| Fueled by passion Join us for a recap of October 2024. |
BFAP @ AgriSA Agricultural Congress 2024 Cape Town, Western Cape, South Africa, 9 to 10 October 2024 |
| The 2024 AgriSA Green Horizons Congress, with the theme ‘Cultivating success, harvesting futures’, took place on 9 and 10 October at the V&A Waterfront in Cape Town, South Africa. AgriSA’s 120th anniversary was also celebrated at the conference. As a gathering of industry leaders and stakeholders, delegates at the conference included representatives from provincial structures, farmers, industry leaders and role players from across the agricultural value chain. Participating in a session focusing on institutions in agriculture, BFAP’s Prof Ferdi Meyer presented on the theme ‘Bending the curve’, highlighting agriculture’s true value addition to the overall economy. Taking a broader approach where the multipliers across the full value chain are accounted for, agriculture’s contribution to the economy amounts to more than 14%. This research forms part of BFAP’s broader concept of Agri Plus. The agricultural sector is a dynamic network involving farmers, agribusinesses, policymakers, service providers, workers, and consumers. Each of these groups is interdependent, influencing and being influenced by the broader agri-food system. As such, there is a growing need for a nuanced, well-informed narrative about the significant role agriculture plays in society. Agri Plus aims to consolidate and communicate multiple perspectives on South Africa’s agricultural sector. By bringing together collaborators across the agricultural landscape, the platform provides comprehensive analytics and foresight, enabling stakeholders to understand the complex structure, performance, and societal impact of agriculture. |
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PPVC II: Training event in October 2024 |
BFAP and the PPVC II research partners (IFPRI and ANAPRI) convened to facilitate the last event of the PPVC Fellows training series. This was held in Pretoria, South Africa, during the week of 14 to 18 October 2024. The attending Fellows are from the 16 ANAPRI centres that are spread across the African continent. The PPVC training started more than two years ago, covering analytical approaches and sets of tools that help to identify and prioritise value chains that have the potential to increase incomes, ensure food and nutrition security, attain higher agricultural GDP growth, create jobs and employment and other outcomes related to inclusive agricultural transformation (IAT). As this was the final training, the Fellows are now equipped to apply the analytical skills gained throughout the period in their home countries. |
PPVC deep dives in in Malawi: Policy briefs – Chicken & Soybean value chains |
| Recently the MwAPATA Institute, an independent agricultural policy think tank in Malawi, released two policy briefs co-authored by BFAP, presenting the outputs and recommendations of the Policy and Investment Prioritisation through Value Chain Analysis (PPVC) deep-dive analyses of the soybean and chicken value chains in Malawi. Policy brief on the soybean value chain in Malawi: Citation: Gondwe, A.*, Van der Westhuizen, D**., Ottermann, H**., Kankwamba, H.*** & Chiwaula, L.* 2024. Malawi’s Policy options for unlocking the potential of Malawi’s soybean value chain. MwAPATA Institute Policy Brief, No. 34, September 2024. * MwAPATA; **BFAP; ***IFPRI Key messages: Contributing to economic diversification, soybean production offers a potentially viable alternative to tobacco (currently the main export crop), enabling Malawi to reduce the soybean supply gap in the country. The most significant factor that will be driving future growth was identified as improved yields. Following investments in Malawi’s private sector soybean processing capacity there is surplus capacity which can support the industry’s future expansion. Policy recommendations include initiative to improve the yield gap of local production, as well as the domestic processing of soya into value-added products with the potential to yield higher margins in local and export markets. Read the policy brief at: https://ageconsearch.umn.edu/nanna/record/346713/files/PB34_PPVC%20soya%20deep%20dive_final%20%281%29.pdf?withWatermark=0&withMetadata=0&version=1®isterDownload=1 Policy brief on the chicken value chain in Malawi: Citation: Nyondo, C.J.*, Davids, T.**, Gouse, M.** & Chiwaula, L.* 2024. Malawi’s Poultry Value Chain Can Unlock Widespread Economic Benefits with Appropriate Policies and Investments. MwAPATA Institute Policy Brief, No. 35, September 2024. * MwAPATA; **BFAP Key messages: With rapidly increasing chicken consumption in Malawi, the potential for further growth was identified, subject to improved future affordability. High chicken retail prices are mainly attributed to high feed costs (especially for maize and soybean cake) constraining profitability, productivity and overall output. Proposed potential solutions include: (1) The removal of value-added tax (VAT) on soybean cake to lower feed costs; (2) The creation of a stable maize market with reduced price fluctuations, by promoting maize production under irrigation and enable maize exports to motivate surplus maize production; (3) Facilitate formalization of chicken exports to unlock additional market in Mozambique. Read the policy brief at: https://ageconsearch.umn.edu/nanna/record/346714/files/PB35_Poultry%20value%20chain_final.pdf?withWatermark=0&withMetadata=0&version=1®isterDownload=1 |
BFAP @ Senwes Groundbreaking Day 2024 Klerksdorp, North-West Province, South Africa 3 October 2024 |
| The Senwes Groundbreaking Day (‘Grondbrekersdag’) was held in October 2024, serving as an information session for farmers on topics related to the South African grain sector, such as financial planning, mechanisation, markets and nematodes. Dr Tracy Davids, a commodity markets and foresight expert at BFAP, participated in this event, addressing the audience on market expectations and implications for margins regarding summer grain production areas. Tracy noted that consumer spending power remains under pressure, agricultural performance has also been strained, with a likely contraction in real agricultural GDP in 2024, but agriculture is an immensely resilient sector and with some green shoots starting to appear with respect to economic prospects and improved weather outlook, 2025 could be a better season. Producers have invested substantially in technology in recent years, which is critical to achieving the productivity gains required to ensure sustainability in future. For more information on the event, click here: https://www.youtube.com/watch?v=aymQNiAOhCg |
Monthly BFAP Food Inflation Brief |
| October 2024 release, based on September 2024 pricesIn the October 2024 release of the BFAP Food Inflation Brief, we shed light on the September 2024 South African food inflation figures, and discussed the associated driving factors and expectations, and the cost of basic healthy eating for South African households. Year-on-year inflation on the food and non-alcoholic beverages component of the Stats SA CPI headline index remained at 4.7% in September 2024 (similar to August 2024), with food inflation and headline inflation remaining within the 3-6% inflation target bracket for a seventh consecutive month. In September 2024, a four-member reference household had to spend R3 782 on the Thrifty Healthy Food Basket, R10 per month more than in August 2024, and R366 per month more than a year ago. To read or download the brief, click here. |
| BFAP in the media… |
| Food inflation: Engineering News. 28 October 2024. South African food inflation again above CPI headline inflation during September. Available at: https://www.engineeringnews.co.za/article/south-african-food-inflation-again-above-cpi-headline-inflation-during-september-2024-10-28 Food For Mzansi. 8 October 2024. BFAP: Drought and demand drive up food prices. Available at: https://www.foodformzansi.co.za/bfap-drought-and-demand-drive-up-food-prices/ Business Tech. 2 October 2024. Bad news for braai lovers in South Africa. Available at: https://businesstech.co.za/news/trending/793211/bad-news-for-braai-lovers-in-south-africa-3/ Sugar tax: The Citizen. 27 October 2024. Sugar tax freeze urged to spark growth and sustain the sector. Available at: https://www.citizen.co.za/business/sugar-tax-freeze-urged-to-spark-growth-and-sustain-the-sector/ IOL. 2 October 2024. Sugar Tax: SA Canegrowers, Safda appeal to Ramaphosa to scrap it or extend moratorium. Available at: https://www.iol.co.za/business/advice/sugar-tax-sa-canegrowers-safda-appeal-to-ramaphosa-to-scrap-it-or-extend-moratorium-ad62b466-068e-431a-8f08-9228af13d886#google_vignette hypertext. 28 October 2024. Return of sweeter drinks? Industry calls to scrap the sugar tax. Available at: https://htxt.co.za/2024/10/return-of-sweeter-drinks-industry-calls-to-scrap-the-sugar-tax/ IOL. 27 October 2024. SA sugar industry fights back against ‘sugar tax’ as budget looms. Available at: https://www.iol.co.za/business-report/economy/sa-sugar-industry-fights-back-against-sugar-tax-as-budget-looms-8275bd22-2c7b-4080-92aa-9322df62e074 Maroela Media. 28 October 2024. Industry calls for moratorium on sugar tax. Available at: https://maroelamedia.co.za/nuus/sa-nuus/bedryf-vra-vir-moratorium-op-suikertaks/ Engineering News. 28 October 2024. Sugar industry calls for Godongwana to honour his commitment to reassess sugar tax. Available at: https://www.engineeringnews.co.za/article/sugar-industry-calls-for-godongwana-to-honour-his-commitment-to-reassess-sugar-tax-2024-10-28 Daily Maverick. 31 October 2024. Balancing act: Will South Africa’s sugar tax survive amid industry pressure and health concerns? Available at: https://www.dailymaverick.co.za/article/2024-10-31-why-the-sugar-industry-chooses-when-to-play-dead/ Fruit industry: Landbou Weekblad. 30 October 2024. Vrugtebedryf ‘propvol geleenthede’ wat landbou sal baat. Available at: https://www.landbou.com/landbou/bedrywe/tuinbou/vrugtebedryf-propvol-geleenthede-wat-landbou-sal-baat-20241030 Cape Business News. 28 October 2024. “Exciting phase” on horizon for fruit industry and Tru-Cape is set to seize the opportunities. Available at: https://www.cbn.co.za/industry-news/agriculture/exciting-phase-on-horizon-for-fruit-industry-and-tru-cape-is-set-to-seize-the-opportunities/ Maroela Media. 28 October 2024. Positive outlook for local fruit market despite challenges. https://maroelamedia.co.za/goeiegoed/goeie-nuus/positiewe-vooruitsigte-vir-plaaslike-vrugtemark-ondanks-uitdagings/ South Africa Today. 28 October 2024. “Exciting phase” on horizon for fruit industry and Tru-Cape is set to seize the opportunities. Available at: https://southafricatoday.net/farming/exciting-phase-on-horizon-for-fruit-industry-and-tru-cape-is-set-to-seize-the-opportunities/ Farmers Review Africa. 28 October 2024. “Exciting phase” on horizon for fruit industry and Tru-Cape is set to seize the opportunities. Available at: https://farmersreviewafrica.com/exciting-phase-on-horizon-for-fruit-industry-and-tru-cape-is-set-to-seize-the-opportunities/#google_vignette Weather in South Africa: Food For Mzansi. 20 October 2024. Hopes fade for La Niña rain as drought fears increase. Available at: https://www.foodformzansi.co.za/hopes-fade-for-la-nina-rain-as-drought-fears-increase/ Food systems in South Africa: Milhorance, Carolina; Mercandalli, Sara; Mogatosi, T. Remoneilwe; Alpha, Arlène; Bourblanc, Magalie; May, Julian. Building Resilient Urban Food Systems: A Study of the Breede Valley Municipality, South Africa. Centre for Agricultural Research and International Development (CIRAD); DSI (Department of Science and Innovation) -NRF (National Research Foundation) Center of Excellence in Food Security/ University of the Western Cape (CoE-FS/UWC). Montpellier: June 2024. ISBN 978-2-87614-846-8. Available at: https://agritrop.cirad.fr/610657/1/UrbanFosc%20South%20Africa%20VF.pdf |