With the elections imminent, fireside conversations have drifted towards predictions for the elections and what it could mean for agriculture. Most polls indicate that we could be headed for a coalition of some kind and questions naturally gravitate towards what this could mean for critical policies affecting the agricultural sector. Without looking too deep into the crystal ball, here are a few policy areas that are worth looking out for post-elections. Looking at the various manifestos, all parties across the political spectrum have two issues in common this year, namely skills development and immigration. Interestingly, all political parties support training and skills development for agriculture as it is seen to harbor the potential for significant job creation. Click here to read full article by Agbiz CEO Theo Boshoff first published in Farmers Weekly. Click here to watch eNCA interview on 2024 elections with Boshoff. 

The 100 title deeds of redistribution farms that Minister Thoko Didiza handed over to beneficiaries would have been an important step in the right direction if it had not been misused so conspicuously as a political ploy shortly before the election. It also goes against the grain of her department’s gross abuses in areas such as the Karoo, Transkei and Gert Sibanda districts where beneficiaries who farm successfully are replaced by politically connected cadres without viable alternative lands being made available to them. Saai has been fighting since 2020 to force the department to work more transparently, fairly and honestly in the awarding and cancellation of leases. Click here to read full article derived from farmersreviewafrica.com.

The Horn of Africa recently suffered its worst drought in almost half a century, and its sixth failed rainfall season in a row. Fifty million people were directly affected and 100 million more were indirectly affected. About 20 million people risked acute food insecurity and potential famine, 4.4 million required humanitarian aid, and refugees fleeing drought and floods numbered in the hundreds of thousands. To help solve these problems, the governments of Kenya, Ethiopia, Djibouti, South Sudan and Uganda, and three United Nations agencies, launched the Groundwater Access Facility on 7 May. It aims to develop a plan to extract millions of cubic kilometres of deep groundwater. I research sustainable development, poverty alleviation and ways to adapt to climate change. This new initiative will focus critical attention and resources on water scarcity in the region. Click here to read full study derived from theconversation.com.

This paper quantifies the macroeconomic spillover effects of conflict within sub-Saharan African (SSA) countries using a new Conflict Spillover Index (CSI), which accounts for conflict intensity and distance from conflict-affected countries. Our findings reveal an escalation in conflict spillovers across SSA since 2011, marked by considerable cross-country heterogeneity. Impulse responses show that conflict spillovers shocks significantly and persistently hinder economic growth, while concurrently elevating inflation in the “home” country. Conflict spillover shocks are also associated with increases in (current) government spending and government debt. Furthermore, the international trade transmission channel of spillovers operates mostly through increased imports, while negative effects on FDI winddown over time. Click here to read full IMF Working Papers.

South Africa's agribusiness sector is on edge ahead of the upcoming elections. Key concerns like land expropriation, water amendments, and labour reforms are creating a climate of uncertainty. Industry leaders urge the government for clear and stable policies. As South Africa braces itself for the upcoming elections, a pervasive sense of uncertainty grips the nation’s agribusiness sector. With political campaigns underway and policy agendas in flux, stakeholders find themselves navigating ambiguity and apprehension. Annelize Crosby, the head of intelligence at Agbiz, said, “Policy uncertainty ahead of elections is a cause for concern.” Click here to read full article derived from foodformzansi.co.za. 

Agbiz, in partnership with Kwanalu, organised a workshop aimed at equipping members of the farming community with strategies to cope with instability and unrest, drawing from the experiences of the July 2021 unrest in KZN. The workshop sought to facilitate learning from past challenges and foster collaboration to build resilient communities capable of addressing and preventing future upheavals. Pannar Seed kindly hosted and sponsored the workshop. Click here to watch video shot and produced by GWK. 

The collaboration between Transnet, organized business and agriculture sector stakeholders to improve efficiency at South African ports must continue. Efficient logistics are the lifeblood of South African agriculture and other exporting sectors of the economy. Admittedly, the deciduous fruit industry faced numerous challenges at the port of Cape Town at the start of this year related to delays that proved costly to farming businesses. Still, continuous collaboration to ensure improvements is the only viable path forward. We are already seeing the benefits of the improvements in the agricultural sector through the rise in the value of exports. For example, in the first quarter of 2024, South Africa's agricultural exports increased by 6% year-on-year, reaching US$3,1 billion, according to data from Trade Map. Click here to read full Agricultural Trade Digest report by Wandile Sihlobo.

In June, when the new administration comes into office, I will remain convinced that new policies should not be introduced in South Africa’s agricultural sector. The focus should be on implementing and updating the existing programmes where necessary. The starting point should be the Agriculture and Agro-processing Master Plan (AAMP), as it has the buy-in of most agricultural stakeholders and strives to grow a competitive and inclusive sector. The AAMP’s growth narrative is through focused value chain deep-dives and commodity corridors. The department of agriculture, land reform & rural development (DALRRD) should, in the new administration, reignite the AAMP through clear communication of the expectations to the various provincial departments and local offices that private sector stakeholders will essentially work within the implementation of the plan. Read full article by Wandile Sihlobo derived from businesslive.co.za here.

While SA’s agriculture has had a rough start to the year, characterised by El Nino-induced drought, the employment conditions remain encouraging. The data released by Stats SA last week shows that employment in primary agriculture lifted 6% year on year to 941,000 in the first quarter of 2024. This is also up 2% from the last quarter of 2023. Admittedly, the significant drought damage has been concentrated on the summer grains and oilseed regions, not across all agricultural subsectors, which somewhat explains the resilience in job data. Another consideration is that there could also be a lag in fully accounting for agriculture’s financial pressures resulting from the drought and the impact on employment afterwards. Click here to read full article by Wandile Sihlobo for heraldlive.co.za.

While South Africa's agriculture has had a rough start to the year, characterised by El Niño-induced drought, the employment conditions remain encouraging. The data recently released by Statistics South Africa shows that employment in primary agriculture lifted by 6% year-on-year to 941,000 in the first quarter of 2024. This is also up 2% from the last quarter of 2023. Admittedly, the significant drought damage has been concentrated on the summer grains and oilseed regions, not across all agricultural subsectors, which somewhat explains the resilience in job data. Another consideration is that there could also be a lag in fully accounting for agriculture's financial pressures resulting from the drought and the impact on employment afterwards. Click here to listen to full podcast – Agricultural Market Viewpoint with Wandile Sihlobo. 

Discussions at various agricultural gatherings are focused on the upcoming elections and their potential outcomes. Agricultural economist Wandile Sihlobo emphasised that the new administration should avoid implementing new policies for the industry. Watch his interview with eNCA here. Additionally, the Agricultural Business Chamber of SA's chief economist, Wandile Sihlobo, stated that the sector expects the new government to efficiently implement existing plans and enhance interventions to foster economic growth. Watch his interview with Newzroom Africa here. Watch AL Jazeera segment on South Africa politics: Land ownership a key issue ahead of election here. 

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. 

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.

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.

It has been a great honour to serve my country as a member of Cabinet for 15 years and three terms of office. I have advised the President that I will conclude my service in Cabinet at the end of this 3rd term. I wish to thank the President and the African National Congress for the trust and confidence shown during my period in office and the leadership the President has provided to Cabinet, the country and the continent. I wish to thank the many people whose collaboration, generosity with their time and ideas, and deep commitment to building a democratic, fairer society has inspired me and helped us to make solid progress in promoting economic development.  I am proud of what we have jointly achieved under challenging circumstances. Click here to read full statement by The Minister of Trade, Industry and Competition Ebrahim Patel.

When disaster strikes, the knee-jerk reaction is to seek public funds for support, but private donors have the agility that governments often don’t. And while capital flows to Africa slowed to a trickle during the pandemic, philanthropy and remittances held steady. Una Osili holds the Efroymson Chair in Philanthropy at Indiana University and believes Africa would benefit from more private donor funding and more African women to manage it. In this podcast, Journalist Rhoda Metcalfe asks Dr. Osili about her work and why there aren’t more women economists on the continent. Click here to listen to full podcast episode, alternatively, click here to read transcript by IMF podcasts Women In Economics.

When consumers go to the grocery store, they want their produce, including broccoli, to look, feel and taste fresh. This desire compels University of Florida scientist Tie Liu to study ways to keep vegetables fresh. In newly published research, Liu and his colleagues studied the physiological and molecular mechanisms of two treatments: 1-Methylcyclopropene (1-MCP) and controlled atmosphere (CA) storage. They found that these treatments delay the aging process in broccoli in different ways. “Studying the molecular mechanisms of these treatments offers valuable insights into how we can improve vegetable preservation techniques, enhance food safety and promote sustainability in the food industry,” said Liu, a UF/IFAS assistant professor of horticultural sciences and corresponding author of the study. Read full report by University of Florida IFAS here.

A significant milestone was reached in the South African logistics sector with the recent launch of the Multimodal Inland Port Association (Mipa). Mipa was launched during the latest Transport Forum where a panel of industry experts updated more than 250 delegates last week on the latest trends affecting the sector. The new association aims to act as the unified voice for inland ports across the country, focusing on promoting, supporting, and advocating for the increased movement of cargo from road to rail. "Transporting more cargo by rail has become imperative, considering the growing cost of logistics in South Africa. It is no longer just a nice-to-have," said Mipa chairman Warwick Lord. Click here to read full article derived from freightnews.co.za.

Avocados are the new talking point across the Cape regions as producers search for fresh fruit categories to tap into. Fruit growers are said to be diversifying their farming businesses as production of avocados rise in South Africa’s Southern and Western Cape regions. The Cape regions have already reported the planting of 1,000ha of avocados – which is now contributing about 5 per cent of the national crop. Nothing seems to be impossible in modern fruit production as growers in different areas of South Africa explore new product categories across contrasting climatic regions. In some cases, this is driven by climate change, and in others new categories have just never previously been seriously considered. Click here to read full article first published in fruitnet.com.

The report by SAMPRO details unprocessed milk purchase trends from 2008 to 2023, including preliminary data for January to April 2024. It uses a sample representing over 85% of South Africa's unprocessed milk market. Key findings include fluctuations in annual milk production, with a notable decline in 2022 and 2023. Monthly analyses reveal seasonal trends and year-over-year changes. The estimated data for early 2024 indicates an increase in milk purchases compared to the same period in previous years. These insights are critical for market participants to understand industry dynamics and plan accordingly. Click here to read full April 2024 report by the South African Milk Processors’ Organisation.

This week's overview of the South African supply chain highlights challenges and developments in port operations, international shipping, and regional trade. Commercial ports saw a decrease in container handling due to adverse weather, equipment breakdowns, and shortages. Significant delays occurred in the Cape Town and Durban ports. A new R1.1 billion liquid bulk terminal is set to be built at the Port of Durban, while services will continue on National Election Day, 29 May 2024. Geopolitical tensions, climate change, and post-pandemic effects are impacting global shipping with increased transit times and rising spot rates. Air cargo at ORTIA showed mixed results, remaining up compared to last year but slightly down from pre-pandemic levels. Regional road freight saw improvements in queue and transit times, but caution is advised as not all data was captured. The bulk export sector remains vital for South Africa's economy, emphasising the need for efficient logistics to support local production and employment. Strengthening export competitiveness and regional trade integration is crucial for economic growth. Read the full update in the latest BUSA Cargo Movement Update.

With a season lasting approximately 28 weeks, the South African citrus industry is a driving force in the country’s economy. However, logistic challenges could hinder exports this year, the Citrus Growers Association of Southern Africa (CGA) warned. Citrus season usually starts with lemons and grapefruit in late March and continues until October when the final oranges are picked. July and August are normally the peak months. Despite stronger demand anticipated for the 2023-24 campaign, inefficient port operations, and degrading transportation infrastructure remain a threat. According to a Dec. 2023 report by the USDA, the Port of Cape Town has caused challenges to many exporting industries and received a ranking of 344 out of 347 in the 2022 World Bank Container Terminal Performance Index, while the Port of Durban ranked 341. Click here to read full article derived from freshfruitportal.com.

In April 2024, the FAO Food Price Index (FPI) rose by 0.7% to 119.1, reflecting higher prices for meat, cereals, and oils, offset by declines in sugar and dairy. Year-on-year, the FPI was down 7.4%, with significant deflation in cereals (-18.3%) and sugar (-14.7%). Vegetable oil prices saw a slight increase due to higher sunflower and canola oil prices. Global cereal prices stabilized, but domestic prices for wheat and maize rose due to exchange rate impacts and production declines. Meat prices improved globally, particularly for poultry and bovine meat, but local prices remained soft. Domestic sales of fresh produce increased in both volume and value, with vegetable prices showing strong demand despite supply challenges. Click here to read full BFAP Brief on April 2024 Stats SA food inflation report.

South African farmers, agro-processors, and manufacturers need to adapt to produce food to meet future demand without implementing major price hikes as households spend less on food due to inflation and higher interest rates. This is according to PwC’s South Africa Economic Outlook report for 2024 released this week, which revealed that consumers were buying less food as their spending power declined alongside elevated inflation. The volume of food and beverages sold per capita at South African grocery stores and supermarkets declined by 3.2% in 2023. This can be attributed to several factors, including the inflation-adjusted buying power of salaries and wages declining by 1.0%. Household spending was reprioritised as home loan repayments were at least 40% higher compared to three years ago due to higher interest rates. Read full article by freightnews.co.za here.

The overall trend in many markets around the world is that of lower prices for tomatoes. This is largely due to lower demand from consumers coupled with stronger supply. Even in Italy, known for their strong tomato consumption, demand is stagnant. This has caused prices to plummet over the past 10 days. The supply from Spain, Turkey and Morocco brings added competition. In Germany an oversupply of tomatoes is forcing prices down. Ample supply is available from domestic German suppliers as well as the Netherlands, Belgium and Italy. In France the large supply on the market is not met by the demand, which is trending lower, especially at the end of the month. This has caused downward pressure on prices. Read full article derived from freshplaza.com here. 

On May 23, wine industry leaders, stakeholders, and media convened at the Cape Town International Convention Centre (CTICC) to exchange insights and discuss the future of South African wine. A clear message emerged: focus, believe, and implement strategies to seize current opportunities, position South African wine as a global leader in sustainability, pay it forward, and look beyond current trends to ensure long-term industry growth and resilience. Click here to read full report.

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.
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