Agbiz responds to 2018 National Budget

With government debt and budget deficits at concerning levels, weak economic growth levels prevailing, populist promises around "Fees must Fall" demands and rating agencies hovering over  a spluttering economy, Minister Malusi Gigaba delivered the 2018 Budget Vote Speech on Wednesday this week. "Endless analysis is possible, but suffice to say that that the Minister and National Treasury have come up with a budget that under the trying circumstances and conditions can be deemed to be tough but acceptable," said Agbiz CEO, Dr John Purchase. He said Agbiz is however of the opinion that greater investment needs to be made into the economic sector of the country, including agriculture/agribusiness, to stimulate growth. Only then will jobs be created and transformation be realized. Prof Raymond Parsons from North West University Business School also emphasizes this point in his excellent 2018 Budget analysis, while VinPro released a statement on what the impact of the increased excise duty will be on the wine industry. BUSA also released a BUSA press statement on the 2018 Budget Vote that deserves attention. Fact remains that all, rich and poor, will be harder hit and paying the price for poor economic growth during the Zuma administration years.

Someone, somewhere, pays the price for expropriation without compensation - often it is the entire country.  

The ANC made a landmark decision in the December 2017 conference, where it indicated that it would start the process towards a constitutional amendment of Section 25 to make possible land redistribution without compensation.  This is a marked shift in policy, and comes at a time when land reform (through the state and the market) has made more progress than experts and policy makers care to admit.

Prof Johann Kirsten and Wandile Sihlobo shares their opinion in a column published in the Business Day, today.  Download and read the opinion piece here»

Redistribution of South African Agricultural Land: expropriation without compensation debate*

*Theo Boshoff, Wandile Sihlobo and Sifiso Ntombela (Researchers at Agbiz)

Over the past couple of days, we've  heard what political leaders think about the 'expropriation without compensation' policy approach that the African National Congress (ANC) announced at its 54 th National Conference in December 2017.   However, it is still unclear exactly what such a policy approach would look like and what the implications thereof will be as the ANC hasn't released any detailed documents on the subject. One encouraging thing that ANC leaders have been consistent in emphasizing that 'expropriation without compensation' will only happen in a manner that is sustainable and does not harm the agricultural sector or the economy.

Read more in the  linked blog post»

Food and non-alcoholic beverages inflation have been on a downward trend since mid-2017, following a robust output from the agricultural sector. In January 2018, food inflation further decelerated to 4.5% y/y, which is the lowest levels in more than two years. With that said, the food basket remains mixed. The livestock products (meat, milk, eggs and cheese) are slightly elevated, whereas the rest is on a slowing path. We expect this trend to persist in the comings months cushioned by large grain stock from the previous season, and expectations of a good harvest in the summer crop growing areas. 

Wandile Sihlobo, Agbiz economist provides more information in the linked update»

Click here to read the daily market view on commodities and the weekly wrap.  

SA Cheese Festival is water wise

The South African Cheese Festival is a water-wise festival. Fans of this annual institution, held this year over the Freedom Day long weekend from Friday, 27 April to Sunday, 29 April 2018 at Sandringham, outside Stellenbosch, are invited to support the 17 th  festival SA Cheese Festival in a water-wise manner.   Johan Ehlers, Chief Executive Officer of Agri-Expo, says the agricultural society, along with its partners, will present the 2018 SA Cheese Festival without any impact on the already depleted water sources in the Western Cape.      Read more»

GOSA Symposium 2018
22-23 March 2018 | Mossel Bay
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International Sorghum Conference 
9-12 April 2018 | Cape Town
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MATON 2018

4-5 April 2018 | Pretoria
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FERTASA Annual Congress

19 April 2018

Premier Hotel OR Tambo | Johannesburg

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NAMPO 

15- 18 May 2017 | NAMPO Park | Bothaville 
More information

FW Agribusiness Africa Conference

18-19 July 2018 | Emperors Palace
Enquiries: Marianna du Plessis, e-mail  africa@caxton.co.za

Being a member of Agbiz provides various benefits and opportunities

- Agbiz is the only organisation that serves the broader and common over-arching business interests of agribusinesses in South Africa.
- Agbiz addresses the legislative and policy environment on the many fronts that it impacts on the agribusiness environment.
- Agbiz facilitates considerable top-level networking opportunities so that South African agribusinesses can play an active and creative role within the local and international organised business environment.

- Agbiz research provides sector specific information for informed decision making.

- Agbiz newsletter publishes members' press releases and member product announcements.

Please visit the Agbiz website for more information»

The Agbiz Newsletter may contain a few links to websites that belong to third parties unrelated to us.  By making these links available, we are not endorsing third-party websites, their content, products, services or their events.  Agbiz seeks to protect the integrity of its newsletter and links placed upon it, and therefore welcomes any feedback.