While the weather outlook is favourable with prospects of a weak La Niña, which should bring above-normal rainfall, there are concerns about the rising input costs. According to Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz), the additional costs to farmers and agribusiness are the higher fuel prices. He adds that the preliminary estimates from the Central Energy Fund suggest that petrol and diesel prices could decrease by 5 cents per litre and 22 cents per litre respectively, on the 1st of September. This adjustment means the retail price of petrol could marginally fall to R18,25 per litre from the current level of R18,30 per litre. Simultaneously, the wholesale diesel price could decline to R15,42 per litre from R15,64 per litre in September. Sihlobo says these will still be relatively higher levels.

The results of both the first and second quarter of 2021 agriculture export performance, reflects the resilience of the sector despite the ongoing Covid-19 related challenges across the world. Paul Makube, Senior Agricultural Economist at FNB Agri-Business, says the agriculture sector was able to operate during the various lockdown periods due to it being considered an essential service. Weather also came to the party and allowed for an excellent agriculture season which saw record crops across most commodities with the grain and oilseed crop topping 17.07 million tons, which is almost 2% higher year-on-year. Makube says despite logistical challenges, the sector managed to move a hefty quantity of produce to the rest of the world with the second quarter of 2021 recording a trade surplus of US$1.5 million, which is 40% more than in the same period in 2020.

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Agriculture, Land Reform and Rural Development Minister, Thoko Didiza, has called on workers in the agricultural and agro-processing sectors to go out in their numbers to get vaccinated. News24 reports Agri SA executive director, Christo van der Rheede, says the industry was considered essential work, which meant prioritising the safety of its workers was critical. While there are many health protocols in place, farm workers and those working in the agro-processing sector are still at risk of contracting the virus, especially those sectors that rely on seasonal workers. This can lead to a large number of people travelling from other parts of the country, which can increase the risk of transition. While Didiza noted an improvement in the country's vaccination programme, she said it was important to increase the number of people to be vaccinated. This would improve the chances of ensuring that economic activity and livelihoods in the country continued with minimal interruption.




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