Ongoing Houthi attacks in the Red Sea are causing disruptions to global trade, impacting one of the world's crucial waterways. The attacks have led to naval responses from Western countries, affecting the Suez Canal and prompting the rerouting of ships around the Cape of Good Hope. The surge in shipping rates and the immediate contraction in market capacity have significant consequences. The Red Sea, vital for around 30% of global container traffic, has witnessed over 33 attacks since November 2023. The disruptions have prompted businesses to seek greater flexibility and resilience in their supply chains. Despite the modest harm to the global economy currently, uncertainties persist, and trade experts emphasise the tight intertwining of trade and geopolitics. The situation serves as a graphic illustration of the challenges of maintaining global supply chain continuity. Read full article by weforum.org here.

Kenya Ports Authority's (KPA) end-to-end logistics services, designed to cut costs and eliminate delays, receive endorsement from Uganda, South Sudan, and Rwanda. The move supports Kenya's bid to position the Port of Mombasa as the region's primary hub, challenging neighbouring competitors. KPA Managing Director William Ruto targets transit markets to reduce freight costs and bypass brokers. Despite opposition, the Port of Mombasa plans to implement the streamlined process, cutting transportation time by removing local clearing agents. KPA remains committed to market leadership, announcing initiatives like tariff-based incentives and extended free-storage periods. Recent high-level visits and discussions indicate growing collaboration with Rwanda, Uganda, and South Sudan. Transport Cabinet Secretary Kipchumba Murkomen encourages leveraging the port's 24-hour operations, with Rwanda selecting Naivasha Dry Port for enhanced cargo transportation. The overall aim is to transform the Port of Mombasa into a pivotal regional player, streamlining logistics for increased efficiency. Read full article by kenyans.co.ke here.

UK Prime Minister Rishi Sunak revealed plans to introduce an annual Food Security Index to monitor the nation's self-sufficiency in food production. Addressing the NFU Conference, Sunak emphasised the importance of strengthening food security amid global challenges such as climate change and instability. The index, to be made statutory, will provide key data on the UK's food security levels and will be first presented at the Farm to Fork Summit this spring. Outgoing NFU president Minette Batters hailed the move as significant, highlighting the need for annual reporting to address issues promptly. Sunak also announced a comprehensive support package for rural communities, featuring the largest-ever grant offer for farmers, expected to total £427 million. The funding will prioritise technology and productivity, with an emphasis on automation to reduce reliance on overseas workers. Additionally, management payments for the Sustainable Farming Incentive scheme will double in spring, providing up to an extra £1,000 for farmers focusing on soil health, fertilisation optimisation, waterway protection, and hedgerow preservation. Sunak also pledged to simplify development processes for farmers looking to diversify their earnings. Read full article by fruitnet.com here.

The Sustainability/ESG Workshop held at the Grain Building in Pretoria on 8 February 2024, offered a comprehensive exploration of Environmental, Social, and Governance (ESG) considerations within the agricultural and agribusiness sectors. Led by Agbiz and Agrifusion, the workshop delved into the significance of ESG, a six-step process for creating an ESG roadmap, emerging trends in 2024, and insightful case studies from the agribusiness domain. Participants emphasised the necessity of addressing key risks, compliance challenges, and financing opportunities, particularly in the face of varying levels of awareness and resource constraints. The workshop stressed the importance of robust data management systems, scoping exercises to identify sector risks, and collaboration in ESG reporting. Click here to read full report by Agbiz Agricultural Economist and Policy Analyst Thapelo Machaba.

The Expropriation Bill was tabled in Parliament on 15 October 2020. After public hearings and deliberations in the Portfolio Committee on Public Works and Infrastructure, it was eventually passed by the National Assembly on 22 September 2022. It was then sent to the Select Committee on Transport, Public Service and Administration, Public Works and Infrastructure in the National Council of Provinces. Further deliberations on the Expropriation Bill followed in the Select Committee on 24 November and 6 December 2023 and on 7 February 2024. On 6 December 2023, the parliamentary legal advisor presented the Select Committee with further proposed amendments to the Expropriation Bill. At that stage, the Committee could not proceed with the adoption of the so-called C-List on the Expropriation Bill as the Department of Public Works and Infrastructure requested further consultation on Clause 20 which deals urgent expropriation in order to ensure its constitutionality. The Committee then resolved to finalise the proposed amendments to the Expropriation Bill in February 2024. Click here to read full report by Agbiz Head of Legal Intelligence - Annelize Crosby.

After a notable jump in the third quarter of 2023 to 956,000, South Africa's primary agricultural employment fell by 4% quarter-on-quarter to 920,000 in the last quarter of 2023. Jobs declined mainly in the Eastern Cape, Western Cape, Gauteng, Mpumalanga and Limpopo. Still, when we view the agricultural jobs annually, these provinces employ many people. The last quarter of 2023 was still well above 2022 levels, except for Mpumalanga, where we saw a marginal decline in primary agricultural jobs. Notably, the 920,000 jobs in primary agriculture in the last quarter of 2023 is 7% up year-on-year and well above the long-term agricultural employment of 793,000. The general annual improvement in jobs mirrors the robust agricultural season of 2022/23 across most subsectors of agriculture. More specifically, the excellent production conditions of various field crops, forestry and aquaculture were behind the improvement of farm jobs in the last quarter of 2023. Meanwhile, the livestock industry registered a slight decline, which is unsurprising as the industry was confronted by various animal diseases such as foot-and-mouth, avian influenza and African swine fever in 2023. The tail-end of these challenges continues to weigh on the industry. The production of organic fertilizer facilities also registered an annual decline in employment. Click here to read full report by Wandile Sihlobo.

There is a growing sense of unhappiness amongst farmers globally. In Europe, protests against stringent environmental laws, calls for protectionism against imports, and increased producer support are some of the issues farmers continue to highlight.1 We now see news of protests in India where farmers demand guaranteed crop prices and increased government producer support. These events are far from us in South Africa but have relevance. For example, the big win for farmers in the E.U. so far was the agreement by lawmakers to review the environmental policy -- with the "Farm to Fork Strategy" -- aimed at reducing the use of chemicals and fertilizers, threatening agricultural productivity. The chemical and fertilizer use reduction that the E.U. lawmakers proposed would not apply only to the region but also to trading partners such as South Africa. The E.U. is the second most important market for South Africa's agricultural products, accounting for 27% of the country's total agricultural exports, according to data from Trade Map. Thus, the positive outcome of E.U. lawmakers' willingness to review the environmental laws is a welcome development for South Africa. Click here to read full article by Wandile Sihlobo. 

The excessive heat across South Africa currently is a significant concern for the farming sector. The 2023/24 summer crop season started on favourable footing. We received widespread rains, which was unusual in an El Niño season, which would typically start with drier weather conditions. According to data from the Crop Estimates Committee, the farmers managed to plant a sizable summer grain and oilseed area of 4,4 million hectares, up by 0,4% from the 2022/23 season. For a while, it appeared as though South Africa was on track for yet another excellent harvest. But since the start of February, the rain has been scant across the summer crop-growing regions of South Africa, thus raising concerns about the yield potential of the crops. Perhaps we should not have been completely surprised by the current difficulty. At the end of January 2024, the South African Weather Service warned about such a possibility, stating that its " multi-model rainfall forecast indicates mostly below-normal rainfall over most of the country during February to June, except for some central parts of South Africa during March to May where enhanced probabilities for above-normal rainfall is predicted." Read full report by Agbiz Chief Economist, Wandile Sihlobo here.

As we are fast approaching the second anniversary of South Africa’s Agriculture and Agro-processing Master Plan, there is very little to show in terms of implementation on the ground. A series of compounding crises has seized the attention of the government and inadvertently led to a minimal implementation of various critical plans and policies. Public and private sector attention has entirely shifted to resolving persistent load shedding, logistical constraints at ports, protectionism in export markets and the spread of animal diseases. These events meant that the government and various industry stakeholders moved into “crisis” mode, and the attention shifted from the Agriculture and Agro-processing Master Plan (AAMP) and its promise for growth in the sector to addressing serious structural challenges that are hampering growth. The political economy tensions that often arise between industry role players and the government while resolving these urgent and near-term issues have further strained trust and the collaborative vision. Read full article by Wandile Sihlobo for dailymaverick.co.za here.

The excessive heat across South Africa currently is a significant concern for the farming sector. The 2023/24 summer crop season started on favourable footing. We received widespread rains, which was unusual in an El Niño season, which would typically start with drier weather conditions. According to data from the Crop Estimates Committee, the farmers managed to plant a sizable summer grain and oilseed area of 4,4 million hectares, up by 0,4% from the 2022/23 season. For a while, it appeared as though South Africa was on track for yet another excellent harvest. But since the start of February, the rain has been scant across the summer crop-growing regions of South Africa, thus raising concerns about the yield potential of the crops. Click here to listen to full episode of the Agricultural Market Viewpoint by Wandile Sihlobo.

Dive into the latest edition of Agbiz Grain Quarterly, a digital magazine dedicated to the grain handling and storage industry. The February release delves into key discussions from the 2023 Agbiz Media Day, providing insights into challenges faced by grain handlers and storers. Experts simplify complex topics such as storage costs and the proposed grain passport system. The issue covers diverse subjects, including the 30-year performance of South Africa's agricultural sector, the economic outlook for 2024, explanations for the falling wheat grading numbers, JSE's storage cost definitions, risks in malting barley, and considerations for the grain passport system. It also explores standards for fumigation training, health and safety aspects like noise monitoring, and the applicability of Competition Act buyer power guidelines to storers and producers. Don't miss the Freight Logistics Roadmap and much more in this comprehensive February edition. Explore the digimag or download the PDF version.

South African Wamkele Mene, aged 44, has been re-elected as the Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat. The decision was made during the African Union’s summit in Addis Ababa, Ethiopia, reaffirming confidence in Mene for another four-year term. Initially elected in February 2020, Mene, a former Head of Mission to the World Trade Organization for South Africa, played a pivotal role as the country's chief negotiator during discussions on the free trade area. Operating from Accra, Ghana, where the secretariat is located, Mene oversees the world's largest free trade area, uniting 54 African Union members, encompassing 1.3 billion people, and creating a $3.4 trillion economic bloc. The AfCFTA aims to boost intra-African trade, currently at 16%, as a critical step towards the continent's development under the AU's Agenda 2063. Click here to read full article derived from africafeeds.com.

Maritime consultancy Drewry estimates the global container pool will surpass 56 million TEUs by 2027, reflecting an average annual growth of approximately 3%. Despite a 2% contraction in the container pool in 2023 due to trade downturns and surplus equipment disposal, long-term growth is anticipated. In the second quarter of 2023, lessors' container utilisation dropped by 97%, reaching the lowest level since the third quarter of 2020. The current global equipment pool is deemed excessive for short trading and vessel slots' operational capacity, leading to increased sales of used containers to the secondary market. While the immediate order book for new containers remains weak, Drewry expects a rise in production to meet increasing containerised trading volumes and replace ageing equipment. Ongoing volatility in the container shipping industry is anticipated throughout 2024, exacerbated by disruptions in the Red Sea, influencing vessel routes. Click here to read full article by freightnews.co.za.

The South African Poultry Association (SAPA) has agreed to fully cooperate with the Poultry Market Inquiry launched by the Competition Commission. Despite expressing concerns about the inquiry, particularly regarding statements and assumptions made by the Commission, Sapa aims to influence the terms of reference and conclusions by providing facts, data, and opinions. The inquiry will focus on the concentration of large companies in the broiler and egg industries, addressing suspicions about its impact on the industry and consumers. Sapa emphasises that the industry seeks protection against unfair imports and highlights the challenges of competing with countries like the United States. The 2019 Poultry Master Plan committed to curbing imports, tackling illegal imports, and promoting local industry growth. Despite recent challenges, including rising feed costs and infrastructure issues, the poultry industry remains a significant contributor to the agricultural sector in South Africa. Read full article by freightnews.co.za here.

Agbiz Fruit, along with numerous South African firms, actively participated in FRUIT LOGISTICA, the world's foremost trade fair for the fresh produce industry, held in Berlin. The event showcased the entire value chain, including seed development, fruit and vegetable production, packaging, and automation. Although South Africa did not have an official country stand, the Fresh Produce Exporters' Forum (FPEF) funded a significant SA-focused stand that attracted substantial attention. Over 10 South African companies exhibited, and approximately 75 FPEF members attended in person, fostering valuable connections with industry leaders and potential global partners. In 2023, the FPEF stand contributed to deals worth around R8 billion, indicating the event's significance for South Africa's fresh produce sector. Learn more here. 

This comprehensive update provides insights into the South African supply chain, highlighting challenges faced by commercial ports, particularly in Durban and Richards Bay, due to adverse weather conditions and equipment breakdowns. Globally, supply chain volatility has reached its highest level since April, leading to increased transportation costs and reduced spare capacity. The air cargo industry, both domestically and internationally, faces declining volumes attributed to the "Year of the Dragon" and reduced air import tonnages from China. Regional cross-border road freight trade experiences changes in average queue times and transit times, with notable delays at specific border posts. The report concludes with a stakeholder dialogue event in Cape Town, emphasising the need for collaboration and proactive engagement to address challenges and drive sustainable growth in the South African port sector. Read the full update in the latest BUSA Cargo Movement Update.

Westfalia Fruit is set for ongoing expansion in the Asian market, concluding a year of successful growth in India, China, and Japan. In India, the company became the market leader after entering in 2022, witnessing tenfold market growth and harvesting the first commercial crop of Indian-grown Hass avocados. The company's global footprint allows it to source from multiple areas, ensuring year-round availability for Indian consumers. In China, after a pandemic-related downturn, the avocado market has rebounded, and Westfalia Fruit, representing half of all South African avocado exports, sees potential for market and local production growth following access approval in 2023. In Japan, Westfalia established itself as a leading supplier with a 58% increase in shipments in 2023, benefiting from South Africa gaining avocado market access. Westfalia anticipates positive social impacts in Africa, foreseeing significant changes in people's lives as avocados from the continent make their way to Asian markets. Click here to read full article by fruitnet.com.

In a recent column, Political and Policy Analyst Theo Venter shares his insights on the efficacy and achievements of PALS (Partners in Agri Land Solutions) concerning its impact on the political landscape, business sector, and transformative initiatives. Click here to access the complete column for a comprehensive analysis.

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. 

Discover the latest updates from Fruit SA’s newsletter! Delve into essential information, highlights, and upcoming events shaping the fruit industry. Don't miss out – click here to explore the newsletter.

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