Agbiz, in response to President Ramaphosa's State of the Nation Address, applauds the emphasis on land reform as a crucial achievement for South Africa's agricultural sector. Agbiz Chairperson Francois Strydom highlights the industry's transformative efforts despite challenges, emphasising the significance of recognising progress. CEO Theo Boshoff notes the lack of new economic stimulation measures in the address but interprets it as a reaffirmation of ongoing commitments, particularly in crucial sectors like electricity, logistics, and water infrastructure. Agbiz expresses hope for continued pragmatic support for essential processes beyond the elections. Click here to read full press release.

The International Trade Administration Commission of South Africa (ITAC) addresses recent concerns and clarifies the key aspects surrounding the recommended temporary rebate on poultry products. Initiated due to the outbreak of Highly Pathogenic Avian Influenza (HPAI) and subsequent culling, the rebate aims to mitigate losses in the poultry value chain. The Minister of Trade, Industry, and Competition directed ITAC to consider the rebate, applying it selectively to specific tariff subheadings. The extent of the rebate varies, with certain products rebated to 2019 customs duty levels. Notably, anti-dumping duties remain unaffected, ensuring continued protection for domestic poultry producers. The rebate's volume and duration are subject to ongoing assessments of the HPAI outbreak's impact on domestic production, with monthly updates from relevant authorities. The application process for the rebate is underway, fostering proactive engagement from stakeholders. Click here to read full report by The International Trade Administration Commission Of South Africa.

Michelle Phillips, acting CEO of Transnet, is positioned as the leading candidate for the permanent CEO role, as per the state-owned transport group's board's preference. The board, chaired by Andile Sangqu, submitted a list of favoured candidates to Public Enterprises Minister Pravin Gordhan following the vacancy left by Portia Derby's resignation. Phillips is viewed for her stability and continuity, having served as acting CEO for four months, demonstrating corporate governance and logistics expertise. Other candidates considered include Russell Baatjies, Nosipho Damasane, Mohammed Mahomedy, and Mlamuli Buthelezi. The ANC's deployment committee's role in the appointment process is causing delays, with lobbying for certain candidates based on transformation concerns and political considerations. Read full article first published in dailymaverick.co.za here.

The Expropriation Bill was tabled in Parliament on 15 October 2020. After public hearings and deliberations in the Portfolio Committee on Public Works and Infrastructure, it was eventually passed by the National Assembly on 22 September 2022. It was then sent to the Select Committee on Transport, Public Service and Administration, Public Works and Infrastructure in the National Council of Provinces. Further deliberations on the Expropriation Bill followed in the Select Committee on 24 November and 6 December 2023 and on 7 February 2024. On 6 December 2023, the parliamentary legal advisor presented the Select Committee with further proposed amendments to the Expropriation Bill. At that stage, the Committee could not proceed with the adoption of the so-called C-List on the Expropriation Bill as the Department of Public Works and Infrastructure requested further consultation on Clause 20 which deals urgent expropriation in order to ensure its constitutionality. The Committee then resolved to finalise the proposed amendments to the Expropriation Bill in February 2024. Click here to read full report by Agbiz Head of Legal Intelligence - Annelize Crosby.

As an export-oriented agricultural sector, South Africa must always pay attention to global developments and risks that could undercut its competitiveness in the world market. Undoubtedly, several environmental, social and political risks remain on top of mind for farmers and agribusiness leaders. But one issue that does not always get full appreciation is the contribution of the agricultural input providers – various agrochemicals and seed breeding. The lack of public focus mainly stems from the fact that consumers and policymakers primarily monitor the end products: the harvest size and, in animals, the health and expansion of herds. Rarely do we see a concerted broader public focus on assessing whether South Africa is keeping up with the times in registering and developing its seeds and agrochemicals. This needs to change. South Africa's agriculture has more than doubled since 1994 in value and volume when assessed through the data from the Abstract of Agricultural Statistics published annually by the Department of Agriculture, Land Reform and Rural Development.1 At the centre of this agricultural progress, there are two major catalysts – first, expansion of export markets, thus creating a demand pull for products, and second, the early adoption of high-yielding seed varieties in crops, improvement of genetics in animals, and the use of agrochemicals to nurture the sector. Click here to read full report by Agbiz Chief Economist Wandile Sihlobo.

We start the year with reasonably weak agricultural machinery sales data. South Africa's tractor sales were down 26% y/y in January 2024, with 353 units sold. At the same time, the combine harvesters were down 50% y/y, with eight units sold. At face value, this could be viewed as a worrying agricultural machinery sales report indicating difficulties in the sector. But we have a different reading of it. This is more of a normalization after a few years of robust sales. For example, South Africa's tractor sales for 2022 amounted to 9,181 units, up 17% y/y and the highest annual sales for the past 40 years. The combine harvesters also had an excellent performance of 373 units in 2022, up 38% y/y and the highest yearly sales figure since 1985. The sales for the year before were also exceptional. These generally strong agricultural machinery sales these past few years were primarily on the back of large grain and oilseed harvests. In 2023, the tractor sales were down marginally from the previous year, while the combine harvester sales held the last year's momentum. Read full report by Wandile Sihlobo here, and click here to listen to full episode of the Agricultural Market Viewpoint on the same topic.  

The SA poultry industry has had a profoundly challenging couple of years, having to operate in an environment of failing municipalities, power cut issues, rising imports, higher feed prices and avian influenza, among other things. As an industry that accounts for a considerable share of the SA agricultural economy and a vital source of protein, one would imagine that the broader national effort would be aimed at helping support its recovery. Indeed, the SA government has supported the industry over the years through trade policy. The International Trade Administration Commission (Itac) of SA has played a pivotal role in cushioning the poultry industry against unfair competition or the dumping of poultry products. The government also launched a Poultry Sector Master Plan in 2019 to boost inclusive growth in this industry. The Covid-19 pandemic and growth-constraining factors highlighted above are some aspects that have slowed the implementation of the master plan, as the industry has had to operate almost in “crisis” mode. And the challenges that constrain inclusive growth in the industry persist. Read full article by Wandile Sihlobo for businesslive.co.za here.

This past week, I drove from Pretoria to Edenville, a small farming town in the northern region of the Free State, for a farmers’ day. The drive provided yet another opportunity to assess crop conditions up close. I deliberately stayed away from the main highway, N1, and drove through Sasolburg and Heilbron to get a better view of the fields. From what I could tell from a distance, the production conditions have been excellent, the crop fields remain green and the grazing veld is lush. But we are now at a critical crop-growing stage where, in various regions, flowering or pollinating is starting, and thus there is a need for more moisture to improve yields’ potential. In conversations with farmers in Edenville — farmers from various regions of the Free State — all talked of the great start to the summer season and that conditions had been reasonably favourable on their farms. But they almost all stressed the need for rain within the next two weeks to ensure we realise the crops’ yield potential. Click here to read full Op Piece by Wandile Sihlobo for heraldlive.co.za.

There is a growing sense of unhappiness amongst farmers globally. In Europe, protests against stringent environmental laws, calls for protectionism against imports, and increased producer support are some of the issues farmers continue to highlight. We now see news of protests in India where farmers demand guaranteed crop prices and increased government support. These events are far from us in South Africa but have relevance. The big win for farmers in the EU so far was the agreement by lawmakers to review the environmental policy – with the “Farm to Fork Strategy” — aimed at reducing the use of chemicals and fertilisers, which threaten farmers’ productivity. These production changes applied not only to EU farmers but also to trading partners such as South Africa. The EU is the second most important market for South Africa’s agricultural products, accounting for 27% of the country’s total agricultural exports. So we welcome the news of a review of the environmental laws. Click here to read full article by Wandile Sihlobo for Agricultural Economist Today.

In a sustained demonstration spanning weeks, farmers across various European nations are fervently protesting against dwindling subsidies and the imposition of new regulations aimed at addressing climate change. While the protests may seem geographically distant, their potential implications for the global agricultural landscape cannot be ignored. Shedding light on the intricacies of this issue, Chief Economist Wandile Sihlobo, representing the Agricultural Business Chamber of South Africa, provides valuable insights into how these protests may reverberate across international agricultural sectors. To gain a comprehensive understanding of the situation, you can watch the complete interview on Newzroom Afrika here. Alternatively, click here to listen to interview with Bruce Whitfield for Radio 702 on ‘Why protesting farmers in Europe have the potential to impact SA.’

Dive into the latest edition of Agbiz Grain Quarterly, a digital magazine dedicated to the grain handling and storage industry. The February release delves into key discussions from the 2023 Agbiz Media Day, providing insights into challenges faced by grain handlers and storers. Experts simplify complex topics such as storage costs and the proposed grain passport system. The issue covers diverse subjects, including the 30-year performance of South Africa's agricultural sector, the economic outlook for 2024, explanations for the falling wheat grading numbers, JSE's storage cost definitions, risks in malting barley, and considerations for the grain passport system. It also explores standards for fumigation training, health and safety aspects like noise monitoring, and the applicability of Competition Act buyer power guidelines to storers and producers. Don't miss the Freight Logistics Roadmap and much more in this comprehensive February edition. Explore the digimag or download the PDF version.

Agbiz Fruit, along with numerous South African firms, actively participated in FRUIT LOGISTICA, the world's foremost trade fair for the fresh produce industry, held in Berlin. The event showcased the entire value chain, including seed development, fruit and vegetable production, packaging, and automation. Although South Africa did not have an official country stand, the Fresh Produce Exporters' Forum (FPEF) funded a significant SA-focused stand that attracted substantial attention. Over 10 South African companies exhibited, and approximately 75 FPEF members attended in person, fostering valuable connections with industry leaders and potential global partners. In 2023, the FPEF stand contributed to deals worth around R8 billion, indicating the event's significance for South Africa's fresh produce sector. Click here to learn more.

AI is revolutionizing the fresh produce industry, with Clarifruit's software showcased at FRUIT LOGISTICA demonstrating its potential to reduce food waste and financial losses through uniform quality standards and real-time data-driven decisions. Patricia Sagarminaga from AMFRESH Group highlighted AI's role in analysing market demand and developing new varieties, utilising tools like Chat GPT to create innovative recipes. Dr. Paulina Drott of GS1 Germany emphasised the increasing acceptance of AI in quality control, predictive maintenance, and supply chain optimisation, offering solutions for pest detection, predictive maintenance, and resource-efficient production. Grow Director, featured at Hall 3.1, Stand A11, exemplifies AI's role in automating plant cultivation for greenhouse growers, streamlining decision-making, and enhancing overall efficiency in the fresh produce sector. The FRUIT LOGISTICA Trend Report underscores the transformative impact of AI on vertical farming, marking a paradigm shift in decision-making processes for growers and resource optimization. AI's integration into the fresh produce trade signifies a significant leap forward, comparable to the industry's digitalization in previous years. Click here to read full article derived from fruitlogistica.com.

The ongoing farmers' protests in Europe are raising apprehensions among South African agriculturalists, particularly within the Agricultural Business Chamber (Agbiz). Wandile Sihlobo, Chief Economist at Agbiz, emphasises the protests' focus on issues such as declining EU agricultural subsidies, environmental policies, and protection against imports. The outcomes of these protests hold significant consequences for South Africa, particularly affecting the fruit, wine, and beef industries that maintain deep trade connections with the EU. Sihlobo underscores the global influence of EU environmental laws, impacting exporting nations like South Africa. The EU's 'Farm to Fork Strategy' and proposed changes in production practices will not only affect EU farmers but also trading partners like South Africa. Agbiz expresses concerns over potential protectionist sentiments emerging from the protests, raising worries about the imposition of non-tariff barriers in the EU market, which has historically affected South Africa's agricultural sector. Monitoring these developments is crucial for South African exporters to adapt to potential regulatory changes and maintain stable trade relations with the EU. Click here to read full article by Given Majola for thepost.co.za.

Amid the complexities of South Africa's fruit industry, grappling with environmental, social, and governance considerations, the Sustainability Initiative South Africa (Siza) stands as an independent certification body fostering a rational approach. Established 15 years ago, Siza streamlines audits, saving the industry approximately R66 million and facilitating market access. While progress has been made, challenges persist, with some clients viewing social and environmental standards separately. Siza has responded with a commitment to continuous improvement, conducting numerous audits that highlight the industry's dedication. As environmental standards become integral to certifications, Siza aids producers, even smaller growers, in achieving compliance without undue financial burdens, emphasising adaptable digital solutions for streamlined auditing processes. Click here to read full article by fruitnet.com.

This week's update provides a consolidated view of the South African supply chain and global trade dynamics. Despite increased container handling at commercial ports, operational challenges persist due to adverse weather, equipment breakdowns, and shortages. Internationally, container throughput and freight rates exhibit fluctuations, reflecting the industry's dynamic nature. The air cargo sector faces disruptions, with inbound volumes rising while outbound cargo experiences a significant drop. Regional road freight trade sees varying trends in queues and transit times, influencing border crossing efficiency. Amidst economic realities, President Ramaphosa's emphasis on trade, transport, and logistics underscores industry hurdles. The report advocates a collaborative paradigm shift, urging stakeholders to leverage collective expertise for innovative solutions and sustainable growth. Redefining excellence becomes a collective journey towards inclusive progress through shared goals and mutual support, fostering resilience and adaptability in the face of ongoing challenges. Read the full update in the latest BUSA Cargo Movement Update. 

Emerging from the COVID-19 pandemic in 2020, the hope for an extended period of global stability was swiftly shattered as a conflict erupted in the Black Sea region. Subsequently, we have witnessed escalating global conflicts that have triggered significant shifts in the geopolitical landscape. This has prompted nations to reassess measures that disrupt worldwide trade, including export restrictions and pricing controls that impact global supply chains. Concurrently, the international community grapples with combating critical plant and animal diseases while grappling with the looming spectre of climate change. However, the imperative remains for businesses to persevere and adapt to the evolving global terrain. In echoing Charles Darwin's theory, it is not the strongest species that survives, but rather those that prove most adaptable to change. In light of these challenges, the 2024 Agbiz Congress theme intentionally recognises the evolving global panorama and redirects its focus towards sustaining growth in this uncertain environment. Esteemed speakers will share their perspectives on how to navigate and adapt to the complexities posed by geopolitical, environmental, and social instability. Aligned with Agbiz's ethos, the Congress aims to seek solutions that will propel the sector towards prosperity. To learn more and register for the event, we have launched our 2024 Agbiz Congress website, where you can find comprehensive information and details about this vital gathering. Visit the website to stay updated and secure your spot at this essential event. Learn more and register for the 2024 Agbiz Congress here.

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 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.

• 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.