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Happy South African farmers exhibit confidence in the sector

Published 3 weeks ago4 minute read

There is optimism in South Africa’s agriculture. We know this from various indicators, such as the Agbiz/IDC Agribusiness Confidence Index (ACI), which has increased in the first quarter of 2025 compared to the end of last year.

The ACI increased 11 points from the last quarter of 2024 to 70 in the first quarter of 2025. This is the third consecutive improvement, placing the Index at its highest level since the quarter of 2021, a year of La Niña rainfall that boosted agricultural output. The current level of the ACI implies that South African agribusinesses remain optimistic about business conditions in the country. This was done in February based on surveys of various agribusinesses nationwide.

And yes, the results may have changed somewhat compared to the time of the survey. However, appreciating that favourable agricultural conditions underpinned the optimism from the start, there is reason to believe things wouldn’t be as different even if the survey were done now.

This survey aside, one would not miss the optimism at agricultural shows nationwide. For example, on May 13, I spent my day in Bothaville in the Free State at NAMPO, the premier agricultural exhibition in the Southern Hemisphere. It was well attended, and the mood was upbeat amongst farmers, agribusinesses, the general public, and exhibitors.

I also participated in a panel discussion hosted by Nation In Conversion. In front of a packed studio audience, we focused on South Africa’s agriculture outlook. We covered agricultural production, trade, macroeconomic conditions, and the global political environment, among other themes.

Agri SA CEO, Johann Kotze, said farmers will always find opportunities and continue with what they know best—farming—regardless of what people say, locally and internationally. Political analyst and pollster Dr Frans Cronje expressed optimism about South Africa’s trade prospects with the US and China, recognising the current glitches with the US. Economist Maarten Ackerman highlighted the reforms under Operation Vulindlela and the progress being made, saying there will be many more green shoots.

Clearly, the sector’s optimism is not baseless. It is anchored on some fundamental reforms underway. We are also fortunate to have had favourable weather conditions that supported agriculture this season, notwithstanding the animal health challenges in the livestock industry.

Walking at NAMPO, one is confronted by massive exhibition stands in a large open field. Here, you find the latest agriculture equipment, insight into new seeds and genetics, and a range of technologies in the food, fibre, and beverage value chains. These are global and local companies.

You also would not miss the various livestock breeds that breeders exhibit, illustrating the improved genetics that power our industry.

Bankers also seek opportunities to oil the agricultural industry through various finance options.

The various organisations interact with their clients and potential clients in a relaxed environment and make substantive investment deals that underpin the sector’s competitiveness.

The various commodity associations, anchors of South Africa’s commercial agriculture, were also present, and multiple stakeholders were engaged.

The farmstalls would not miss the opportunity to showcase the cuisine and “koeksisters”, amongst other delicacies, one would typically find in rural South Africa.

The members of the public — young and old, established and aspirant farmers — were there in droves to feast on the NAMPO activities.

The bonus for this year’s exhibition was the first citizen, President Cyril Ramaphosa, who graced the occasion as a farmer. Of course, those in the livestock and wildlife industries would know him as a breeder and a keen farmer. He arrived in the morning, and by the time I left NAMPO at 4 pm, farmer Ramaphosa was still rubbing shoulders and sharing insights with his counterparts.

He enjoyed the company of great South African farmers who were optimistic about the future of agriculture and our country. There remains optimism in the South African farming.


Origin:
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Wandile Sihlobo
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