The benchmark for world food commodity prices edged higher in April, as higher prices of meat and modest upticks for vegetable oils and cereals outweighed decreases in sugar and dairy product prices, the Food and Agriculture Organization of the United Nations (FAO) reported Friday. The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 119.1 points in April, up 0.3 percent from its revised March level, while down 9.6 percent from its level a year ago. The FAO Cereal Price Index rose by nearly 0.3 percent from March, ending a three-month declining trajectory. Global wheat export prices stabilized in April, as strong competition among major exporters offset concerns about unfavourable crop conditions in parts of the European Union, the Russian Federation and the United States of America. Read full report by fao.org here.

The U.S. Department of Agriculture, Food and Drug Administration, Centers for Disease Control and Prevention, and State veterinary and public health officials are investigating an illness among dairy cows. As they learn more about this evolving situation, APHIS will continue to provide confirmatory testing for samples from livestock as well as guidance for producers, veterinarians, and state animal health officials. As the situation changes, USDA will continue to post updated information here. To further protect the U.S. livestock industry from the threat posed by highly pathogenic H5N1 avian influenza, USDA is sharing a number of actions that they are taking with their federal partners to help them get ahead of this disease and limit its spread. Click here to read about USDA’s actions to protect livestock health from Highly Pathogenic H5N1 Avian Influenza.

Agriculture is a difficult problem to solve. It feeds 8 billion people but is also one of the world’s most environmentally damaging sectors. It’s the leading driver of deforestation, biodiversity loss, land use, freshwater withdrawals, and water pollution. The world will need effective governmental policies — called agro-environmental policies — and innovations in sustainable food technologies if we want to reduce these impacts while feeding 9 or 10 billion people. You might think, then, that the obvious thing to do is to have more and more policies focused on reducing its environmental impacts. But this assumes that all policies are effective and don’t impose trade-offs with food production or socioeconomic outcomes. This is not always the case. Click here to read full article derived from ourworldindata.org.

The debt situation in many African countries has escalated again to a critical juncture. Twenty are in, or at risk of, debt distress. Three pivotal elements significantly contribute to this. Firstly, the rules governing the international banking system favour developed countries and work against the interests of African countries. Secondly, multilateral financial institutions such as the International Monetary Fund (IMF) and the World Bank focus on poverty alleviation. This is commendable. But it doesn’t address the liquidity crisis countries face. Many don’t have the necessary readily available funds in their coffers to cover urgent development priorities due to their dependency on volatile commodity exports. As a result governments turn to raising sovereign debt under conditions that are among the most unfavourable on the planet. Read full report derived from theconversation.com here.

Most of South Africa is still expected to have a warm and dry winter, according to the SA Weather Service’s latest seasonal Climate Watch. There is an increasing likelihood of the La Niña weather pattern forming soon, according to international forecasts, which should hopefully herald a wet summer. The… multi-model rainfall forecast indicates mostly below-normal rainfall over most of the country during May-Jun-Jul (MJJ), Jun-Jul-Aug and Jul-Aug-Sep, except for some parts over KwaZulu-Natal, Eastern Cape and Mpumalanga for MJJ where above-normal rainfall is expected,” says the latest Climate Watch, which looks five months ahead. “Minimum and maximum temperatures are expected to be mostly above-normal countrywide for the forecast period,” it adds. Click here to read full article derived from Tdailymaverick.co.za.

Export opportunities for South Africa's agricultural products are opening up within BRICS+ countries. Over the past two years, China, the Kingdom of Saudi Arabia, and Egypt have widened market access for various agricultural products from South Africa. Admittedly, Egypt and the Kingdom of Saudi Arabia have recently joined the BRICS+ grouping, and market access is part of the long-term bilateral engagements with South Africa. South Africa has access to selected fruits, wine, wool, meat and grains. However, South Africa aims to broaden market access in BRICS+ for most of the country's agricultural products. For this reason, through the 2023 BRICS Summit in Johannesburg and the prior engagements, South Africa prioritized trade as a significant point on the agenda for discussion. The political principals broadly agreed that deepening trade was necessary for the BRICS countries. Read full Agricultural Trade Digest by Wandile Sihlobo here.

Encouragingly, outside the US, we don’t know of any cases where bird flu has transitioned into livestock and people. I have recently communicated with South Africa’s Department of Agriculture, Land Reform and Rural Development leadership to understand if this matter is under monitoring, and the country remains safe. Indeed, South Africa remains secure and vigilant. This issue is primarily in a couple of states in the US. About a month ago, the United States Department of Agriculture (USDA), Food and Drug Administration, Centers for Disease Control and Prevention and state veterinary and public health officials released a report stating that they are studying an illness among dairy cows in various states. Click here to read full article by Wandile Sihlobo for dailymaverick.co.za.

Recent electoral polls continue to suggest that no single political party will win an outright majority in South Africa’s 2024 national elections due to take place on 29 May. This creates uncertainty regarding the national government, which will emerge from any possible coalition discussions. Regardless of its composition, the seventh administration of democratic South Africa may have to refresh its economic policies when it assumes office. For some sectors of the economy, such a review may be necessary. The global environment in which we operate has changed significantly in recent months, partly because of the rising geopolitical tensions and their associated economic risks. Read full article by Wandile Sihlobo, first published in wandilesihlobo.com here.

Many, including myself, may have been a bit pessimistic about the 2023/24 summer crop growing conditions when we signalled a potential further downward revision of the harvest estimate this month. The data released last week by the Crop Estimates Committee showed mild upward adjustments in the crop size from last month's figures. South Africa's 2023/24 summer grains and oilseed harvest is estimated at 16,0 million tonnes, up 1% from last month. Indeed, this is not a cause for celebration. The figure does not change the reality that we have been through a challenging season of El Niño-induced drought and heatwave in February and March that weighed on the summer grains and oilseed harvest in various regions of the country. The current estimated harvest of 16,0 million tonnes is down 20% from the 2022/23 production season. Click here to listen to full podcast – Agricultural Market Viewpoint with Wandile Sihlobo. 

One of South Africa's most important sectors is agriculture. Not only is it an extremely important sector in terms of the economy and job opportunities, it ensures food security without which no country can function peacefully and properly. What does the agricultural sector look like after 30 years of democracy? Wandile Sihlobo is the chief economist of the Agricultural Business Chamber, Agbiz, and author of the book, A Country Of Two Agricultures. Click here to listen to full interview of this with Op en Wakker. 

Uncover the latest developments in the grain handling and storage industry with Agbiz Grain Quarterly's May issue. Delve into a variety of key topics, including the groundbreaking grain silo project in Egypt and the significant merger of VKB and GWK. Gain valuable insights into Transnet’s draft Network Statement and explore technical aspects of grain handling and storage for export. In this issue, discover in-depth articles on grain theft, the impact of import duty on oilcake, and the 2024 GOSA symposium's focus on progress and stability. Explore analyses of Egypt's grain silo project, the SAGL's external business review, and the implications of PPI on storage tariffs. Additionally, learn about the hazards and risks associated with grain fumigation, VKB and GWK's merger, and Agbiz Grain's application for amendments to maize grading regulations. Don't miss out on this essential resource for industry professionals. Access the Agbiz Grain Quarterly Digimag here. 

South Africa’s Road network faces strain, but solutions like the Freight Logistics Roadmap offer promise if implemented effectively. The plan, approved by the Cabinet in 2023, aims to transform the rail freight sector through institutional reforms and private sector involvement. Key priorities include establishing an infrastructure manager and involving Agbiz Grain in prioritizing branch lines. The roadmap emphasizes private sector participation, particularly through the network access statement and encouraging private companies to maintain branch lines. These proposals offer agribusinesses a cost-effective alternative to road transport. Agbiz and its members are actively contributing to improving the rail transport environment. Click here to read full article by Agbiz Grain General Manager, Wessel Lemmer.

Discover more and sign up for the 2024 Agbiz Congress through our event website, where you'll find extensive details and information about this crucial gathering. Explore the website to stay informed and reserve your place at this indispensable event. Get all the details and register for the 2024 Agbiz Congress here.

The confidence of English and Welsh farmers is at an all-time low, a troubling new NFU survey has indicated. The union’s Farmer Confidence Survey shows that short and mid-term confidence is at its lowest level since records began in 2010. Because of this lack of confidence, production intentions have also plummeted with all farming sectors expecting to decrease production over the next year. The relentless wet weather has played a big part, with 82 per cent of respondents saying their farm businesses have suffered fairly negative (52 per cent) or very negative impacts (30 per cent), with mixed farms, arable farms and dairy farms having taken the biggest hits. The survey was undertaken in November and December 2023, since when farmers have been battling relentless heavy rain through January, February, March and much of April. Were the survey undertaken again today, the union suggested the results would be even worse. Click here to read full article by fruitnet.com.

In response to these vulnerabilities and impacts, it is essential that African countries develop adaptation and resilience building strategies to support their vulnerable farmers and agriculturally dependent communities. Africa, as a region, is particularly vulnerable and exposed to the negative impacts of climate change. According to the Intergovernmental Panel on Climate Change (IPCC), the continent’s particular vulnerability is a symptom of multiple stressors, including biophysical characteristics, its high exposure to climate change, the already existing socio-economic development challenges and its low adaptative capacity. In addition, Africa’s agricultural systems are characterised by smallholder farmers, pastoralists and artisanal fishers who are particularly vulnerable to, and often severely compromised by, environmental and economic shocks, including natural disasters (especially drought), pest outbreaks and the volatility of food prices. Click here to read full article derived from the South African Institute of International Affairs (SAIIA).

Sub-Saharan Africa is slowly emerging from four turbulent years with higher growth expected for nearly two thirds of countries in the region. But while inflation has almost halved and debt has broadly stabilized, economies are still grappling with financing shortages and impending debt repayments. Wenjie Chen is deputy head of the team that publishes the Regional Economic Outlook for sub-Saharan Africa. In this podcast, she says the surging global demand for critical minerals key to renewable energy systems could help the region overcome the ongoing funding squeeze. Click here to listen to podcast alternatively click here to read transcript. 

A.P. Moller-Maersk A/S said a successful rival bidder fell short of tender requirements as it seeks to overturn the award of a concession to run and expand sub-Saharan Africa’s biggest container port to Filipino billionaire Enrique Razon’s harbour firm. Copenhagen-based Maersk argued in court papers that International Container Terminal Services (ICTSI) didn’t meet a stipulated solvency measure when it last year won the tender held by Transnet. It was given the right to buy almost half of the main container terminal in Durban and operate it for 25 years. The legal challenge in the Durban High Court threatens to delay or even derail the biggest attempt yet to bring in private expertise to revive Transnet’s ports, which rank among the least efficient in the world, according to a World Bank study. Transnet operates most of South Africa’s ports and its freight railways. Read full article first published on moneyweb.co.za here.

Kenya’s poultry farmers say the country risks becoming a dumping ground for US poultry and dairy products, as Nairobi and Washington work on a deal. Last week, poultry farmers raised fears that the US-Kenya Strategic Trade and Investments Partnership (Stip) agreement would allow cheap poultry imports; likely to result in the loss of Ksh172 billion ($1.3 billion) annually if implemented. According to the Poultry Breeders Association of Kenya, the loss would come from a projected 75 percent reduction in demand for local poultry products. “It’s not just the poultry producers who would suffer, but also the numerous supporting industries that rely on a thriving Kenyan poultry sector: From maize farmers to feed suppliers to transportation services, the ripple effect would be felt far and wide, potentially destabilising the delicate balance of the entire agricultural ecosystem.” said Timothy Mulwa, the association’s chairperson. Read full article derived from theeastafrican.co.ke here.

A shortage of olive oil, sometimes referred to as “liquid gold,” has driven prices to record highs, fueled a crime surge, and pushed the industry into crisis mode. The skyrocketing price of liquid fat, a superfood staple of the Mediterranean diet, has stunned consumers and industry veterans alike in recent months. Kyle Holland, an analyst at market research group Mintec, said climate-fueled extreme weather had “significantly impacted” olive oil production in southern Europe in recent years, particularly in Mediterranean countries such as Spain, Italy, and Greece. Spain, which supplies more than 40% of the world’s production, according to the Centre for the Promotion of Imports, might typically be expected to produce somewhere between 1.3 million and 1.5 million metric tonnes of olive oil per harvest, Holland said. Click here to read the full article derived from cnbc.com.

The European Commission has decided not to extend the cold treatment requirement to all citrus fruits from South Africa, or those from other nations at risk of pests. Even though Carlos Mazón, president of the Generalitat Valenciana, stated on April 16 that the EU Commissioner of Agriculture, Janusz Wojciechowski, was considering extending this protocol, this measure, which currently applies only to oranges from South Africa, will remain unchanged. According to sources from the European Commission delegation in Spain, under the new measures requiring cold treatment, there have been no breaches related to the false moth pest in orange shipments from South Africa. Given the low number of non-compliances observed, the Commission has chosen not to impose this treatment on other South African citrus fruits such as mandarins and grapefruits. Click here to read full article derived from freshplaza.com.

The World Economic Outlook is more than projected growth rates. The research behind those projections tells the story of how 190 countries, slowly but steadily, found their way through the fog of the past few years to emerge a testament to the resilience of the global economy. Pierre-Olivier Gourinchas is IMF Chief Economist and brings together the multitude of analytics, data and insight that provide the signposts. In this podcast, Gourinchas says while the fears of a global recession have not materialized, the path ahead is not without obstacles. Click here to listen to podcast alternatively click here to read transcript. 

Trade, Industry and Competition Minister Ebrahim Patel has called for rapid scaling up of infrastructure spending, among other urgent initiatives, to ensure current industrial policy can succeed. He was speaking at the launch of the Department of Trade, Industry and Competition’s (dtic’s) newly launched Industrial Policy and Strategy Review at the newly established Tshwane Automotive Special Economic Zone (TASEZ), on May 7. The review maps the measures and actions of government over the past five years under the Reimagined Industrial Strategy laid out by President Cyril Ramaphosa and reflects on the evolution of policy actions since the African National Congress (ANC) came to power in 1994. Click here to read full article by engineeringnews.co.za.

Last year, the European Parliament adopted regulations aimed at slowing down the rate of deforestation around the world. From December this year, companies that export cattle, cocoa, coffee, palm-oil, soya, rubber, charcoal or paper products to the EU will require a comprehensive set of documents proving that the supply of these products to not contribute to deforestation in their country of origin. Make no mistake, deforestation is a global challenge and research indicates that an area the size of Europe was stripped of its forests between 1990 and 2020. Aside from pressures brought by growing populations, commercial deforestation is largely market-driven and the regulations seek to reverse the trend through an intervention in the European market. As an environmentalist myself, I fully appreciate the need for sustainable use. However, the decision will have unavoidable economic consequences for various developing countries. Click here to read full article by Agbiz CEO Theo Boshoff for Farmers Weekly.

In the latest update on South Africa's supply chain and international trade, port operations face challenges amidst adverse weather conditions and equipment shortages. Notable developments include a decrease in container handling at commercial ports and disruptions in port operations due to fog, equipment breakdowns, and union engagements. Additionally, the Port of Richards Bay ramps up cargo movement to ease congestion, while ocean freight routes grapple with schedule reliability issues and environmental concerns in the Red Sea. Despite challenges, South African exports in the air cargo industry see a notable increase, driven by surging demand from Central and South America. Meanwhile, regional cross-border road freight trade experiences fluctuations in queue times and transit durations. The update underscores the importance of continued investment in modern assets and infrastructure to enhance port efficiency and ensure South Africa remains a vital player in the global supply chain. Read the full update in the latest BUSA Cargo Movement Update.

South Africa’s agricultural sector is being warned to stay vigilant against animal diseases, despite the country’s current safe status. This follows a recent outbreak of bird flu in the United States that has infected dairy cows and even transmitted to humans in rare cases. The call for heightened awareness comes from Wandile Sihlobo, chief economist at Agbiz. He emphasises the importance of biosecurity, the measures taken to prevent the spread of diseases, as the country ramps up its red meat and livestock product exports. Sihlobo points to previous disease outbreaks in Mzansi, such as foot and mouth disease and African swine fever, as evidence of vulnerabilities in the country’s biosecurity system. These outbreaks not only impacted farmers financially but also temporarily halted exports, demonstrating the significant economic consequences. Click here to read full article by foodformzansi.co.za.  

In South Africa, a R1.2m agreement signed by the Citrus Growers Association-Grower Development Company (CGA-GDC) and the Eastern Cape Development Corporation (ECDC) is set to bolster the commercialisation prospects of black citrus producers in the Eastern Cape. The 18-month agreement is designed to support the commercialisation activities of black citrus producers while breaking down the barriers to entry to the export market. The agreement will initially support ten of the 37 black citrus producers in the Eastern Cape. The 37 black farmers are drawn from the citrus growing regions of Patensie (5), Sundays River Valley (13) under the Sarah Baartman District Municipality, and in the Kat River Valley known as the Eastern Cape Midlands (19) in the Raymond Mhlaba Local Municipality, where black citrus producers are mainly concentrated. Read full article by fruitnet.com here.

In the latest edition of Keeping it Fresh, the Fresh Produce Exporter's Forum (FPEF)'s newsletter, you will get a summary of the most pertinent information as well as reminders of important upcoming events. Please click here to peruse.

The Citrus Growers' Association of Southern Africa (CGA), shares the latest news in the citrus industry in its weekly update, From the desk of the CEO. Please click here to peruse. 

In the latest edition of Fresh Quarterly, you will get a summary of the most pertinent information as well as reminders of important upcoming events. Please click here to peruse.

• 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.