We are in Canberra today, Australia’s capital and a great city. Amongst many vital engagements we had, we also managed to meet colleagues from the Department of Agriculture, Fisheries and Forestry (DAFF).
I was not a stranger to their work, as we in South Africa closely follow the agricultural policy and crop forecasting developments in Australia, partly due to their significant role in global grains production and exports, as well as the similarities in production conditions with South Africa.
To demonstrate the relevance of this letter, I will highlight several key aspects of their work, including climate-smart agricultural practices, biosecurity, collaboration with the private sector on research, in-depth insights into agricultural trade, and commodity forecasting. These are all the areas that apply to South Africa’s agriculture.
The DAFF equips farmers with sound research and pathways in reducing emissions and producing in more environmentally friendly ways. These are aspects that are also vital for global agricultural trade in today’s environment. Australia exports over two-thirds of its agricultural produce; therefore, compliance with the requirements of its key markets remains vital.
Like Australia, South Africa is an export-oriented agricultural sector, although smaller in value terms (and roughly half of our agricultural products go to exports). The practices of supporting various climate-smart agricultural research, improving biosecurity, and deepening trade research are areas where South Africa should increase its focus.
Fortunately, some of these matters are not far from our discussions at home. South Africa’s Agriculture and Agro-processing Master Plan already has some elements of such work.
What remains missing is the focus on implementing the plan, along with the release of the 2.5 million hectares of government-owned land with title deeds, which could be key for inclusive growth. The biosecurity matter, which I discussed in my first letter, remains a running theme, but not just about animal health; it is also key for plant health.
I mentioned the Master Plan because of its structure, which involves government and private sector participation. This is a strength of the Australian approach to agriculture, which we must focus on at home, and ensure there are resources and implementation in the many plans we have crafted.
I won’t delve into much, but I hope this provides a high-level view of agricultural matters.
10 September 2025
Canberra, Australia
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We spent the day in Wagga Wagga in south-eastern Australia, visiting experimental farms at Charles Sturt University’s AGRIPARK. They are doing industry-focused research on various value chains, including livestock, wine, grains, and horticulture. The focus of their work primarily responds to the needs of the industry, which helps with the application of the results.
The research’s funding model has some similarities with that of South Africa. The farmers pay a certain amount of levies (as a percentage of the value or volume of their production). We see this in some commodities in South Africa. However, in Australia, the government ensures that every dollar raised by farmers matches the amount raised by farmers. The objective is to continuously boost Australia’s agricultural productivity and strengthen the country’s standing in global food production and trade.
Once the funds are raised, the government and industry share ideas on the research areas and build a common understanding of priorities.
In South Africa, we see agriculture as a sector that could drive our rural economic growth and job creation. This approach of research co-funding and permitting the industry to have a notable say on research priorities would benefit our objectives.
Indeed, unlike Australia, we remain “A Country of Two Agricultures”; therefore, some consideration must be given to issues of inclusivity. Still, the co-funded research would be of benefit to both of these Two Agricultures.
Beyond funding matters, there is considerable scope for South Africa and Australia’s agriculture to collaborate, particularly on issues of digitalisation, biosecurity, and climate-smart agricultural practices. There are advancements in these areas in South Africa that Australian farmers can learn from, and equally for us.
Our countries have similar climate and agricultural production conditions, and face roughly the same issues in global agriculture. This means that, through commodity associations in South Africa and the Department of Agriculture, we may need to explore additional ways to facilitate regular engagement.
9 September 2025
Wagga Wagga, Australia
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It is late afternoon on a Monday (September 8) in Sydney, and I am ending another beautifully sunny day, which has also been quite productive. We had the opportunity to engage with the meat and livestock industry, grain growers, and academic researchers, and concluded the day by meeting with Horticulture Innovation Australia.
What is clear from all our interactions is that there is room for collaboration between South Africa and Australia’s agricultural sectors. From all our interactions today, it was clear that most stakeholders are aware of South Africa’s farming advancements and its contribution to the global food, fibre, and beverages trade.
The same is true in South Africa; we look at Australia with a great appreciation of their contribution to global meat and livestock, wine, wheat, horticulture and other products.
Oftentimes, it may be easy to view each other as competitors, particularly since we produce in the same season, and can look at roughly the same export markets for some products.
Still, I would argue that there is much room for collaboration and complementarity. If one considers the wheat industry, for example, South Africa is working on boosting its production, but over the foreseeable future, it will likely remain a net importer. Our imports are generally around 1.8 million tonnes a year. Australia is one of the key high-quality wheat producers that could continue to supply the South African market.
Similarly, with rice, we don’t produce any, and Australia could, over time, join the likes of India and Thailand in experiencing the million tonnes of annual rice imports in South Africa.
Importantly, this does not need to be one-way and should not primarily focus on trade. The most promising area for collaboration between the two countries could be in research-related matters. Listening to the various industries today and academic colleagues speak about their current focus on research and innovation, it is clear that we can lean on some of their work, particularly because of the similarities in our environments. The work Australia is doing on plant health and seed breeding in various commodities is particularly key to our agricultural efforts in South Africa.
In the livestock industry, Australia has advanced in biosecurity and surveillance, another area of potential collaboration. Admittedly, the fact that the country is an island provides it with a buffer from the various diseases in a way that South Africa is unable to be shielded. Still, the rigorous biosecurity practices are something that we can learn from and implement in our work at home.
On the academic level, there are already various collaborations between some Australian universities and South African ones on agricultural matters, particularly on poultry and nutrition research. This knowledge sharing and partnership are key to strengthening our farming sectors and enhancing the relationship between the two countries.
There is also a lot more we could learn about the agricultural research funding approach in Australia. Both the government and industry contribute financial resources to research, and industry has a notable say on what areas should be prioritised for the good of the sector’s progress. This is one area we are yet to improve in South Africa.
Of course, we have a structurally different agricultural sector, partly because of our various histories. In South Africa, consideration must be given to the inclusion and support of small-scale farmers.
So, while some in Australia or South Africa may have viewed the other country as a competition, there is room for more collaboration rather than competing. The continuation of visits by industry stakeholders between the two countries and the exchange programmes of researchers and academics is an avenue for deepening the relationships and agricultural progress.
While we can learn from Australia’s biosecurity and other aspects, they, too, have a lot to learn from our thriving farming sector.
8 September 2025
Sydney, Australia
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We are yet to engage with the agricultural community in Australia, and will see the livestock, horticulture and grain producers tomorrow. We spent the morning today exploring Sydney and enjoyed a 14km walk (yes – I am showing off by these kilometres). The architecture of the City bears many similarities to that of many South African cities, particularly Cape Town. The friendliness of the people and the excellent maintenance of the area are qualities one wishes for our cities.
And yes, the resources matter, and that is one of the things that weighs on the South African cities and towns, in addition to some inept management of our municipalities.
However, the atmosphere of this place gives us a sense of what we can achieve over time if we focus on revitalising our cities, emphasising cleanliness, infrastructure maintenance, and security, among other things.
The properly run municipalities are generally not just a luxury, but are core to supporting the businesses that operate in them and the households.
In the agricultural regions, proper service delivery, combined with road maintenance and security, among other things, significantly reduces transaction costs and supports both agribusinesses and medium-scale farming businesses.
The agritourism (and general tourism) also benefits under such environments. I often invite people to visit small towns in my beautiful province of the Eastern Cape, as their visits and spending would go a long way in supporting our community. But the reality is that we have municipalities that haven’t been as efficient in service delivery, road maintenance and security in some instances. This contradicts the goal of boosting tourism in the province.
Of course, I am not suggesting our small towns can replicate major cities like Sydney; rather, the basic maintenance of municipalities can have a significant impact. This is clear from many of our small towns in the Western Cape, such as Paarl.
7 September 2025
Sydney, Australia
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When we are affected by animal diseases in South Africa, we tend to make this a challenge that only farmers and those linked to the industry must confront.
But this ought to be a national issue, with all in society aware of it, and the role they play in spreading or helping to control diseases. It is, after all, people who typically unknowingly contribute to spreading some diseases.
I am raising this because it was the first thing that struck me when I landed at Sydney International Airport this afternoon. Biosecurity was a significant issue that was announced and closely monitored. But importantly, people seemed generally aware of the biosecurity matters.
We play our part in this process through border management in South Africa. But a broader public awareness beyond the ports of entry may be valuable, especially as we continue to receive so many disease occurrences. We could build on the message that South Africa’s Department of Agriculture is starting to elevate awareness. Of course, the intervention will need to go further than that so farmers can feel the impact, and things are improving.
Currently, the South African livestock industry is facing economic strain due to the foot and mouth disease.
Beyond the awareness and information. We will still need to ensure we boost our vaccine manufacturing capacity. Livestock accounts for half of our farming economy. This is enough reason for us to be as vigilant as Australians on biosecurity matters.
6 September 2025
Sydney, Australia
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One of the interlinked industries that tends to benefit when the agricultural sector is thriving is the agricultural machinery industry. This year is no different; South Africa’s agricultural machinery sales have remained reasonably robust since the start of 2025. I suspect the sales are likely to continue at this encouraging pace.
If we consider the details, the tractor sales have increased for the past eight consecutive months, while the combine harvester sales only cooled in the recent few months, having started on solid momentum.
The recent data for August also paints a mixed picture. For example, the tractor sales are up 22% y/y, with 700 units sold. Meanwhile, the combine harvester sales were flat, with five units sold. The soft sales in combine harvester sales are not a significant concern given the higher volume of sales in the past few months.
The increase in agricultural machinery sales primarily reflects the positive sentiment in the sector regarding the 2024-25 field crop, horticulture, and wine grape harvest, supported by the favourable weather conditions. The sentiment in the sector is also reasonably optimistic, with the Agbiz/IDC Agribusiness Confidence Index at 63 points in the third quarter, which is well above the 50-neutral mark.
We expect South Africa’s agricultural machinery to remain strong throughout the year. In addition to the better agricultural production conditions, the interest rates have eased somewhat from last year’s levels.
Also worth noting is that some farmers may continue with machinery replacement in the coming months, which ultimately supports the sales.
Ultimately, the machinery industry is benefiting from the favourable agricultural conditions in South Africa.
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He is a Senior Lecturer Extraordinary at the Department of Agricultural Economics at Stellenbosch University.
Sihlobo is also a Visiting Research Fellow at the Wits School of Governance, University of the Witwatersrand, and a Research Associate at the Institute of Social and Economic Research (ISER) at Rhodes University.
Sihlobo was appointed as a member of President Cyril Ramaphosa’s Presidential Economic Advisory Council in 2019 (and re-appointed in 2022), having served on the Presidential Expert Advisory Panel on Land Reform and Agriculture from 2018.
He is also a member of the Council of Statistics of South Africa (Stats SA) and a Commissioner at the International Trade Administration Commission of South Africa (ITAC).
Sihlobo is a columnist for Business Day, The Herald and Farmers Weekly magazine.
He holds a Bachelor of Science degree in Agricultural Economics from the University of Fort Hare and a Master of Science degree in Agricultural Economics from Stellenbosch University.
