The issue involving height limitations in the transportation of high cube containers on South African roads has once again been brought into sharp focus, this time by Business Unity South Africa (BUSA). Industry and government have been at loggerheads for some time over the ruling - Regulation 224 (b) of the National Road Traffic Act (Act 93 of 1996) – that prohibits the movement of these containers at a height of 4.6 m. High cube containers constitute the overwhelming majority of containers currently manufactured and transported internationally, including in neighbouring states, BUSA argues. The combined height of a vehicle transporting a high cube container is currently 4.6 m – 300 mm above the legal limit. Earlier this week, BUSA requested Minister Fikile Mbalula to urgently consider reviewing the Regulation that currently prohibits the transportation on South African roads of high cube containers. Agbiz firmly supports this call and has been a driving force within BUSA to address the issue. Please click here for an Agbiz media statement supporting BUSA's request. Kindly follow the links to BUSA's letter to Minister Mbalula as well as a BUSA media statement.

The National Disaster Management Centre classified the severe rain and flooding experienced in parts of the country as a national disaster. This follows coordinated efforts by Agbiz and organised agricultural bodies to collect information and make inputs to the relevant authorities. Agbiz must express its gratitude to the various agribusinesses that have submitted regular data relating to rainfall patterns, flooding and economic losses incurred as a result of the floods. From the information collected by Agbiz, it appears as if the wet conditions were welcomed in most production areas across the country but persistent wetness and severe flooding caused significant damage in the maize-growing areas of the Western Free State, the North West as well as areas of KwaZulu-Natal. According to section 23 of the Disaster Management Act, a national disaster is one that is not confined to a single province and the scale exceeds the ability of a single to province manage. So whilst the damage does not extend to the entire country, it still meets the requirements to be classified as a national disaster. It is worth noting that the classification by the National Disaster Management Centre is merely the first step in the process as a declaration will be required by the Minister of Cooperative Governance and Traditional Affairs for disaster relief to be made available.

For most agricultural subsectors, South Africa is emerging from one of the best years. The 2020/21 season saw bumper harvests for grains, oilseeds and some fruits. These boosted export earnings and improved farm incomes, especially for grains where the large harvest coincided with higher crop prices. When it started the current season, 2021/22, promised to be exceptional. But the continuation of the heavy rains has proved to be a challenge for various regions, causing crop damage and delaying planting. The heavy rains of the new year are La Niña induced and follow another year of higher-than-average moisture. Various crop surveys have indicated a potential decline in harvests in 2021/22 as a result. The year ahead could therefore be financially costly for the farming community if crop damage proves to be extensive. The devastation being caused is another reminder that climate change is driving unpredictable weather patterns. Beyond the vagaries of the weather and the impact on crops, the year ahead offers a range of promising developments, as well as escalating difficulties if problems aren’t addressed. Read more in the linked article by Agbiz chief economist Wandile Sihlobo, first published on The Conversation.

“Bathi isitshixo semvula sikuwe, vala le mvula, sonele ngoku!” (They say you have the key for closing the rain tank; we’ve had enough, close it now), said Victor Mongoato, a grain farmer from Matatiele, on a call with Agbiz chief economist Wandile Sihlobo earlier this week. "Of course, Mongoato didn’t mean I literally had a key to stop the rain; instead, he was expressing his frustrations with the excessive rains, and the havoc they have caused on his farm and many others around the country. I spoke to several other farmers in different parts of the country, including Free State and North West regions. They were as exasperated as Mongoato as they watched helplessly the rain damaging their crops." This has caused severe delays in planting activity in some areas. It may sound paradoxical to say that rain has been destructive. Farmers need rain but in reasonable quantities; and that’s not what we’ve been seeing in the last two to three months. In the linked blog post, Wandile Sihlobo discusses the effects of the current weather conditions.

The year 2021 has ended positively for South Africa's agricultural sector. Farmers experienced a unique season characterised by bumper yields, and higher agricultural commodity prices, particularly in the grains and oilseeds industries. Improved farmers' incomes have boosted spending on agricultural equipment. On the downside, the unrest and looting in July were disruptive, but the cooperation amongst agricultural and logistics role players ensured a continuous flow of agricultural exports. The primary agriculture sector could show positive growth in 2021, building from an excellent year of 13,4% year-on-year growth in 2020. Going into 2022, the early indicators about the agricultural growth prospects are positive. Wandile Sihlobo discusses the latest data in the linked blog post.

We are currently in the La Niña event, which has varying global impacts. For example, unlike in the Southern Africa region, where a La Niña event naturally leads to excessive rains as we are witnessing across South Africa, the South America region experiences dryness. The drier weather condition has been the main feature of South America's 2021/22 production season, with grains and oilseeds production forecasts consistently revised down in the past months from the optimistic levels of November 2021. This is in anticipation of poorer yields. The most exposed countries are Brazil, Paraguay and Argentina, also notable players in global agriculture. Still, suppose one considers the latest crop estimates from the International Grain Council (IGC) and the United States Department of Agriculture (USDA), which are vital institutions observing global agricultural conditions; the data suggest that South American countries will have a relatively larger harvest than 2020/21 production season. Wandile Sihlobo discusses this subject in the linked article.

We are in a La Niña cycle — SA has been receiving above-normal rainfall since October 2021. The SA Weather Service estimates that the heavy rains could continue through to March. This is the third consecutive season of above-normal rains. The agricultural sector has benefited greatly in the past seasons with crop production improving notably, especially in the 2020/2021 production season. However, I worry that the current, 2021/2022 production season could bring a lower harvest than the previous one. Several farmers have reported patches of crop damage and delays in planting, specifically in regions of North West and Free State, both of which are pillars of SA’s grain and oilseed production. Read more in the linked article by Wandile Sihlobo.

The data released by Statistics South Africa this week show that consumer food price inflation slowed marginally to 5,9% in December 2021 from 6,0% in November. The product prices underpinning this slight moderation include bread, cereals, and fish. For the whole of 2021, the consumer food price inflation averaged 6,5% (compared with 4.6% y/y in 2020). Broadly, the high grains, vegetable oils and meat for the past few months were the primary drivers of consumer food price inflation in 2021. While the excessive rains across South Africa present risks for agricultural production this year, the overall impact on crop prices remains uncertain. First, there have admittedly been delays in crop plantings and damages in some areas due to flooding. Still, the scale of this disruption will only be precise after the release of the preliminary summer crop planting data on January 27 and production estimates data at the end of February. Only then could we formulate a reliable view on the possible size of imports needed if the damage is extensive, and the impact after that on prices. Wandile Sihlobo discusses the latest data in the linked article.

The appeal board that was appointed by the director-general of the Department of Land Reform and Rural Development (DALRRD) to rule on the implementation of the inspection services on grain and oilseeds, found that it was unlawful and not procedurally fair. The board ruled that the fees cannot be rationally linked to the capabilities that need to be exercised or to the duties that need to be performed. The board received five applications against Notice 382. Agbiz Grain general manager Wessel Lemmer discussed this subject in an interview with RSG Landbou. Please click here to listen to the interview.

Farm productivity growth has been central to the development of agriculture in the United States and around the world, and continuing farm productivity growth remains crucial for enabling the sustainable production of safe, healthy, and affordable food. Many of us might think we can take all these things for granted. But recent periodical spikes in commodity prices and emerging evidence of a secular slowdown in farm productivity growth have sparked renewed concerns about the future path of agricultural productivity and its implications for the supply and price of food; especially with a changing climate and competing demands for agricultural land, water, and other resources. There is robust and compelling evidence of a structural slowing of productivity growth in US agriculture, following a mid-century surge. Philip Pardey and Julian Alston come up with three possible factors that, taken together, help explain the slowdown and indicate what to expect from now on in the linked article, first published on the LSE US Centre's daily blog.

 The FAO Food Price Index (FFPI) averaged 133.7 points in December 2021, down 1.2 points (0.9 per cent) from November, but still up 25.1 points (23.1 per cent) from December 2020. Except for dairy, the values of all subindices encompassed by the FFPI registered monthly declines, with international prices of vegetable oils and sugar falling significantly month on month. For 2021 as a whole, the FFPI averaged 125.7 points, as much as 27.6 points (28.1 per cent) above the previous year with all sub-indices averaging sharply higher than in the previous year. The FAO Food Price Index (FFPI) is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of five commodity group price indices weighted by the average export shares of each of the groups over 2014-2016. Please click here to peruse.

Zimbabwe and China are ready to strengthen their bilateral trade relations, and a citrus export deal is clearly in the making. The two nations signed the agreement in 2015 as Zimbabwe sought a market for Shashi Citrus smallholder farmers, but China requested post-risk assessment information for the export of fresh citrus fruits from Zimbabwe to China. In a statement this week, Lands and Agriculture Minister Anxious Masuka said the export protocol would provide further export markets for local citrus products. “The trade protocol will cement trade relations between the two nations and will open the door for other products that we were not even exporting, hence will lead to an increase in agricultural contribution to the export basket. For example, Zimbabwe producers have expressed interest in exporting blueberries and avocado pears to China.” This article was first published on FreshPlaza.

Through Agbiz's association with the BRICS Business Council, we have been informed of two new administrative measures imposed by the government of China (decrees 248 and 249). For sanitary purposes, food processors who export to the Chinese market will need to register their facilities with the relevant local, competent authority. In South Africa, this is the Department of Agriculture Land Reform and Rural Development (DALRRD) for the majority of food products and the National Regulator for Compulsory Specifications (NRCS) for fisheries products. These Regulations came into operation in January 2022. Kindly click on the links to the new regulations as well as a useful summary of the new requirements courtesy of Wesgrow.

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.

Kaap Agri, whose interests span retail, fuel, and manufacturing, has reached a deal to buy independent fuel retailer PEG for R1.1bn, which would almost double its network as well as boost its empowerment credentials. The deal, still subject to shareholder approval, will add 41 service stations to Kaap Agri's network, from 43 currently. The group, valued at R4bn on the JSE, has made clear that it is looking to pick up assets, part of its plans to more than double pre-tax profit to R1bn over the next three years. Read more in the linked article, first published on landbou.com.

The 2022 pome fruit harvest is in full swing and growers are looking forward to a good harvest. The much-needed rain and adequate chill units during last winter have ensured that growers have enough irrigation water at their disposal, which is linked to a good fruit set and favourable weather conditions to date promises a good crop and fruit quality. The cooler spring and high early summer temperatures experienced to date could have an impact on fruit size, but growers are still very optimistic as fruit quality is sound and packouts are looking promising. Read more in the linked article from Hortgro, first published on FreshPlaza.

South African Table Grape Industry (SATI) shares the latest news from the table grape industryi n the latest SATI Trade Newsletter. Please click here to peruse.

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.