Top500: South Africa's Best Managed Companies - 11th Edition

Page 76

Breaking new ground South Africa’s agricultural sector is growing BY FIONA WAKELIN

Two years ago, the South African agriculture sector

had been shrinking for four consecutive quarters -

contracting by 7% in 2019. In

2020 in the first quarter it grew by 28% with good rains and

bumper crops. By August 2020 the National Crop Estimates

Committee (CEC) confirmed that SA’s total summer grain and

oilseed output (17.85 million

tons) was one of the largest on record– and 34% higher than

2019, with the total maize crop

of 15.54 million tons being 38% larger than 2019. The citrus

industry is also smiling, with

South Africa exporting around

2.15 million tonnes in 2020 - up 19% from the previous year.

Favourable weather conditions in South

level of the Agbiz/IDC ACI since the

that farmers have been able to plant

show that South Africa’s agricultural

Africa over the last year have meant

on time and increase area plantings for

various crops. Higher commodity prices have also improved bank balances,

second quarter of 2014. These results sector will, optimistically, experience another year of robust growth.

leading to improved sentiment

“In volume terms, South Africa’s

And, the sector is set to continue

19 percent since 2010. Encouragingly,

to improve with the support of

government policies, including the Master Plan on Agriculture and Agro-processing.

According to the Agricultural Business Chamber (Agbiz), the Agbiz/IDC

Agribusiness Confidence Index (ACI)

improved from 61 points in the fourth quarter of 2020 to 64 in the first

quarter of 2021. This is the highest

agricultural production has grown by

this expansion has occurred across all subsectors of agriculture and agro-

processing value, that is, horticulture (up 70 percent), animal products (up

43 percent), field crops (up 22 percent) and agro-processing (up 13 percent), according to data from the Bureau for Economic Research (BER) and

Bureau for Food and Agricultural Policy (BFAP).” - Wandile Sihlobo, Chief Economist, Agbiz

And from a citrus

perspective the news is just as good.

“The Citrus Growers

Association of Southern

Africa (CGA) is excited to announce that the South

African citrus industry will likely break all previous

export season records with an estimated 158.7 million cartons in 2021.

If the estimate is reached, it would represent a third consecutive season of

record export volumes,

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TOP500 11th Edition


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