Sentiments in SA agriculture
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This week we discuss sentiments in SA agriculture and agribusiness. This is an important matter because it influences the long-term investment path and growth of the sector.
The sentiments in agriculture are measured through the Agbiz/IDC Agribusiness Confidence Index (ACI).
In its recent reading, after a 4-point decline in Q4 2022, the Agbiz/IDC Agribusiness Confidence Index (ACI) deteriorated further by 5 points in Q1 2023 to 44. The current reading is the lowest since Q2 2020 when Covid-19 lockdown restrictions were first implemented. Notably, the first quarter reading is below the neutral 50-point level, implying that agribusinesses are downbeat about business conditions.
The persistent and intense episodes of load-shedding, higher input costs, rising protection in some export markets, rising interest rates, intensified geopolitical tensions which disrupted supply chains, and ongoing weaknesses in municipal service delivery and network industries were again the key factors survey respondents cited as their primary concerns.
This survey was conducted in the final two weeks of February, covering businesses operating in all agricultural subsectors across South Africa.
Addressing the electricity crisis and sector-focused issues such as biosecurity, opening up more export markets and dealing with inefficiencies in municipality service delivery are some of the key issues that will help improve sentiment and the fortunes of our agriculture and agribusiness sectors.
My writings on agricultural economic matters are available on my blog: https://wandilesihlobo.com/
Podcast production by: Lwandiso Gwarubana, Richard Humphries, and Sam Mkokeli
The sentiments in agriculture are measured through the Agbiz/IDC Agribusiness Confidence Index (ACI).
In its recent reading, after a 4-point decline in Q4 2022, the Agbiz/IDC Agribusiness Confidence Index (ACI) deteriorated further by 5 points in Q1 2023 to 44. The current reading is the lowest since Q2 2020 when Covid-19 lockdown restrictions were first implemented. Notably, the first quarter reading is below the neutral 50-point level, implying that agribusinesses are downbeat about business conditions.
The persistent and intense episodes of load-shedding, higher input costs, rising protection in some export markets, rising interest rates, intensified geopolitical tensions which disrupted supply chains, and ongoing weaknesses in municipal service delivery and network industries were again the key factors survey respondents cited as their primary concerns.
This survey was conducted in the final two weeks of February, covering businesses operating in all agricultural subsectors across South Africa.
Addressing the electricity crisis and sector-focused issues such as biosecurity, opening up more export markets and dealing with inefficiencies in municipality service delivery are some of the key issues that will help improve sentiment and the fortunes of our agriculture and agribusiness sectors.
My writings on agricultural economic matters are available on my blog: https://wandilesihlobo.com/
Podcast production by: Lwandiso Gwarubana, Richard Humphries, and Sam Mkokeli
