Agriculture
From The Report: South Africa 2016
View in Online Reader

Contributing more than $15bn per year to the national economy, South Africa’s agriculture sector has historically been one of the strongest on the continent. Diversified and increasingly export-oriented, it enjoyed a strong year in 2014, on the back of a healthy maize crop and demand from abroad. However, 2015 looks set to be a more difficult year for parts of the sector, particularly maize and the related livestock segments, though this is largely due to climate conditions across Southern Africa. A steady recovery is expected once the drought passes, with the most competitive segments of the sector well placed for an eventual resurgence in agricultural commodity prices. Citrus fruit and other higher-value, export-oriented cash crops and niche products are expected to continue their strong performance, particularly as the weaker rand makes South African goods more competitive.

This chapter contains an interview with TP Nchocho, CEO, Land and Agricultural Development Bank of South Africa.

Articles from this Chapter

Overview

The growth industry: Striking a balance as the sector expands
OBG
plus

Worth over $15bn to the national economy, South Africa’s agriculture sector has historically been one of the strongest on the continent. Diversified and increasingly export-oriented, it enjoyed a strong year in 2014, on the back of a healthy maize crop and demand from abroad in particular. While the short-term outlook for 2015 is weaker, thanks to the worst drought for over two decades and macroeconomic headwinds, the sophisticated and efficient large farms that proliferate in the country should…

Interview

Scaling up: OBG talks to TP Nchocho, CEO, Land and Agricultural Development Bank of South Africa
OBG
plus

Interview:TP Nchocho How have sluggish headline growth and a weakened rand affected operational costs? TP NCHOCHO: The macroeconomic environment has put farmer profitability under some pressure. Over the past few years the agriculture sector has done relatively well and benefitted from better global commodities prices. Even with the current drought of 2015, certain commodities are benefitting from healthy international prices. However, the one cost that is affecting all farmers is energy.…

Analysis

Wrestling with reform: Addressing historic imbalances with new regulations
OBG
plus

The issue of land reform is one of the thorniest topics that South Africa faces, with serious social, economic and political implications. The apartheid regime left land concentrated in the hands of the white minority, a situation that has proved difficult to redress fairly and efficiently. Land reform is closely connected to the agricultural sector, where the government’s latest proposals are an attempt to reinvigorate the process, but have caused some concern among investors. Past & Present: The…

Analysis

Against the grain: Balancing demand for staple crops following recent drought
OBG
plus

South Africa is a major producer of maize, which is used to produce both food staples and animal feed for the domestic market, and is also exported. The drought of early 2015 affected production badly, but the outlook is more positive for the crop, which has been increasingly favoured over wheat. Summer Crops South Africa will produce a total of 11.9m tonnes of summer crops in 2015, down from 16.45m tonnes in 2014, according to final forecasts released by the Crop Estimates Committee of the Department…