Agbiz facilitates inaugural Agribusiness Forum to be hosted in Africa

Africa's agriculture and agribusiness future has soared to the top of the world's most elite economic growth and agendas. The heightened attention on agriculture and agribusiness on the African continent is based on the enormous growth potential of this region and is now tangibly in sight. Expanding the capacity of these industries is a priority. Given these issues and opportunities, Agbiz and its South African partners, notably the University of Stellenbosch, have long advocated for the hosting of a global conference on agribusiness on the Continent.  The outcome of thoughtful dialogues and advocacy has resulted in the upcoming 2014 Agribusiness & Food World Forum to be held in Cape Town, South Africa.

On June 15-19, 2014, more than 500 students, academic, government, and business leaders are expected to gather at the Cape Town International Conference Centre. The Forum will be jointly presented by the International Food and Agribusiness Management Association (IFAMA) and the Corporate Council on Africa (CCA). Agbiz has been a strong supporter of IFAMA and a regular participant in its events over many years and currently hosts the Secretariat of the Local Organizing Committee (LOC). Through these and other efforts, it has mobilized its members and the broader local agribusiness fraternity to participate and sponsor, as well as play a key role in organizing the event.

The overarching framework for the Forum is People Feed the World.  Throughout the four- day conference, interactive discussions and presentations will focus on the common and binding factor of the human talent and potential to achieve global nutritional security.  Thad Simons, President and CEO of Novus International, who serves as President of IFAMA comments: "Africa is a region of limitless opportunity, where agribusiness has the potential to be the engine that drives dynamic, unprecedented economic growth and development. CCA and IFAMA are delighted to host this global forum in Cape Town and appreciate our friends at Agbiz for fostering this critical dialogue for Africa and the world."  READ MORE»

#IFAMAFRICA

BUSA says the SARB decision to leave interest rates unchanged for the present is the right one

Busa believes that the decision by the SARB to leave interest rates unchanged for the moment, after the surprise increase of 50 basis points in January is the right one, taking both external and internal economic factors into account. Busa agrees that, given the balance of risks in the economy at present, priority must be given to the sluggish business conditions currently prevailing in the economy, given the fact that the SARB itself has reduced its growth forecasts for 2014 and 2015 to 2.6% and 3.2 % respectively. The Busa forecast for growth this year is now 2.5%, based on research done within its membership.

Busa appreciates the policy dilemma faced by the SARB in balancing the upside risks to inflation with the downside risks to the growth rate and agrees that the rand remains vulnerable to both domestic and overseas influences. However, Busa is encouraged by the fact that core inflation has remained stable and that 'pass through' costs arising from exchange rate depreciation are so far still minimal. Given the fact that both business and consumer confidence are presently at very low levels, leaving the repo unaltered for the time being is a positive factor, even if interest rates In SA at present seem to be only in a holding pattern.

Source:  BUSA Media Release   #IFAMAFRICA

DuPont unveils Africa regional technology center in Delmas

DuPont Chair and Chief Executive Officer Ellen Kullman yesterday unveiled a newly expanded research facility at Delmas, South Africa, that will serve as the core of the DuPont Africa regional technology center.  The technology center is designed to help advance DuPont’s ongoing efforts to accelerate seed product development for Africa’s farmers and help them better manage key agronomic challenges, including pest and disease pressure, climate volatility and nutrient-depleted soils.

“Agriculture has a vital role to play in the social and economic security of African countries.  We are harnessing DuPont’s global science capabilities and resources to create local solutions that improve productivity for farmers in South Africa and throughout the continent,” said Kullman.  “We believe this technology center will be a catalyst for innovation and collaboration to help feed a growing population in Africa and around the world.”

Delmas will serve as the central hub of the regional technology center, which is comprised of a network of existing DuPont Pioneer and Pannar research facilities and testing locations throughout Africa.  The Africa regional technology center as a whole will help drive the seed research and development (R&D) product pipelines for DuPont Pioneer and Pannar, capitalizing on complementary germplasm pools and developing innovative solutions for customers of both brands.
DuPont Pioneer began investing in this regional technology center in 2013 after acquiring South Africa-based Pannar seed.  The business remains committed to investing a total of R62 million (South African Rand) or about US$5.8 million in the South Africa center by 2017.

DuPont noted that the Delmas facility includes Africa’s first private insectary, which will raise and house insects that pose challenges to local crop production.

“Having a local insectary is critical to the development of traits and solutions to combat yield-robbing pests,” said DuPont Pioneer President Paul E. Schickler.  “We are proud to build this type of cutting-edge insect research facility for the benefit of Africa’s farmers.”

The Africa regional technology center will employ leading R&D technologies, such as doubled haploids, ear photometry and the proprietary Pioneer Accelerated Yield Technology (AYT™) System.  It will also use genetic breeding technologies, including marker-assisted seed selection, to help shorten crop breeding cycles and improve accuracy toward breeding targets. 
Key research positions in Delmas and in other parts of Africa have been filled by local scientists and skilled technicians.

DuPont has similar technology centers in Brazil, India and China as part of the company’s global research network.

DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802.  The company believes that by collaborating with customers, governments, NGOs, and thought leaders, we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment.  For additional information about DuPont and its commitment to inclusive innovation, please visit http://www.dupont.com.

New Managing Director appointed for GWK

A business leader with local as well as international experience in the food supply value chain was appointed as GWK’s new Managing Director.

Mr Pieter Spies (49), who currently holds an executive role in Telkom’s consumer division, will join GWK on June 1, 2014.

Pieter previously also held various other leadership roles. This includes Director: Sales and Distribution at Brandhouse, Managing Director of Cadbury: Eastern Africa, Commercial and Logistics Director of Cadbury Schweppes and Regional Sales Director for Cadbury: Europe and Middle East.

Pieter matriculated at the Goudveld High school, after which he obtained a certificate in advanced logistics from the Rand Afrikaans University (now known as the University of Johannesburg).

He then obtained a B.Com degree from the University of South Africa, after which he also successfully completed the International Executive Development Program at the University of the Witwatersrand.

“The role as Managing Director of GWK is an opportunity to orchestrate the company’s profitability and growth systematically and sustainably,” says Pieter.

“I first want to experience the company as a whole and thereby understand what the large winning decisions should be and subsequently create and execute strategies with the leadership of the company to benefit our shareholders.

Mr Frank Lawrence, Chairman of GWK’s board of directors, says the board has full confidence that Pieter is the right man to lead GWK in its next phase of growth.

“We wish Pieter all the best in his new role as Managing Director of GWK.” 

Source: GWK Media Release

Cairns Group's Farm Leaders debate food security and agricultural trade

“The lack of progress with the liberalisation of agricultural trade requires from Agri SA to cooperate with like-minded producer organisations from other countries to give momentum to World Trade Organisation (WTO) negotiations”, says Johannes Möller, president of Agri SA.  He leads an Agri SA delegation to Argentina to attend meetings of the Cairns Group‘s Farm Leaders (CGFL) and the World Farmers’ Organisation.

The CGFL was formed in 1986, consisting of members from both developed and developing food exporting countries. The basic aim of this grouping is to reform the distorted agricultural trade regime, including the challenge for more liberal market access. 

At its recent meeting the CGFL considered its future role and contributions towards WTO negotiations.   "Like any other grouping dealing with the interest of specific stakeholders, agricultural forums and structures should also periodically be subjected to evaluation with a view to determining their relevance", says Möller.

Möller says that the purpose of the CGFL was not questioned during the particular meeting. "In fact it became clear that the grouping as such has an even more important role to play given the world’s food security challenges.  It is an economic reality that if markets are not allowed to operate to the fullest possible extent, resources will also not be utilised optimally.  This will not bode well for increased agricultural production, the particular value chains and eventually for food security", says Möller.

He added that due to the protection of and support to the agricultural sectors of predominantly developed countries, agriculture remains the most distorted sector in the world, a situation the CGFL still seeks to address especially given the limited progress having been made during the DOHA round of the WTO.

"The members of the CGFL agreed to do an analysis of what should be done by this grouping, how it should be done and to communicate its message effectively. This implies that the CGFL is reviewing its strategy - a process to be completed within the next three months. Australia’s National Farmers’ Federation will continue to lead the grouping. The emphasis on food security worldwide brought new dynamism to the grouping", Möller said.

Source:  Agri SA, Corporate Liaison  #IFAMAFRICA

Climate change to impact food prices more

The Intergovernmental Panel on Climate Change (IPCC), Fifth Assessment Report on Climate Impacts, Vulnerability and Adaptation, due to be published on 31 March, is expected to warn that climate change will lead to declines in global agricultural yields of up to 2% each decade at the same time as demand for food increases by 14% per decade.

It is also expected to warn of higher and more volatile food prices - Oxfam estimates world cereal prices could double by 2030, with half of this rise driven by climate change.

This may cut the availability of calories from cereals to levels not seen since the 1990s. While temperature rises of just 1.5 degrees will have serious impacts on our food system the IPCC is also expected to highlight a global temperature threshold of 3 - 4 degrees beyond which we will experience runaway global food crises - we are on track to reach this threshold in the second half of this century.

Winnie Byanyima, Executive Director of Oxfam International said: "Climate change is the biggest threat to our chances of winning the fight against hunger. It could have grave consequences for what we all eat, but the world is woefully underprepared for it."  READ MORE

 

Source:  www.fin24.com  #IFAMAFRICA

Five ways Africa can become a global force in farming

Africa, which holds 60% of the world’s uncultivated arable land and has access to plenty of water resources, has the potential to not only feed its own population, but also to contribute to global food security.

However, despite the potential the continent has for agriculture, Africa remains a net food importer. With the African population expected to double to 2bn by 2050 and the urban population growing rapidly, it is becoming more and more vital for Africa to increase its agricultural production and feed itself.

But why is Africa a net food importer?

Bikash Prasad, CFO for southern and eastern Africa at Olam International, told an audience at the Africa Trade Finance Week in Cape Town last week that a major reason sub-Saharan Africa has to rely on food imports is because the region has the lowest actual crop yield (as a percentage of potential yield) in the world.

He highlighted that sub-Saharan Africa’s actual crop yield is estimated at 25% of potential yield, compared to East Asia which has an actual crop yield at almost 90% of potential yield. Prasad estimates that if Africa could double its actual crop yield to 50%, the continent would be able to not only feed itself, but also become a net food exporter.

“Today Africa is producing 700m metric tons of food at 25% yield. If the yield goes to 50%, Africa will start producing 1.4tr metric tons of food and it will become a food exporter,” he said.
For this reason, Prasad argues that increasing agricultural yield is key to Africa reaching its agricultural potential, and suggests five ways the continent can do this. READ MORE

Source:  How we made it in AFRICA #IFAMAFRICA

UN agency calls for concrete measures to end hunger in Africa by 2025

The United Nations Food and Agriculture Organization (FAO) warned yesterday that despite notable recent economic progress, Africa remains the world’s most food insecure continent and calls on all African agriculture ministers to focus their investments and support efforts on smallholder farmers, including youth and women.

With an average annual GDP increase of 4.8 percent between 2000 and 2010 – up from 2.1 percent in the previous decade – Africa has seven out of the top 10 fastest growing economies in the world.

The agricultural sector, in particular, has progressed considerably, with the intensification of staple food production, improved varieties of banana in eastern and central Africa, high-yielding varieties of maize in east and southern Africa and increased productivity in cotton production in Burkina Faso and Mali, and in tea and floriculture in east Africa. On average, agricultural production has increased slightly less than 1 percent per year, compared with about 2 percent in developing countries.

Despite all the progress, levels of hunger and undernourishment remain worrying in sub-Saharan Africa, particularly in the Sahel region and the Horn of Africa, FAO warns, estimating that of the 388 million who live in extreme poverty in the continent, approximately 239 million are chronically undernourished.

FAO insists that there are significant opportunities for accelerating smallholder-driven agriculture and agribusiness in Africa as the basis for transforming and commercializing the sector.  READ MORE

Source:  UN News Centre   #IFAMAFRICA

World Water Day - Agriculture's role in the challenge of food security and water efficiency

World Water Day is held annually on 22 March as a way of focusing attention on the importance of freshwater and advocating the sustainable management of freshwater resources.  It aims to raise awareness across a broad range of business domains and government sectors to solve water and energy challenges in a coordinated way.  The theme of World Water Day 2014 is “Water and Energy” and it underlines the plight of the poorest of the poor, who suffer from a lack of access to water, sanitation and modern forms of energy. 

Agriculture is the largest global consumer of water accounting for about 70% of consumption.  It is expected that this situation will be further compounded by the effects of global warming which will have a severe effect on developing countries where agricultural systems are most vulnerable to climatic conditions and where small increases in temperature are detrimental to crop production.  It is, therefore, important to improve the more efficient use of water in agriculture. This will require an integrated approach to water resources management to encourage an efficient and equitable use of the resource, and to ensure sustainability.  Dr. Obokoh, CEO, AfricaBio says “that in commemorating World Water Day 2014 it was important to mention that agricultural biotechnology can help address the challenge of food security and water efficiency by developing drought-resistant crops and the implementation of low or no-till farming to conserve soil moisture.”  She added that, “the development of crop varieties with increased drought tolerance, by conventional breeding methods or by genetic engineering, is also an important strategy to meet the global demand for more food with less water.”

A number of conventional breeding programs are underway to develop drought tolerant plants.
The development of drought tolerant crops by genetic engineering, on the other hand, requires the identification of key genetic determinants underlying stress tolerance in plants, and introducing these genes into crops. But whether it is by conventional or genetic methods, it is essential to test newly developed varieties to multiple stresses, and to carry out extensive field studies in a large range of conditions that assess drought tolerance and yield increase.

Another major challenge is the increasing difficulty and expense in obtaining approvals for field trials of GM plants. As a number of measures are in place to ensure the safe and responsible design of field tests, excessive precaution should not become a barrier to making sure we use all the tools available to us for a more sustainable agriculture.

Source: AfricaBio #IFAMAFRICA

South Africa falls in 2014 global logistics rankings

South Africa has been ranked number 34 out of 160 countries in the World Bank’s 2014 Logistics Performance Index (LPI), which is topped by Germany, with Somalia ranked lowest.

Africa’s largest economy remained the continent’s highest placed LPI participant, but South Africa’s position was well off its 2012 ranking of 23 and its position of 28 in 2010.

In February, the World Bank argued in a separate report on South Africa that the country’s high logistics costs and price distortions were an impediment to export competitiveness.

That report noted, for instance, that South Africa’s port tariffs on containers were 360% above the global average in 2012, while on bulk commodities they were 19% to 43% below the global average. Similar commodity biases existed in the area of rail freight.

But the new report, titled ‘Connecting to Compete 2014: Trade Logistics in the Global Economy’, still clustered South Africa as an “overperforming non-high-income” economy along with Malaysia (25), China (28), Thailand (35), Vietnam (48) and India (54).

The report draws on data arising from a survey of more than 1 000 logistics professionals and bases its LPI rankings on a number of trade dimensions, such as customs performance, infrastructure quality, and timeliness of shipments.

Besides China, South Arica also performed above its ‘Brics’ counterparts of Brazil (65), Russia (90) and India.  READ MORE

Source:  www.engineeringnews.co.za  #IFAMAFRICA

Africa must do more to unlock potential for rising intra-African trade

Growth in intra-Africa trade is outpacing trade between Africa and rest of the world. However, more needs to be done to boost intra-African trade to take advantage of the increasing commercial depth of Africa’s rapidly expanding consumer markets.

Anne-Marie Woolley and Megan McDonald, joint heads of Standard Bank’s Structured Trade and Commodity Finance (STCF) business in Africa, believe that given the right focus, intra-African trade can be a driving force for growth in Africa.

Evidence of the dormant opportunities that can be unlocked by boosting trade within the continent is particularly true of the agricultural sector, which has the potential to provide more immediate benefits than manufacturing, which takes far longer to develop.

Intra-African flows account for about 20% of Africa’s total agricultural trade activity, compared to averages of 78% for the European Union and 60% for Asia. While African countries produced just 3.5% of the world’s rice in 2011, they were responsible for 35% of global rice imports that year, indicating the potential opportunities that exist for the continent’s rice producers.

Ethiopia is another clear example, accounting for as much as 40% of Africa’s coffee exports. Yet in spite of this, Ethiopia made just 3% of the US$1.2bn it earned by exporting coffee beans in 2012 by doing business with other African nations.

“The trade data shows what can be achieved if African nations made greater strides in conducting trade with each other,” said Woolley. “They could potentially unlock billions of additional dollars simply by placing more focus on trading with their African peers.”

South Africa, the continent’s largest economy, is also missing out on potential trade opportunities within Africa. Of the $2.3bn South Africa earned by exporting fruit in 2012, only 8% came from the rest of Africa; with Angola absorbing 15%, followed by 12% for Benin and 11% for Mozambique.
Similarly, other African nations could benefit by boosting their trade links with South Africa. Of the $1.2bn of South Africa’s expenditure on cereal imports in 2012, just $19m (1.5%) was sourced from other parts of the continent; while 15% of the $86m of coffee imported into South Africa in 2012 originated from Africa. READ MORE

Source:  How we made it in Africa  #IFAMAFRICA

The ‘absurdity’ of manufacturing in Africa

Africa’s wealth of natural resource reserves make it one of the largest producers and exporters of a number of commodities in the world. For example, the continent produces roughly three-quarters of the world’s platinum and over half of the world’s diamonds.

Despite this wealth of resources, very little value is added to these commodities on the continent, with the large majority of its raw materials being exported to the international market.

Edward George, head of soft commodities research at Ecobank, told an audience at the Africa Trade Finance Week in Cape Town this week that despite producing 70% of the world’s cocoa, three-quarters of West Africa’s cocoa crop is exported raw to Europe and Asia where it is processed into cocoa products and chocolate.

To give an idea of how little value is being captured by exporting raw commodities, that are manufactured elsewhere and then imported back into Africa, George used the example of a typical chocolate bar.

“Back in the 1970s when cocoa prices were very high, cocoa accounted for up to 50% of the value of a chocolate bar. By 1980, this had fallen to up to 16%. The most recent estimates put it at between 6% and 7%… The truth is that if you have a 24 segment bar of chocolate, farmers get little more than one chunk of the bar.”

He added that the vast majority of profit from a sale of a chocolate bar is captured by the chocolate manufacturer, estimated at 70%.

“There is only so much value you can get out of a raw cocoa bean. It is when you turn it into something else that the value really is there." READ MORE

Source:  How it is made in Africa  #IFAMAFRICA

Pushing African agribusiness to $1tr mark

Imagine for a moment the impact of a US$1tr African agribusiness sector on the lives of Africans. Currently worth about $313bn, the sector already provides jobs for 70% of the poorest people on the continent. An increase greater than threefold will bring jobs to lift millions out of poverty; most stomachs will be filled with nutritious meals, Africa’s agricultural exports will dominate global markets, and the continent’s farmers, who have borne the brunt of harsh economic conditions, will get a new lease of life as they become competitive in the global marketplace.

This is not an unreachable dreamland. A World Bank report published in March 2013 argues that it could soon be a reality. The report, Growing Africa: Unlocking the Potential of Agribusiness, projects that African agribusiness could be worth $1tr by 2030. It’s the latest in a string of positive reports about the continent’s socioeconomic development prospects, despite political instability in a handful of countries.

But no magic wand will cause a $313bn agribusiness sector to grow into a $1tr behemoth. The World Bank cautions that everyone will have to work hard – governments, the private sector, farmers, and so on. However, the elements for a pole-vault jump are in place. For example, in addition to huge, untapped water resources, Africa has more than 50% of the world’s fertile and unused land – that’s a whopping 450m hectares. The continent uses only 2% of its renewable water resources, while the global average is 5%. The steady and increasing private sector interest in African agribusiness is just the icing on the cake.  READ MORE

Source:  How we made it in Africa #IFAMAFRICA

Family farms are model farms, says FAO chief

There are an estimated 500m family farms in the world, and family farming is the predominant form of agriculture and main food producer in developed and developing countries.

The rising Africa narrative suggests that there will be a 4.7% growth rate in African economies in 2014, but while this offers opportunities to rural farmers, they often struggle to meet growing demands and find themselves at a disadvantage due to high costs, and low bargaining power.

However, with adequate support, according to director general of the Food and Agriculture Organisation, José Graziano da Silva, they can quickly realise their productive potential. "They can increase the availability of food in poor communities, preserve traditional food products, support the shift to more balanced diets, safeguard the world's agro-biodiversity and contribute to food security and sustainable development as a whole.

"Nothing comes closer to the sustainable food production than family farming. The preservation of natural resources is rooted in their productive logic; and the highly diversified nature of their agricultural activities gives them a central role in promoting the sustainability of our food systems and ensuring food security."  READ MORE

Source: The Guardian #IFAMAFRICA

Nigeria to overtake South Africa as Africa's biggest economy by March 31

As Nigeria gets richer, more Nigerians live in poverty. That’s the paradox of growth in Africa’s biggest oil producer, its most populous nation and which, as of March 31, may be its top-ranked economy.

The National Bureau of Statistics is recalculating the value of gross domestic product based on production patterns in 2010, the first time it’s overhauled the data in two decades. That may boost the size of the economy by as much as 60 percent to between $384 billion and $424 billion, according to London-based Renaissance Capital Ltd., putting Nigeria ahead of South Africa and close to Austria and Thailand in the World Bank’s global league table.

Yet the most recent poverty survey by the Nigerian statistics agency, published in 2012, shows that 61 percent of Nigerians were living on less than a dollar a day in 2010, up from 52 percent in 2004. In the desert north, where Amnesty International estimates more than 600 people have been killed this year as the government struggles to quell a violent Islamist insurgency, poverty is even more stark.

Joblessness among young Nigerians may undermine economic progress in a nation where 23.9 percent of the working population is unemployed, according to data from the Central Intelligence Agency’s World Factbook. It estimates that 62 percent of the nation’s 177 million people are below the age of 25.  READ MORE

Source:  www.africainvestor.com  #IFAMAFRICA

Africa: Scale up policies that work to eliminate hunger by 2025

Hunger could be eliminated by 2025 if enough resources are committed and countries scale up policies proven to work, an international food policy organisation suggests in a new report.

"Based on the successful experiences of several developing countries, we see the clear potential for ending hunger and under-nutrition by 2025 if the necessary policies and investments are adopted," Shanggen Fan, director general of the International Food Policy Research Institute, wrote in the institute's 2013 Global Food Policy Report.

Hunger is a continuing concern in many parts of the world, particularly with food prices rising, population growth continuing and extreme weather associated with climate change affecting harvests.

Still, the 2015 deadline for the United Nations' Millennium Development Goal of halving world hunger remains "within reach," according to the U.N. Millennium Development Goals Report 2013, even though one person in eight in the world remaining chronically undernourished, the report said.  READ MORE

Source: www.allafrica.com  #IFAMAFRICA

Africa's food crisis discussed in Durban

Durban is currently hosting talks this week with various governments and scientific organisations to help Africans better utilise science to address their food needs.

According to the SABC the African Union is also part of the discussion and will address the progress made over the last ten years in trying to feed African states.

The talks will in addition be a venue where leaders can discuss what will be the next steps for Africa in tackling famine for the next ten years. Essentially what is the prescribed roadmap available for the future of Africa.

The resolutions made at the Durban talks will then be discussed and evaluated by various heads of states and at a summit in June.

The main aim of the talks is to identify the best scientific tools Africa needs to address food security on the continent says Yemi Akinbamijo the director of forum for agricultural research in Africa (Fara).

Fara has the immense responsibility to determine Africa’s scientific plan to develop and increase agricultural production.

This plan will be created and evaluated at the Durban talks. READ MORE

Source: www.news24.com #IFAMAFRICA

German agriculture boss endorses foreign investment in African farming

Carl Heinrich Bruhn’s perception of Africa used to be mostly negative. However, his opinions made a dramatic about-turn since he first came to the continent to look for investment.

Bruhn is a German farmer who has spent his career working in Europe’s agricultural and food industry. A few years ago he decided to start his own agricultural company, and in 2011 Amatheon Agri was launched. The company has managed to attract various high profile businesspeople, such as former Unilever Africa head Frank Braeken, who joined the company as chief investment officer.

Amatheon calls itself a “European agribusiness and farming company developing and operating sustainable projects in sub-Saharan Africa”. However, it was not Bruhn’s original intention to do business in Africa.

After initially focusing on opportunities in Kazakhstan and Russia, the company was offered a project in southern Africa, which opened his eyes to the potential on the continent.

“I went to sub-Saharan Africa and said: ‘Wow, why have I never seen this opportunity?’ In regards to business operations in Africa, people always talk about the risks and enormous difficulties, which led to me adapting this view as well. Today I have a very different and more sophisticated view, because it is not about the risks and difficulties, which without doubt exist, but it’s about whether you know how to manage them.”  

The company’s first investment was in Zambia where it acquired more than 30,000ha of land 200km west of the capital Lusaka. Amatheon cultivates soya, maize and wheat in the region and is steadily growing its cattle herd.  READ MORE. 

Source: www.howitismadeinafrica.com. #IFAMAFRICA

Creating a better harvest for African agriculture

Africa is one of the most fertile regions on earth. Yet, while the continent boasts 60% of the world’s uncultivated arable land, one in four Africans still go hungry and Africa still imports 40% of the food it needs.

While recent developments in African agriculture show tremendous promise, the continent still lacks viable ways of channeling investment money to the millions of dynamic entrepreneurs with viable business ideas in sectors such as farming, aquaculture and agro-processing. Indeed, Africa is losing huge potential investments each year. This loss has effects for jobs and economic growth.

These are a few key changes necessary to make this possible:
1. Attract greater investment
2. Reduce the cost of money
3. Strengthen appropriate governmental regulation
4. Strike a balance between big and small businesses
READ MORE

Source:  How it is made in Africa  #IFAMAFRICA
PUBLISHED BY BOB GELDOF AND OLUSEGUN OBASANJO 

Agri-firms look set for good trading this year

The road ahead for the agriculture sector this year should be smooth, but agribusinesses should expect a few bumps along the way coming from possible labour unrest and uncertainty surrounding the issue of land reform.

This is according to the PwC Agribusiness Insight Survey released yesterday, which also suggests that chief executives in the agribusiness sector are feeling positive about the possibility of expanding into the rest of Africa.

 

The survey was carried out among a group of agribusinesses with operations that are mainly focused on delivering agricultural and related services to primary producers. The participants in the survey were largely from the grain industry of South Africa.

 

Like last year, government regulations, energy costs and inadequacy of basic infrastructure are perceived to be serious challenges for business growth by chief executives.

 

Labour unrest and land reform have been added to the list as factors that concern business leaders in this sector.

 

Meanwhile, the survey also gives an indication that 70 percent of the business leaders in this sector are keen to enter markets on the continent outside of South Africa.

 

The survey says: “Africa is increasingly becoming a preferred investment destination and is said to represent the last frontier in global food and agricultural markets with its large percentage of uncultivated fertile land and sufficient water resources.”  READ MORE

 

Source: Business Report #IFAMAFRICA 

How China tackles its challenges is the key to opportunities

AS China faces a broad range of challenges, the shifting structure of its economy and the development of its "soft power" are stand-out issues for this year. The consequences of how Beijing deals with such challenges will affect companies across the world and executives should be prepared for opportunities that arise.

Though China is still expected to grow at roughly 7.5% this year, many analysts have suggested that such a relative economic slowdown will encourage Beijing to address chronic issues such as social inequality and its economy’s dependence on investment for growth. However, with the global economy still recovering from the financial crisis, these transitions will test Beijing’s credentials. China’s attempt to shift its economy towards a stable, consumption-driven one, with greater social and geographical equality as well as environmental sustainability, could define its long-term political and economic future.

Many countries in Africa are crucial to China’s security of resources. China faces growing pressure to ensure its legacy in Africa remains distinct from traditional colonial powers. As China increases its outward foreign direct investment into oil and minerals and other sectors like agriculture, it must be conscious of the host countries’ calls for an associated improvement in working conditions and greater levels of domestic wealth transfer. READ MORE

Source: BusinessDay Live  #IFAMAFRICA

South African avocado exports around the corner

South African avocados are on the verge of exports to the European market with the first shipments due to arrive by the end of March, according to South African Subtropical Growers’ Association (Subtrop) CEO Derek Donkin.

“The South African export crop forecast is 58,000MT. Although this will be South Africa’s largest export crop to date, it is not foreseen that the European market will be oversupplied as Peru will be channeling a greater proportion of its export avocados to the U.S.A. due to reduced supply from the Californian avocado industry,” Donkin said in a written response to www.freshfruitportal.com.
“In 2013 the Californian crop was 227,000MT; however the 2014 Californian crop will only be 135,000MT. Therefore, Peru will be able to utilize its growth in production to exploit the opportunity in the U.S.A.

“Peru forecasts that its 2014 export volumes to Europe will be similar to 2013.”
He said an analysis of forecasts from countries that supplied Europe and North America during the Northern Hemisphere summer showed total production would be marginally lower.
Avocado consumption in the EU market continues to grow according to Donkin, who said the rate had increased from 145,000MT in 2003 to 279,000MT a decade later. Expectations are this growth trend will carry on across Europe where per capita consumption levels are still well below rates across the Atlantic in the U.S.

Avocado trends
Donkin said as more European consumers chose avocados, sales of a ‘ripe and ready’ fruit seemed to be the favored choice.

“Around 99% of South African exports currently go to Europe. Some fruit does go to the Middle East and the Far East and SAAGA is currently busy with work to access new markets such as the U.S.A., Japan and China,” Donkin said. READ MORE

Source: www.freshfruitportal.com  #IFAMAFRICA

SA must get bigger share from food exports, says Davies

THE food-processing industry needed to extract more value from exports as gains by retailers overseas were too high, Trade and Industry Minister Rob Davies said on Monday in a keynote address at the biannual world conference of the processed deciduous fruit industry, held in Stellenbosch.

He said a strong and globalised buyers’ market meant 40%-45% of the final price of fruit products sold abroad was captured outside South Africa. This was too high and there ought to be more equitable gain-sharing.

Supermarkets, agents and logistics companies were capturing the value that should accrue to South African producers.

Mr Davies suggested that producers examine their marketing channels and remove third-party agents. They also needed to engage more robustly with foreign retailers and diversify their markets, particularly into Africa.

South African manufacturers also had to face high subsidies provided by foreign governments to producers, and high tariff barriers.  

The minister met the CEOs and representatives of various food-processing companies at the weekend to discuss the state of an industry facing many challenges such as competition on the export market, loss of market, and the unstable currency and exchange rate. Yet it had enormous potential, he said.

"South Africa’s agro-processing sector has the potential to become an industrial impetus that can create jobs and answer some of the macroeconomic questions such as the trade deficit generated by too much imports against low export volumes. An analysis of our imports points to glaring opportunities in articles such as wheat, soy bean, vegetable oils, red meat, tomato concentrate and industrial starch," Mr Davies said.  READ MORE

Source: BusinessDay Live. #IFAMAFRICA

Sustainable projects can level urban bias, ease rural poverty

Globally, rural areas are underdeveloped and face many challenges – in South Africa, this is especially so. In an effort to address these challenges, many developing countries have adopted strategies to give people in rural areas incentives to stay there and build a better life for themselves.

Studies indicate that only 21 percent of South Africans living below minimum levels reside in densely settled areas, meaning that four out of every five of our poorest citizens are rurally based.

Research shows that most of the fast-developing rural communities across the world share a common thread: instead of giving hand-outs, support organisations have invested in providing skills and development training. Many initiatives, including some in South Africa, follow this lead and have experienced positive results.

Some of the challenges in our rural communities include the absence of infrastructure (water and electricity supply and proper roads) and the neglect of agriculture. Furthermore, because populations are geographically dispersed, and because communications and transport infrastructure is often poor, rural people have difficulty organising and expressing their preferences through political processes.

The rural poor, women in particular, have little political power. Globally, urban elites pursue policies that disadvantage the agricultural sector, such as onerous taxes and low urban food prices. This policy set, often identified as urban bias, has been pervasive in many countries. Although rural elites are able to obtain some compensation, this amount is insufficient to offset urban bias and often aggravates impacts on the rural poor.  READ MORE

Source: Business Report. #IFAMAFRICA

Gauteng residents to comment on land restitution bill

RESIDENTS of Gauteng will on Tuesday have a chance to comment on the Restitution of Land Rights Amendment Bill, which seeks to reopen land claims to the public.

The bill proposes an extension of the date for the lodging of restitution claims from the previous closing date of December 1998 to June 30 2019. It also opens a door for claims not lodged by the 1998 deadline.

Nearly 80,000 claims were lodged during the first window, and the department estimates that 397,000 claims will be lodged in the new window — costing between R129bn and R179bn, if the claims are settled in the next 15 years.

According to Land Claims Commission statistics, 77,334 restitution claims had been settled in South Africa by March 2013, benefiting 368,090 households and about 1.8-million people.

In the latest national budget, the government will spend R8.7bn on the settlement of land restitution claims over the next three years.

African National Congress chief whip Stone Sizani said the reopening of land claims would be guided by a just and equitable principle of compensation, as opposed to the willing-buyer, willing-seller system.  READ MORE

Source:  BusinessDay Live  #IFAMAFRICA

Turning South Africa Into Africa’s Agriculture Hub

South Africa continues to play a leading, and vital, role in the African agriculture landscape. In South Africa, each farmer provides food for approximately 1 600 people. To put this in perspective, the average food provision ratio for the rest of Africa is closer to one farmer feeding 26 other people. And South Africa’s leadership position in this regard is set to become increasingly relevant and important as the world looks to Africa to play a bigger role in addressing global food security issues.

However, the ability of South Africa to capitalise on the opportunities this global shift presents will depend largely on the perspective in SA, and its agriculture stakeholders, take with regard to the growing number of challenges facing its agriculture industry as a whole. And there can be no denying that there are numerous challenges.

Insecurity relating to land reform remains a significant hindrance to investment and development as stakeholders in agriculture adopt a ‘wait and see’ attitude rather than investing capital into land or farming inputs.

Climate change is becoming a greater inhibitor of yields, as incidents of widespread droughts and floods play an ever-increasing role in crop choices and planting decisions of the country’s commercial farmers.  READ MORE

Source:  Ventures Africa
By Zhann Meyer; Africa Head for Nedbank Capital Global Commodity Finance   #IFAMAFRICA

Biotechnology and the Smallholder Farmer

There is also more buying power now than ever before on the African continent, as growing numbers of Africans with more disposable income increase their food consumption and diversify their diets. Several agricultural analysts expect consumer demand for grain and livestock products in Sub-Saharan Africa to grow by 18 billion dollars by 2020. The only way the region can meet the demand is by using advanced crop techniques and with new investment in agricultural production.

Climate change is already posing problems for farmers as weather patterns become more unpredictable. For example, the United Nations projects we will need to produce 70 percent more food by 2050 using less land, water, fertilizer, and fewer pesticides. Sub-Saharan Africa has great potential for higher agricultural output to meet this increasing demand, but will need access to safe and appropriate science and technology to meet agricultural challenges and consumer needs.

Scientifically speaking, no one has found a magic bullet solution to the challenge of food security. Biotech is not a magic bullet. Organic agriculture is not a magic bullet. Urban and local agriculture are not magic bullets. However, all of them are valuable tools that farmers can use to help ensure greater food security. As the largest producer of both biotech and organic agricultural products, the United States has proven that different forms of agriculture can indeed coexist successfully.

And we have also seen how biotechnology can save small farmers’ livelihood. For instance, in the 1990s, Hawaiian papaya farmers were faced with devastation from a plant disease that reduced papaya production by 50 percent within six years and just kept spreading. There were several attempts to deal with this pest, but nothing worked until one plant pathologies developed a biotech variety that was resistant to the virus, which ultimately saved our small papaya industry. READ MORE

Source: Biotech Indaba Weekly eNewsletter. #IFAMAFRICA

‘Private deal’ prerequisite for merger approval

AN AGREEMENT reached in private between the state and merging parties — diversified food group Afgri and private investment company AgriGroupe — had been made a condition for the approval of the deal by the Competition Tribunal, the tribunal said on Thursday.

It included the agreement despite a request by the merging parties to avoid placing an obligation on itself and the Competition Commission to monitor agreements that were not competition related, as the authorities had limited resources.

The government raised concerns that AgriGroupe might increase storage costs for grain in KwaZulu-Natal, Mpumalanga and Gauteng as it would then own the majority of silos in these regions.

The commission found there was spare capacity at the silos and that it would not make commercial sense to exclude farmers from using it.

It recommended an unconditional approval of the merger after its analysis into the matter after concerns were raised by various stakeholders, including the economic development, trade and industry, agriculture forestry and fisheries, and rural development departments about the possible anticompetitive effects of the transaction.

The commission agreed with the terms, and would abide by the decision of the tribunal.

However, it found no evidence of public interest concerns following assurances that there would be no merger-related job losses, or evidence of competitive overlaps in the activities of the merging parties.

Competition law expert Greta Engelbrecht said this was a continuation of the slippery slope the tribunal set upon in the controversial Walmart deal, where conditions were imposed that had no direct bearing on the deal’s effects on the competitive landscape.

According to the agreement Afgri would make available R90m over four years for loans to emerging farmers, enrol emerging farmers in the development programme established in 2012, and help poultry farmers. Qualifying farmers would receive a grain storage discount.

Afgri also agreed not to relocate its head office outside South Africa during the agreement or 

thereafter. AgriGroupe offered to acquire for cash all outstanding shares of Afgri. 

Source: BusinessDay Live.   #IFAMAFRICA

Confidence in agribusiness dropped slightly

Confidence in agribusiness dropped 7% in the first quarter of 2014, compared to the last quarter of 2013 and 4% in comparison to the same period last year. 

 

Uncertain global and local economic conditions places the South African economy under severe pressure. Advanced economies that are reliant on the emerging markets for their growth, tend to neglect to recognise the recovery of these markets.   This results in various challenges for the emerging markets, such as slow growth, high inflation, exchange rate depreciation and capital flows.

 

South Africa, specifically, experiences a decline in retail sales, low consumer confidence, low fixed capital investment, and now also the recent hike in interest rates.

The turnover and net operating income of the agribusinesses are largely linked to the agricultural commodity and farm gate prices and reflects the impact of input costs and cost of doing business. Very small, and almost insignificant changes was indicated over the past year. Due to the seasonality of agriculture, the quarter to quarter changes is not very indicative. However, the responses in this quarter, clearly indicated how the lower expectations for the summer grain harvest, as well as the impact of the earlier flooding and hail damage in the fruit industry impacted on the expectations for the turnover in the short run. The expectations for the general agricultural conditions was indicated to have improved, which might suggest that production output could be higher, than currently expected, in the second quarter.

Accordingly, the expectations for volumes exported are also down, both in the short and long term. Generally it would be expected that volumes would increase with the weak exchange rate, but it became clear that due to the decrease in production output, exporters cannot utilize the potential increase in foreign earnings.

The agribusinesses expected economic growth to further slowdown; marginally in the short term, but significantly in the longer term. The growth in the economy reflects the confidence in the purchasing power of the consumers, which directly impact the agricultural sector, whether or not the agribusiness is directly involved in retail.  READ MORE

BUSA to seek high level meeting with government on latest Eskom power emergency

BUSA is deeply concerned at the latest power emergency declared by Eskom today - the fourth one in as many months and the most serious announcement to date -  as these are now cumulatively beginning to have serious economic and business consequences for SA. While if further load-shedding is inevitable, it is nonetheless better that energy saving should be spread over the whole nation than repeatedly placing an unfair burden only on a small number of intensive energy-users, the overall outlook has increasingly become a critical and uncertain one. Eskom's inability to maintain a stable power supply is inhibiting investment, growth  and job creation, as well as having a negative impact on productivity.

BUSA's concern should be seen in tandem with the further delay in Parliament this week in the Independent Services and Marketing Operations Bill (ISMO), to which business was looking to create a more competitive environment for energy supply and to provide greater energy security in future. In the meantime, every effort must be made to get all sources of ancillary power mobilized and load-shedding must be planned to cause the minimum disruption to economic activity, transport and welfare. If confidence is to be restored, there needs to be more awareness at the highest level of the reality of the situation, and greater transparency in decision-making.

In view of the seriousness of the electricity situation, BUSA will be seeking urgent meetings with both the Minister of Public Enterprises Malusi Gigaba and the Minister of Energy Ben Martins as soon as possible to again discuss the challenges on the energy front.

Enquiries: Raymond Parsons - Special Policy Adviser, BUSA 083 225 6642

Eskom implements load shedding

Thursday, 06 March 2014: Eskom will start implementing rotational loadshedding from 09:00 this morning according to the published load shedding schedules available at http://loadshedding.eskom.co.za/ for Eskom customers. Municipal customers need to contact their own municipalities for the correct schedules. Eskom customers can also contact our customer call centre on 0860 037 566.

Eskom calls on consumers to urgently switch off geysers, pool pumps and all non-essential appliances throughout the day to further reduce the impact of rotational load shedding. 

We anticipate that we will be load shedding until 22:00 tonight. However, should we receive the necessary savings from all our customers and the situation improves, we will terminate load shedding earlier.

Customers are cautioned to treat all electrical connections as live during this period.

Eskom will provide regular updates on the status of the power system through all media platforms.

Eskom had declared an emergency at 06:00 this morning and asked key industrial customers to reduce load by 10%.

2014 could be biggest campaign yet for South African avocados

The South African Avocado Growers’ Association (SAAGA) says it is possible the 2014 season will be the “biggest yet”, after a successful 2013 export year of 11.6 million cartons.

In an annual report, SAAGA chairman Mark Baker said it was positive to see such a strong volume in an “off” year of the alternate bearing process.

“Looking back over historic exported volumes, South Africa has always experienced noticable on/off year scenarios which is not good for marketing initiatives and is most straining on farmers’ sustainability and cash flows,” Baker said.

“t is most encouraging to see the band between on /off has reduced. We would like to believe that improved orchard practices, new plantings and focus on orchard productivity is paying dividends.”

Despite good indications on the volume front, cost hikes above inflation for electricity, fuel and labor have affected South African growers’ competitiveness. Baker added growers experienced mid-season pressure from Peru, which doubled its shipments to the European Union against projected values.

In order to give growers more options, SAAGA spent 37% of its 2013 budget on market development work and promotions, while a further ZAR120,000 (US$11,214) was spent on addressing the technical issues required for access to new markets such as the U.S. and Japan.

He said additional work was also carried out on the host status of various avocados to the invasive fruit fly,B actrocera invadens.

“The importance of market access into countries like USA, China, Japan needs to be fast tracked therefore this sits high on the agenda of the utilization of available funds,” Baker said.

“Sufficient phytosanitary research has now been done to meet the requirements of a number of potential export markets. However, the government to government processes need to run their course before access is gained to new markets.”

While the SAAGA supports the inter-governmental process, it believes it would be prudent to invest in political lobbying to fast-track it.

“Gaining access to new markets such as the USA will have a greater impact on the profitability than low level investments in generic market development campaigns (promotion of consumer awareness and trade participation) in the EU.”

Source:  www.freshfruitportal.com  #IFAMAFRICA

Free State chicken project empowers community

Grain Field Chickens, with the help of R130-million in state backing, has boosted its production from 9 000 to 130 000 chickens a day since 2012, while creating over 1 000 new jobs for people in around Reitz in South Africa's Free State province.

During a visit to the Grain Field Chickens abattoir last week, President Jacob Zuma said this was "great news for many families in the area. Another good story ... is that workers here at Grain Field own 23% in the business."

He added that the people behind the project had been innovative and had not sat back and waited for the government, which had stepped in "only at a later stage" with funding and technical assistance.

"This is the story of how you were able to take a difficult situation, like the economic recession, and turn it around into an economic and social success," he said. "The Grain Field Chicken project proves that South Africa is a much better place to live in now. There are more opportunities that did not exist before, especially for black people."

Grain Field MD Sas Kasselman said the company's employees were also beneficiaries of a 23.1 percent stake in the abattoir. "This makes the project's success a personal success for the beneficiaries as well. It creates a social responsibility amongst employees.

"Job growth and skills development sharing is extremely crucial to the growth of any project of this magnitude," Kasselman said. "We ensure that employees on various levels are trained, and they in turn share their training and transfer skills to their fellow workers. It is a continuous learning environment at the abattoir."  READ MORE

Source: www.southafrica.info  #IFAMAFRICA

UN to assist after food crisis in Zimbabwe worsens

THE United Nations (UN) is approaching donors to raise $60m to help alleviate a rapidly worsening food crisis in Zimbabwe, as this season’s woeful harvest leaves more than 2-million people in need of food assistance.

Zimbabwe has been experiencing an extensive migration of farmers ditching the production of staple crops such as maize in favour of cash crops, such as tobacco, and this is quickly raising the import bill for food.

According to Sory Ouane, country director of the UN World Food Programme in Zimbabwe, the UN has budgeted $86m for its food assistance programme to June this year in order to feed 1.8-million of those in need, but despite some "generous contributions" from donors, the fund had a $60m shortfall.

Roelof Horne, portfolio manager at Investec Asset Management, which manages one of the biggest funds on the continent, on Monday blamed the lack of clarity over property titles after the land grabs in the 2000s as holding back investment in agriculture.

Zimbabwe was once known as the bread basket of Africa but has seen its economy shrink by half since 1980 as a result of indigenisation and the farm invasions.

However, tobacco is making a comeback again to levels near 200-million kilograms, last seen a Sadc said in its most recent Food Security Update that people at risk of food insecurity in Zimbabwe were up by 32% compared to last year.

"It’s a mess. I think Zimbabwe will be an agriculture power again, but there are complex issues to resolve first," said Mr Horne.

Mr Ouane said there was a huge deficit in the current maize harvest, at only 800,000 tonnes in the 2012-13 season, compared with the 2.1-million tonnes needed. The shortfall means 2.2-million people have needed food assistance between October and March, and more than 1-million do not even know what they will be eating from day to day.

The UN met some West African donors in Pretoria last week to try raise funds, but South Africa’s government was not approached as it is part of the Southern African Development Community (Sadc), which has its own food security programme.  READ MORE

Source: BusinessDay Live. #IFAMAFRICA

Sugar import tariff changes in pipeline

A CHANGE to the import tariff on sugar is imminent. A new regime has been processed and passed on to the South African Revenue Service (SARS) for implementation, Minister of Trade and Industry Rob Davies said on Tuesday.

The move signals a more favourable view towards raising tariffs to protect local production by the department and the International Trade Administration Commission of SA (Itac) — the government body that investigates trade remedies.

An Itac recommendation to Mr Davies last year led to an increase in tariffs on imported chicken.
Local sugar producers have complained for several years that the industry is at risk from dumped sugar from Brazil, Guatemala, India and others — due to overproduction and subsidies the world price is significantly below production cost. Last year the South African Sugar Association applied to Itac for a higher dollar-based reference price on imports. This would effectively put an import tariff in place.

The association’s spokeswoman, Jennifer Crawford, said on Tuesday the "dumped price" on the world market and the low dollar-based reference price applied by Itac meant no import tariff had been in place. This was unusual, she said, as most sugar-producing economies use tariff protection against imports.

Mr Davies said he could not disclose the new tariff before it was published in the government gazette for implementation by SARS. However, the fact that the application has been processed and passed onto SARS indicates that there will be a change to the tariff regime.

Also speaking at a media briefing by Cabinet ministers in the economic cluster of ministries at Parliament yesterday, Minister of Rural Development and Land Reform Gugile Nkwinti said the government wanted to cut down on food imports to keep food prices under control. READ MORE

Source: BusinessDay Live  #IFAMAFRICA

“SA offers enough investment opportunities in agriculture”

South Africa is a country of many challenges and is also a gateway for investors in Africa and offers enough opportunities in agriculture for investment, cooperation, expansion and trade.

New foreign agricultural investments in South Africa are to the advantage of South African farmers and assist in job-creation.

This was the central theme of a speech which Deputy Minister of Agriculture, Forestry and Fisheries Dr. Pieter Mulder, delivered Monday morning at an international agricultural conference in Pilanesberg.

The conference was attended by the largest and most successful farmers from, amongst others, America, Russia and Portugal.

Dr. Mulder says that South Africa is still the economic giant of Africa and if the current trend continues, Africa will play an increasingly important role in the world economy.

"By the year 2040, one in every five of the planet’s young people will be living in Africa and its working population will be larger than that of China. What is of great importance for farmers is that Africa has approximately 60% of the world’s uncultivated agricultural land and a large portion of its natural resources. Yet it only delivers 10% of the world’s food, while its consumers are increasing at three times the rate of the OECD (Organisation for Economic Co-operation and Development) countries and food production will have to increase accordingly."

According to Mulder, the biggest reason for Africa’s low food production is a shortage of large commercial farms. In Africa 85% of all farms are smaller than 2 hectares.  READ MORE

Source: www.sabc.co.za   #IFAMAFRICA

South African agriculture 'creating jobs again'

South Africa's agriculture sector created 65 000 new jobs between December 2009 and December 2013, reversing a trend of farming job losses in the country that stretched back to the 1970s, Economic Development Minister Ebrahim Patel said on Tuesday.

Speaking at a post-State of the Nation Address media briefing in Cape Town, Patel said that the government had spent about R20-billion on land restitution and redistribution between 2009 and 2013, during which period a total of 1 740 555 hectares of land had been acquired and redistributed or restituted.

To ensure sustainable production on productive land, he said, 700 000 smallholder producers had been supported through various initiatives, including access to finance and mentoring.

Regarding the Fetsa Tlala programme, which was launched by President Jacob Zuma in October last year, Patel said that planting was taking place on 230 000 hectares of land in six provinces, with half of this land set aside for smallholders.

"A total of 10 271 resource-poor, historically disadvantaged producers were supported to access water for agricultural purposes, and over 18 000 hectares were irrigated during this period. From 1 April 2009 until 31 December 2013, a total 2 400 000 hectares of land has been added to the area of land under rehabilitation and restoration."

According to the minister, a total of 3 486 000 hectares was cleared as part of follow-up treatment.
"A further 33 341 smallholder producers were assisted to access markets, and 1 284 producer cooperatives and marketing depots were established in order to increase their competitiveness and take advantage of market opportunities."  READ MORE

Source:  SAnews.gov.za    #IFAMAFRICA

Department of Labour unveils Employment Equity Regulations taking a step closer towards implementation of new EE Act

The Department of Labour (DoL) has published the Employment Equity Regulations 2014 for public comment to further augment government’s commitment towards the promotion of equity and diversity in the workplace.

Labour Minister Mildred Oliphant, acting on the advice of the Commission for Employment Equity in terms of the Employment Equity Act of 1998 has signed the notice inviting public comments to give effect to the change. The regulations give effect to the Employment Equity Amendment Act No.47 of 2013, which was assented by the President on 14 January 2014.

The Employment Equity Regulations 2014 provides practical guidelines on how to implement EE law in the workplace. The repeal of the old regulations will give effect to the implementation of the new Act.

The key issues highlighted by the EE Regulations 2014 is the revised definition of designated groups, criteria and methodology for assessing work of equal value, guidelines for assessment of compliance using the national and regional economically active population (EAP) and enforcement mechanisms.
READ MORE

SA imports yellow maize

Johannesburg - South Africa has started importing yellow maize, traders said on Monday, as huge export demand and local consumption deplete stocks before the next harvest.

It had been anticipated that South Africa would import maize before the end of the May 2013-April 2014 marketing season after it committed much of its harvest for exports.

“We have started (importing),” said Konrad Keyser of Brisen Commodities, adding they had a shipment of about 40,000 tonnes of yellow maize coming in from Ukraine.

“It should be here around 15/16 March.”

Yellow maize is mainly used for animal feed.

Another trader said he was aware of two boats coming in with about 20,000 to 25,000 tonnes each.

“We are not sure about the origin, but our guess it is from the Black Sea region,” the trader said.

South Africa had 1.390 million tonnes of white maize and 946,076 tonnes of yellow maize in stock at the end of January, industry data showed last month.

With some of the stock already booked for exports, South Africa is left with little for local consumption.

“The stock levels of both white and yellow maize are running dangerously low, with potentially very little or no pipeline storage left until harvesting of the new season commences,” the National Agricultural Marketing Council said in a note on Monday.

South Africa harvested 11.69 million tonnes of maize in 2013.

Low stocks and patchy rains in the last two years have helped drive the price of maize, the regional staple, to a record of over 3,300 rand per tonnes in early February.

Record maize prices combined with weakness in the rand currency is also seen pushing inflation higher in Africa's largest economy and could hurt poor households ahead of general elections on May 7. - Reuters

Source: Business Report. #IFAMAFRICA