Tuesday 27 August 2013

Agriculture business update: August 2013

The AgriBusiness Price Update provides insights in agricultural input prices (irrigation tariffs, fertilisers, fuel prices, electricity tariffs and minimum wages) and output prices (for selected grains, livestock and vegetable commodities). It concludes with the overall agricultural industry performance (terms of trade and gross income discussions).

Click here to view the document.

Courtesy: Standard Bank Agribusiness

Monday 26 August 2013

Ten years

Does ten years seem like a long time to you? What were you doing in 2003? The course of your whole life can change (or be confirmed) over a period like that.

Perhaps the best indicator of time is our children. You can look at them and wonder what happened to the years. Suddenly (it seems) they are young woman, young man and you know that you yourself are not excluded from the passing of time.

Ten years ago I was part of a small team which begun work on its first agricultural publication, the predecessor of The Agri Handbook. We met with over 400 role players to introduce ourselves and our plans. Ten years later, 2013, saw the publication of the 5th edition of the book which provides an overview on the South African agricultural value chain.

The Bureau for Food and Agricultural Policy (BFAP) released its 10-year look-ahead this month. BFAP is a gathering of individuals from the University of Pretoria, Stellenbosch University and the Provincial Department of Agriculture, Western Cape. Find the agricultural baseline outlook 2013-2022 at www.bfap.co.za.

Tuesday 20 August 2013

South Africa to buy food from Angola, Zambia, DRC and northern Mozambique

Writing in Farmer's Weekly (16 August 2013), Dr Anthony Turton (University of the Free State) predicts that arid areas in Southern Africa will expand northwards while the strength of rivers decrease. Within a decade, he says, Angola, Zambia, DRC and northern Mozambique will be producing food for the region.

Two-thirds of the global population will be living under water-stressed conditions by 2025. South Africa will face a shortfall of 30 billion cubic metres at this time. One of the country's major problems is evaporation (we thought we were smart by building all our dams in previous decades: these help us to lose water faster!)

Advice given to farmers (and the country) includes:

  • Start to recycle water.
  • Do your sums on how your use of water contributes to low-skilled jobs. As water scarcity increases, there will be calls for water to be proportioned away from agriculture to other sectors.
  • Store water in underground aquifers rather than in dams.

Find the country's role players in water-related chapters of The Agri Handbook e.g. Water, Irrigation, Rainwater harvesting, Boreholes and windmills and Water storage.

Monday 19 August 2013

What happened to biofuels?

A few years ago in this country, substantial interest was expressed in the prospects of biofuels. It would give a lift to the agricultural community struggling at the time with very low maize (corn) prices and boost new farmers in the sector. It would create jobs, add to the country's energy security and so on. Most of the fanfare died down when government excluded maize from its National Biofuels Industrial Strategy in 2007.

The bells and whistles may have died down but a certain momentum remained. The focus has been on the use of sugarcane, sorghum, soybeans and canola (rapeseed).

Last week (13 August) the Department of Energy gave an update on the Biofuels Strategy to Parliament. Find the presentation on the Agricultural Business Chamber (Agbiz) website, www.agbiz.co.za or click here.

Biofuels is one of the nearly 180 chapters in The Agri Handbook. Other chapters of interest will be  Renewable energy, Energy and the different chapters like Sorghum, Soybeans, Canola and Sugarcane.


Wednesday 14 August 2013

Oranges and lemons ...

Agritrade reports that South Africa is projected to account for 61.9% of southern hemisphere citrus exports in 2013. The country will account for 76% of southern hemisphere orange exports, 30% of mandarin exports, 32% of lemon exports and 97% of grapefruit exports.

"Currency movements have been helping the export of South African citrus, despite rising input costs linked to minimum wage increases (+52%), rising energy and other input costs, and increased transportation and shipping charges (Maersk and SAFMARINE have announced a planned increase of “up to 30%” in shipping charges “to keep up with the demand for containerised shipping” ). Containerised shipping is making local markets and local processing more attractive".

Find the full report here.

The citrus industry in the Southern Hemisphere is represented by the Southern Hemisphere Association of Fresh Fruit Exporters (SHAFFE), and in South Africa by the Citrus Growers Association (CGASA).

The citrus fruit sector is covered here in The Agri Handbook.





Pigs like to live in mud

Do you know that pigs roll in mud to protect themselves against the sun and extreme temperatures, or against flies and parasites? Perhaps you knew, but many think that pigs just like to be dirty and to live in mud. The average person knows little about these intelligent creatures.

Commercial pig farmers in South Africa are represented by the South African Pork Producers Organisation (SAPPO). All agricultural commodity associations are involved, one way or another, in encouraging people from previously disadvantaged groups to farm. Part of SAPPO's mentorship programme to developing pig farmers includes free training opportunities at its training facility at Baynesfield. Qeda Nyoka is responsible for SAPPO's developing farmer projects. Read about SAPPO at www.sapork.com.

The main exporters of pork to South Africa are Germany (40%), Canada (25%), Spain (14%) and France (6%).

Pork is one of the 22 livestock chapters in The Agri Handbook for South Africa (there are nearly 180 chapters in all). Find the link to the chapter here.


Monday 12 August 2013

Growing meat and houses in science labs

Human evolution has gone hand-in-hand with the eating of meat. Over the centuries, the days and nights around the fires of feasts where meat was cooked must be countless. And the barbeques (braais in South Africa) of today go on.

If you are unfamiliar with the production of meat in laboratories, read more at http://culturedbeef.net or watch the cultured beef video (just over 6 minutes). The research makes sense when you bear in mind the projected growth in the human population by 2050, to say nothing of the environmental (and some ethical) issues around meat production.

Some of you may think "Whatever next!"

Well, you could watch view James Hutson's clip explaining synthetic biology. View the tree that turns into a tree and a house, giving a whole new meaning to "treehouse", what was previously limited to something which absorbed a child's time.

After this, Biotechnology and plant breeding, one of the chapters in The Agri Handbook might seem quite tame, but will bring you back to what, for now anyway, is the present.





Wednesday 7 August 2013

On long weekends and women

Hey! It's a long weekend ahead! Friday is National Woman's Day in South Africa.

Women. If you think of your own life you will know the tremendous role that women played in shaping who and what you are. Picture your mothers and grandmothers, who made you feel loved and made you believe that this world had a place just for you. And then the early girlfriends who seriously challenged that notion! Then there were others whose hearts you broke, and now, your whole day can still take its cue from spouse or partner, daughter or sister.

Think of humanity's story. Where are the women? The support was there, but women in its history have a more obscure role. How many female prime ministers, presidents and CEOs were you aware of 10 years ago? And today?

National Woman's Day has its origin in South African history when some twenty thousand women marched on the union buildings to protest against the Pass Laws in 1956, on the 9 August. This Friday we will know that legislated Apartheid might be over, but many other struggles remain. Poverty or being dominated by another person might affect all human beings alike, but when you are a women common struggles like these take on potentially more devastating and terrifying consequences.

Women is a chapter in the National Issues section of The Agri Handbook.

To our women everywhere, here's to you. We think of you and remember you with thanks.

Monday 5 August 2013

South Africa: increasingly a market for EU agricultural exports

South Africans are mostly aware that the EU is a prime market for its agricultural produce. After the De Doorns industrial action at the beginning of the year we heard at least once from disgruntled strikers that food security was not the issue since most of the fruit was for the export market (thus excusing the interruption to the agricultural sector).

Do we know that it is starting to be a two-way street?

The latest Agritrade newsletter from the Technical Centre for Agricultural and Rural Cooperation (CTA) tells us that: "... a review of Eurostat data posted on the EC’s DG Agriculture website shows that the South African market is increasingly important to EU food and agricultural product exporters, with exports to South Africa growing 2.5 times as fast as the growth in overall EU food and agricultural product exports since 2002. Food and agricultural products have increased their share of total EU exports to South Africa from 3.2 to 5.5%, while South Africa’s food and agricultural trade surplus with the EU has fallen from €1,378 million in 2002 to €567 million in 2011".

Find the complete article here. Read about the CTA at www.cta.int.

Exporting is one of the chapters in The Agri Handbook.

Friday 2 August 2013

Poisoning wildlife on farms

The use of poison on farms as a response to predators can have unintended consequences. This week's agricultural weekly, the Landbouweekblad, carries a story about 49 vultures being poisoned. Dr Gerhard Verdoorn of the Griffon Poison Information Centre responded with furious calls to prosecute the farmer involved. Find the story here.

The issue of predation is covered in the Wildlife on farms chapter in The Agri Handbook. A list of role players appears there as well as control methods, some of which are hotly debated. There are also chapters on birds and crop protection. Find the chapters in the Afrikaans edition here: Wild op plase, VoĆ«ls en boerdery and Oesbeskerming.

Agricultural business and the investment climate in South Africa

The Agricultural Business Chamber (Agbiz) has compiled a study on the investment climate in South African agriculture. Find it here.

Affecting the industry's investment climate are:

  • The upcoming elections in 2014 which are bringing a wait-and-see slow down.
  • Policy developments around land. 
  • The longer-term effect of the weaker exchange rate
  • Increases in the price of energy (time to look at alternative energy sources?)
  • Other administered prices (set by government and not the market) which have a negative effect on the price of doing business
  • The recent labour unrest and demands (yes, address the social needs in the country but don't squash its business prospects: food security and much more is at stake)

Solutions lie in

  • improved productivity and efficiencies
  • utilisation of expanding markets
  • the sophistication and efficiency of the value chain

These are all dependent on both local and international investment.

Agbiz represents the major part of the agribusiness sector in the country. Find a list of its members on its website, www.agbiz.co.za or click here. The chapter on agribusiness in The Agri Handbook is here.

Thursday 1 August 2013

The agricultural chemicals sector to look north?

The Global Business Report has put out a research report about the South African chemicals industry. Find it here.

South Africa's chemical sector is one of the larger employers with some 200 000 jobs. It contributes around 5% to the gross domestic product (GDP).

In a country whose economy remains at relatively low levels of growth, the sector should look north of its borders where most countries are expected to grow by at least 4%, the report recommends.

Find the overview of the agricultural chemicals sector in the Crop protection chapter of The Agri Handbook, as well as a list of all its stakeholders.