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Ryan says that the news section is filled with commodity outlooks for the 2022 year of which one focuses on smaller commercial vegetable farmers in South Africa. 

While South Africa has received good rainfall early in the season, many smaller participants may leave the industry due to increasing cost pressures. 

These cost pressures are a result of high fuel prices due to a weak rand and various price shortages says Ryan. 

“Many smaller producers are unable to offset these costs. As farmers start growing vegetables, prices will likely increase as the price in the market will drop.”   

Ryan elaborates on another outlet that looks at poultry production and again, the escalating input costs, limited consumers indicating that broiler farmers will have an actual battle in the coming year. 

“Poultry farmers, like many other will also be in constraint by collapsing infrastructure with bird flu being another major concern as we have seen bird flu spreading across the world, which is having a serious impact on poultry production. 

"Fortunately, for South Africa, improved biosecurity has meant that the impact has been less severe than what it was in the 2017 outbreak and the industry has been able to recover much quicker as a result,” notes Ryan.

Furthermore, discussions about pig productions for 2022 are taking place as well as with other livestock producers. “Profit margins are under severe pressure. Unfortunately, as a result, it is expected that many smaller producers will leave the industry. 

"Larger producers are expected to consolidate and become more efficient. Besides rising input costs, world players in the industry are also concerned about further lockdowns due to Covid-19. Lockdowns mean low consumer spending power which will have an effect on farmers profitability,” adds Ryan. 

She says another concern is African Swine Fever, but Johan Coetzee, CEO of the South African Pork Producers' Organisation, believes that South African farmers are in a good position to be able to fight any outbreaks.

“We also look at forecasts for red meat in 2022. Farmers have benefited from higher prices over the past year but producer prices for feed, mutton and lamb are set to move sideways in 2022 unless the industry can increase exports, “ says Ryan.

Lastly, the news section delves into the coffee industry and the increase in global prices, a weakening in exchange rates and record local prices also seem to indicate that a good year is in store for coffee farmers with favourable weather conditions in 2022.  These weather conditions also means a possible industry expansion.

Challenges for the New Year include high input costs and the lack of technology and planting genetics as well as excessive costs of harvesters.

OFM News/Lee Simmons