The National Disaster Management Centre (NDMC) on 13 February 2018 declared the ongoing drought in the Western Cape, Eastern Cape and Northern Cape Provinces a National Disaster.  This means that, in terms of the National Disaster Management Act of 2002 (DMA), the National Executive (i.e. Cabinet) must deal with the national disaster in terms of existing legislation and contingency arrangements. 

The declaration of a National Disaster entails that the Minister of Cooperative Governance and Traditional Affairs, Minister Des van Rooyen may, in consultation with other Cabinet Ministers, make regulations and authorise the issuing of directions concerning, amongst other things:

• The release of any available resources of the national government;
• Steps to alleviate, contain and minimise the effects of the disaster;
• Steps that may be necessary to prevent an escalation of the disaster; and
• The facilitation of response and post-disaster recovery and rehabilitation.

The National Agricultural Marketing Council (NAMC), which advises the Ministry of Agriculture, Forestry and Fisheries, has undertaken to bring together a group of stakeholders, including Agri SA, to deal with the devastating effects which the drought has had on the agricultural sector and to come up with a smart drought disaster management plan. Agri SA, which has been calling for a national disaster declaration since 2016, presented its Smart Disaster Aid Plan at its National Congress held in October 2017. It is hoped that the recommendations contained therein and the wealth of experience within the organisation will be called upon to assist the NDMC in dealing with the current National Disaster.

President of Agri SA, Dan Kriek, reiterated the organisation’s offer of the full support to the National Government, in particular the incumbent President of South Africa, Mr Cyril Ramaphosa, during the current drought, particularly in the midst of the present turbulent political times.   

Issued by Agri SA, Directorate:  Corporate Liaison

Enquiries

Mr Janse Rabie, Head of Natural Resources, Agri SA, 076 451 9601

Dr Requier Wait, Head of Economics and Trade, Agri SA, 073 304 0932

The post WESTERN CAPE, EASTERN CAPE AND NORTHERN CAPE DROUGHT DECLARED A NATIONAL DISASTER appeared first on Agri Limpopo.

The season is just kicking off in the warmer areas of Limpopo Province like Mooketsi and Levubu with Fuerte and Maluma, and the very first export consignments have left to reach the market in week 12. Early South African exports are primarily Fuerte. The South African harvest will get underway in all earnest by the beginning of March.

Source: Fresh Plaza

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Maize:

The rainfall has been erratic in the past few days over the maize belt. As a result, the crop in the western sections of North West and Free State provinces is still moisture-stressed. The weekend didn’t bring much improvement, the showers were light and scattered and did not lead to a notable improvement in soil moisture.

The weather charts, however, show a possibility of over 35 millimetres of rainfall over the South African maize belt this week. If this materialises, the maize crop will possibly improve and be in a fair condition again, which increases a chance of good yields this season.

On the global front – There is solid demand for maize in the world market. Last week, the US weekly export sales were reported at 2.5 million tons, well above market expectations. The leading buyers were Japan, Taiwan and South Korea. Also worth noting is that the USDA placed its 2017/18 global maize imports estimate at 148 million tonnes, up by 9% from the previous season. The EU, Egypt, Japan, Mexico and South Korea are expected to be amongst the world’s leading importers of maize.

Wheat:

This has not been a good season for US wheat producers due to drier weather conditions at the beginning of the season. Earlier this month, the USDA placed US 2017/18 all-wheat production at 47 million tonnes, which is a 25 percent decline from the previous season due to lower yields, as well as a reduction in area planted.

These dynamics, however, have been overshadowed by a significant increase in wheat production in India and Russia. At the start of this month, the USDA estimated 2017/18 global wheat production at 759 million tonnes, up by a percentage point from the previous season.

In the same season, the global ending stock is up by a percentage point from 2016/17 season, estimated at 269 million tonnes. This implies that the global wheat prices could trade sideways in the short to medium term as the market is well supplied.

For net importing countries such as South Africa, these are good developments, particularly from a wheat user or processor’s perspective. South Africa’s 2017/18 wheat imports are estimated at 1.85 million tonnes. About two-thirds of this have already been imported. The leading supplies thus far are Russia, Lithuania, Argentina, Germany and Ukraine.

Soybeans:

In the field, the soybean crop is generally in good condition, despite the inconsistent rainfall pattern last week. There is still a fair amount of soil moisture in soybean growing areas following good rainfall over the past few months, particularly in Mpumalanga, KwaZulu Natal and eastern sections of the Free State province.

The past weekend was cloudy with light and scattered showers in parts of the eastern Free State and Mpumalanga provinces. This didn’t lead to a notable improvement in soil moisture, but this week promises some improvement. The current weather charts show a possibility of over 35 millimetres of rainfall in soybean growing areas of the country.

In global markets – The soybean utilisation remains solid in the US, thanks to demand from the animal feed industry. The most recent data from the National Oilseed Processors Association shows that 4.2 million tonnes were processed in February 2018, up by 8 percent from the corresponding period last year.

Sunflower seed:

Although South Africa’s sunflower seed production improved marginally in the last season, the country remained a net importer of sunflower crude oil in 2017. In fact, the imports increased by 30 percent from 2016 to 144 783 tonnes, according to data from Trade Map.

The leading suppliers were Bulgaria, Argentina, Romania and Spain with a share of 29 percent, 29 percent, 24 percent and 7 percent, respectively. The remaining 11 percent share originated from other countries which include Portugal and Netherlands.

RSA Potatoes:

The potatoes market was under pressure at the end of last week with the price down by 0.93 percent from the previous day, closing at R32.10 per pocket (10kg). This was mainly on the back of a large stock of 970 516 pockets (10kg bag) at the start of the session.

On Thursday’s trading session, the market saw a further uptick in deliveries on the back of ongoing harvest activity. This led to a 21 percent increase in daily stocks to 1.18 million pockets (10kg bag).

RSA fruit:

The fruit market was quite wobbly last week. On Friday, the price of apples was up by 6.9 percent from the previous day, settling at R7.39 per kilogram due to strong commercial buying interest. This could, however, be short-lived due to a large stock of 217 000 tonnes, up by 15.4 percent from levels seen the previous day.

Meanwhile, the prices of bananas and oranges were down by down by 0.4 percent and 2.9 percent from the previous day, closing at R7.55 and R4.41 per kilogram, respectively. These losses followed a slight improvement in stock levels to 218 000 tonnes of bananas and 70 000 tonnes of oranges.

Full report by Wandile Sihlobo attached below.

Agbiz Morning Market Viewpoint on Agri-Commodities 19 March 2018

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South Africa’s average dam levels: week ended 02 April 2018, with the same week last year in brackets

Source: Department of Water and Sanitation and Agbiz Research

Wheat:

The weather is increasingly becoming an important factor in the domestic wheat market as winter wheat planting is set to commence next months. At the start of the week we highlighted a possibility of light showers across the major winter wheat producing province, Western Cape, however, the conditions changed overnight. The weather has now cleared across most areas of the province with the exception of the coastal regions which should receive light showers of about 16 millimetres.

The forecasts for the week of 20 April 2018 also show clear skies, which suggests that the next two weeks could remain cool and dry over most winter wheat producing areas of the Western Cape province. Moreover, dam levels could remain critically low. On 02 April 2018, Western Cape dams averaged 18 percent, roughly unchanged from the previous week, but 6 percentage points below corresponding period last year.

This, however, is not a cause for panic. The rainy season, which starts at the end of this month, promises to be much better than the previous one. The South African Weather Service indicated that between April and June 2018, parts of the south-western cape regions could receive above-normal rainfall.

From a trade front, there were no imports last week, and the last imports were in the week of 16 March 2018, recorded at 25 135 tonnes. This placed 2017/18 marketing year’s wheat imports at 1.16 million tonnes, which equates to 63 percent of the seasonal import forecast of 1.85 million tonnes. It is unclear whether the sluggish imports are either partially influenced by the delays in wheat tariff adjustments or mainly weak demand, or both. The newly calculated trigger rate is R394.84 per tonne, down by 45 percent from the current active level.

While a net importer of wheat, South Africa continues to export wheat to regional markets. The 24th batch of exports this season was recorded at 2 281 tonnes in the week ending 30 March 2018, up by 79 percent from the volume seen the previous week. The exports were destined to Namibia, Swaziland and Zambia. Overall, this placed South Africa’s 2017/18 wheat exports at 21 245 tonnes.

Maize:

This week started on a dry and cool note, with light showers only concentrated in areas around Warden, Delareyville, Klerksdorp, Ventersdorp, Amersfoort, Middelburg and Morgenzon. This, however, is not a concern as other areas received a breather following heavy rainfall in the past couple of days.

This dry and cool condition could soon be over in the maize-belt. The weather forecast for the next eight days shows a possibility of rainfall of between 20 and 50 millimetres. The week of 20 April also promises rainfall, but could mostly be centred in the central and eastern maize-belt.

From a trade perspective, South Africa exported 11 820 tonnes of maize in the week of 30 March 2018, down by 60 percent from the previous week. About a third of the exported volume was yellow maize, with the remainder being white maize. 

The leading buyer was, again, Botswana with a share of 34 percent. The rest went to other regional markets, such as Namibia, Swaziland, Lesotho and Mozambique, amongst others. Overall, this placed South Africa’s 2017/18 maize marketing year exports at 2.1 million tonnes, which equates to 88 percent of the season’s export forecast of 2.4 million tonnes. Moreover, South Africa could remain a net exporter of maize in the 2018/19 marketing year which starts on 01 May 2018. The 2018/19 total maize exports could reach 2.2 million tonnes. About 73% of this will most likely be yellow maize, with 23% being white maize.

Soybeans:

One of South Africa’s key objectives behind the expansion of the soybean crushing plants was import substitution of soybean oil and oilcake.  The country has made notable progress on both products as imports have been on a decline in the past few years due to increasing domestic production.

Between 2010 and 2017, South Africa’s soybean oilcake imports declined by 42% to 553 003 tonnes. The consistent supplier over this period was Argentina, with an average market share of 98 percent of the total import market. We estimate that 2018 soybean oilcake imports could decline further by 17 percent from last year to 458 992 tonnes due to expected large soybean production . Meanwhile, the USDA places South Africa’s 2018 soybean meal imports at 400 000 tonnes.

Similar to oilcake imports, South Africa’s soybean oil import declined by 30% between 2010 and 2017 to 191 255 tonnes . The consistent suppliers over this period were Argentina, Netherlands and Spain.  We believe that 2018 soybean oil imports could decline by a percentage point from last year to 189 342 tonnes, also supported by an uptick in local soybean production.

Apart from trade, the theme remains unchanged in the fields. The crop is in good condition, thanks to recent rainfall. The expected light showers within the next two weeks across the soybean growing areas of the country will further improve soil moisture and therefore support the crop.

Sunflower seed:

In yesterday’s note, we highlighted the possibility of good showers within the next two weeks across the sunflower growing areas. The near-term outlook remains unchanged with a possibility of rainfall of between 20 and 50 millimetres, which should improve soil moisture and benefit the crop. However, the long-term forecasts changed overnight and currently show chances of clear skies over most sunflower seed growing regions in the week of 20 April.

If the forecast rainfall within the next eight days materialises, then the expected warm conditions in two weeks’ time will be a much-needed breather, particularly for areas that planted on time or earlier in the season. The crop is currently in good condition and could show further improvement in the coming weeks.

RSA Potatoes:

The local potatoes market had a good run in yesterday’s trade session with the price up by 6 percent from the previous day, closing at R51.79 per pocket (10kg). The key factor behind this surge in prices was the lower stock of 496 391 pockets (10kg bag) at the start of the session.

Nonetheless, in the session, the market saw a slight increase in deliveries as a couple of business resume the harvest activity after the Easter weekend. This led to a 21 percent increase in daily stocks to 598 498 pockets (10kg bag).

RSA Fruit:

The South African fruit market settled on a mixed footing in yesterday’s trade session. The prices of oranges and apples were down by 0.14 percent and 13 percent from the previous day, closing at R6.91 and R2.80 per kilogram, respectively. These losses were underpinned by relatively large stocks of 703 000 tonnes of apples and 392 00 tonnes of oranges, compared to levels seen the previous days.

Meanwhile, the price of banana increase by 2 percentage points from the previous day and settled at R7.30 per kilogram. This was mainly supported by 44 percent decline in daily stock to 971 000 tonnes, following strong commercial buying interest.

Find the full report attached below:

Agbiz Morning Market Viewpoint on Agri-Commodities 05 April 2018

The post Possibility of good showers across sunflower growing areas appeared first on Agri Limpopo.

Source: Red Meat Levy Admin, Agbiz Research

Full report by Wandile Sihlobo available in the attachment below:

South African Agricultural Commodities Weekly Wrap 13 April 2018

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Chart: South Africa’s average dam levels: week ended 16 April 2018, with the same week last year in brackets

Source: Department of Water and Sanitation and Agbiz Research

Full report by Wandile Sihlobo in attachment below:

Agbiz Morning Market Viewpoint on Agri-Commodities 18 April 2018

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On 3 May 2018 Agri SA announced that that it had formally launched a dedicated Water Desk that will focus on the need to ensure equitable access to water for farmers across South Africa. This initiative is in response to a host of external challenges facing agricultural water users, including severe drought, climate change and under-maintained infrastructure. The situation is all the more urgent given several policy proposals that may simultaneously increase the cost of water while reducing the availability to agricultural users.

The Agri SA Water Desk will, amongst other things, focus on water policy and legislative proposals such as the draft National Water and Sanitation Master Plan and the National Water Resource Strategy. The current amendments to the National Water Act, for example, will determine the cost of water for agricultural users, which is why it is necessary to engage with government and other key stakeholders from the start to work towards a fair outcome. The Agri SA Water Desk will also give inputs to the Water Research Commission (WRC) on research priorities and will act as a forum for top water experts to share their insights in a meaningful way.

The Agri SA Water Desk will be led by Janse Rabie, an environmental lawyer and Head of Agri SA’s Natural Resources Centre of Excellence and Gregory Smith, a water scientist. “The Agri SA Water Desk will be a one-stop-shop for Agri SA members, where they can get up to date information and advice on all things water-related,” said Janse Rabie. “Given the complexity of water rights and the fast-changing policy environment, we believe that a dedicated Water Desk is the best way to enable agricultural water users to stay abreast of all legal developments which will have an impact on the way they farm and do business.”

“Agri SA is at the forefront of legislative and policy development regarding the water sector in South Africa. Agri SA strives to support government in this fundamental area through collaboration with key stakeholders and timely and well-researched inputs to policy development,” said Dan Kriek, President of Agri SA.

Agri SA invites its members, and interested parties, to contact the Agri SA Water Desk to find out how they can get involved.

Queries

The post Agri SA Press Release: Agri SA Launches Water Desk appeared first on Agri Limpopo.

Agri SA again appeals to South Africans to contribute to Agri SA’s drought disaster fund in any way. Contributions have ranged from feed, diesel, trucks and financial donations and remains welcome. Since 2015, thousands of farmers and farm workers have benefitted from the fund. Agri SA is thankful – these communities need all the help we can give.

Agri SA could, with the help of various donations, make more than 200 deliveries of feed in drought areas to date. Food parcels and water were delivered to farmers, farmworkers and rural areas in 2016.

“Agri SA collaborates with other non-governmental organisations and role-players so as to help more people,” said Christo van der Rheede, Agri SA deputy executive director. “This cooperation is crucial to ensuring that drought aid is distributed as cost-effective, transparent and fair as possible.”

The Agri SA Drought Disaster Fund ensures that farms remain in production and that jobs and food security are protected.

“Let’s stand by our farmers and their workers by supporting them in their time of need.”

For more information visit Agri SA’s website at www.agrisa.co.za

For donations to Agri SA Drought Disaster Fund:

Agri SA

Bank: ABSA

Account Type: Cheque

Account Number: 40-6854-0775

Branch Code: 632 005

Reference: RAMP

 Enquiries:

 Christo van der Rheede

Agri SA Deputy Executive Director

C: 083 380 3492

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