South African Agricultural Market Viewpoint: 18 March 2019

South African Agricultural Market Viewpoint: 11 March 2019

Agbiz/IDC Agribusiness Confidence Index improves marginally in Q1 2019

South African Agricultural Market Viewpoint: 18 March 2019

South Africa’s 2019/20 winter wheat production season will commence in a month’s time. We believe that there could be an uptick in wheat, and other winter crops plantings, due to favourable weather outlook, and relatively competitive prices.
The South African government and the Livestock Industry are engaging a number of South Africa’s traditional beef export markets in an attempt to resume trade following a temporary ban after the outbreak of foot-and-mouth disease early this year. The outcome of this process will not only have an impact on trade revenue, but also on the domestic meat price inflation path, and thereafter overall food price inflation. At the moment, we still maintain that South Africa’s food price inflation could average around 5% this year.
In addition to the aforementioned points about South Africa’s meat price inflation path, beef and sheep slaughtering activity are important data to keep an eye on. Figures for January 2019 paint a mixed picture.