Minister Pravin Gordhan announces the appointment of Ms. Michelle Phillips as Transnet’s Group Chief Executive Officer (GCEO) and Ms. Nosipho Maphumulo as the Group Chief Financial Officer (CFO). These crucial appointments reflect the government's commitment to strengthening Transnet's leadership for strategic interventions outlined in the recovery plan. Ms. Phillips, currently the acting GCEO, brings over 20 years of experience at Transnet, demonstrating her ability to lead and solve challenges. She has notably turned around Transnet Pipelines, achieving a green audit report and saving the business R1.5bn. Ms. Maphumulo, a seasoned financial steward, joins as CFO, bringing expertise in financial management to large, complex organizations. Minister Gordhan commends the Board for an efficient recruitment process, emphasising the strategic importance of these appointments in Transnet's reforms and economic impact. Click here to read full statement by the Ministry of Public Enterprises.

The 100th anniversary of the USDA’s Agricultural Outlook Forum was celebrated with a panel session reflecting on a century of U.S. agricultural trade. The evolution, shaped by productivity gains, economic growth, technological advancements, and market liberalization, witnessed a significant rise in agricultural exports. Mechanisation and scientific progress nearly tripled productivity, enabling the U.S. to meet global challenges, especially during World War II. The 1970s marked a substantial jump, with new markets opening to the Soviet Union and China, resulting in a 400 percent increase in exports by 1980. Recent decades have seen a remarkable surge, exceeding $200 billion in 2022, with a commitment to address global food insecurity and climate resilience through trade expansion and sustainable practices. The next century holds promise for diversified markets and continued growth. Click here to read full article and to listen to a deeper dive into the progress and challenges of U.S. ag trade and what lies ahead, watch 100 Years of U.S. Ag Trade: A century of Growth and Innovation at the Ag Outlook Forum.

In a bold call to action, IMF Managing Director Kristalina Georgieva urges G20 finance ministers and central bank governors to leverage recent global economic resilience for a strategic transition. With a projected 3.1 percent global growth this year, Georgieva emphasises the need for a medium-term agenda. Key areas of focus include completing inflation control, addressing debt and deficits cautiously, and fostering economic growth through policy reforms. The article underscores the potential of AI and climate-focused policies in shaping the future. Georgieva highlights Brazil's G20 agenda, emphasising inclusion, sustainability, and global governance. To strengthen the international system, she urges G20 countries to ratify quota increases and realign shares, emphasising the vital role of global cooperation in navigating the complexities of the evolving world economy. Click here to read full article by imf.org.     

In a significant development, Minister Thoko Didiza welcomes Saudi Arabia's Minister of Environment, Water, and Agriculture, Mr. Abdulrahman Abdulmohsen A. AlFadley, along with government officials and business leaders. The visit aims to deepen agricultural trade and investment between the two nations, focusing on sectors like livestock, sugar, and grains. The discussions follow the successful negotiations on red meat export protocols, allowing South Africa to export livestock to Saudi Arabia. With the Kingdom importing about R380 billion (US$20 billion) of agricultural products annually, Minister Didiza highlights the strategic partnership to enhance trade, aligning with South Africa's ambitions for increased domestic production and exports. The engagement promises a fruitful collaboration for future agricultural endeavours, acknowledging the role of both nations in global food security. Click here to read full statement by the Department of Agriculture, Land Reform and Rural Development. 

Agbiz responds to the 2024 Budget Speech, emphasising the need for innovative interventions to counteract economic challenges. Chairperson Francois Strydom expresses concern over the declining economic conditions and advocates for strategies to grow the economic pie. While acknowledging short-term spending requirements, there is a call for sustainable solutions and incentives for business growth. Theo Boshoff, Agbiz CEO, highlights challenges in the agricultural sector, emphasising the need for fiscal support beyond State-Owned Enterprises (SOEs). Concerns are raised about excise duty increases impacting the wine industry's recovery from COVID-19 pressures. Despite reservations, Agbiz acknowledges its commitment to addressing structural constraints and security challenges in the evolving economic landscape. Click here to read the full statement. 

The Sustainability/ESG Workshop held at the Grain Building in Pretoria on 8 February 2024, offered a comprehensive exploration of Environmental, Social, and Governance (ESG) considerations within the agricultural and agribusiness sectors. Led by Agbiz and Agrifusion, the workshop delved into the significance of ESG, a six-step process for creating an ESG roadmap, emerging trends in 2024, and insightful case studies from the agribusiness domain. Participants emphasised the necessity of addressing key risks, compliance challenges, and financing opportunities, particularly in the face of varying levels of awareness and resource constraints. The workshop stressed the importance of robust data management systems, scoping exercises to identify sector risks, and collaboration in ESG reporting. Click here to read full report by Agbiz Agricultural Economist and Policy Analyst Thapelo Machaba.

Despite challenges at the ports and in various export markets, the SA agricultural sector has continued to realise excellent export activity. Total agricultural exports reached a new record of $13.2bn in 2023, up 3% from the previous year, according to data from Trade Map. The products that dominated the export list were citrus, maize, apples, pears, nuts, wine, soya beans, sugar, wool, grapes, berries, avocados and fruit juices. This improved export activity was a function of better volumes and prices. Pricing developments over the year were significantly more varied than the average data suggests. While fruit prices rose, grains and oilseed prices declined notably from 2022 levels. The exports were widely spread across various key markets. The African continent remained a leading market, accounting for 38% of SA’s agricultural exports in 2023 in value terms. Asia was the second-largest market, accounting for 28% of exports, followed by the EU at 19%. The Americas region was the fourth largest (6%). The remaining 9% went to the rest of the world. The UK was one of the leading markets within this category, accounting for 7% of total exports. Click here to read full article by Agbiz Chief Economist Wandile Sihlobo.

The weather forecast for the week still paints a worrying picture of continuous dryness in much of South Africa. There will likely be scattered light showers over the eastern regions during the week, which won’t make much difference in the deteriorating crop conditions because of excessive heat in the various areas of our beautiful country. The farmers’ survey done by our colleagues at Grain SA on 21 February 2024 shows that the North West province is under much strain, and some regions already see crop damage. The Free State, primarily the western and central areas, is also worrying. Mpumalanga, Limpopo, Eastern Cape and KwaZulu-Natal are slightly better, and the crop could still yield a decent harvest if we get good rains soon. Still, the crop is under immense strain from the current heat wave and scant rains. I must say, within these provinces, there are regions experiencing crop damage; it is not all better. Click here to read full article by Wandile Sihlobo for wandilesihlobo.com.

The excessive heat across SA in recent weeks is a significant concern for the farming sector. The 2023/24 summer crop season started on a favourable footing. We received widespread rains, which was unusual in an El Niño season, which would typically start with drier weather conditions. According to data from the Crop Estimates Committee, SA farmers managed to plant a sizeable summer grain and oilseed area of 4.4-million hectares, up 0,4% from the 2022/23 season. For a while it appeared as though SA was on track for yet another excellent harvest. But since the start of February the rain has been scant across the summer crop-growing regions, raising concern about the yield potential of the crops. Perhaps we should not have been completely surprised by the current difficulty. At the end of January the SA Weather Service warned about such a possibility, stating that its multi-model rainfall forecast “indicates mostly below-normal rainfall over most of the country during February to June, except for some central parts of SA during March to May, where enhanced probabilities for above-normal rainfall is predicted.” Click here to read full article by Agbiz Chief Economist Wandile Sihlobo for businesslive.co.za.

On February 26, we participated in South Africa-Saudia Arabia Agricultural Ministers engagements in Pretoria. The sessions focused on deepening trade, specifically in beef, sugar, and grains, and investment opportunities within South African agriculture and agro-processing sectors. These are areas the Saudi authorities and businesses wanted to explore. Some of our members, like Beefmaster Group (Pty) Ltd, Sparta Beef, Red Meat Industry Services (and friends at KARAN BEEF, GRAIN SA/GRAAN SA and BERLIN BEEF) made valuable inputs to the meeting. In further engagements, horticulture, a pillar of our agricultural trade, will be on the table for deepening trade. The Kingdom of Saudi Arabia is a strategic agricultural export market, and it is fitting that South Africa explores agricultural trade and investment possibilities. Over the past five years, Saudi Arabia imported, on average, about $20 billion of agricultural products. The dominant suppliers of farm products to Saudi Arabia are Brazil, India, the US, the United Arab Emirates, Germany, France, Turkey and Egypt. Click here to read full article by Wandile Sihlobo. Watch interview with Newzroom Afrika on SA banks on red meat deal with Saudi Arabia to boost global food security here. 

The excessive heat and scant rains across South Africa are a significant concern for farmers, particularly in the summer grains and oilseed-producing regions. The 2023/24 summer crop season started on favourable footing. We received widespread rains, which was unusual in an El Niño season, which would typically start with drier weather conditions. Those good early-season rains led us to believe the country would have a decent harvest in the 2023/24 production season. But this view has now changed. We worry about possible poor harvests if there is no widespread rain during these closing days of February into the first week of March. Indeed, the Crop Estimates Committee (CEC) also fears the possible decline in the summer grains and oilseed harvest. Its first production estimate for the 2023/24 season placed the summer grains and oilseed harvest at 17,4 million tonnes, down 13% y/y. This is a function of a reduction in planted area and the expected lower yields in some regions. A closer look at the data shows that white and yellow maize harvest could be 7,0 million tonnes (down 17% y/y) and 7,3 million tonnes (down 8% y/y), thus placing the overall maize production estimate at 14,3 million tonnes (down 13% y/y). The challenge for maize is the possible poor yield in some regions as the area plantings are higher than the 2022/23 season. While this expected harvest is significantly lower than the previous season, if it materializes, it would still meet South Africa's annual maize consumption of roughly 12,00 million tonnes, and the country would remain a net exporter of maize, although a much lower volume than the previous years. Click here to read full article by Wandile Sihlobo.

Wandile Sihlobo unpacks the latest agriculture trends and statistics in this podcast. After a notable jump in the third quarter of 2023 to 956,000, South Africa's primary agricultural employment fell by 4% quarter-on-quarter to 920,000 in the last quarter of 2023. Jobs declined mainly in the Eastern Cape, Western Cape, Gauteng, Mpumalanga and Limpopo. Click here to listen to full episode of the Agricultural Market Viewpoint by Wandile Sihlobo.

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.

This report provides an update on the status of the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM), as of February 2024. What is the CBAM? It is border measure that places a tax or carbon price on emissions-intensive imports from non-EU countries/jurisdictions. The tax is relative to the carbon emitted during the production of these goods. This is meant to level the playing field with the equivalent carbon price already placed on EU producers under the EU’s Emissions Trading System (ETS) or carbon trading market. If EU did not do this, EU producers would possibly relocate to non-EU locations to avoid these EU carbon taxes. In other words, the EU seeks to steadily reduce the amount of carbon utilised to produce goods in an identified set of sectors. Manufacturers must account for the carbon emissions they generate and buy allowances or credits to cover their emissions. There is also a cap on what you can emit. Anything over the cap is fined. Over time the cap decreases, to encourage greener production methods. Allowances can also be traded between companies. The fines go mostly to EU member state national budgets. Click here to read full report by Agbiz Fruit General Manager, Wolfe Braude. 

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. Learn more and register for the 2024 Agbiz Congress here.

Farmers in Taung, North West, anticipate a successful harvest with the support of FarmSol and the South African Cultivar and Technology Agency (Sacta). Sacta funded a new harvester for the FarmSol development programme, enhancing yields and minimising losses. Aron Kole, FarmSol's managing director, highlighted the role of machinery in boosting productivity and efficiency, contributing to sustainable farming in rural areas. The harvester, funded by Sacta, will be utilized for harvesting barley, soybeans, and maize. The Tshwaragano Farmers Cooperative, formed by the farmers, has already planted 1,500 hectares of barley and soybeans with the donated equipment. Sipho Sibinda, Tshwaragano’s chairperson, expressed gratitude, noting the harvester's significant impact on timely harvesting. Andrew Bennett, CEO of Sacta, emphasised their commitment to development, stating that the harvester is a loan requiring repayment. Wandile Sihlobo, Agbiz chief economist, emphasised FarmSol's role in unlocking underused high-value land and the need for comprehensive approaches to ensure equal opportunities for all farmers. Click here to read full article. 

This year's FRUIT LOGISTICA, the world's premier fruit and vegetable industry show, exceeded expectations amid a challenging global market. Boasting increased visitors, exhibitors, and exhibition space, the trade fair solidified its position as the industry's heartbeat. With over 66,000 visitors and 2,770 exhibitors presenting innovations, the event emerged as a crucial international meeting point. Impressively, four out of five trade visitors hailed from abroad, emphasizing its global reach. In the face of industry challenges like cost pressure and climate change, FRUIT LOGISTICA provided a vital platform for decision-makers, facilitating business deals and networking opportunities. Exhibitors expressed high satisfaction, with 90% anticipating favourable follow-up business. The event's success ensures its continued importance in fostering global collaboration within the fruit and vegetable sector. Click here to read full report by fruitlogistica.com.

On a momentous occasion, Bloemfontein's Peritum Agri Institute kicked off its academic year with the largest student intake since its inception. The institute, South Africa's largest private agricultural college offering vocational tertiary education part-time, celebrated a decade of nurturing work-ready graduates for the agricultural sector. The opening ceremony marked a special year as 95 enthusiastic first-year students joined, contributing to a total of 242 students enrolled. Founding member Emmie Pietersen highlighted the institute's expansion into Windhoek, a step closer to becoming the premier vocational higher education institution for agricultural studies in the SADC region. With an emphasis on practical exposure, unique assessment methods, and esteemed partnerships, Peritum Agri Institute stands as a beacon for those aspiring to cultivate not just land but minds in the field of agriculture. Click here to read full statement by Peritum Agri Institute.

This update delves into the state of South Africa's supply chain, highlighting commercial port challenges with an average of 7,754 containers handled daily. Adverse weather, union engagements, and equipment breakdowns impacted port operations, causing delays in various regions. The aftermath of the Red Sea crisis led to a significant drop in Suez Canal traffic, prompting a surge in rerouting via the Cape of Good Hope. Global port congestion affected 4.9% of the fleet, with Durban remaining heavily congested. Air cargo at ORTIA exhibited an 8% increase in inbound and 9% in outbound volumes, though still below pre-crisis levels. Cross-border road freight trade experienced stable queue times and reduced transit times. This comprehensive overview underscores concerns about the decline in South Africa's container volumes over the past five years. The report emphasises the need for private sector involvement to enhance efficiency and address critical challenges in the supply chain. The national budget's acknowledgment of the logistics crisis is discussed, highlighting the importance of leveraging private sector support to ensure South Africa's economic success. Read the full update in the latest BUSA Cargo Movement Update.

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.
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