Photo: FW Archive
In the first half of 2021, South Africa’s agricultural exports amounted to about R90,49 billion, which is a 30% year-on-year increase, according to Wandile Sihlobo, chief economist at Agbiz.
“The maize industry has done especially well and it really is something to celebrate,” Sihlobo said during a webinar hosted by Bayer on Thursday,12 August.
“Last year, agriculture was one of the few sectors that actually grew and the only one that grew in double digits (13,1% year-on-year). And for 2021, we are still expecting that agriculture will push through, and expect growth of around 7% even though we are coming from a higher base.”
Sihlobo said this robust production could boost exports to surpass the 2020 level of R151,31 billion.
“In the first quarter of 2021, agricultural exports amounted to just over R43 billion, which is a 28% year-on-year increase. We now have the [complete] data for the second quarter, which showed an even stronger performance with exports valued at R47,47 billion, up 36% year-on-year.”
On the back of the current bumper maize crop, Sihlobo said signs point to another favourable planting season.
“The soil moisture is looking positive and when we look at predictions from the South African weather service, it seems as though we will have another good rainfall season.
“Australian meteorologists also concur. They predict a light La Niña weather system, which means that we will have a slight above average rainfall season.”
Booming tractor sales were another positive aspect, according to Sihlobo.
Recent data from the South African Agricultural Machinery Association showed that 549 tractors were sold in July. This is a 17% increase from July 2020.
“In the first seven months of the year, 3 934 tractors were sold. This is 26% higher than over the same period in 2020.”
However, Henry Geldenhuys, president of TAU SA, said there were many negative issues placing a damper on this positive outlook.
A grain and cattle farmer in the Ermelo district, Geldenhuys, said: “The availability and cost of inputs, especially fertiliser, is a cause for concern”.
Referring to the availability of fertiliser following the recent civil unrest in KwaZulu-Natal and Gauteng, he said this was especially problematic for farmers who make use of financing.
“Farmers who buy cash will obtain their fertiliser sooner than those buying on credit.
The recent unrest had also placed a damper on optimism, he said. “We have already experienced problems with exports. Road closures has led to serious problems for farmers on the ground.”
Furthermore, the price of maize and soya bean was a source of concern for grain farmers, Geldenhuys added.
“You need to have certainty [about whether] you will be able to recover the increasing input costs, or are you going to be in a pinch?”
