He also provides more information about the latest developments in the agricultural sector. 

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The GDP data that was recently released shows that in the first quarter of the year, South Africa’s agriculture output unexpectedly contracted by roughly 3.2% on a quarter-on-quarter seasonally adjusted and analysed basis. Sihlobo says this should not be a lasting concern as this is one of the best seasons in agriculture and a more robust season than what we saw in 2020.

Sihlobo says the other important thing to highlight is “if one looks at the GDP data for agriculture on a year-on-year basis, comparing the first quarter of this year with the first quarter of last year, one sees that the agricultural gross value added, actually was much stronger expanded by 7.5%,” Sihlobo emphasises.

Sihlobo further says that the South African Wine Industry Information and Systems forecast the 2021 wine grape crop at 1.5m tonnes, which is 9% more than the 2020 harvest. “The Citrus Growers’ Association projects record exports of 159 million cartons in 2021, up from 146 million cartons in 2020, thanks to a good harvest. The Crop Estimates Committee forecasts the 2020-21 maize and soybean production at 16.2 million tonnes and 1.9 million tonnes, respectively.

That’s an increase of 6% year-on-year — and the second-largest harvest on record — for maize, and a 54% rise to a record harvest for soybeans. Bumper harvests of other field crops are also expected. The healthy production forecast for summer grains and oilseeds is based on increased area plantings and favourable rainfall since the start of the season,” he adds.

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