"In a period riddled with disruptions in both the global and the domestic environment, the agriculture sector was the most consistent contributor to GDP growth in 2020 and 2021. Over the past 18 months, however, challenges in the global environment have escalated as the war in Ukraine, the energy crisis, and persistently high inflation have threatened to derail the global post-pandemic economic recovery. Risks remain elevated, particularly in light of recent difficulties in renewing the Black Sea Grain Initiative.
Furthermore, South Africa’s agriculture and agro-processing sectors have had to deal with the implications of an animal health system that is threatening to collapse, crumbling road and water infrastructure, congestion at the ports, and a national electricity crisis leading to severe load-shedding and unplanned blackouts. These factors have tested the sector’s resilience to the extreme and, with approximately 50% of revenue dependent on exports, are raising concerns around the sector’s competitiveness.
GRAIN DRAIN
Much of the growth since 2020 has been underpinned by the field crop sector due to the rare combination of near-record harvests and high prices, which were underpinned by global factors. In 2022 however, the sharp increase in input costs constrained GDP growth despite strong revenue performance. Looking forward, prices of the main summer crops will continue to trade at export parity in the near term, which implies that they will follow the global downward trend.
The same holds true for wheat, where prices tend to trade at import parity levels. This implies that margins will become tighter over the next few years, requiring continuous innovation to remain on top of the productivity curve.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Review: the Toyota Hilux 2.8GD-6 DC 4×4 GR-Sport III
The third iteration of the Hilux GR-Sport has finally achieved a sense of presence and style befitting its raceinspired branding. But is this the ultimate modern Hilux? Car Magazine takes a closer look.
Why maize prices soar in Kenya and Malawi but not Tanzania
Namhla Landani, an economist at the Centre for Competition, Regulation and Economic Development, University of Johannesburg, and Arthur Khomotso Mahuma, economist and researcher at the Centre for Competition, Regulation and Economic Development, University of Johannesburg, analyse the issue.
Wet carcass syndrome: a scourge in SA sheep farming
Wet carcass syndrome continues to take a huge financial toll on South African sheep farmers. Octavia Avesca Spandiel spoke to two experts about the ongoing genetic research aimed at addressing this issue.
Pollination innovation
Bee-Tech Group is transforming South African agriculture with pollination technologies that boost crop yields and enhance sustainability. Founder Michiel Bruggeman spoke to Octavia Avesca Spandiel.
The valuable addition that makes this farm tick
Owning the value chain provides farmers with far more control over their produce. However, it requires a fine balance between production and ensuring there is a strong and steady market. Lindi Botha visited Rosemary Hill to find out how this essential oil producer leverages hospitality to make the farm viable.
The benefits of recirculating aquaculture systems
A powerful set of attributes has established recirculating aquaculture systems as a cornerstone of global temperate fish farming, writes Leslie Ter Morshuizen, owner of Aquaculture Solutions.
Minister has big plans for emerging and commercial farmers
DA leader and Minister of Agriculture John Steenhuisen spoke to Glenneis Kriel about his priorities for his department over the next five years, including an increased focus on biosecurity.
New study aims to make wheat more disease resistant
A recent international study explains how bread wheat has helped to transform the ancient world on its path to becoming the iconic crop that today helps sustain a global population of eight billion.
Conservation farming and biodiversity boost soil health and sustainability
A recent academic event focused on research into the links between soil biodiversity, soil health and sustainable agriculture
What has led to the unparalleled rice shortage in Japan?
Japan is facing a rice shortage amid concerns about a potential 'megaquake', several typhoons and an annual week-long holiday, which has led to an increase in panic buying.