According to Agbiz chairperson, Francois Strydom, “President Cyril Ramaphosa’s State of the Nation Address (SONA) spoke to most of the critical issues facing agribusiness today namely energy security, logistics, water security and infrastructure. We hope that the new positions being created within the Presidency will provide the necessary impetus for solutions to be found as business need urgent interventions.” Agbiz CEO, Theo Boshoff, noted that an expectation has been created that must be fulfilled. “Agbiz, research institutions, government and partners in the agricultural value chain have worked tirelessly as part of Minister Thoko Didiza’s task team on energy security to negotiate workable solutions to ensure food security. As the president noted, it is a complex problem as solutions are guided by technical limitations in the grid and a lack of clear guidance on the requirements for alternative load-shedding schedules that could better align with the needs of industry.” Read more in the linked Agbiz media statement. You can also click here to access an interview with Theo Boshoff on this topic.

In a joint statement, the heads of the Food and Agriculture Organization (FAO), the International Monetary Fund (IMF), the World Bank, the World Food Programme (WFP) and the World Trade Organization (WTO), called for continued urgent action to address the global crisis on food and nutrition security. We offer our deepest sympathies to the people of Türkiye and the neighbouring Syrian Arab Republic who have suffered the recent earthquakes. Our organisations are closely monitoring the situation, assessing the magnitude of the disaster, and working to mobilise necessary support in accordance with each organisation’s mandates and procedures." Globally, poverty and food insecurity are both on the rise after decades of development gains. Supply chain disruptions, climate change, the Covid-19 pandemic, financial tightening through rising interest rates, and the war in Ukraine have caused an unprecedented shock to the global food system, with the most vulnerable hit the hardest. Food inflation remains high in the world, with dozens of countries experiencing double-digit inflation. Please click here to peruse.

People across the world worry about climate change, but that concern alone doesn’t translate into support for climate mitigation policies. That’s the finding of the International Monetary Fund (IMF) based on a recent survey designed to better illustrate how people perceive the risks from climate change and their support for government climate actions. Responses also show that those who were more concerned about climate change tend to be female, more educated, followers of news, and more accepting of government’s role in regulating the economy. Data shows that public transport users and those that rely less on cars are also more concerned about climate change. Read more in the linked IMF blog post.

While in some regions of the world, consumer food price inflation has started to cool off; South Africa sees the opposite. The data released this week by Statistics South Africa show that consumer food price inflation accelerated to 13,8% y/y in January from 12,7% in the previous month. The food product prices that increased notably were bread and cereals, meat, fish, fruit and vegetables. These are also the products with a significant weighting within the food basket; thus, we see a notable increase in the headline number. For example, within the food basket, the large weighting of essential products are meat (35%); bread and cereals (21%); milk, cheese and eggs (17%); vegetables (8%); sugar, sweets and desserts (4%); oils and fats (3%); and fruit (2%).In the linked article, Agbiz chief economist Wandile Sihlobo discusses the latest food inflation data.

Despite various headwinds throughout the year, South Africa's agriculture exports for 2022 did not decline as much as some feared. Data for the first 11 months of the year show exports at a cumulative US$11,9 billion, up by 3% from the same period in 2021. Moreover, US$11,9 billion is the second-largest agriculture exports value on record. When we receive the December exports figure in the coming weeks, it is possible that the 2022 agricultural exports could be just under 2021 levels of US$12,4 billion or even exceed them. This data is particularly encouraging since 2022 presented various challenges to South Africa's agriculture. Read more in the linked article by Wandile Sihlobo.

This past week the United States Department of Agriculture (USDA) released its monthly flagship report, the World Agricultural Supply and Demand Estimates report. This report provides insight into the global production conditions of the major grains and oilseeds. Although there have been some changes in production conditions in various countries, such as Argentina and Brazil, the overall estimates continue to paint a broadly positive picture, with slight downward revisions in maize and rice harvest estimates. For example, the 2022/23 global maize production is forecast at 1,15 billion tonnes, down by 0,4% from January estimate and 5% less than the 2021/22 season crop. This is mainly due to an expected smaller crop in the US, Ukraine, and the EU. Subsequently, the 2022/23 global maize stocks are down by 4% from the prior season, estimated at 295 million tonnes. In the linked article, Wandile Sihlobo discusses the insights from this report.

"We need a practical means of ensuring production and value chains don’t mainly develop in areas that have always been the leading agriculture zones," writes Wandile Sihlobo in a letter to Business Day.

"Michael Schmidt raises essential questions about the pace of regulatory work to open the cannabis market and the participation of small-scale farmers (“Legal vacuum threatens emerging dagga farmers,” February 14). I would add that cannabis could indeed be a catalyst for revitalising rural communities that are currently on the periphery of commercial agriculture value chains, and create opportunities for canna-tourism, especially in rural Eastern Cape, KwaZulu-Natal and Limpopo, as President Cyril Ramaphosa rightly highlighted in his State of the Nation Address." Please click here to peruse.

Agbiz chief economist Wandile Sihlobo recently sat down with Dr Johnny van der Merwe of North-West University to discuss the grain market conditions. The conversation touches on global aspects, but with a main focus on South Africa. They are both optimistic about South Africa’s 2022/23 grain and oilseeds production conditions and foresee softening of prices towards mid-year. Listen to the conversation here.

In an interview with PlaasMedia, Agbiz Grain general manager Wessel Lemmer elaborated on a visit of one of the largest agricultural cooperations in France, EMC, to South Africa. Please click here to access the interview.

Ukrainian farmers may face a shortage of fertilisers for 2023 spring sowing and a lack of them could sharply reduce the harvest, a top agriculture official said on Tuesday. Ukraine is a major grain grower and exporter, but its harvest could fall this year following the Russian invasion and occupation of a significant part of Ukrainian territory. Most Ukrainian fertiliser plants were stopped due to the conflict and the first deputy farm minister Taras Vysotskiy said in a statement that production at two remaining plants had fallen to 1.1 million tonnes in 2022 from 5.2 million tonnes in 2021. Read more in the linked article, first published by Reuters.

Mexico has scrapped a deadline to ban genetically modified (GM) corn for animal feed and industrial use amid trade tensions with the United States but retained plans to prohibit the use of the grain for human consumption as well as the herbicide glyphosate. The move, approved in a government decree, eliminates January 2024 as the date for the country to forbid GM corn for animal feed and industrial use, a statement by the economy ministry said. Amid a brewing dispute over the possible disruption of billions of dollars worth of corn trade, US officials and farmers had called for clarity on the ban from Mexico. The latter buys about 17 million tonnes of mostly GM yellow corn from the US annually, most of which is used for animal feed. Read more in the linked article, first published by Reuters.

Four court cases in Kenya and Tanzania have blocked the release of 11 tonnes of genetically modified (GM) maize seeds that were to be made available to farmers this planting season. Several traders have approached the National Biosafety Authority (NBA) with requests to import GM products into the country, including a consignment of GM white maize from South Africa. The regulator, however, froze the requests until after the determination of the court cases. Read more in the linked article, first published on Business Daily.

South Africa’s perishable produce industry continued to exceed expectations and managed to move just over 3.5 million tonnes of fresh produce last year, according to the Perishable Products Export Control Board (PPECB). Lucien Jansen, CEO of this independent quality certification agency for cold chain producers and exporters of perishable food, said that they continued to see growth in exports. “We are pleased to note that South Africa achieved record export figures in 2022. Notwithstanding the challenges faced. This represents an 8.8% increase in volumes when compared to 2020/2021 financial year. Read more in the linked article, first published on iol.co.za.

Notable developments in and around our commercial ports included poor weather, frequent equipment breakdowns and shortages, delays, and congestion. More specifically, wind delays were the root cause in Cape Town this week, as more than 40 hours were lost. In addition, the crane situation at Durban's south quay, berth 108, was revisited this week as all but one STS crane went out of commission due to breakdowns on Tuesday. Additionally, the tug situation at Durban TNPA took a turn for the worse over the 24 hours leading to Friday, with the marine fleet going down to only two available tugs from the evening shift. Furthermore, three incidents of cable theft on the Container Corridor line over the 24 hours leading to Friday have raised some concerns among industry participants, while TFR aims to shrink their 20 000 km freight rail network by at least ↓35% (7 000 km) and shift their focus to handling more profitable cargo on the main network lines. Globally, supply chain disruptions have eased, mainly owing to waning demand and the consequences of the Chinese New Year. Indeed, the year-to-date containerised statistics indicate a massive drop-off in throughput in the last quarter of 2022 compared to the previous one. Read more in the latest edition of the BUSA Covid-19 Cargo Movement Update.

Weather patterns currently and during the next few days over the interior of South Africa are dominated by the tropical low to the north. Recent forecasts have placed the system somewhat further south, with also an upper air trough in the southwest, which is a much more favourable situation for rainfall than what was expected according to forecasts last week. These two systems (tropical low to the north, upper-air trough in the southwest) together maintain favourable conditions for further showers and thundershowers over most of the summer rainfall region during the next few days as a conveyor of moisture is established from the low in the north, southeastwards with the support of the upper-air trough to the southwest. However, the highest concentration of rainfall will remain in the vicinity of the Low, currently deepening over Botswana. Read more in the latest edition of Cumulus, published by AgriSeker.

The Southern African agricultural industry is facing a host of challenges on several fronts this year, so it is fortuitous that the upcoming Africa Agri Tech Conference and Expo 2023 will provide a valuable platform where the positive impacts of science, technology and innovation can be explored. This much-anticipated event will be staged at the SunBet Arena, Menlyn Maine, Time Square, Pretoria, from 14 to16 March. The inaugural Africa Agri Tech proved a major success with exhibitors and visitors, so the organisers of the 2023 event are building on a solid foundation. The event in March will expand its focus to include the latest science and technology trends as well as looking at international agricultural trade, market access, and highlighting the best practices from around the globe. These three days in Pretoria will be the ideal time and place for those people involved in any aspect of the agricultural industry to meet up with industry leaders, farmers and decision-makers eager to connect, network and seek solutions to meet the multitude of future challenges facing the agricultural industry, both locally and internationally. Read more in the linked Africa Agri Tech statement.

Agri SA’s executive director, Christo van der Rheede, will be retiring at the end of February 2024. The Agri SA Board and Signium Africa are inviting interesting parties to participate in the process of appointing a new chief executive officer. Please click here for more information.   

Ahead of his reply to the State of the Nation debate, the Citrus Growers' Association of Southern Africa (CGA) calls on President Ramaphosa to use the opportunity to provide an urgent update on whether the South African government intends to convene a World Trade Organization (WTO) Panel to adjudicate on the new false coddling moth (FCM) regulation governing the importation of South African oranges to the EU. The CGA believes that a panel is the only option to put a stop to the unjustified and discriminatory regulation, which threatens the survival of citrus growers and the tens of thousands of jobs they sustain. Read more in the linked CGA media statement.

Kaap Agri has changed its company name to Kal Group Limited. The name change reflects how the company has grown and expanded in recent years and is more representative of the company's growth ambitions and diversified business operations. The company is also adopting a new logo as part of the name change. The JSE-listed retail group trades in mainly agricultural, general, convenience and fuel markets of southern Africa. Kal Group CEO, Sean Walsh, says the name Kaap Agri has served the company well over the years, being rooted in the agricultural sector, especially in the Western Cape. But its agricultural and geographic references carry certain limitations. "Over the past seven years, we have crafted a deliberate diversification strategy with the business becoming a diversified group with trading activities across South Africa and Namibia spanning various sectors including agricultural trade, general retail, manufacturing, and fuel and convenience retail. Read more in the linked article, first published on Bizcommunity.

Hortgro has said that South Africa’s stonefruit industry is back running at full speed, with exporters noting that they are in a stronger position following last year’s port strikes.

A port and rail worker strike last October caused holdups in fruit sendings out of South African ports. However with the industrial action now resolved and efforts in the off-season to smooth the service, Hortgro said that European buyers could expect ”efficient and high-quality” deliveries. Read more in the linked article, first published on fruitnet.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.