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