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.

The Agbiz/IDC Agribusiness Confidence Index (ACI) remained depressed in Q2 2024, reaching 38 points from 40 in the previous quarter. This is the lowest level since Q3 2009, which was the global financial crisis, and implies that agribusinesses remain downbeat about business conditions in the country. The mid-summer El Niño induced drought's impact on summer grains and oilseed production is one of the major factors that weighed on the sentiment. The drought coincided with the long-standing challenges of inadequate road infrastructure and municipal service delivery. The lingering animal disease challenges and heightened geopolitical tensions are also the primary concerns for the sector. Moreover, while the farming community recognises the improvements in Transnet's operations, they highlight the need for continuous work to address the inefficiencies of the ports and rail network. The uncertainty about the formation of the government at the time of the survey may have added to the downbeat mood amongst the agribusinesses. This survey was conducted between June 10 and 19, covering businesses operating in all agricultural subsectors across South Africa. Click here to read full report by Agbiz Chief economist Wandile Sihlobo. Click here to watch discussion with eNCA on this.

South Africa submitted two requests for panels in disputes it initiated concerning European Union regulations governing the importation of citrus fruits, which impact imports from South Africa. The measures in question concern import restrictions imposed by the EU to control spread of the insect Thaumatotibia leucotreta, or False Codling Moth, and the fungus P. citricarpa, known as “citrus black spot.” Consultations with the EU aimed at resolving the dispute took place but did not resolve in a mutually agreed solution. South Africa said that in both cases, the EU measures were not based on scientific principles, are maintained without sufficient scientific evidence, and are more trade-restrictive than necessary to achieve the EU's appropriate level of protection. South Africa also said the EU failed to account for regional differences with regards to pest risk in the application of the measures. The measures are having a severe impact on South Africa's citrus exports, which provide jobs to more than 140,000 people in the country, it added. Click here to read full report by wto.org.

Agricultural leaders urge swift service delivery improvements and proactive solutions for infrastructure challenges. Theo Boshoff from Agbiz emphasises the need for collaborative efforts to drive economic growth and job creation. As the nation gears up for a government of national unity, agricultural leaders are urging a rapid acceleration of service delivery and a proactive stance in addressing challenges that impact the sector such as infrastructure. The chief executive officer of Agbiz, Theo Boshoff, said the country is at a point where it needs everyone around the table to come up with lasting solutions to the many issues impacting economic growth and job creation. Food For Mzansi caught up with Boshoff following the recent Agbiz Congress to determine how the institutions sees the future of agriculture post-elections. Click here to read full interview.

We did not see the violence and disruption that so many people predicted. It could still happen of course. We heard on Saturday that extra police units have been deployed to KwaZulu-Natal (KZN). So far, however, we have seen much less than the general expectation. This year, to date, 11 people have been killed in political assassinations in South Africa, mainly in KZN. It is 11 too many, and we're only half-year, but still a marked decline from the 30 political murders in 2023 and the 41 in 2022. There was no disruption on election day, nor after the results were announced. There were threats and demands but nothing happened. Most people in the country, including the Zulu King, expressed the view that the elections were free and fair despite the acknowledged glitches. MK cried foul, but they did not produce any evidence. The Constitutional Court duly sent them away empty-handed when they tried to interdict the first sitting of the new Parliament. Click here to read full report by Political & Trend Analyst, JP Landman alternatively - click here to listen to article.

“The cannabis sector in South Africa is evolving rapidly, with significant legislative changes and growing investment opportunities. The country has made substantial strides towards integrating cannabis into its economy, particularly in the medicinal sphere. This article delves into the current state of the cannabis industry in South Africa, the regulatory framework, and the potential for investment, drawing insights from the comprehensive report by Wesgro on "Investing in Cannabis in South Africa.’’ The journey towards the legalisation of cannabis in South Africa has been marked by three pivotal events since 2017. Firstly, in 2017, the Department of Health introduced a licensing framework for the domestic cultivation and manufacture of medicinal cannabis. This was followed by a landmark decision by the Constitutional Court in 2018, which decriminalised the private use and cultivation of cannabis based on the right to privacy. Click here to read full report by Agbiz Agricultural economist and policy analyst Thapelo Machaba.

The full impact of the 2023/24 mid-summer drought in the Southern Africa region's maize supplies will likely show more acutely towards the end of the year and into the first quarter of 2025. In the near term, the limited maize volume some countries managed to harvest will cushion the consumers. The Southern African countries in a more precarious position will likely be Zimbabwe and Zambia. The Pretoria office of the United States Department of Agriculture (USDA) recently released its 2023/24 maize production forecast for Zimbabwe. The harvest is expected to fall roughly 60% year-on-year to an estimated 635 000 tonnes. This is the lowest harvest since the 2015/16 production season when the country experienced a drought. Although a significant factor, the drought is not the only reason for the fall in Zimbabwe's maize harvest. Click here to read full report by Wandile Sihlobo.

We were pleasantly surprised by the upbeat mood amongst the agricultural stakeholders at the NAMPO 2024 in Bothaville. Given the mid-summer drought, which resulted in a 19% drop in South Africa's expected summer grains and oilseed harvest, we anticipated a more sombre atmosphere. However, the South African agricultural stakeholders were out in their numbers at the NAMPO 2024 festival, and the sentiment in Bothaville was as upbeat as the previous years of excellent harvest. We even imagined that South African agricultural machinery sales might start to tick up from the declining trend we had witnessed since the start of the year. Indeed, the tractor sales for May 2024 were the highest monthly figure we have seen since the beginning of the year, at 566 units, up 13% month-on-month. Meanwhile, combine harvester sales were down 4% month-on-month, with 25 units sold. Still, this monthly uptick does not change the declining annual sales performance we have witnessed since the start of the year. Click here to read full Agri Machinery report by Wandile Sihlobo.

The SA agriculture sector is not immune to politics. Agriculture is a vital sector of the economy. This explains why it earned special attention in the National Development Plan (NDP), with an entire chapter, Chapter Six, dedicated to it. Recently, there have also been pragmatic plans such as the Agriculture and Agro-processing Master Plan (AAMP) that set out practical steps to realize a vision to grow the sector and bolster its global competitiveness while achieving inclusion and transformation. The sector must not be a casualty of politics. It is a force for good in growing the South African economy and advancing the country's place on the global map. The Government of National Unity must keep the agricultural sector uppermost in their mind. Click here to listen to full podcast – Agricultural Market Viewpoint with Wandile Sihlobo. Sihlobo joined eNCA to discuss how the new government can enhance the agricultural sector. Click here to watch.

Artificial intelligence can increase productivity, boost economic growth, and lift incomes. However, it could also wipe out millions of jobs and widen inequality. Our research has already shown how AI is poised to reshape the global economy. It could endanger 33 percent of jobs in advanced economies, 24 percent in emerging economies, and 18 percent in low-income countries. But, on the brighter side, it also brings enormous potential to enhance the productivity of existing jobs for which AI can be a complementary tool and to create new jobs and even new industries. Most emerging market economies and low-income countries have smaller shares of high-skilled jobs than advanced economies, and so will likely be less affected and face fewer immediate disruptions from AI. At the same time, many of these countries lack the infrastructure or skilled workforces needed to harness AI’s benefits, which could worsen inequality among nations. Click here to read full article derived from imf.org.

In the past, the agricultural sector may have been accused of not proactively positioning itself as ‘youth-friendly’, failing to present accessible and rewarding career opportunities for most young people. However, this is now changing, as new opportunities within the sector emerge, driven by the advent of technology. This is the view of Mandla Mpofu, Managing Director of Omnia Agriculture. Mpofu is a keen proponent of supporting and encouraging young people to build careers in agriculture. Mpofu is the newly-appointed Deputy Chair of the Agbiz Congress 2024, which took place recently in Sun City. The Congress brought together agribusiness industry leaders, stakeholders, and role-players across the length and breadth of the agricultural value chain, with the topics of discussion converging on a central theme: how the local agricultural sector can earn its place alongside leading competitors in the global arena. Click here to read full article on Agbiz Deputy Chair derived from proagrimedia.com.

As South Africa eagerly awaits the announcement of its new minister of agriculture, land reform and rural development following Thoko Didiza’s election as speaker of the National Assembly, Agbiz chief economist Wandile Sihlobo has outlined essential steps for the sector’s advancement. Sihlobo stresses the critical need to maintain and implement the Agriculture and Agro-processing Master Plan, co-created by diverse stakeholders including business, organised agriculture, and labour. “We need to use it as an overarching implementation to drive our sector forward,” he stated, noting the plan could potentially boost the gross value added (GVA) by 15% and significantly increase employment in agriculture, which already supports over 940 000 people in primary agriculture and more than 400 000 in the value chain. Click here to read full article derived from foodformzansi.co.za.

Global crude oil trends impact the South African economy, as the country depends heavily on imported oil to produce its fuel products. Over the past months, there has been a steady increase in global crude oil prices, attributed to factors such as rising tensions in the Middle East and higher interest rates among major global central banks. We saw the Rand appreciating against the US dollar on average in May. The average Rand/US Dollar exchange rate for the period from 26 April to 30 May 2024, was R18.46, compared to R18.90 during the previous period. This led to a lower contribution to the basic fuel price of petrol. Since January 2024, local fuel prices have been increasing, mirroring the global pricing of Brent crude oil. Click here to read full report by Agbiz Agricultural economist and Policy analyst Thapelo Machaba.

This update provides an overview of the South African supply chain and current international trade conditions. Despite a strong recovery last week, container throughput volumes decreased to 8,211 containers per day from 9,589. Port operations were hindered by weather, equipment breakdowns, and power outages, particularly affecting Durban and the Eastern Cape Ports. Grindrod was selected by TNPA to develop the first container terminal at the Port of Richards Bay. Internationally, global container port throughput is set to reach a record 947 million TEU in 2024, with major Asian ports experiencing significant congestion. Freight rates remain high due to ongoing disruptions. The Port of Durban faces severe congestion, impacting international trade flows. Air cargo at ORTIA showed a weekly decrease but remains higher than last year. Domestically, May saw an increase in cargo handled at major airports. International air cargo rates are stable due to strong demand. Regional cross-border road freight experienced slight increases in queues and transit times. Improved monthly figures from TNPA indicate progress in recovery plans for port and rail operations. However, challenges such as equipment shortages and structural issues persist. Read full BUSA Cargo Movement Update.

A surge of young entrepreneurs is reshaping South Africa’s agricultural sector, driven by innovation and supported by initiatives like Land Bank’s funding schemes and Omnia Agriculture’s technology-focused initiatives. In a significant shift for South Africa’s agricultural landscape, a growing cohort of young entrepreneurs is reshaping the perception and future of farming in the country. Once viewed as an unattractive career choice, agriculture is now becoming a beacon of hope for youth seeking sustainable livelihoods and economic empowerment. Recent data from Statistics South Africa underscores this transformation: despite youth unemployment rates hovering between 40% and 50%, the agricultural sector has emerged as a rare source of employment growth. In the first quarter of 2023 alone, agriculture saw a noteworthy increase of 27 000 jobs, highlighting its pivotal role in the nation’s economic recovery. Agbiz Deputy Chair Mandla Mpofu spoke on Innovation and youth engagement. Click here to read full article by foodformzansi.co.za. Click here to read Mpofu’s article on Unlocking opportunities for youth in agribusiness for iolnews.co.za.

Expanded access to electricity has been a boon to development in many low- and middle-income countries, including South Africa, but erratic supply has proved a major constraint to economic growth. Now, in the first study on the effects of load-shedding on employment, the authors find that prolonged and regular power outages are significantly and negatively associated with job retention, working hours, and earnings. Access to electricity in low- and middle-income countries has improved significantly in recent decades, reaching 90% of the population in these countries by 2021. However, while expanding access is necessary to achieve meaningful gains in several development outcomes, access alone is insufficient. In many of these countries, factors such as inadequate generating capacity, infrastructure investment, and high energy prices mean that electricity supply is often highly unreliable. Frequent and long-lasting outages serve as the consequence. By forcing households and firms to maintain a stock of alternatives, such as diesel generators and back-up batteries, these outages raise the private and social costs of energy services and, hence, hinder the benefits of improved access. Click here to read full report by econ3x3.org.

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.