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.
Bu hikaye Farmer's Weekly dergisinin Farmer's Weekly 5+12 January sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Farmer's Weekly dergisinin Farmer's Weekly 5+12 January sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Syngenta Seedcare celebrates a decade of innovation
Syngenta's ambition is to enable their customers' investments to grow in healthy soil from treated seeds to young plants through innovation and collaboration, writes Magda du Toit.
Agri workers shine at Western Cape awards
Lindie-Alet van Staden, a garden and olive orchard manager at L’Ormarins Wine Estate in Franschhoek, was crowned as the Western Cape Prestige Agri-Worker of 2024 at a gala event recently held near Paarl.
Small and large farmers recognised at grain awards
The annual Grain SA/Syngenta awards ceremony bears testimony to the quality of farmers in the grain industry.
Growing partnerships: Fedgroup's flexible and innovative approach
Janine Ryan spoke to Warren Winchester, general manager of impact investing at Fedgroup, about why the company became involved in agriculture, and what it offers farmers and their immediate communities.
Why fish farms fail, and how to avoid becoming a statistic
The popularity of launching fish farms is not matched by their success. Leslie Ter Morshuizen, owner of Aquaculture Solutions, explores the factors that cause most of these businesses to go under.
Where history and modernity meet in a luxurious setting
Brian Berkman kept his eyes peeled for ghosts in the oldest continuously run hotel in South Africa, but all he found was a fabulous two-night stay.
THE HITCHING POST
I'm a stylish elderly lady with a radiant glow and a good sense of humour that keeps me young at heart.
Cutworms: check the weeds on your fields!
Zunel van Eeden explains why understanding the ecological interplay between cutworms and weeds is crucial for effective pest management. Producers should disrupt the life cycle of cutworms to minimise crop damage.
Does high-density grazing mimic grazing patterns of game?
In their paper on high-density grazing in Southern Africa, professors Angelinus Franke and Elmarie Kotzé from the Department of Soil, Crop and Climate Sciences at the University of the Free State say high-density grazing systems may not accurately reflect natural ecosystems. Roelof Bezuidenhout reports.
Global grain outlook: 2024/25 marketing season
In its latest summer crops report, the Crop Estimates Committee says South African farmers intend to plant 4,47 million hectares of summer grains and oilseeds in the 2024/25 season, up 1% from the previous season. As South Africa exports maize and soya bean, Annelie Coleman reports on the latest trends in the international grain and oilseed markets, amid fluctuations in weather conditions and ongoing armed conflicts.
