"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.
Denne historien er fra October 27, 2023-utgaven av Farmer's Weekly.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Denne historien er fra October 27, 2023-utgaven av Farmer's Weekly.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
New farmers' seedling pitfalls
Inexperienced farmers may be tempted to grow seedlings from seed themselves, but they have much to gain by trusting a seedling grower at a nursery to perform this task for them instead
South African avocado production: a success story
Avocado production in South Africa has expanded markedly since the industry's humble beginnings over 80 years ago. From a small grove planted in 1938 in what was then Nelspruit, the industry has blossomed to seven million trees planted on 20 000ha. Dr Guy Witney, project manager at Great Brak Avos, spoke to Annelie Coleman about the country's avocado production.
Unlocking value through livestock exports
Exporting livestock might sound like a daunting business that's better left for big companies, but Gerrie Ferreira, who farms near Oudtshoorn in the Western Cape, has been doing it successfully for almost 30 years, sometimes in partnership with other breeders. He spoke to Glenneis Kriel about the huge potential this market holds, and offers some advice for farmers who are contemplating going this route.
An agribusiness's dedication to community upliftment
For agribusiness NWK, located in Lichtenburg, North West, corporate social investment is an important part of creating a positive influence alongside financial returns. Johan Bezuidenhout, NWK’s group manager of corporate marketing and communication, spoke to Annelie Coleman about why the company chooses to invest millions of rands in the area it operates in every year.
Empowering dreams, transforming lives
Since its launch in 2013, the Agri's Got Talent competition has revolutionised the lives of many farmworkers by unlocking their hidden talents and fostering a culture of empowerment. Glenneis Kriel spoke to various finalists about how the contest has changed their lives.
Foreign investment: agriculture maintains its appeal
South Africa remains a popular destination for foreign investors, despite an often negative outlook from its citizens. It is a gateway to Africa, and with its counterseasonal production to the Northern Hemisphere and favourable weather, local agriculture is especially well placed to attract foreign interest, bringing with it hope for rural communities
The real value and message of COP29 for SA agriculture
While the 2024 Conference of the Parties may have disappointed those who hoped for real progress, it's more important for South African agriculture to highlight its role in carbon mitigation
Improving efficiencies in feed and grain milling
Bühler, a Swiss-based company that provides solutions and equipment for various industries, including food and animal feed processing, has pledged that by 2025, it will deliver scalable solutions that will reduce energy, waste and water by 50% in the value chains of its customers.
Tips for better olive production
At an SA Olive Association field day in November, industry experts shared ways to improve olive production efficiencies, from soil preparation to harvesting.
More effort needed to protect vulnerable cheetah
On International Cheetah Day, commemorated every year on 4 December, emphasis was placed on the vulnerability of the species.
