of Agbiz and its members. The approach of many of these NGO’s can be quite ideological, emotionally driven and even confrontational. It is important that members understand how these groupings operate and how to respond appropriately. Click here to read full report by Head of Legal Intelligence Annelize Crosby.

While the summer grain and oilseeds production prospects for the 2023/24 season seem bleak because of the excessive dryness and heatwave, the global production conditions remain reasonably optimistic. On March 14, the International Grains Council (IGC) released its monthly update of the 2023/24 global grain and oilseeds production, with some upside adjustments for significant crops. For example, the 2023/24 global maize harvest forecast at 1,2 billion tonnes, up 6% year-on-year. This improvement is due to better crop expectations in the US, Argentina, Ukraine, China, the EU, and Russia. Consequently, the stocks will also lift by 5% year-on-year to 294 million tonnes. The IGC forecasts that the 2023/24 global wheat harvest will reach 789 million tonnes, well above the long-term average levels (albeit down 2% year-on-year). A poor harvest in parts of Russia, Canada, Ukraine, Australia, the United Kingdom and Kazakhstan underpins the decline in the overall harvest. Still, the global wheat consumption will likely remain strong, particularly in Asia. As such, the IGC forecasts a 5% decline in stocks to 267 million tonnes. But from a long-term perspective, these will still be healthy stocks. Click here to read full article by Agbiz Chief Economist Wandile Sihlobo.

South Africa's consumer food inflation slowed to 6,0% in February 2024, from 7,0% in the previous month. This was underpinned by the deceleration across most food products, except for "sugar, sweets and desserts", which remained roughly unchanged from the last months. We expect this broad moderation path to continue for most of the products within the food basket over the near-to-medium term. However, there are significant upside risks for the "bread and cereal products" in the food basket because of the potentially poor white maize harvest on the back of the current heatwave and dryness. We recently published our view on South Africa's consumer food price inflation; today's data doesn't change that outlook, which we detail below. Read full report on narratives that underpin the consumer food inflation outlook in South Africa by Wandile Sihlobo here.  

The Middle East is deepening its economic ties with Africa. This past weekend, The Economist magazine ran an article titled "The Gulf's scramble for Africa is reshaping the continent", which focused on growing geopolitical ties and significant investments in infrastructure projects such as ports in various African countries.1 The leading countries are the United Arab Emirates (UAE), Saudi Arabia and Qatar. For countries like South Africa, with diverse interests worldwide, the Middle East's growing interest in Africa requires proactive engagement, particularly for drawing in investments and opening up the market for exporting sectors of the economy. Agriculture is one sector that needs investment and a broadening of export markets. Consider the eastern regions of South Africa and the former homelands; these areas typically are on the periphery of agricultural progress because of poor land governance and weak infrastructure, which renders them effectively isolated from the formal value chains of the food, fibre, and beverage sectors. Click here to read full Agricultural Trade Digest article by Wandile Sihlobo. 

The damaging effects of persistent dryness and heatwave in South Africa's summer crop-growing regions have raised concerns about a possible rise in consumer food inflation in the coming months. With South Africa's food price inflation averaging 11% in 2023 (from 9.5% in 2022, 6.5% in 2021, and 4.8% in 2020), which was relatively high compared with recent periods, talk of further upside pressure in inflation comes as an unwelcome development. However, the underlying drivers of the increase in food inflation in the past two years were mainly the international agricultural commodity prices and, to a much lesser extent, idiosyncratic domestic factors. Still, towards the latter part of 2023, local factors such as animal diseases, weaker domestic currency, and load-shedding-related costs were some of the key drivers of food inflation. Click here to listen to full episode of the Agricultural Market Viewpoint by Wandile Sihlobo.

The fumigation of grains and oilseeds is not an issue to be taken lightly. New service providers put the good name of the industry on the line. Growing concern prevails over the easy availability of registered hazardous drugs for fumigation and their illicit trading. In addition, the training of fumigators and their assistants by new service auctioneers is poor. The latter disregard the industry's how training standards. The increase in the mishandling of chemical agents used in the fumigation of grains and oilseeds is forcing the industry to act strictly. Agbiz Grain, CropLife and Sapca will together focus on expose those who provide training that does not meet the legal standards. Click here to read full article by Agbiz Grain General Manager, Wessel Lemmer for Landbouweekblad.

Agbiz Grain, together with Senwes and Peritum Agri, celebrated the launch of the Grain Depot Manager Programme on Friday, 8 March. This collaborative effort, developed over four years, is a testament to their commitment to fostering skills and expertise in the agricultural sector. The event featured speakers Emmie Pietersen, Director of Peritum Agri Institute; Heinrich Henning, Operations Manager at Senwes; and Wessel Lemmer, General Manager of Agbiz Grain, who shared their insights and excitement about this innovative programme. The Grain Depot Manager Programme caters to the needs of enterprises handling grains and oilseeds, especially those serving farmers. It aims to equip learners with the skills to operate effectively as Grain Depot Managers. The programme emphasises achieving operational efficiencies, responsible resource utilisation, and maintaining the mechanical integrity of bulk grain handling and storage units. Click here to read full report by Agbiz Communication Officer Temba Msiza. 

The 2023 WMO State of the Global Climate report highlights record-breaking temperatures, greenhouse gas levels, and extreme weather events. It confirms 2023 as the warmest year on record, with alarming implications for global ecosystems and economies. The report underscores the urgent need for accelerated climate action, as the world approaches the 1.5°C limit set by the Paris Agreement. Glacial retreat, Antarctic sea ice loss, and widespread marine heatwaves raise concerns for biodiversity and food security. Despite challenges, there is hope in the surge of renewable energy adoption globally, with capacity additions reaching a record high in 2023. The report calls for enhanced climate services and financing to support ambitious climate mitigation and adaptation efforts worldwide. The findings set the stage for discussions at the Copenhagen Climate Ministerial and underscore the critical need for urgent and collaborative action to address the climate crisis. Read full article by the World Meteorological Organization here.

Deputy Secretary Wally Adeyemo delivered a speech in Johannesburg, South Africa, highlighting the historical ties and shared values between the United States and South Africa. He emphasised the importance of economic partnership and outlined key areas for unlocking South Africa's economic potential, including reliable power, global economic integration, and combating corruption. Adeyemo underscored the U.S.'s commitment to supporting South Africa's energy transition and clean energy supply chain development, as well as efforts to address corruption and promote job creation. He concluded by reaffirming the mutual benefits of a strong economic relationship built on shared values and aspirations for prosperity and opportunity for all citizens. Click here to read full speech by The U.S. Treasury Deputy Secretary. 

This update offers a comprehensive view of South Africa's supply chain and international trade status. It highlights increased container handling at commercial ports, despite challenges like equipment breakdowns and adverse weather. TNPA's announcement of leasing opportunities for port land is noted, alongside relatively incident-free rail operations. In the global maritime industry, ongoing Red Sea shipping diversions continue to impact routes and fuel consumption. Air cargo volumes show significant increases, particularly in outbound and inbound cargo at ORTIA. The regional cross-border road freight trade faces challenges with increased queues and transit times. Despite some positive indicators in port operations, caution is advised due to ongoing issues like vessels at anchorage and equipment shortages, emphasizing the need for collaborative efforts between business and government to address industry challenges and improve performance. Read the full update in the latest BUSA Cargo Movement Update.

In light of the agricultural sector's resilience amidst ongoing challenges, the significance of robust business partnerships has become increasingly evident. Since 2020, the pivotal role of enduring collaborations in streamlining logistical processes, ensuring access to resources, and addressing production risks has been underscored. It is with this ethos that Absa AgriBusiness presents Absa AgriTrends. Rather than a crystal ball, this resource is set to serve as a catalyst for dialogue among industry stakeholders. Through these conversations, their aim is to foster relationships, align expectations, identify opportunities, and propel the agricultural sector forward. Amidst global trade's recent slowdown, influenced by various factors including the pandemic, geopolitical conflicts, and protectionist measures, disruptions in maritime routes like the Panama and Suez Canals have further impacted traditional trade patterns. In this edition, they delve into the implications of these developments for agriculture. Click here to read full 2024 Autumn Edition report by Absa AgriBusiness. 

Antoinette van Heerden, Logistical Affairs Manager at the Fresh Produce Exporters Forum in South Africa, reflects on the unpredictability of fruit export seasons despite meticulous planning. Challenges during the bumper deciduous season included delays and vessel omissions at Cape Town Port due to wind-related issues, prompting the need for a divergent strategy. With the transition to the citrus season, logistical planning remains crucial amidst port constraints and unforeseen delays. Despite positive developments such as infrastructure upgrades and additional staff, uncertainties such as national elections and changes in government leadership pose potential impacts on state-owned entities and regulatory effectiveness. Van Heerden emphasises the industry's goal of efficient fruit movement, timely arrivals, and cost management amidst dynamic export seasons. Click here to read full article by FreshPlaza.com. 

Central South Africa continues to experience drying trends with warm temperatures, impacting late-season crops like peanuts, sorghum, and unirrigated cotton. Conversely, Eastern South Africa maintains favourable development conditions, with a mix of rain and sunshine expected to sustain production. Northeastern Natal and northeastern Mpumalanga received significant rainfall from Tropical Cyclone Filipo, while other regions saw limited precipitation. Despite warmer temperatures, crop moisture stress remains slower in the eastern half, promising better yields compared to the stressed western areas. Click here to read full report by the World Weather, Inc.

A shortage of cocoa beans has crippled processing plants in Côte d'Ivoire and Ghana, impacting global chocolate prices and farmers' livelihoods. Environmental factors like El Niño and economic cycles contribute to declining cocoa production. Human challenges, including illegal mining, exacerbate the crisis. Ghana's Cocoa Board secures loans to combat diseases, while Côte d'Ivoire assesses the situation. Despite rising global demand for chocolate, structural issues persist. The output decline leads to reduced processing capacity, surging chocolate prices, and poorer farmers. As cocoa cultivation becomes unsustainable, alternatives like cocoa-free chocolate emerge, offering hope for a sustainable solution. Read full article derived from theconversation.com here.

The 2024 South African grape season faced logistical hurdles at ports, impacting producers and exporters striving to meet market demands. Despite ups and downs, such as successful shipping via Walvis Bay and unexpected delays diverting grapes to Port Elizabeth, the industry encountered significant challenges. During peak season, a backlog of 14 to 17 million cartons of grapes awaited shipment due to port inefficiencies. While delays disrupted European markets, the influx of grapes in subsequent weeks strained market dynamics, albeit with higher price levels than the previous year. The delay in Indian shipments provided an opportunity for South African grapes to command favourable prices. Notably, Walvis Bay shipments maintained fruit quality, despite increased logistical costs. Although the industry missed the Chinese New Year window due to port delays, opportunities arose in the United States and Russian markets. While North America showed substantial growth in demand, challenges persisted in the Western Cape due to summer rainfall impacting grape quality. Despite obstacles, the season showcased resilience and revenue growth in select markets. Click here to read full article by FreshPlaza.com.

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.