The 15th BRICS Summit & DTIC-BRICS Business Council events took place from Aug 13-23, 2023. Heads of state from all BRICS countries (except Russia) attended, along with business & government delegations. The focus was on agribusiness, aiming to boost agriculture & agro-processing trade among BRICS members. The Agribusiness Working Group presented recommendations including lowering tariffs, improving sanitary measures, enhancing fertilizer availability, & promoting sustainable agriculture. The proposal for intra-BRICS SPS coordination was met with support. Bilateral deals for SA red meat & avocado access to China were signed. Efforts aim to improve trade balances & expand SA's role in BRICS agricultural trade. Click here to read full article by Agbiz Fruit Desk General Manager Wolfe Braude.

China has lifted its ban on beef imports from South Africa, a decision revealed in an announcement by the Chinese customs administration on 17 August. Simultaneously, Chinese customs declared multiple regions in South Africa, including the Northern Cape, Eastern Cape, and Western Cape, as foot-and-mouth disease (FMD) free zones. This declaration extends to sections of Limpopo, Free State, Gauteng, Mpumalanga, and North West provinces. The ban on imports, imposed in March 2022 after an FMD outbreak on a North West province cattle farm, has now been reversed. Notably, this resumption of imports precedes the forthcoming visit of Chinese President Xi Jinping to South Africa. Scheduled from 21 to 24 August, Xi's visit includes participation in the BRICS leaders' meeting, as disclosed by the Chinese foreign ministry's statement on Friday. Click here to read full article first published on sabcnews.com.

Discussions surrounding a common currency among BRICS nations are not part of the current 2023 summit, but the concept has already been coined as the "R5," representing the Renminbi, Ruble, Rupee, Real, and Rand. The need for an alternative to the US Dollar due to sanctions has been voiced by figures like Brazil's Lula da Silva and Russia's Sergey Lavrov. Instead of an immediate common currency, the first step involves boosting trade in respective national currencies. Sovereign digital currencies are the second step, with China, India, and Russia ahead in trials. These digital currencies would enable BRICS nations to bypass SWIFT, challenging global financial dynamics. A common BRICS currency may emerge after this transformative process, signalling a shift in international trade. Click here to read full article first published on silkroadbriefing.com.

South Africa's consumer food inflation continued to slow in July 2023, recorded at 10,0% from 11,1% in the previous month. The product prices underpinning this deceleration are primarily bread and cereals; meat; fish; and oils and fats. While there are renewed risks in global agriculture, such as India's decision to ban specific categories of rice exports and the Black Sea Grain Deal Initiative that facilitated grains and oilseeds exports from Ukraine terminated, we are still optimistic that South Africa's consumer food inflation will continue to slow during this second half of the year. The products that could underpin the slowing food inflation trend will likely remain similar to those in the past few months. Notably, red meat prices, which have softened at the farm level, should continue on this trend at the retail level in the coming months. Fruit prices should also remain affordable because of improved domestic supplies.  Read full article by Wandile Sihlobo here.

The BRICS economic group, comprising Brazil, Russia, India, China, and South Africa, convenes this week in South Africa to deliberate on their collective path forward. As the bloc challenges the Western-dominated world order, internal complexities and external conflicts emerge. Amidst Russia's absence due to arrest concerns and simmering India-China border tensions, 22 countries vie to join the influential group. Discussions on expansion take the forefront in this three-day summit, the first in-person gathering since the pandemic began. South African President Cyril Ramaphosa advocates for a more balanced global order in an increasingly fractured world. The expansion debate presents a critical juncture for BRICS, affecting global power dynamics and potential anti-Western alignments. Click here to read full article first published on CNN. 

Folks, South Africa’s agricultural interests in the BRICS markets are not at the expense of the existing and vital export markets in the African continent, EU, Asia, Americas, Middle-East and others. These current markets are essential; thus, South Africa exported a record US$12,8 billion in agricultural products in 2022. The African continent was the leading market, accounting for 37% of South Africa’s agricultural exports in 2022. Asia was the second largest agricultural market, accounting for 27% of exports, followed by the E.U., the third largest market, accounting for 19%. The Americas region was the fourth largest, accounting for 7%, and the remaining 10% went to the rest of the world. The U.K. was one of the leading markets within the ‘rest of the world’ category. Maize, wine, grapes, citrus, berries, nuts, apples and pears, sugar, avocados, and wool were some of the top exportable products 2022. Read full article By Agbiz Chief Economist Wandile Sihlobo here.

One positive development in South Africa's agriculture this past week was the re-opening of the Chinese beef market and the firm establishment of beef access to the Kingdom of Saudi Arabia. The Kingdom of Saudi Arabia has not featured prominently in South Africa's beef export markets in the past, with only small volumes last exported in the early 2000s. The renewed access to this market is critical to South Africa's ambition to expand beef exports, as the Saudi beef market is sizable at over US$647 million in 2021, according to data from Trade Map. About 62% of the Saudi beef imports were frozen beef, while 38% were chilled or fresh beef imports. Some leading suppliers to Saudi Arabia include Brazil, Australia, Pakistan, The US, New Zealand, and Canada. Beyond beef, the Saudi meat market is large, with all meat imports valued, on average, at US$1,9 billion annually over the past five years. This means, over time, as South Africa increases its production in other meat value chains, Saudi Arabia could remain a strategic country for growing exports. Click here to read full article by Wandile Sihlobo.

South Africa’s agricultural export earnings will likely soften this year from the 2022 record. The lower commodity prices, ongoing restrictions to exports of some livestock products because of the foot-and-mouth disease and the stringent regulations of the citrus black spot disease in the EU market are among some of the factors likely to result in lower export earnings. While SA’s agricultural exports have remained relatively solid in the first few months of the year, we are expecting the effects of these challenges to be more evident in the second half. South Africa’s agricultural exports for the first five months of this year were still robust, amounting to US$5,06bn, roughly unchanged from the corresponding period in 2022. The export destinations remained the same as the previous years, with the African continent as a leading market, followed by the EU as well as selected Asian and Middle-East markets. Outside these regions, the US was also a prominent export market. Click here to read full article by Wandile Sihlobo.

As the South Africa BRICS Business Council's discussions enter their second day, the spotlight turns to enhancing the agri-business sector. Wandile Sihlobo, Chief Economist of Agbiz and Chairperson of the Agri-Business Working Group within the SA BRICS Business Council, shares his expertise. This strategic platform drives conversations and synergies spanning energy, infrastructure, aviation, and the broader economy of the BRICS alliance. With the 15th BRICS Summit on the horizon, this forum takes centre stage in Sandton, welcoming delegates from Brazil, Russia, India, China, and South Africa. Sihlobo's insights shed light on the strategies and innovations propelling agri-business forward in the BRICS bloc. Engaging in a dialogue led by SABC NEWS economics reporter Katlego Legodi, Sihlobo unpacks the critical role of agriculture in the economies of these influential nations. Click here to watch full discussion.

South Africa's agricultural export earnings will likely soften this year from the 2022 record. The lower commodity prices, ongoing restrictions to exports of some livestock products because of the foot-and-mouth disease and the stringent regulations of the citrus black spot disease in the EU market are among some of the factors likely to result in lower export earnings. While SA's agricultural exports have remained relatively solid in the first few months of the year, we are expecting the effects of these challenges to be more evident in the second half. South Africa's agricultural exports for the first five months of this year were still robust, amounting to US$5,06bn, roughly unchanged from the corresponding period in 2022. The export destinations remained the same as the previous years, with the African continent as a leading market, followed by the EU and selected Asian and Middle-East markets. Click here to listen to full episode of Agricultural Market Viewpoint with Wandile Sihlobo.

Agbiz Grain Quarterly is a unique magazine featuring distinctive articles and content designed to keep the grain handling and storage industry informed of the latest news and issues of managerial and operational importance. The August issue focusses on the current topic of conversation in the grain industry – traceability. This subject will be front and foremost during the Agbiz Grain Symposium and these articles set the table for the debate and discussion at the symposium. Experts in this issue also address aspects relating to procedures surrounding injuries on duty as well as the latest developments around employment equity regulations. Also in the August issue are articles on the latest procedural requirements for water use licence applications as well as an overview of some new and unique approaches to physical grain trading. We look at losses in the malting barley storage sector and discuss Australia and America's views on grain traceability, along with a local perspective on the same. Download your free version of this exciting publication here. 

Agbiz Grain will hold its symposium from 5 to 8 September 2023 daily from 09:00 - 12:00. Building certainty, creating sustainability" is the symposium's theme. The symposium will include panel discussions on profitability and investment priorities, supporting a world-class agricultural derivatives market, traceability of grains and oilseeds to meet consumer food safety concerns, and ensuring the insurability of the sector. Click here to register.

The Saudi Food and Drug Authority (SAFDA) has granted approval to resume imports of meat and red meat products from South Africa. The decision comes after SAFDA's inspections of South African abattoirs and feedlots in June, ensuring compliance with market access protocols and halaal certification. South African President Cyril Ramaphosa's state visit to Saudi Arabia in October contributed to the collaboration between Agriculture Minister Thoko Didiza, Trade and Industry Minister Ebrahim Patel, and Saudi counterparts. A joint task team was formed to facilitate the market access protocol for South African meat products in Saudi Arabia, leading to the recent lifting of the ban. Patel highlighted the substantial global demand for halaal meat and the potential of the $5 billion Saudi market. Didiza emphasised the significance of this achievement and the diligent preparations that led to it. The hope remains that Saudi Arabia will also extend access to South African poultry meat, currently under assessment. Read full article first published on iol.co.za here.

In this insightful episode, they delve into the dynamic world of international trade and its intricate effects on economies and lives. Over the past three decades, global markets have undergone a dramatic transformation, extending opportunities to emerging economies while revealing disparities. Professor Nina Pavcnik, a distinguished figure in Economics and International Studies at Dartmouth College, brings her unique perspective shaped by her upbringing in Yugoslavia. Having witnessed firsthand the profound ramifications of open markets on bordering communities, Professor Pavcnik's journey from observer to authority is unveiled. Join host Rhoda Metcalfe in an engaging conversation as they explore Pavcnik's groundbreaking research. As part of IMF Podcast’s riveting series spotlighting exceptional Women in Economics, this episode offers a compelling narrative of how international trade impacts the vulnerable strata of society. Tune in for an enlightening discussion that uncovers both the empowering potential and challenging realities of global trade. Click here to listen.

This past week, my colleagues and I took a road trip to visit members in the North-West Province in South Africa. The purpose of the visit is assess local conditions and find out what the biggest factors are hampering trade in the area and it doesn’t take one too long to figure it out. Whilst businesses in the area face the same challenges complying with complex and difficult regulations, their ‘bread and butter’ issues are far more fundamental. The municipality in which this agribusiness is headquartered has been subject to ‘water-shedding’ since 2012. Electricity is equally unreliable as they face prolonged outages not as a result of load-shedding, but due to a crumbling distribution network frequently targeted by vandals and criminals. Whilst the area is still serviced by freight rail, its infrastructure is likewise targeted by criminal syndicates placing an undue burden on local roads. This is not an isolated example. Many agribusinesses and producers operating in rural areas face the exact same challenges. Frustratingly, it is the most difficult aspect of an enabling environment to fix. Money is not necessarily the problem. Municipalities have the right to raise funds by levying taxes on property and charging customers for services such as the provision of water, electricity and refuse removal. Click here to read full column by Agbiz CEO Theo Boshoff, first published on Farmers Weekly.

In a major achievement for South African avocados, an agreement was reached at the BRICS summit held in South Africa, granting them entry into the Chinese market. Thoko Didiza, South Africa's Minister of Agriculture, Land Reform, and Rural Development, along with China's Agriculture Minister Tang Renjian, formalized the protocol on the summit's opening day. This breakthrough aligns with the Agriculture and Agro-processing Master Plan, reflecting the government's commitment to fostering export growth for avocados. With the country's avocado industry expanding by approximately 4,750 hectares in recent years, totaling 18,000 hectares, the move holds significant promise. Derek Donkin, CEO of the South African Subtropical Growers’ Association, welcomed the news and looked forward to orchestrating the industry's debut campaign in China, although implementation might occur next year due to the ongoing avocado season. Didiza emphasised China's potential as a leading avocado consumer market, offering substantial expansion opportunities. The culmination of this deal during the historic BRICS summit underscores its prolonged anticipation. Alongside this achievement, the bilateral South Africa-China meeting on the summit's first day saw numerous other agreements signed to foster future cooperation and trade between the two nations. Click here to read full article first published on fruitnet.com.

The South African citrus industry criticises the European Union's unyielding stance on citrus black spot (CBS), labelling it as unreasonable in an era emphasizing sustainability and reduced chemical use. With CBS-related measures costing R3.7 billion annually, the industry argues that the EU's position is financially crippling. Deon Joubert, representing the Citrus Growers’ Association of Southern Africa, highlights the lack of evidence of CBS transmission to Europe and asserts that the disease is mainly cosmetic. The industry questions the EU's strict regulations, especially since CBS spores do not survive common treatments such as disinfectant baths and waxing. Joubert deems the EU's demand for costly preventive measures, including the use of unnecessary chemicals, as unjustifiable. He argues that the EU's approach contradicts scientific findings and places an undue burden on the South African citrus sector. As tensions escalate, the South African citrus industry contemplates involving the World Trade Organization (WTO) to address the dispute. They are joined by Argentina, Uruguay, and the United States, aligned with South Africa's stance on CBS. The issue was reportedly discussed at the cabinet level in South Africa. Click here to read full article first published on freshplaza.com.

The International Blueberry Organization (IBO) has introduced the '2023 Global State of the Blueberry Industry' report. Drawing from extensive research and thorough analysis, this comprehensive report delves into the current trends, data, and projections within the industry, offering stakeholders valuable perspectives on its dynamic growth. Despite impressive expansion, the industry has encountered significant margin pressures, attributed to a surge of 20-30% in input costs since 2002, although these costs are gradually stabilizing. The report also covers emerging developments such as mechanized harvesting and an increased emphasis on environmental, social, and governance (ESG) factors, along with the latest health-related research findings concerning blueberries. Download the report here. 

The South African wine and brandy industry is on a path to recovery post-pandemic, as highlighted by the Bureau for Food and Agricultural Policy's (BFAP) Outlook Report 2023-2032. While facing setbacks, including decreased land area dedicated to wine grapes and challenges with profitability, the industry is adapting to changing market dynamics. Key findings from the report reveal that although only 12% of producers are profitable, efforts are being made to stabilize the market as prices rise. The pandemic initially led to a surplus in wine stocks, followed by a significant reduction in 2022, aligning stock levels with demand. However, market constraints persist due to global inflation, energy crises, and supply chain disruptions. Domestic wine consumption is gradually recovering, but consumers remain cautious about spending. Low and entry-level-priced wines continue to dominate the market. The industry aims to emphasize premiumization to drive growth and gain global recognition. Despite challenges, the industry seeks to extract higher returns per unit of sales and focus on premium categories. While uncertainties remain, the industry's shift towards premiumization and efforts to attract investment suggest a positive outlook for the South African wine and brandy sector. Click here to read full article first published on bizcommunity.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.