It may only be February but 2022 has already delivered a whole new host of challenges and opportunities. A significant development was that the fourth wave of Covid-19 and the dreaded Omicron variant did not lead to renewed economic restrictions. In fact, pressure is now mounting to end the national state of disaster altogether and Agbiz is involved in Nedlac processes aimed at moving the basic risk assessment, mask-wearing and contact-tracing requirements to ordinary legislation. Agricultural conditions are still overwhelmingly favourable in most of the country. Aside from notable areas such as the Eastern Cape, the La Lina weather phenomenon has brought above-average rainfall to many areas of the country. Unfortunately, it has proven to be too much of a good thing for some areas as several districts have seën significant damage from flooding. Agbiz CEO Theo Boshoff shares some of the initiatives the Agbiz administration will embark on in 2022. Please click here to peruse.

Agbiz is delighted to welcome Annelize Crosby as the new head of Legal Intelligence. Annelize, a familiar voice in the agricultural policy space, joined the team at the beginning of February 2022. She studied law at the University of Pretoria and obtained the degrees BLC, LLB and LLM. Her master's degree was in constitutional law. After completing her articles and being admitted as an attorney, she lectured at the University of Pretoria for a while before joining Agri SA (then known as the South African Agricultural Union) in 1995 as a legal adviser. She has been involved in the land debate for some 25 years. Over the years she has also advised the farming community on various aspects of agriculture-related policies and laws, has built up quite a network and has participated in numerous government processes and debates. She monitors parliamentary processes and has also presented at parliamentary hearings many times. "I look forward to working with the very professional and efficient Agbiz team and contributing to the many important debates that Agbiz is involved in on numerous topics that are critical to the success of the sector." Do take the time to read Annelize's contributions to the newsletter under the heading "Policy and Legislation" as well as on the Agbiz blog.

The International Monetary Fund (IMF) chart of the week shows how surging energy costs have boosted inflation, especially in Europe, after fossil-fuel prices nearly doubled in the past year. Rising food prices have also helped to boost inflation. Meanwhile, continuing supply chain disruptions, clogged ports, logistics strains and strong demand for merchandise have broadened these price pressures, especially in the United States. Higher imported goods prices have contributed to inflation in some regions, including Latin America and the Caribbean. Inflation is likely to remain elevated. Price gains this year will average 3.9 per cent in advanced economies and 5.9 per cent in emerging market and developing economies, before subsiding next year, according to our January World Economic Outlook update. Please click here to peruse the latest IMF blog post.

Economists and policymakers seem to have a blind spot when thinking about how the economy functions and what determines success. Analytical frameworks and government policies consistently neglect the role of space and geography in favour of national averages and sectoral plans. Yet growing evidence from around the world shows the importance of place and location for productivity, growth, and development. Intuitively, it is obvious that economic progress depends on the quality of local skills, capable public institutions, reliable infrastructure, and proximity to markets and suppliers. But just how important are these factors compared with the particular mix of local industries and macro-economic conditions? In a paper just published in the SA Journal of Economics, Justin Visagie and Ivan Turok unpack the economic performance of different provinces to diagnose the significance of local factors and sectoral conditions. Please click here to peruse.

At a recent media conference, Minister of Justice and Correctional Services, Ronald Lamola, indicated that a Land Redistribution Bill was on the cards for South Africa. The High-Level Panel on Key Legislation recommended as far back as 2017 that a National Land Reform Framework Bill was required to provide coherence between redistribution, restitution and tenure and provide a clear framework for redistribution. The panel went as far as drafting a proposed Bill. The Presidential Advisory Panel on Land Reform and Agriculture supported this recommendation and proposed that the Bill should be gazetted and debated in Parliament urgently. In this article, Agbiz head of Legal Intelligence Annelize Crosby analyses the need for and proposals for a Land Redistribution Bill.

The issue of mandatory Covid vaccination in the workplace is a very sensitive topic. People tend to have very strong opinions on vaccination and the debate on mandatory vaccination has ruined many a relationship and may cause strife in the workplace and the marketplace. It is however one that the world, our country and businesses cannot shy away from.

The South African government has not yet taken a firm decision on mandatory vaccinations in South Africa, with deliberations still ongoing. In the linked article, Annelize Crosby shares the latest information on this topic.

Towards the end of 2021, when Covid offered a slight reprieve, my colleagues and I travelled across a few provinces of SA, meeting agribusiness bosses. Our visits were aimed purely at connecting, and understanding business conditions after various waves of the pandemic and the disruptions that followed. At the time, the agricultural sector was having a “sunshine” moment, with bumper harvests and higher commodity prices boosting profitability for those farming grains and oilseeds. Even the wine producers we met in Paarl were somewhat optimistic, focusing on rebuilding the industry following the devastation caused by the bans on alcohol sales. Conversations focused on sustainably growing the agricultural sector and ensuring the vibrancy of rural economies. These noble goals align well with the government’s vision, which we had been championing through the Agriculture and Agro-processing Master Plan. The master plan aims to create a competitive and inclusive agricultural economy, expand the area under cultivation and create more jobs in various commodities. Agbiz chief economist Wandile Sihlobo discusses this topic in the linked blog post on Agricultural Economics Today.

Though the SA agriculture and agribusiness industries have their fair share of domestic challenges, geopolitics is an increasingly important area worth monitoring. Specifically, we need to keep an eye on the rising tensions between Ukraine and Russia given the role of these two countries in the global agricultural market. Russia produces about 10% of global wheat, while Ukraine accounts for 4%. Combined, this is nearly the size of the EU’s total wheat production. This wheat is not just for domestic consumption but for export markets. In 2020, Russia accounted for 18% of global wheat exports and Ukraine 8%. Together, this is just more than a quarter of global wheat exports from just two countries. Wandile Sihlobo discusses this subject in the linked article.

Although the past two agricultural seasons, 2019/20 and 2020/21, resulted in a sizable crop harvest and favourable grazing conditions for livestock in much of South Africa, the Eastern Cape's picture has been mixed. Much of the northern regions, such as the former Transkei, received reasonably good rains, which supported agricultural activity. In contrast, parts of the southern and western areas stretching up towards the Karoo regions of the province have experienced dryness, which has severely affected the farming community, both livestock and horticulture-producing areas. Wandile Sihlobo shares his views in the linked article, written for and first published in The Herald.

Last week, the Crop Estimates Committee (CEC) released its sixth production forecast for 2021/22 winter crops. There were notable changes from the previous update of the end of December 2021, with wheat production forecast up by 3% to 2,21 million tonnes, which is the largest expected wheat crop produced since 2002, when it was 2,43 million tonnes. The canola production forecast was also lifted by 4% from December to 197 000 tonnes, the largest canola crop on record. Meanwhile, barley and oats production forecasts were cut by 3% and 13% from December to 331 100 tonnes and 69 950 tonnes. Wandile Sihlobo discusses the latest data in the linked blog post.

Agbiz seeks to employ a new manager for its Fruit Desk. Working under the direction of the Agbiz CEO, the Fruit Desk manager must give effect to the mandates and policy direction determined by the Agbiz Fruit Desk Steering Committee. The purpose is to develop and grow the South African fruit industry through a trade-enabling focus and through effective policy advocacy. This includes top-level and professional engagement with key role players and stakeholders in government and business on behalf of Fruit SA and Agbiz. Agbiz has contracted Signium to recruit a suitable candidate. Enquiries and applications can be directed to them. Please click here for more information on the position and Signium's contact details.

The Kenyan public was outraged by KFC’s admission that it was facing potato supply shortages due to delays from overseas suppliers. KFC imports potatoes from Egypt and the delay was caused by the disruption in global supply chains due to the pandemic. KFC could not buy Kenyan potatoes because they do not meet the firm’s quality standards. So it could not serve its signature dish – potato chips and chicken. But Kenyans saw this as a failure to support local farmers. Some saw the insistence on standards as an excuse not to purchase locally. They pointed out that Kenya is a major exporter of fresh produce to the European market. Read more in the linked article, first published on The Conversation.

Weather forecasting is an important science. Accurate forecasting can help to save lives and minimise property damage. It’s also crucial for agriculture, allowing farmers to track when it’s best to plant or helping them protect their crops.

And it will only become more vital in the coming years. Severe weather events are becoming more frequent and more intense because of climate change and variability.

So, how does forecasting work? What does it take to produce accurate, reliable and timely forecasts? And how can African countries do better on this front? Read more in the linked article, first published on The Conversation.

The closing date for Census 2022 Household Registration is extended to 5 February 2022 to allow more respondents to select their preferred mode to be counted during Census 2022. Respondents are required to register here to have the option of completing the census questionnaire remotely. South Africa's first digital census gives households and Special Dwelling Institutions (SDIs) a choice of how they want to be enumerated. You can either choose to have a Stats SA fieldworker visit your household to complete the census questionnaire using a digital device, or complete the questionnaire remotely via the web or telephonically, where a Stats SA staff member will contact you. Households who do not register will be visited by a Stats SA fieldworker to complete the questionnaire. Please click here to access the Census 2022 Gatekeeper Toolkit.

“Early Bon Chretien, Delecta’s first pears of the season which are eagerly awaited in Europe due to low pear stocks, should have landed today but due to the slow tempo of shipping, the pears will only land in two weeks,” says Awie de Jager, managing director of Delecta Fruit. The pear harvest started three weeks ago with the South African pear crop forecast to be 8% higher this season, primarily due to a normal Forelle and Packham crop. The harvest of Delecta’s first Royal Gala apples is to commence next week, about which they are quite optimistic as the crop developed under largely favourable production conditions thus far. Read more in the linked article, first published on FreshPlaza.

There was a bit of rain in the Hex River Valley, with some rain predicted for the Berg River today, but it's very little. We also understand the showers were not widespread, with certain areas not getting any rain at all," says Jacques Ferreira, manager of information and systems at the South African Table Grape Industry. The rain that fell is not regarded as problematic, he adds. Some have stopped packing for the day as a precaution, but the industry is not worried at this stage. The Western Cape has been experiencing a heatwave with temperatures of around 40°C, after a spring that remained cool for unusually long. The recent heatwave had, among other factors, caused a decrease of about 25% in production volumes in certain cases in the Olifants River Valley, SATI has noted. Read more in the linked article, first published on FreshPlaza.

Since the previous update report of December 2021, there has been a change in the number of foot-and-mouth disease (FMD) affected locations in KwaZulu-Natal. At the time of the last report, there were 26 affected locations. Since then, two locations have been resolved and closed with the OIE, and one new location has been added. There are therefore currently 25 affected locations. Serological and clinical surveillance is ongoing. Movement control measures remain in place in the reduced Disease Management Area. Read more in the linked DALRRD media statement.

Stability and security in the macadamia market received another boost with the opening of the Marquis Macadamias Pongola Depot. Serving the greater northern KwaZulu-Natal region, the depot will ensure farmers can easily deliver their crop, and access the expertise of the world’s leading macadamia processor and supplier of quality nuts. The Marquis Group currently cracks 48 000 tonnes, selling 11 000 tonnes of kernel per annum. This represents roughly 20% to 25% of the world’s macadamia crop. Pongola, including the larger KwaZulu-Natal, is one of the fastest-growing regions for macadamia production in South Africa. Given the significant crop forecasts, it is therefore prudent for growers to have the necessary support, be it at an advisory or processing level, to assist with maximising grower profits and increasing sustainability. Read more in the linked media statement.

As of 1 January 2022, PMA Southern Africa has been replaced by the International Fresh Produce Association or IFPA. Building on the legacy of PMA and United Fresh, IFPA represents companies from every segment of the global fresh produce and floral supply chain and is not just a combination of both associations, but a new association. The leaders of the former United Fresh and Produce Marketing Association chose not to merge but rather to create an entirely new organisation to supersede their separate organisations and thus IFPA was born. Read more in the linked article, first published on FreshPlaza.

Prof. Danie Brink, dean of the Faculty of AgriSciences at Stellenbosch University would like to invite you to participate in the African Food Dialogue on 23 February 2022. The dialogue will be presented at the Lanzerac Hotel and Spa, 1 Lanzerac Road, Stellenbosch, as well as online via the MS Teams platform. You are invited to join either in person or via MS Teams. The African Food Dialogue is one of the initiatives of the Southern Africa Food Lab where public lectures are coupled with facilitated dialogue on African food systems. It brings together diverse, influential stakeholders in Southern Africa food systems to respond to systemic issues in creative ways and to inspire change in how we think and act on complex social challenges. For more information and to register, please click here.

Wayne Mudge has been running a successful SA fruit exporting business for 25 years, but he’s now tired. He’s not tired of his business and the sector that he has operated in for a quarter of a century. And he’s not tired because of Covid-19 and everything it has come to symbolise over the past two years, as many would probably have guessed. Even the global pandemic – which has had massive cost impacts on the global shipping industry on which the South African fresh produce export industry depends, doesn’t sit right at the top of his worry list – although it is close - despite costs having skyrocketed due to reduced capacity since the advent of Covid-19, ending with lower supply of shipping services and rising costs. That is Economics 101. But Mudge is confident that the supply of shipping services will normalise as the pandemic gradually becomes a thing of the past. I emphasise "gradually". This is an extract from an interview with Wayne Mudge, chairperson of the Fresh Produce Exporters Forum, first published on Fin24. Please click here to peruse.

When we consider the current operational status of the Cape Town (CT) port, it is clear that the industry, and country, are losing millions of Rands on a daily basis due to inefficiencies resulting in berthing delays. It is similar to what was experienced at the height of lockdown regulations last year. It is a complicated issue with some factors outside the control of port management, whilst problems in other ports such as Durban, also have a knock-on effect on Cape Town. Others, such as labor levels and the functionality of equipment, are however manageable, and some proactive measures could have prevented at least some of the problems. Hortgro and its sister industry bodies have been in constant communication with the port authorities to assess and agree to measures to rectify short term problems and to assist in getting the port productivity back to acceptable levels.

The Fresh Produce Exporters’ Forum, based in Century City, Cape Town, seeks to recruit a logistics manager who will be responsible for managing the logistics environment of the fruit and vegetable export industry. Reporting to the COO, the Logistics Manager will be responsible to troubleshoot and provide operational solutions for logistic challenges. Please click here for more information on the vacancy and how to apply.

Hortgro News will bring you up to speed with all the latest news and developments in the fruit industry. Please click here for the latest edition.

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

Read more about the latest developments and news in the pork industry in the South African Pork Producers' Organisation (SAPPO) newsletter, SAPPO Weekly Update.