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Agriculture

Economist predicts bumper 2017 for agri sector

───   SABRINA DEAN 14:57 Tue, 30 Aug 2016

Economist predicts bumper 2017 for agri sector  | News Article
Photo: Sabrina Dean/OFM News

Kimberley - An agricultural economist has told producers better days are on the horizon with some individuals predicting that 2017 could be one of the best years for the sector.


Absa’s Wessel Lemmer said during his address to Agri Northern Cape’s Congress in Kimberley last week that they are expecting improved prospects for the sector over the next three years. He says 2017, in particular, is expected to be much more favourable for producers "if we look at the role played by the Rand and the scarce carry-over stocks in terms of grains and oilseeds into next year that are expected to keep prices at a higher level – higher in comparison to historic prices.

“The anticipated increase in production will also give us higher GDP production value. We are expecting next year to be one of the best years for the sector.”

Lemmer says exchange rates have a big impact on the sector but adds that the weaker Rand can also protect producers.

“We expect the average next year to be around R15 (to the US Dollar) but if things turn out differently it could even go to R17.

“For producers, it is extremely important to realise that the Rand at that level actually protects you from overseas competitors. On the other hand, if you are in the export market it gives you a bigger share of consumer “Rands” overseas and also enables you to make your business more profitable.”


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