The continuing global recovery faces multiple challenges as the pandemic enters its third year. The rapid spread of the Omicron variant has led to renewed mobility restrictions in many countries and increased labour shortages. Supply disruptions still weigh on activity and are contributing to higher inflation, adding to pressures from strong demand and elevated food and energy prices. Moreover, record debt and rising inflation constrain the ability of many countries to address renewed disruptions. Some challenges, however, could be shorter lived than others. The new variant appears to be associated with less severe illness than the Delta variant, and the record surge in infections is expected to decline relatively quickly. The IMF’s latest World Economic Outlook, therefore, anticipates that while Omicron will weigh on activity in the first quarter of 2022, this effect will fade starting in the second quarter. Read more in the linked IMF blog post by Dr Gita Gopinath, first deputy managing director of the International Monetary Fund (IMF).

The agricultural economist, Dr Sifiso Ntombela, published an intriguing article this past weekend in News24. He argues, rightly, that the structure of the South African agricultural economy today was defined by various policy changes in the three years after the dawn of democracy. Dr Ntombela notes, “It was during this period that the then newly elected democratic government decided to remove state subsidies for farmers and also stopped the regulation of food prices.” The fundamental policy change he refers to here is the deregulation of the agricultural markets, which removed government price controls of agricultural commodities and led to abolishing various commodity boards such as maize, wheat, and meat boards. This process occurred as the South African agricultural sector integrated into the global community; hence today, we have an export-oriented agricultural sector that is competitive, with a reach in several markets across the globe. In the linked blog post, Wandile Sihlobo shares his views on the topic.

The Department of Agriculture, Land Reform and Rural Development has announced that a diverse and evolving group of products from new breeding technologies will be evaluated under the risk assessment framework that exists for genetically modified organisms (GMOs) under the Genetically Modified Organisms Act, 1997 (Act 15 of 1997, GMO Act). Role players in the seed industry believe this will have several negative consequences, and consequently appealed against this. In an interview on Plaas TV, Theo Boshoff of Agbiz and Magdeleen Cilliers of Sansor discuss this topic. Please click here to peruse.

The twin challenges of low growth and rising unemployment facing South Africa today are not new. Structurally high unemployment has been a feature of this economy for many years, and economic growth has disappointed in the decade before the pandemic. Lifting growth and lowering joblessness has also long been the central theme of numerous government policy papers. Amongst other interventions, these papers have championed the need for a social compact approach to economic development, recognizing not only the government's fiscal constraints and capacity challenges at various levels of government but also the need to generate buy-in. Agbiz chief economist Wandile Sihlobo discusses this subject in the linked article.

The excessive rains since the start of South Africa’s 2021/22 summer crop production season in October 2021 raised concerns that farmers might not have been able to till the initially planned area of 4,34 million hectares (up by 3% from the 2020/21 production season). The preliminary plantings data released this afternoon by the Crop Estimates Committee proved this point to be accurate. Still, the actual plantings are a relief as many analysts, with ourselves included, thought we would see a much smaller area. Farmers are estimated to have planted 4,21 million hectares, which is 3% less than their intentions at the start of the season. The slight declines are in maize, soybeans, groundnuts, sorghum and dry beans. Meanwhile, sunflower seed plantings are up from the initial intentions. Wandile Sihlobo discusses this subject in the linked article.

Following the appeal board's decision on inspection tariffs for the storage sector in December 2021, the Department of Agriculture, Land Reform and Rural Development has invited stakeholders in the grain and oilseeds sector for input on an amended standard operating procedure (SOP). Agbiz Grain believes the grading of cereals and oilseeds, for trading purposes as required by the Agricultural Products Act (Act 47 of 1996), has been sufficiently self-regulated since deregulation without unnecessary costs for everyone from the producer to end consumer. Agbiz Grain general manager Wessel Lemmer discusses this subject in the linked article, first published in Landbouweekblad.

Earlier this year, OECD chief economist Dr Laurence Boone addressed the Eurogroup meeting. She reviewed the euro area performance throughout the crisis and what they are recommending you should consider for this year, and of course, for next year. "While both the euro area and the US have addressed the pandemic swiftly and robustly, their recoveries are shaping in different ways. This provides lessons and information about policies looking forward." This linked blog post is a transcript of her speech. Please click here to peruse.

The political tensions between Ukraine and Russia continue to mount. Russia has placed 100 000 troops on Ukraine’s borders, and the Pentagon ordered 8 500 troops on higher alert Monday to potentially deploy to Europe as part of a NATO “response force” amid growing concern that Russia could soon make a military move on Ukraine. Ukraine is a key player in global agriculture, and how these conflicts play out will have international impacts. Ukraine has more than 41.5 million hectares (or 102.5 million acres) of agricultural land that cover 70% of the country. Read more in the linked article first published on agweb.com.

The US Department of Agriculture defines bioengineered food as food that “contains detectable genetic material that has been modified through certain lab techniques that cannot be created through conventional breeding or found in nature.” If that definition sounds familiar, it is because it is essentially how genetically modified organisms, or GMOs, are defined – common vocabulary many people use and understand. On 1 January, 2022, the USDA implemented a new US bioengineered food disclosure standard. Shoppers are seeing labels on food products with the terms “bioengineered” or “derived from bioengineering” printed on a green seal with the sun shining down on cropland. Read more in the linked article, first published on The Conversation.

There are two big challenges African countries face when it comes to managing public finances. First, many lack fiscal capacity on account of structural weaknesses of their economies and gaps in tax administration. Predominant informality of wage employment and reliance on subsistence agriculture in most countries make it difficult to raise revenue beyond consumption and border taxes. Consequently, on average, African countries collect a mere 16.6% of gross domestic product (GDP) in taxes. For comparison, countries in the Asia Pacific collect about 21% of GDP in taxes. Countries in Latin American and Caribbean countries average about 23%. At the top end, the average tax haul in high-income countries within the Organization for Economic Cooperation and Development (OECD) is about 34%. Prof. Ken Opalo of Georgetown University explores this subject in the linked article, first published on The Conversation.

In the context of economic growth and South Africa’s national objectives, public statements were made in the recent past about competition, concentration and bargaining power in the South African dairy industry. Some of these statements do not adequately reflect particular principles and realities, which are of fundamental importance. The South African Milk Processors' Organisation (Sampro) has compiled brief notes that are of fundamental importance in respect of economic growth, competition, concentration (reduction of the number of participants in an industry), bargaining power and the dairy industry. Please click here to peruse.

Iconic South African table grape grower Aat Hoekstra (91), from the Hoekstra Fruit Farms group in the Paarl, passed away in his sleep on Sunday evening 23 January 2022. The South African Table Grape Industry (SATI) recognised Hoekstra, or Oom (Uncle) Aat as he was affectionately known, as one of eight pioneers who made a huge impact on the industry in its over 125-year history. The SATI Board, management as well as all producers express their sincere condolences to Hoekstra’s daughters Maleen and Annett, the Hoekstra Fruit Farm group management, the thousands of workers on their farms and export business. Read more in the linked SATI media statement.

The Agri X Group and Kleinskuur Boerdery invite you to take part in a special charity golf day on 17 February 2022 at the Waterkloof Golf Club, Pretoria. The funds are in aid of the installation of an aquaponic system at the President Kruger Children`s Home. Please click here for online registration with Agri X Group. For more information, contact Koos Nel, Agri X Group founder and CEO at knel@agrixgroup.com.

Be at the forefront of fresh produce profitability. If you don't know the cost, you can not know how much revenue you are losing or making. Register for a free seminar that is specific to the fresh produce market in South Africa, showcasing the Aptean Food and Beverage ERP systems. Please click here for more information.

With the 2022 harvest season on the horizon, South African wine grape producers expect a smaller wine grape crop, mainly due to a decrease in vineyards, high disease pressure and heatwaves in certain regions. This is according to the second of four crop estimates by viticulturists and producer cellars in the third week of January. “At this early stage, we expect this year’s wine grape crop to be smaller than in 2021,” says Conrad Schutte, manager of Vinpro’s team of viticulturists who issues the crop estimates together with industry body SAWIS (South African Wine Industry Information & Systems). Read the full Vinpro media statement here.

The Shoprite Group has partnered with SA Canegrowers on its Home Sweet Home campaign to encourage South African consumers to buy locally-produced sugar. This partnership will see the Shoprite Group, which is Africa’s largest retailer, prioritising selling only locally-produced sugar in its 1 189 Shoprite, Checkers, Checkers Hyper and Usave supermarkets in South Africa, and promoting the Home Sweet Home campaign to its customers. SA Canegrowers launched its Home Sweet Home campaign on 9 December 2020 with the aim of educating consumers about the threats the local industry is facing when it comes to the influx of cheap sugar imports and encouraging them to buy locally produced sugar in order to safeguard rural jobs. Read more in a joint media statement issued by SA Canegrowers and Shoprite.

Fruit SA is looking to appoint a new industry affairs manager. The incumbent will conduct research, monitor external developments and advise the fruit industry accordingly. The manager will proactively collate, analyse and share industry information with stakeholders. The role is at Fruit SA in Pretoria. The closing date for applications is 31 January 2022. Please click here for more information.

Keeping it Fresh, the newsletter of the Fresh Produce Exporters Forum (FPEF), contains all the recent relevant news and developments. Please click here for the latest edition.

The Citrus Growers' Association of Southern African, shares the latest news in the citrus industry in its weekly update - From the desk of the CEO. Please click here to peruse.

Read more about the latest developments and news in the pork industry in the South African Pork Producers' Organisation (SAPPO) newsletter, SAPPO Weekly Update.