A fragile international economy, slow economic growth rate, the high cost of doing business in South Africa and political uncertainties will be some of the factors influencing the trading environment for agribusinesses in the coming year.
This was according to the Agricultural Business Chamber’s economic intelligence manager, Lindie Stroebel, who recently published a report on the outlook and expectations for local agribusinesses for 2012.
10.02.2012 / Agbiz in the news
Transnet is forging ahead with its decision to implement an 18,06% port tariff increase for the 2012/13 financial year. It has defended the proposed stiff hike, saying it’s necessary to tackle an infrastructure backlog in rail, ports and pipelines.
The increase will, however, have serious repercussions for farmers and comes on the back of soaring electricity and fuel prices. SA’s ports, and especially the container terminals, are already among the most expensive in the world despite their poor productivity record.
03.02.2012 / Agbiz in the news
South Africa’s Industrial Development Corporation (IDC) intends spending around R4,5 billion over the next five years to develop the country’s agro-processing sector.
It has already committed R800 million during its current financial year to create production capacity in more than 30 agro-processing companies. The IDC estimates this resulted in 3 700 new jobs.
03.02.2012 / Agbiz in the news
Kaapstad. – Die koste om in Suid-Afrika sake te doen, is die grootste uitdaging vir ondernemings en hul winsgewendheid.
Dit is die mening van die Landboubesigheidskamer (LBK) soos vervat in ’n dokument oor die vooruitsigte en verwagtinge vir landbousake in 2012.
“Geadministreerde pryse en die koste om die nasionale infrastruktuur soos tolpaaie, hawens en soortgelyke dienste te benut is proporsioneel te hoog,” sê die LBK. Die ekonomie het ’n behoefte aan infrastruktuur-ontwikkeling, maar as dit te veel kos, is die langtermynuitwerking destruktief.
24.01.2012 / Agbiz in the news
The International economy remains fragile, as the EU’s sovereign debt crisis remains unresolved and
prospects still appear gloomy and risky. Some economists consider the US to be in a “soft patch”, as
their numbers look better. However, the improved prospects are not considered to be sustainable as
some predictions indicate the possibility of the US’ economy moving into recession in 2013 due to
their massive debt levels. As the EU has GDP growth prospects of around or below 1%, it can be
considered to be in a “mild recession”, of which the recovery is expected to be slow and protracted.
As the EU is traditionally South Africa’s most important agricultural export destination, the
agribusiness sector is specifically concerned about the demand for its agricultural exports.
Purchasing power is relatively low, especially for high value goods and world agricultural trade is
expected to be low in 2012. The relatively strong Rand is also limiting foreign earnings, making the
export sector less attractive.
10.01.2012 / Media Releases
Festive season consumers will pay higher prices for food, including chicken, meat and vegetables.
The hikes have been fuelled by the increase in diesel and paraffin prices, and a critical maize shortage.
With millions of South Africans already battling poverty and high food prices, this could be a bleak Christmas for many.
12.12.2011 / Agbiz in the news
Mashudu SilimelaThe ABC agrees, in general, with Absa’s forecast, as it coincides with other projections as well. Absa
Agribusiness did a great job and provided good indication on where the opportunities are expected in
2012. However, the ABC has to be realistic in its view that the numbers seem to be much better than the
sentiment – and that cuts across the economy. Even though pessimists are beginning to gradually soften
their negative projections for the recovery of the South African economy, the situation is not yet as great
as we would like it to be. “We live in very uncertain times”, is what the governor of the Reserve Bank,
Gov. Gill Marcus says, when referring to the fragile global and local economy. Prof Raymond Parsons,
deputy CEO of BUSA said “the margin for error for economic forecasting has increased, thus the margin
for error in policy has narrowed and a mistake in domestic policy could be very costly”. Meaning that we
are likely to be wrong in forecasting the economy, therefore we cannot risk making the smallest policy
mistake – the same applies for the agricultural sector, if we want to realise the opportunities available, as
identified by the Absa forecasting.
06.12.2011 / Media Releases
After the gazetting of the Green Paper on Land Reform, Rural Development and Land Reform Minister
Gugile Nkwinti, invited certain stakeholders to participate in a National Reference Group (NAREG), to play
a constructive and participatory role, which is vital to the consultation process.
The Agricultural Business Chamber (ABC) took up the opportunity to provide constructive, business
oriented and politically neutral input to all 6 working groups within NAREG. The ABC had an internal
workshop to set the general mandate and appointed Prof. Nick Vink, an acknowledged agricultural
economist from University of Stellenbosch, to assist in constructing a well-informed position paper. The
ABC will present this position paper to its Council on 15 November, whereby it will be submitted to the
Minister before the official deadline for comments at the end of November 2011.
03.11.2011 / Media Releases