Innehållsförteckning för 5 - 12 January 2024 från Farmer's Weekly

Although we are excited that 2024 is almost upon us, with a new slate, we have to acknowledge that it is likely to be another challenging year. In this issue of Farmer's Weekly, we include interviews and letters from agricultural role players and leaders about their hopes for agriculture for the new year (from page 34). As such, I thought I should include my own wishes for the sector in 2024. First, I hope to see some improvement in road and port infrastructure. South Africa's roads are falling apart, and the inefficiencies at ports are making it more and more difficult for exporters to ship their produce. As the overseas market is essential for many of our agricultural commodities, the inefficiency at these ports is bad news for farmers and exporters…

At the Agbiz media day recently, my colleague Wandile Sihlobo presented an interesting slide. It grouped the past 150 years according to major trends from industrialisation in the late 1880s, the Depression period between World War I and World War II, the postwar rebuilding phase, and globalisation from the 1980s towards the present. The current period follows the financial crisis in 2009 and is referred to as ‘slowbalisation’, a period where global economic growth has been slowing down. This trend is still continuing, but post-COVID-19 we are also in an era that is far less predictable and more volatile and the preceding 30 years. There is little that we as South Africa can do about these macro-level issues. The one thing we can, and must do, is ensure that our…

Fears that the Port of Cape Town might collapse were raised at a recent meeting between the Western Cape Minister of Agriculture, Dr Ivan Meyer, and key stakeholders within the agricultural sector. According to Glen Steyn, container terminal and logistics chain project manager of the Western Cape Department of Economic Development and Tourism, cargo volumes at the port were growing and had the potential to increase by 26% over the next five years. The capacity to move perishable cargo on time, however, was worsening dramatically. He said that growth in agricultural exports could potentially create another 20 000 jobs and generate R22 billion, but the potential was undermined by the slipping capacity at the port. “The target is for the port to move 50 containers per vessel per hour, but…

Embattled Tongaat Hulett will be liable for financial sugar industry obligations despite their efforts to challenge this in court. At the end of December 2023, the High Court of South Africa, Durban Local Division, dismissed with costs the application by Tongaat Hulett and business rescue practitioners to challenge the financial obligations on the miller in terms of the Sugar Act and the Sugar Industry Agreement. This follows the failure of Tongaat Hulett and Gledhow Sugar mills to pay more than R1,5 billion due to the South African Sugar Association (SASA) at the end of March, citing ongoing business rescue proceedings. The business rescue practitioners at Tongaat Hulett challenged the legal basis for the amounts owed, arguing that the business rescue process took precedence over industry arrangements. Had Tongaat Hulett succeeded…

The agriculture sector in South Africa has once again outshone the sagging national economy. Despite the pressure from automation on jobs, employment increased 10% year-on-year, and even the minister of agriculture applauded this remarkable growth! And let's not forget our farmers’ performance during the COVID-19 years. Production and export volumes soared, ensuring a continuous flow of food supplies and sustained employment. And yet again, during the horrendous unrest and looting on 9 July 2021, with torching of trucks, public violence and malicious damage to property the order of the day, farmers were the first to get out of the blocks. Within days, trucks were back on the roads; the largest export citrus crop ever was successfully delivered to the ports; milk trucks were catching up with supplies; sugar mills were…

The South African Customs Union (SACU) is one of the oldest such entities in the world, composed of Botswana, eSwatini, Lesotho, Namibia and South Africa. It was established in 1910, amended in 1969, and subsequently in 2002 to modernise and align its objectives with the current realities and developmental goals of the five countries. The union seeks to promote cross-border trade, forge economic integration, facilitate development and investments, and enhance fair competition and democratic conditions among member countries. Essentially, SACU is more than just a trade promotion, it also fosters stronger cultural, social, and economic development among the five countries in the region. The SACU agreement recognises the common but differentiated economic pathways of each country. It also makes provisions for smaller economies in the union to protect infant industries…

WHAT WERE SOME OF THE HIGHS AND LOWS OF 2023? Where farmers used to be taken for granted, consumers have become more aware of their importance because of the spike in food prices and occasional shortages that have occurred since the COVID-19 pandemic. The agriculture industry has also been the only sector in South Africa that has grown every quarter since the pandemic, and while farmers were struggling with higher input costs they were benefitting from better farm-gate prices. On the downside, the Western Cape was subjected to heavy rains and storms in June and in September that brought widespread flood damage. More disconcerting, floods usually have only occured once in a decade in the province, while now we had two in one year. WHAT DO YOU SEE AS MAJOR…

HOW DID YOU EXPERIENCE 2023? It was an exciting year, with a record soya bean crop and a good wheat crop too. I am continually impressed with how all the different facets of agriculture in South Africa work together to achieve wonderful results. From a South African Cultivar and Technology Agency perspective, it is wonderful to see the increase in the number of soya bean and wheat varieties being commercialised. These offer growers a much wider choice and equip them to be more productive under the expected drier conditions. Since the inception of the levy system in 2018 up until February 2023, the industry has had 56 new soya bean varieties and 46 new wheat varieties registered on the National Cultivar List. Although these figures are not always commercialised, it…

HOW HAS YOUR BUSINESS FARED IN THE PAST YAER? Our farm navigated a series of challenges on various fronts, which included weather conditions, financial performance, individual development and stakeholder relationships. The prevailing economic constraints forced businesses to streamline operations for survival. In spite of these challenges, we are thankful to be able to embark on a new season of farming. HOW DO YOU FEEL ABOUT FUTURE PROSPECTS IN AGRICULTURE AND TUNNEL FARMING? I maintain a cautious optimism about the future in the agricultural industry, particularly in tunnel vegetable farming. To ensure sustained growth, there is a need for increased investment in primary production, which will play a pivotal role in fortifying the industry's foundation in providing food for the nation, jobs and contributing to the economy. WHAT DO YOU THINK…

HOW DID YOU FARE ON YOUR FARM OVER THE PAST YEAR? It was a tumultuous year where both weather and market conditions were against us. Hail and then the lack of rain when we needed it meant that some of the soya bean and maize fields did not yield their potential. There was also a sudden and unexpected drop in the grain price, which added to losses. So it was not a good year for grain farmers. HOW DO YOU FEEL ABOUT FUTURE PROSPECTS FOR YOUR INDUSTRY? I am cautiously optimistic. The aim is always to do things better than the previous year, and save where you can. With the weather prospects being so uncertain, it is important to remain calm, and not rush to cut inputs to save money,…

The views expressed in our weekly opinion piece do not necessarily reflect those of Farmer's Weekly. This article was originally published by The Conversation. Read the original at shorturl.at/fkBIO. “New research on rubbish dumps in 44 sub-Saharan African countries shows that 95% are unregulated. The landfill sites still accept waste even when they are filled to capacity. As the waste decomposes, these sites release harmful greenhouse gases. However, using the methane gas to generate energy instead could save the continent billions of dollars. THE ECONOMIC AND ENVIRONMENTAL DAMAGE About 70% of municipal solid waste ends up in landfills or unregulated sites. In sub-Saharan Africa, for instance, 24% of waste is disposed of in landfills, while the rest is left on open dumps, streets, rivers, and other unsuitable locations. We live…

ARCHIVE A Western Cape farmer swears by old, converted, coal-burning locomotives for heating tunnels, and they cost less than conventional units. A conventional coal-burning unit for heating tunnels costs about R120 000, which is a large capital outlay in anybody's book, specially in a vegetable-production, under-plastic system where profit margins are relatively low. Deon Rossouw, of Kilprug near Paarl, found a cheaper alternative when he decided to modify a locomotive for heating his tunnels. That was four years ago. Now he has four such units, heating tunnels with a total floor area of 4ha. He says his “locomotives” run more efficiently than the coal-burning heaters available on the market and cost less than a third of their price. Rossouw bought his first Class 14 Garrett locomotive in Mossel Bay for…

Eighty-three percent of the agricultural businesses and projects supported by the Western Cape Department of Agriculture's post-settlement programme from 2019 to 2023 are considered successful or highly successful, according to the results of an evaluation by Phuhlisani NPC and Associates in which 86 of the 137 supported businesses participated. This is a considerable increase from 72% in 2018 and 62% during the 2014 evaluations. None of the participants failed, while 4% in 2018 and 14% in 2014 were deemed to have failed. However, 17% reported that their businesses were challenged, in comparison with 24% in 2018 and 2014. David Mason, CEO of Phuhlisani NPC, said during the recent release of the results at Elsenburg in the Western Cape, that there had been a drop in the number of businesses supported…

Looking back at the 2023 hunting season, it is clear that both local and international hunting markets recovered markedly after the COVID-19 pandemic. According to Lizanne Nel, conservation manager at the South African Hunters and Game Conservation Association, research by the North West University showed a combined increase of R1,81 billion in spending and a combined economic contribution of R15,4 billion to the South African economy. “The most significant spending once again came from local hunters. They contributed R12,6 billion, primarily in rural economies, where government struggles to reignite economic recovery. “Hunting reports by members of the association indicated that Limpopo remains the preferred hunting destination, both in terms of the number of animals hunted and the days spent in the field. Hunting in the Free State and Northern Cape…

High levels of urbaniation in Zimbabwe contribute significantly to the water scarcity problem in this country. Currently, more than 32% of the population are living in urban areas. The rapid urbanisation rate has led to an increase in water demand, putting strain on the already limited water resources and infrastructure in Zimbabwe. According to Bulawayo24 News, the country experienced a cholera outbreak in 2023. Most of the cases were reported in urban areas where residents had unlawfully dug wells which resulted in contaminated groundwater. According to the report, residents in highly populated areas such as Kuwadzana ended up drilling wells because of “the failure by local authorities to provide clean, safe, and potable water, despite having an obligation to provide safe, clean, and potable water in terms of Section 77…

I have found over the years that Smuts finger is a hardy, valuable grass with a good few years of lifespan if properly cared for. Grasses should never be overgrazed or continuously grazed by livestock without giving the grass a chance to recuperate. You should never graze grass to a mat or flat to the ground. Try to not allow animals to graze grasses to below about 8cm to 10cm in length. If you have cutting equipment or even a sickle (for use in yards), the grass can be cut and fed to livestock. This method allows for a better lifespan. Always be careful when cutting, particularly if soil is very wet, that grass plants are not pulled too hard because this can affect the ‘anchoring’ of the root system.…

Mixed bag of opportunities and challenges Dawie Maree, head of information and marketing, FNB Business. HOW DO YOU PERCEIVE THE AGRICULTURAL ENVIRONMENT OF THE PAST YEAR? The agriculture sector was confronted with a mixed bag of opportunities and challenges in 2023. Overcoming early challenges due to load-shedding in especially the irrigation areas and too wet conditions in other areas, the country still had a good summer grain crop. In spite of some logistical challenges, the citrus industry seemed to have recovered from the disastrous 2022 season and had a better-than-expected export year. Some vegetable producers fetched record prices for onions and potatoes, while others experienced losses due to the wet weather. There are, however, some, such as macadamia producers, who are still experiencing a fall in demand in the global…

HOW DID THE PAST YEAR FARE IN THE EQUIPMENT INDUSTRY? Industry-wide there were big differences. Sales were mostly down from last year, but this was expected due to the high increase in purchases the previous year. There were also machines that were delivered late due to shipping problems, so with many farmers only receiving their equipment late in 2023, we don't expect an increase in sales for 2024 across the industry. WHAT ABOUT THE PROSPECTS OF THE AGRICULTURE INDUSTRY'S UPTAKE OF TECHNOLOGY? It's very positive. The good harvest of the last few years means many farmers have already switched to equipment that has precision technology. But this is mostly in the high-kilowatt category, and we are yet to see smaller farmers make the switch. But with technology becoming more affordable,…

HOW DID 2023 TREAT PORK PRODUCERS? The past seven years were difficult because of challenges posed by the COVID-19 pandemic, high animal prices and various diseases Fortunately, feed prices softened in the second half of 2023, which helped to improve farm profitability. WHAT IS THE OUTLOOK FOR 2024? The current lower feed price cycle is expected to continue in 2024 and will allow producers to build on the improved economics. Pork prices, which trended below R30/kg in 2022, rose to the high R30/kg mark in the last few months of 2023, and are expected to remain in the mid-R30/kg level in 2024. WHAT ARE THE BIGGEST THREATS TO THE INDUSTRY? The energy crisis is negating much of the improvement in pig production economics, that is better prices and lower feed…

HOW DO YOU PERCEIVE THE AGRICULTURAL ENVIRONMENT OF THE PAST YEAR? It is always difficult to provide conclusions on agriculture in South Africa according to the calendar year as our summer-rainfall region growing season spans over the end of one calendar year and the start of the next. From the perspective of the plant protection solution industry, I can, however, comment in general on our industry for the past 12 months. Before any plant protection solution can be marketed or sold on the South African market, it needs to be authorised for such use according to Act No. 36 of 1947, as administered by the Agricultural Inputs Control Directorate of the Department of Agriculture, Land Reform and Rural Development. This means that obtaining such an authorisation, or product registration, is…

HOW DO YOU PERCEIVE THE AGRICULTURAL ENVIRONMENT OF THE PAST YEAR? It was another challenging year for South African agricultural value chains. But market forces started to self-correct as we saw the costs of shipping and agricultural inputs such as fertilisers and agro-chemicals start to decline. These are, however, still above pre-COVID levels in relative terms. Although an element of normality returned, unfortunately the decline in public services such as power, logistics and service delivery continued to weigh on the sector's competitiveness. The number of days we experienced load-shedding this year provides some concept of the magnitude of the challenges; from 2019 to 2021, South Africa experienced 15, 30 and 54 days of load-shedding, respectively. In 2022 this number climbed to 205 days and in October 2023, Eskom projected 286…

From December 2022 the industry was impacted by the excessive levels of load-shedding that cost it millions of rand in diesel bills and losses in production efficiencies. The load-shedding had by the end of year not abated and continued to affect the industry. As if this was not enough, the first flock was hit by avian influenza in April and this disease proved to be disastrous for the industry. As much as 30% of the national flock was culled to contain the spread of the disease. In Gauteng, 95% of broiler breeders were culled. This caused enormous losses to the industry not only in birds lost but also lost future production of approximately a year. LOSSES No compensation was offered from the side of the state to mitigate the effect…

CROPS Potatoes Walter Mathidi started planting potatoes in Vivo, Limpopo, in 2015. But looking back, he believes he could not call himself a farmer then despite going through all the motions of the job. “I started with 3ha but I struggled to grow. Some years I would get 14t/ha, other years the whole crop would fail. Potatoes might look easy to grow, but it is very complicated, and without the right expertise it is difficult to succeed,” he says. The turning point came when he applied to be a part of Potatoes SA's transformation programme, where farmers are assigned a mentor and assisted with seed purchases. Since joining the programme three years ago, Mathidi has taken his yield beyond the industry average of 50t/ha to 65t/ha. He has increased his…

Vertical farming may be seen as the future of farming space problems, but consumers have concerns about the taste of the food compared to organically-grown produce. A study that was recently conducted by the University of Copenhagen's Faculty of Science tested consumer scepticism. It published the results in a paper called ‘Vertically farmed greens taste as good as organic ones’. According to the research team, the study was conducted to show that plants grown indoors, stacked and without soil can have the same taste as organically grown plants. The team said that they used 190 participants to blind taste vertically farmed arugula, baby spinach, pea shoots, basil and parsley together with the organically-grown plants. Associate professor and research team member Michael Bom Frøst wrote: “In terms of taste, we certainly…

Although cosmos (Cosmos bipinnatus), pompom (Campuloclinium macrocephalum) and lantana (Lantana camara) can be found across most parts of South Africa, they are all native to South and Central America. Their individual journeys across the Atlantic Ocean to Africa may have been unique, but what they all have in common is that they established themselves with great success in various South African ecosystems. Their presence in South Africa not only disturbs us (they are all subject to state-funded eradication programmes), but also delights us with their flowering spectacles. COSMOS The Anglo-Boer War (18991902) was the catalyst for the introduction of cosmos to South Africa. The British used more than 500 000 horses during the epic conflict, of which 360 000 were imported from across the globe. These animals of war needed…

Alexandria: The City That Changed The World by Islam Issa (Sceptre, R470) This is an impressive history of an impressive city. Legend has it that Egypt's Alexandria was funded by Alexander the Great, though he did not live to see the finished splendour. We all know about the fabled Pharos lighthouse and the burning of the greatest library in the world. There is a wonderful chapter on that library which was divided into Literary and Scientific, each scroll labelled with the author's first name (no surnames) and geographic origins. Many scrolls were copied and translated. Librarians were celebrities. There is then the 2 000-year saga of the peoples who have lived in or conquered the ancient Mediterranean city, the Romans, the Jews and Arabs, Ottomans, the French, Egyptian King Farouk,…

South Africa's agricultural exports amounted to US$3,9 billion (about R74,46 billion) in the third quarter, up 4% year-on-year (y/y), according to data from Trade Map. The products that dominated the export list were citrus, maize, apples, pears, nuts, wine, soya bean, sugar and fruit juices. This solid export activity was a function of improvement in both volumes and prices, specifically of fruit. This more than offsets the effects of lower grains and oilseed prices, which have declined notably from their 2022 levels. Overall, South Africa's agricultural exports amounted to US$10,2 billion (R195 billion) in the first nine months of 2023, up 1% from the same period in 2022. This export activity was mainly before the intensified challenges at South African ports. Given that the inefficiency challenges at the ports and…

South African real gross domestic product (GDP) contracted 0,2% in the third quarter (July to September) of 2023, after two consecutive quarters of growth, with the agrisector showing a 9,6% decline. According to the Statistics South Afric (Stats SA) report, the contributions to the performance of the economy were evenly spread between the industries on the production side of the economy. The contributions ranged from -0,3 of a percentage point to 0,1 of a percentage point. On the production (supply) side of the economy, five of the 10 sectors reported weaker results, with agriculture, manufacturing and construction dragging down overall growth. NEGATIVE GROWTH According to Stats SA, the agriculture industry saw a decline of 9,6%, primarily influenced by decreases in field crops, animal products and horticulture products, contributing -0,3 of…

Due to the impact the conflict between Israel and Gaza, tourist numbers in the surrounding areas of the Middle East, such as Jordan, saw a marked reduction, which is likely to negatively affect beef exporters such as South Africa. Roelie van Reenen, supply chain executive at Beefmaster Group, said in a statement that renewed exports depended on a ceasefire, which at present does not seem likely. He said the resumption of beef exports to Saudi Arabia offered some compensation for the loss of sales in other parts of the world. “We are likely to see a bigger demand for South African beef in China in 2024, but this may come with unattractive pricing structures. We've already seen this play out recently in other agricultural commodities as there has been a…

Embarking on a mission to stimulate the cannabis industry in the province, the KwaZuluNatal (KZN) government has formalised a public-private partnership with Opulence Pharmaceuticals. The partnership is poised to bring about substantial growth in the sector, promising transformative effects on the lives of local growers. The KZN Department of Agriculture and Rural Development in collaboration with the Department of Economic Development, Tourism and Environmental Affairs (EDTEA) will be working with Opulence Pharmaceuticals on a skills and knowledge transfer programme. Some of the 660 emerging growers who are permit holders were exposed to the cutting-edge technology and are set to receive ongoing training and vital skills in cannabis production, coupled with market connections and preparation for export readiness. The recent tour of Opulence Pharmaceuticals in Verulam, northern KZN, originated from the…

The Food Price Index of the United Nations’ Food and Agriculture Organization (FAO) remained unchanged in November, marking its lowest level since the beginning of the year. The FAO Cereal Price Index decreased by 3% from October and by 19,4% year-on-year (y/y) on the back of lower grain prices. Maize, wheat, and soya bean prices were notably lower compared with a year ago. MAIZE Chicago Board of Trade (CBOT) maize prices traded sideways month-on-month (m/m) after the US Department of Agriculture left forecasts for maize production in South America unchanged, as shown by the December World Agricultural Supply and Demand Estimates (WASDE) report. CBOT prices decreased by 28% y/y, which can be attributed to seasonally higher supplies in the US following a harvest marked by ample production. SAFEX maize prices…

The Commission for Conciliation, Mediation and Arbitration (CCMA) in South Africa is an independent statutory body that facilitates the resolution of workplace disputes through conciliation, mediation and arbitration. It was established in terms of the Labour Relations Act (LRA) and serves as a forum for dispute resolution between employers and employees. When a dispute arises either party can approach the CCMA. Conciliation is the first step in the dispute resolution process and aims to reach a mutually acceptable settlement without going to court. WHAT IS CONCILIATION? Conciliation is a process before the CCMA, a Bargaining Council or an accredited agency, where a conciliator will try to assist parties (employer and employee) to resolve a workplace dispute. It is a compulsory process by law, however, the outcome is voluntary as it…

This past year was not an easy one. As we turn the page to 2024, which will no doubt hold even more challenges, we are proud to say that we did what we, proverbially, say on the box. Where insured clients suffered losses, faced fires and floods or were involved in accidents, insurers stood up to help them through their trauma. We made sure that the losses were made good and individuals, businesses and farmers could continue to do what they do best. Our agriculture sector deserves plaudits for the incredible way they continue to feed our people and grow our capacity as a country. Whether you plough and plant, raise animals, grow vegetables and fruit or you have found that niche commodity that only grows on your farm, we…

The past year has been a challenging one for the sugar industry broadly and for canegrowers in particular. With Tongaat Hulett and Gledhow mills placed in business rescue at the end of 2022, growers found themselves facing great uncertainty. This was exacerbated by the default of the millers on their industry obligations, decreasing the final return value price last season by more than R400/t of sugar cane. Amid these challenges, growers showed their resilience, continuing to maintain operations and sustain much-needed jobs in KwaZulu-Natal and Mpumalanga. This year, the industry continued to deliver on its commitment to invest R1 billion in transformation funding over a five-year period. SA Canegrowers also launched the digital phase of its Home Sweet Home campaign, encouraging consumers to buy locally produced sugar in order to…

WHAT WERE SOME OF THE UPS AND DOWNS FACED BY FARMWORKERS IN 2023? The increase in the minimum wage was welcome, but brought little relief to farmworkers because of the high cost of food and fuel and the impact of higher interest rates on loan repayments. Farmers, on the other hand, are also under financial pressure, with the price hike resulting in some of them downscaling their workforce and selecting workers more carefully to ensure they get good value for money. On the positive side, there has been a greater focus on training over the past few years to upskill workers and ensure greater work efficiency. WHAT DO YOU EXPECT FROM 2024? It will be a difficult year if things continue as they are. Things are getting more and more…

HOW DID 2023 TREAT THE WINE INDUSTRY? The 2023 season was a terrible, incredibly challenging season. Heavy bouts of rain in December 2022 resulted in high fungal disease, while viticulturists and winemakers had to be highly innovative to alleviate the effect of above-average rain, from the end of February until the end of March, on wine quality. The wine grape harvest turned out to be the lowest in a decade, and the fourth-lowest in history. Delheim was fortunate, as most of our wine grapes were harvested by the time the rains came. WHAT WERE THE BIGGEST LESSONS FOR YOU FROM THIS SEASON? To expect the unexpected. I learnt a lot from our cellar master, Roelof Lotriet, who had experienced seasons like this before. Also, I never imagined I would win…

Dear Prof McCrindle, I will be moving my goats from a heartwater-free area to a heartwater area. How do I prevent them from getting the disease, and how do I treat it if they get it? Dear Anonymous, Heartwater is a tick-borne disease of cattle, goats, sheep and wild ruminants in South Africa. It is transmitted by the bite of the tick Amblyomma hebraeum. There are two important factors to reduce mortality. The first is to know how to examine your goats daily and take their rectal temperature. Purchase a rectal thermometer used for babies and understand how to use it. The signs of heartwater are usually shown 10-14 days after being bitten. The goat will have difficulty breathing and its rectal temperature will be 39-40°C. If you find a…