The positive news of good agricultural production in South Africa is not limited to summer crops and horticulture but extends to winter crops – wheat, oats and canola. The driving force of optimism is favourable weather conditions.
Amid an abundant harvest, high agricultural commodity prices have been an ironic windfall for South African farmers, particularly the grain and oilseed growers. However, farmers should manage their portfolios well, as input costs have also been rising, namely: oil, herbicides, and fertilizer. Such higher costs have the potential to erode these price gains when farmers embark on the 2021/22 production campaign, commencing in October this year.
Food shortage is unlikely to be a reality in South Africa. This is why consumers should avoid panic buying as this creates a self-fulfilling prophecy and deepens anxiety. There are large food supplies following a good agricultural season. Also, the resilience of South Africa’s food supply chains will likely withstand the current shock.
I share some reflections on South Africa’s food supply chains amid the rioting and looting in KwaZulu-Natal province.
The sub-Saharan Africa region holds potential for expansion for South African agribusinesses, but the approach to doing business will have to adapt to country-specific practices at the start.
One of the lingering questions over the past few months is why global agricultural commodity prices continue to rise in the face of large production figures? We narrow our focus to a few commodities within the grains and oilseed complex to answer this question.
With ample agricultural harvests, why is South Africa still seeing food prices rising – and what is the outlook for the rest of the year?
South Africa’s agricultural sector could have expanded more than what we observed in the past decade had it not been hindered by the following challenges, (1) inefficiencies in state administration, (2) infrastructure challenges, (3) lack of security in rural areas and (4) prevailing uncertainty.
The high court on the ruling Ingonyama Trust leasing land held in custody highlights the dangers.