Speaking to OFM News, Agriculture’s spokesperson in the Free State, Zimasa Leputla, says that farmers showed up in huge numbers with a variety of products being showcased. She says they are slowly building the Free State they want, through initiatives like these. The department further secured the 1st prize Exhibition Golden Award for the greatest input from the public sector exhibition stalls, adds Leputla. She says exposure for the department, as well as the farmers, is vital as this kick-starts small-holder economies and opens up doors for investors.

The debate about rising global inflation and increases in interest rates is hugely relevant for South Africa’s agriculture and agribusiness sectors. In 2020, when major central banks, including the South African Reserve Bank, lowered interest rates to record-lows in response to the pandemic's economic damage, the farming sector saw significant reductions in debt servicing costs. This was a welcome development for a sector that had outstanding debt of R191 billion in 2020. However, according to Agbiz Chief Economist, Wandile Sihlobo, the rise in interest rates now comes at an even trickier time for the farming sector, where input costs - such as fertiliser and animal feed - remain elevated and are likely to stay at a higher level for some time. The increases in input costs are partly the result of the Russia-Ukraine war, which has limited fertiliser production and exports from Russia. Before the war, Russia was the world’s leading exporter of fertiliser, accounting for about 14% of global exports.

AND

This past week, the FAO Global Food Price Index eased from the all-time high level in March 2022, declining by 1% to 159 points.  Still, this is up by 30% from the corresponding period last year. The easing in prices in April was on the back of a slight decline in the vegetable oil prices. This is even a more complicated issue, as the recent decision by Indonesia to ban the exports of palm oil, means that the global export volumes have reduced significantly, and prices have surged since then. The FAO data probably didn't fully account for the Indonesia decision. According to Agbiz's Wandile Sihlobo, we will likely see the price increases reflected in the data for May, which will be released on 3 June. Other food prices - such as grains, dairy, meat, and sugar - remain elevated, and we don't see a potential change in the price direction in the near term.

OFM News