South Africa's agriculture sector has shown remarkable resilience in spite of disruptions in both the global and the domestic market and input environments.
Although the industry had to deal with a combination of challenges, most sub-sectors in the agricultural and 0 industries showed extreme resilience, according to the Bureau for Food and Agricultural Policy's (BFAP) baseline Agricultural Outlook 2023/32. The positive trends are mainly spillovers from the momentum in the grain and oilseed sectors over the past three years, BFAP stated in the report.
The past three years have been among the most volatile to date in global grain and oilseed markets. The FAO Food Price Index serves as a measure of underlying agricultural commodity prices globally, and in 2022 reached unprecedented levels as Russia's invasion of Ukraine added uncertainty at a time when supply was already constrained.
While global stock levels have been trending downwards amid poor weather conditions, the past three years have been among the best on record in South Africa's summer crop sector, due to the rare combination of large domestic crops and high prices, which emanated from international dynamics.
Lately global prices have, however, moved into a declining cycle and this is expected to spill over into South African markets. This, according to the BFAP report, implies that margins will become tighter over the next few years, requiring continuous innovation to remain on top of the productivity curve.
At the same time, the cost of agricultural inputs remain elevated resulting in reduced producer margins.
Added to the El Niño predictions of drier and hotter spells over the coming production season, the energy crisis in particular will provide significant challenges across the value chain, which constrains competitiveness in the sector and has added significantly to capital and operational expenditure.
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
ARC names best dairy producers of the year
The Agricultural Research Council (ARC) recently announced the winners of the 2024 National Master Dairyman Awards at an event hosted by AgriExpo in Stellenbosch, Western Cape.
Lion breeders to give up bone stockpiles?
The Ministry of Forestry, Fisheries and the Environment issued an official notice in mid-November in which it called on lion breeders to voluntarily hand over their lion bone stockpiles to the state as soon as possible.
Thousands of British farmers march on parliament against inheritance tax
Thousands of UK farmers gathered in London, England, on 19 November to demand the government repeal a proposed inheritance tax on agricultural land, which they argued threatened the future of family-run farms (see page 4), Al Jazeera reported.
Avocado frittata with sundried tomatoes, feta and olives
This wholesome, vibrant frittata is perfect for brunch or a light supper. Recipe and photo: The South African Avocado Growers' Association.
Feed, hay, and other costs are up, so it's time to get creative
Breeders and riding schools need to explore innovative ways to generate income in order to ensure their survival, says Dr Mac.
How to make polystyrene seedling trays last longer
While thinking about how to prolong the lifespan of polystyrene seedling trays that are exposed to harsh sunlight, Bill Kerr began to wonder if a coat of paint might offer a solution.
Living the 'culture' in agriculture
Creation Wines has won numerous awards, was ranked fourth in the World’s Best Vineyards in 2023, and more recently won the V d’Or award for the Best Brand Experience. The owners, Carolyn and Jean-Claude Martin, spoke to Glenneis Kriel about how their winery became a top tourism destination.
Time to take a deep breath on the slopes of the Magaliesberg
Around 100km from both Johannesburg and Pretoria in Gauteng and a tad over 40km from Rustenburg in North West, Farmer’s Weekly found a fine retreat on a working farm where couples may kindle their romance.
African penguins could be extinct by 2035 how to save them
Protecting the critically endangered African penguin is good for the environment, other animal species, and the economy, say Lorien Pichegru and Dr Alistair McInnes of Nelson Mandela University, Katrin Ludynia of the University of Cape Town, and Peter Barham of the University of Bristol in the UK.
An urgent need to confront Nassella in SA
South American grass species from the genus Nassella were unwittingly introduced to South Africa over 120 years ago and continue to invade montane veld. As Mike Burgess writes, research-based action is required.
