Global wheat export prices stabilised in April 2024 after declining for three consecutive months, while maize prices increased month-on-month. International rice prices declined by 1.8% in April, largely due to harvest pressure. In most countries monitored by the FAO, staple food prices remained at historically high levels in March and April 2024. In many countries, macroeconomic difficulties and high food distribution costs continue to drive elevated prices of both domestically produced and imported food commodities. In Haiti and parts of East and West Africa, protracted crisis situations have had a negative impact on food production and market functionality, resulting in high food prices. Weather-related shocks have reduced harvest prospects and placed upward pressure on maize prices in parts of Southern Africa and South America. By contrast, ample supplies and favourable harvest prospects led to declines in domestic wheat prices in parts of Eastern Europe, Caucasus and Central Asia, and Far East Asia. Click here to read full Food Price Monitoring and Analysis (FPMA) by FAO.

South Africa has an alarming unemployment rate of approximately 32.1%. Solutions have been elusive. The unemployment rate has been consistently high for decades. Our research has revolved around entrepreneurship. We have examined the “liability of newness” related to small and medium scale enterprises and entrepreneurial development in general. In particular, we’ve looked at the differences between very new small and medium scale businesses, and those that have established themselves in the market place. Our aim has been to understand vulnerabilities, and what support is needed to ensure longevity. In a recent study, we examined the relationship between globalisation – the integration and interconnectedness of economies, societies and cultures across the world – the development of entrepreneurship in South Africa, and unemployment. Click here to read full study derived from theconversation.com.

In 2007, Professor Shadrack Gutto characterised land as a finite and indispensable asset that defines a people’s identity and provides human dignity. He avows that land is an integral component of national sovereignty and a basis for national cohesion. He articulated the words when he was asked to determine how much of the South African land was owned by foreign nationals. His research found that foreign natural persons owned about 3% of the country’s land, with a high proportion of coastal and game farmland. Parallel to the question of land ownership by foreign nationals is the question of how much of the country’s land is owned by black people. Wandile Sihlobo and Johan Kirsten have attempted to assist with this question and estimated that approximately 25% of the country’s land is owned by black persons, a figure that was noted by President Cyril Ramaphosa in his 2024 State of the National address. Read full article by Sifiso Ntombela for iol.co.za here.

The Climate Change Bill was finally passed by both houses of Parliament on 25 April 2024 and is awaiting the President’s signature. The Bill provides a domestic legal framework for the commitments that South Africa made to curb global warming and climate change. There is a global climate change agreement in place, - the United Nations Framework Convention on Climate Change (UNFCC). The Kyoto Protocol and the Paris Agreement follow on the UNFCC. Countries have agreed in the convention and its protocols to reduce greenhouse gas emissions. South Africa is a party to both the United Nations Framework Convention on Climate Change and the Kyoto Protocol, having acceded to the Convention in 1997 and ratified the Kyoto Protocol in 2002. As a signatory, South Africa has to comply to the Kyoto Protocol. South Africa has not yet signed the Paris Agreement. Click here to read full report by Agbiz head of Legal Intelligence, Annelize Crosby.

With just over a week left before South African heads into the 2024 general elections, discussions in various agricultural gatherings are understandably centered on the theme of elections and possible outcomes. However, the policy direction and commitment to implementation will be far more critical for agriculture. A rough scan of various political parties' manifestos shows that agricultural matters are well-featured, with varying views on land reform. Also evident this time is an appreciation of what the sector could continue to contribute to the rural economy, job creation and the national food security. Next month, when the new administration comes into office, we remain convinced that new policies should not be introduced. The focus should be on implementing and updating the existing programmes where necessary. Click here to read full report by Agbiz Chief economist Wandile Sihlobo.

The South African farmers and workers in the maize-growing regions are getting ready for a busy period. The harvest season has just started and should gain momentum in the coming weeks through to July for some areas. There was already good progress in the first two weeks of this new marketing year. For example, farmers delivered to commercial silos 1,2 million tonnes of maize in the first two weeks of May, the new marketing year – 2024/24. The overall expected crop for the year is 13,3 million tonnes of maize, according to data from the Crop Estimates Committee.  The delivery figures should be much higher in the next few weeks, however, with possibly a slump in figures for last week's harvest activity (the third week of the month), which will be released by the South African Grain Information Services this Wednesday. Click here to read full report by Wandile Sihlobo.

Recent electoral polls continue to suggest that no single political party will win an outright majority in South Africa’s 2024 national elections due to take place on 29 May. This creates uncertainty regarding the national government, which will emerge from any possible coalition discussions. Regardless of its composition, the seventh administration of democratic South Africa may have to refresh its economic policies when it assumes office. For some sectors of the economy, such a review may be necessary. The global environment in which we operate has changed significantly in recent months, partly because of the rising geopolitical tensions and their associated economic risks. In our view, agricultural policy does not require a review. The sector needs a sharper focus on implementing the existing programmes. The focus should be primarily on the execution of responsibilities of the various directorates at the national and provincial levels of the department of agriculture, land reform and rural development. Read full article by Wandile Sihlobo for foodformzansi.co.za here.

April marked the end of South Africa's 2023/24 marketing year for maize. This marketing year corresponds with the 2022/23 production season, as the crop harvested mid-year in 2023 was marketed from then through to the end of April 2024. According to data from the Crop Estimates Committee (CEC), the 2022/23 production season was characterized by an excellent harvest of 16,4 million tonnes. This was because of large plantings and the favourable summer rainfall that boosted the yields. The ample harvest allowed South Africa to maintain its position in export markets. South Africa is the world's ninth largest maize exporter, trailing the US, Brazil, Argentina, Ukraine, Romania, France, Paraguay and Poland. Click here to listen to full podcast – Agricultural Market Viewpoint with Wandile Sihlobo. 

The annual Nampo agricultural show took place in the Free State this week. Agbiz chief economist Wandile Sihlobo says some of the deliberations at the centre of the gathering were the revitalisation of rural towns. Click here to watch full Newzroom Africa interview.

We are pleased to provide a report on Agbiz Grain's participation in the visit of the Tanzania Food Reserve Agency to the Department of Agriculture, Land Reform, and Rural Development in South Africa. On Day 1 of the visit, the Tanzanian team was welcomed by the Deputy Director of Food Safety and Quality Assurance at DALRRD, Dr. MT Mutengwe, and Billy Makhafulo. They provided insights into the APS Act and Grading Regulations. The day commenced with a tour of the SAGL laboratory, led by SAGL General Manager Wiana Louw. Following the tour, Mr. Wessel Lemmer, General Manager of Agbiz Grain, delivered a presentation on grain silo handling and storage processes, focusing on the Introduction to the handling and storage environment in South Africa. For further reference, you can access Mr. Lemmer's presentation here and click here for Ms. Louw's presentation.

In April, the International Monetary Fund (IMF) released its forecasts for South Africa and the world. Regarding interest rate expectations, there are encouraging signs of relief. High interest rates limit economic growth worldwide, but the IMF believes interest rates will decrease. Central banks such as the European Central Bank, the Federal Reserve Bank of America, and the South African Reserve Bank have raised interest rates in line with their anti-inflationary policies. Contrary to expectations, the sharp rise in policy rates by central banks has not led to a global slowdown in economic growth. As inflation is expected to fall, for example, to the Reserve Bank's target of 4.5% in 2025, central bank policy rates should also fall. This will contribute to lower interest rates. Although the outlook for economic growth is not overly optimistic, the expectation of better economic conditions based on an improvement in the global economy, lower interest rates, and inflation is a bright spot. Click here to read full article by Agbiz Grain general manager, Wessel Lemmer.

Uncover the latest developments in the grain handling and storage industry with Agbiz Grain Quarterly's May issue. Delve into a variety of key topics, including the groundbreaking grain silo project in Egypt and the significant merger of VKB and GWK. Gain valuable insights into Transnet’s draft Network Statement and explore technical aspects of grain handling and storage for export. In this issue, discover in-depth articles on grain theft, the impact of import duty on oilcake, and the 2024 GOSA symposium's focus on progress and stability. Explore analyses of Egypt's grain silo project, the SAGL's external business review, and the implications of PPI on storage tariffs. Additionally, learn about the hazards and risks associated with grain fumigation, VKB and GWK's merger, and Agbiz Grain's application for amendments to maize grading regulations. Don't miss out on this essential resource for industry professionals. Access the Agbiz Grain Quarterly Digimag here. 

Discover more and sign up for the 2024 Agbiz Congress through our event website, where you'll find extensive details and information about this crucial gathering. Explore the website to stay informed and reserve your place at this indispensable event. Get all the details and register for the 2024 Agbiz Congress here.

The cold and wet winter of 2023 provided favourable conditions for deciduous fruit and aided in improved production volumes. Production is expected to grow and improve in quality from MY 2022/23 when fruit was affected by hail damage. Despite pressure on the Port of Cape Town, industry solutions including increased use of Port Elizabeth will bolster the volumes of increased export-quality fruit that is able to reach markets. Post revises MY 2023/24 production of pears and table grapes upwards, while apple production is revised slightly downward on stagnated growth in area. Pear production for MY 2022/23 is revised upwards on updated production estimates and confirmed export figures. Click here to read full Fresh Deciduous Fruit Semi-annual report by the USDA.

South Africa will play an important international role in 2025 as president of the G20. The G20 is a group of 19 countries as well as the African Union and the European Union. Between them they represent 85% of global economy, 75% of world trade and 67% of global population. The G20 defines itself as the premier multilateral forum for international economic cooperation. During its G20 presidential year, South Africa will host a summit of heads of state and government. It will also be responsible for organising and chairing about 200 meetings of ministers and officials. These will come from the G20 members, invited countries and international organisations like the International Monetary Fund and the World Bank. The meetings will focus on issues such as the challenges facing the global economy and whether the current arrangements for global economic governance are able to respond effectively. Click here to read full report derived from theconversation.com.

These elections will be the seventh general election since 1994 and marks 30 years of ANC governance. But, where the ANC obtained close to 70% of the votes in 2004, its support dwindled to just over 57% in 2019, and many are speculating that in the upcoming elections, ANC support will further decline to between 40% and 50%. If this pans out, it will mean that a coalition will have to be formed at national and provincial level. Furthermore, several new parties have entered the playing field, resulting in 52 parties competing at the election booth. Over the past years, however, structural problems in the country’s political economy, poor service delivery and poor educational and health systems impacted seriously on economic growth and socio-economic conditions in the country. South Africa’s crime levels ranging from ordinary theft to sophisticated networks of cartels and syndicates have frequently ranked among the highest in the world. Click here to read full article derived from farmersweekly.co.za.

A public policy works well if it’s a good policy and if it’s carried out well. Politicians make policy and specialist bureaucrats in the public service carry it out. These appointed officials are supposed to follow a strict professional and ethical code of conduct. Over the past 30 years, South Africa has not had this kind of public service. Public servants have not been able to put into practice the policies designed to end poverty, inequality and unemployment. My research has centred on the intersection between bureaucracy, democracy and development in Africa under the conceptual banner of the developmental state. A developmental state is typically that in which the state plays a dominant role in driving rapid economic growth and development to improve the welfare of the population. Read full article first published in theconversation.com here.

Green electrons and green molecules are presenting South Africa with a massive opportunity to reindustrialise, Nedbank CIB head of infrastructure, energy and telecommunications Mike Peo told the Green Hydrogen Roundtable recently. “We have an opportunity for South Africa to completely reindustrialise, to start building up our industrial base that we have lost over the last ten to 15 years,” was Peo's inviting message at the event addressed by the Chemical Industries Education & Training Authority (CHIETA) CEO Yershen Pillay, as well as by Higher Education and Training Department deputy director-general Zukile Mvalo. A construct described as being critical is the need for the proper, holistic understanding of the pioneering solutions for renewable energy and how these give rise to the rewarding opportunity to create employment across a broad front. Click here to read full article derived from engineeringnews.co.za. 

Growth-focused businesses in South Africa are increasingly looking to cross-border trade for opportunities to develop their bottom-line and deepen their revenue channels. A combination of the right banking partner and technology is making this a viable option for organisations looking for new markets. It is no secret that economic growth in South Africa has been constrained through a number of factors which has left the International Monetary Fund (IMF) forecasting a growth rate of just 1% in 2024. With a growth rate of 1%, the economic pie is not getting any bigger and entrepreneurs are forced to compete with each other and navigate increasingly narrow operating margins. The problem with being inwardly focused and purely looking at the South African market is that we forget that we form a part of the global economy. Tourism for example has recorded a significant rebound in 2023 – while it hasn’t quite reached pre-COVID-19 levels, 8.5 million tourists came into South Africa. Click here to read full article first published in cnbcafrica.com.

After initiating a ban on importing certain fresh produce in January 2022, Botswana is poised to expand its list of restricted fruits and vegetables. The original prohibition, encompassing 19 horticultural items such as potatoes, tomatoes, carrots, onions, and watermelon, aimed to bolster local agriculture and reduce import expenditure. The Ministry of Agriculture Development and Food Security, noting the policy's effectiveness, has extended the ban's duration to four years, now set to expire at the end of 2025. Minister Fidelis Molao announced plans to introduce additional items to the ban list by July, though specific details remain undisclosed. Speculation suggests that, following a successful initial harvest from the Selebi Phikwe Citrus Project, citrus fruits like oranges and lemons may be considered for inclusion. Read full article derived from freshplaza.com here.

The southern African region is battling with drought at present. This is the result of El Niño, a natural climate cycle characterised by changes in Pacific Ocean temperatures. It has effects on global weather patterns, particularly rainfall and temperature. The drought has hit the region’s agricultural productivity hard. Malawi, Zambia and Zimbabwe have declared a state of disaster with respect to their current agricultural outputs. They are seeking humanitarian assistance in the form of food aid to feed their people. The downturn also has economic implications, since over 70% of people residing in the region’s rural areas rely on agriculture for their livelihoods. The dire situation underscores how important it is for the agricultural sector to prevent, avoid or prepare for the impacts of climate change, which will also bring extremes of weather. Read full article derived from theconversation.com 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. 

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.

• 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.