Fossil-fuel subsidies hit a record $7 trillion due to energy price spikes from the pandemic recovery and Ukraine conflict. These subsidies, totalling 7.1% of global GDP, exceed education spending and two-thirds of healthcare budgets. This coincides with the hottest month ever recorded, highlighting the urgency of curbing climate change. Explicit subsidies doubled to $1.3 trillion, contributing to a $2 trillion increase in fossil-fuel subsidies over two years. These subsidies mask the significant environmental costs of fossil fuel consumption, with $5 trillion in unaccounted environmental expenses last year. Removing these subsidies could avert 1.6 million premature deaths yearly, yield $4.4 trillion in government revenue, and align emissions with climate goals. This change, though complex, could enhance public health, finance, and the environment. Click here to read full article first published on IMF Blogs.

Growing trade restrictions risk global economic fragmentation, hindering cooperation to address shocks and challenges. Increased protectionism might divide nations into rival blocs amid a fragile global economy. The cost of fragmentation, including trade barriers and other disruptions, could shrink global output by 7% (approx. $7.4 trillion), equivalent to the combined size of France, Germany, and thrice sub-Saharan Africa's economy. Urgent global cooperation is crucial, with international institutions facilitating solutions to shared problems. Trade barriers have tripled since 2019, and various forms of fragmentation like technological decoupling and capital flow disruptions will escalate costs. Geopolitical influences impact investment and capital flows. The IMF emphasizes targeted progress and continued collaboration to avert devastating inaction and ensure economic well-being in the face of future shocks. Click here to read full article first published on IMF Blog.

BRICS, the group initially consisting of Brazil, Russia, India, China, and South Africa, has expanded its membership in a carefully orchestrated move. Six new countries—Argentina, Egypt, Ethiopia, Iran, the United Arab Emirates, and Saudi Arabia—have received invitations to join, raising questions about the selection criteria due to over 50 countries vying for inclusion. Concerns arise about potential conflicts among these new members. While each founding member had a say in advocating for specific entrants, China played a significant role in bridging relations between Iran and Saudi Arabia. BRICS aims to further expand under Russia's leadership in 2024, with more nations, including African and South American countries, seeking admission. Despite uncertainties, this move is seen as a pivotal moment, potentially fostering cooperation and reducing tensions among the new member states. Click here to read full article first published on City Press.

In a significant stride toward addressing the pressing energy challenges in the agricultural sector, the Agro Energy Fund (AEF) was successfully launched on Tuesday,29 August, marking a pivotal moment in the ongoing efforts to secure the stability and sustainability of South Africa's farming operations. The launch, attended by key stakeholders showcased the cooperative spirit that drives impactful change within the agricultural landscape. The AEF is the brainchild of an energy task team assembled earlier this year, dedicated to devising solutions to mitigate the impact of energy cuts on the sector. Spearheaded by the Minister of Agriculture, Land Reform and Rural Development, Thoko Didiza, the task team brought together sector partners, including Agbiz, Agri SA, NAMC, the Bureau for Food and Agricultural Policy (BFAP), and officials from the Department of Agriculture. Click here to read full article by Agbiz Communications Officer, Temba Msiza.

The Climate Change Bill is still making its way through Parliament. After extensive public hearings, the Portfolio Committee on Forestry, Fisheries and the environment is now in the process of receiving feedback from the Department regarding comments that have been receive and their response to the comments. A 650-page document capturing the comments and departmental response has been made available to the portfolio committee. The department also presented its recommended proposed amendments to the Bill in response to the public comments. Agbiz also submitted written comments and presented to the portfolio committee during the public hearings. Most of the Agbiz comments were also captured in the 650-page report. Amongst other things Agbiz raised the point that consultation should take place prior to the adaptation objectives and indicators are determined as well as before sector strategies and plans are finalised. The department confirmed that such consultations will indeed take place. Click here to read full report by Agbiz , Head of Legal Intelligence, Annelize Crosby.

Agbiz chief economist, Wandile Sihlobo, has a new book that will be available nationwide from tomorrow, 01 September 2023. The Kindle version of it is already out here (link). The Book, A Country of Two Agricultures, focuses less on history and more on the present and the future, explaining why dualism has persisted in the democratic era in South Africa’s agriculture, and what it will take to overcome it. It aims to contribute to a better understanding of the variety of agricultural forces, taking into account both questions of domestic political economy and external factors, as well as to bring to light new risks and opportunities. Wandile Sihlobo offers insights into the role of agriculture in the South African economy from an agricultural economy perspective, and provides political economy insights that are rooted in the experiences of farming communities on the ground and right through the value chain. Beyond insights on the realities this book offers the government, the private sector, and anyone interested in the betterment of the South African economy, tools to grapple with this duality, and proposes a framework for bolstering the black farming segment for growth and competitiveness – and ultimately food security.

One of South Africa's agricultural strategic objectives is the expansion of export markets. And it is with this ambition that organized agriculture, through the BRICS Business Council, went into the 2023 BRICS Summit. The Agribusiness Working Group had four broad focus areas for discussion with BRICS countries, namely (1) a need to improve fertilizer availability and use amongst BRICS countries and the broader African continent, (2) the sharing of best practices on agricultural sustainable development among BRICS countries, (3) outlining the BRICS countries' view on the arbitrary pesticide MRLs followed by some regions such the European Union and the general use of sanitary and phytosanitary (SPS) measures as barriers to trade, and (4) deepening trade and investment amongst the BRICS countries, and broader Africa. Click here to read full article by Agbiz chief economist and Chair: Agribusiness Working Group BRICS Business Council Wandile Sihlobo.

The data released this afternoon by South Africa’s Crop Estimates Committee (CEC) paints a positive picture of the 2022/23 summer crop season and the 2023/24 winter crop season. Regarding the summer crops, we have the seventh 2022/23 summer crop production estimates, and these data are unlikely to change in the following three updates for the season. If we focus on a few major summer crops, the CEC forecasts South Africa’s 2022/23 maize crop estimate at 16,4 million tonnes, up mildly from last month (up 0,3% m/m). This crop is 6% more than the 2021/22 season and the second-largest harvest on record. The expected ample harvest is primarily on the back of large yields, as the area planted is slightly down from the 2021/22 season. A crop of 16,4 million tonnes implies South Africa will have sufficient supplies to meet domestic maize needs of roughly 11,4 million tonnes and have over 3,2 million tonnes for export markets in the 2023/24 marketing year (this marketing year corresponds with the 2022/23 production season). Read full article by 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. Click here to listen to Agricultural Market Viewpoint with Wandile Sihlobo.

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. Click here to listen to 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 15th BRICS Summit held in Johannesburg marked a significant milestone, elevating the BRICS agenda. Adding six new members and broad goals signaled a potential era of growth. Expansion's criteria and economic rationale remain unclear, possibly driven by political trade-offs. Technical efforts must match rhetoric to diversify and recalibrate economies. Balancing legitimacy and effectiveness poses a challenge. The Summit facilitated trade and investment, especially with a dedicated business-focused day. Lending in local currency may improve liability management. BRICS aims for multilateralism and positive trade outcomes. SA's strategic role post-Summit is crucial. Questions arise about its influence, economic interests, trade expansion, and compatibility with the AfCFTA. Domestic reforms and collaborations are vital for SA's competitiveness and economic performance. Implementing Summit decisions for progressive gains and navigating geopolitical shifts pose challenges. SA's pursuit of increased trade and investment within BRICS must be carefully strategized amid evolving global dynamics. Click here to read full note of comment by Prof Raymond Parsons, economist at the NWU Business School.

The ongoing El Niño brings drier, warmer conditions to Southern Africa (Oct-Mar). Predictions suggest El Niño will persist through summer. However, uncertainty surrounds the usual dry weather in South Africa. Rainfall forecasts show above-normal rainfall in mid-spring and late-spring for most of the country, but below-normal in early summer (Nov-Jan) for central regions and above-normal for the northeast. Nationally, minimum and maximum temperatures are expected to be above-normal. The South African Weather Service (SAWS) will keep monitoring conditions and provide updates for better clarity on the upcoming season. Click here for more information in the Seasonal Climate Watch - August 2023 update from the South African Weather Service.

South Africa eyes revived citrus exports to Iran as it joins 'Brics Plus'. At the Brics Summit, six newcomers, including Iran, were added. South Africa's citrus exports to Iran were 45,000 tonnes before dropping to zero last year. With Iran's Brics Plus membership from January 2024, the citrus trade could rekindle. CEO of Citrus Growers Association, Justin Chadwick, sees potential in Argentina and Egypt's inclusion for lemon and orange exports. Chadwick highlights the significance of Brics members like China, Russia, UAE, and Saudi Arabia for South African citrus exports, while also urging real benefits for member nations' citizens. Click here to read full article first published on freightnews.co.za.

Hortgro, the South African deciduous fruit industry group, has invested nearly R50 million in bursaries over a decade. In 2023, 35 undergrads received R1.86 million, and 28 post-grads got R2.84 million. Anton Rabe, Hortgro's Executive Director, stressed sustained agricultural transformation at the annual bursary event, which started in 1998. The program aims to attract youth to agriculture, with a remarkable 850 applications for 2024. Over a decade, 262 undergrads received R13 million, and 483 post-grads received R35.5 million in bursaries. Portia Solomon shared her journey from engineering to horticulture, and Darryl Jacobs inspired students with his agricultural path. Hortgro's initiatives include mentoring, leadership programs, and safety training. Click here to read full media release by HORTGRO.

South Africa eyes revived citrus exports to Iran as it joins 'Brics Plus'. At the Brics Summit, six newcomers, including Iran, were added. South Africa's citrus exports to Iran were 45,000 tonnes before dropping to zero last year. With Iran's Brics Plus membership from January 2024, the citrus trade could rekindle. CEO of Citrus Growers Association, Justin Chadwick, sees potential in Argentina and Egypt's inclusion for lemon and orange exports. Chadwick highlights the significance of Brics members like China, Russia, UAE, and Saudi Arabia for South African citrus exports, while also urging real benefits for member nations' citizens. Click here to read full article first published on freightnews.co.za.

Business Unity South Africa (BUSA) released its 150 which provides a comprehensive overview of the South African supply chain and global trade status. South African maritime commerce faced challenges, with ports handling fewer containers due to ongoing struggles like adverse weather, equipment breakdowns, congestion, and union issues. Port of Cape Town productivity was low, while Durban experienced vessel delays and tug shortages. Cable theft disrupted rail operations. Internationally, container volumes decreased after a quiet peak season, impacting major trade routes except FE-WCNA. Blank sailings and rising freight rates were notable. Air cargo to/from South Africa rose 6%, surpassing last year, but domestic cargo decreased significantly. Air cargo rates stabilised at $2.27/kg, above pre-pandemic levels. Road freight trade saw increased queue and transit times at borders, affecting regional trade. The failing logistics network and electricity utility hinder economic growth. Rail freight struggles compared to ports, emphasizing the need for rail improvements to support trade growth. Read the full update in the latest BUSA Cargo Movement Update.

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.