Latest news with #NationalAgriculturalMarketingCouncil
IOL News
15-07-2025
- Business
- IOL News
How US tariffs will impact South Africa's agriculture and automotive sectors
Several sectors are set to be affected by the tariffs. Image: IOL South Africa's export-dependent industries are bracing for an unprecedented disruption as a 30% tariff on exports to the United States is set to take effect on August 1, 2025. This policy shift is expected to impact the country's vital sectors, especially agriculture, automotive manufacturing, and metals. Citrus, wine, and macadamia Among the most severely exposed is South Africa's citrus industry, which is the second-largest in the world. The US currently imports about R1.8 billion worth of South African citrus annually, sustaining approximately 140,000 jobs across the value chain. A 30% tariff could effectively price South African produce out of the US market, despite strong demand driven by declining local production in Florida. Wine and macadamia exporters can also expect to experience major setbacks. The US has been a key growth market for South African wines and tariff-induced price hikes could erase margins entirely. Macadamia exporters, already suffering from a global oversupply, will see competitiveness vanish, especially for smallholder farmers in Limpopo and Mpumalanga. Auto industry The Eastern Cape's automotive sector, already dealing with a 25% tariff since April, will be further hamstrung by the broader 30% import tax. In 2024, the US bought R35 billion in luxury vehicles and components from South Africa — a third of which consisted of auto parts manufactured by smaller suppliers. Steel and aluminium Heavy industry isn't spared either. According to early projections, steel and aluminium exporters could be hit with tariffs as high as 50%. These sectors are crucial not only for direct exports but also as suppliers to automotive, construction, and energy projects. The effect across supply chains — from mines to fabrication plants to shipping — could result in job losses, factory closures, and significant GDP contraction. Agriculture The agricultural sector, which contributes over 10% of South Africa's export revenue, now finds itself exposed in multiple areas. Beef, wine, and niche exports such as cold-pressed oils and processed fruits are all facing sudden erosion of competitiveness. A recent analysis by the National Agricultural Marketing Council highlights the larger context: a global rise in protectionism, with the WTO recording record numbers of restrictive trade measures in 2025. South Africa is among the worst-hit, especially given its high compliance with global trade norms but limited leverage in bilateral negotiations. Parliament weighs in The Select Committee on Economic Development and Trade has urged the government to act urgently. Chairperson Sonja Boshoff described the tariffs as 'a direct assault on our rural economy and industrial base,' warning that the impact would stretch far beyond exporters. 'Entire rural economies and towns — especially those dependent on citrus, wine, or macadamia farming — are in jeopardy,' said Boshoff. 'We cannot afford to wait for the axe to fall. Intervention is needed now.' She called on the Department of Trade, Industry and Competition (DTIC) to fast-track support packages for affected industries, including logistics relief, export financing, and rapid market reorientation. IOL
TimesLIVE
10-07-2025
- Business
- TimesLIVE
Steenhuisen hails 'youth budget' as 3,000 agriculture graduates land internships
Agriculture minister John Steenhuisen has revealed that South Africa's agricultural sector is experiencing a surge of momentum with more than 3,000 recent agricultural graduates placed in internship programmes. Steenhuisen said this is part of a broader push by the government to uplift youth and tackle food insecurity. The agriculture minister made this announcement during his department's budget vote speech, describing the allocation as 'a budget for the youth' and pointing to major investments in training, education and food security. 'More than 66,000 farmers have received training, and more than 3,000 agricultural graduates have been placed through our internship programmes. We are integrating all 11 agricultural colleges into the higher education system to ensure that they become centres of excellence,' said Steenhuisen. The Macroeconomic Digest Labour Report for May 2024 published by the National Agricultural Marketing Council (NAMC) showed that employment in the agriculture sector increased by 50% on a long-term basis, from 627,000 jobs in the first quarter of 2011 to 941,000 in the first quarter of this year. According to the NAMC, agriculture employed about 5.6% of the employed pool in the first quarter of this year, making the sector essential in the labour force. It said data from Stats SA showed that men have been the primary participants in the agriculture sector from the first quarter of 2012 to the first quarter of 2024. The number of men and women actively involved in agriculture was 641,000 and 300,000, respectively, in the first quarter of this year. 'During the first quarter of 2024, the number of women increased by 8,000 (2.8%), while the number of men increased by 13,000 (2.1%) compared to the previous quarter. When combining both genders, the number of people employed in agriculture increased by 21,000 (2.3%) for the first quarter of 2024.' the report said. In a time of economic uncertainty, agriculture has become a rare economic success story. The sector grew by 15.8% in the first quarter of 2025 — a performance that added 0.4 percentage points to South Africa's overall GDP. This is in stark contrast to declines recorded in manufacturing, mining, electricity and construction. Behind the growth figures lie urgent social challenges. 'According to the National Food and Nutrition Security Survey, only 36.5% of households are food secure. Nearly 18% experience severe food insecurity. These are not just figures. They are expressions of a child going to bed hungry, of a parent sacrificing meals, of dreams deferred,' said Steenhuisen. Steenhuisen said to address this, the department is implementing the 2024—2029 National Food and Nutrition Security Plan, in collaboration with the departments of health, education, social development and the environment. 'We are scaling up school gardens, community food hubs and home food production,' he said. Steenhuisen also announced plans to promote neglected and underutilised species (NUS) such as amaranth, African leafy vegetables, and bambara groundnuts — crops known for their high nutrition, drought resistance and cultural value. 'These offer nutrition, resilience and cultural relevance,' he said. He emphasised that the future of agriculture lies in innovation and youth participation. 'The future of agriculture will be decided by the next generation, not only those who inherit the land, but those who study climate-smart techniques, monitor disease outbreaks, and build data systems for traceability,' he said. Steenhuisen said to support this vision, the department is opening pathways for young people into veterinary science, agritech, on-farm learning and extension services. 'Let us empower them to build a new kind of agriculture, one rooted in science, community, and opportunity,' he said.
IOL News
02-07-2025
- Business
- IOL News
South Africa's agricultural sector shows resilience with 15. 8% growth in Q1 2025
South Africa's agricultural sector remains one of the few areas of the economy to consistently generate jobs and income. Image: Nicola Mawson In a time of economic uncertainty, South Africa's agricultural sector has emerged as a beacon of hope, recording a remarkable growth of 15.8% in the first quarter of 2025. This impressive performance has not only added 0.4 percentage points to the country's overall GDP growth but has also starkly contrasted with declines in critical sectors such as manufacturing, mining, electricity, and construction. The surge in agricultural output is primarily driven by increased activity in the horticulture and animal products sectors, underscoring the stabilising role agriculture plays during economic downturns. The National Agricultural Marketing Council (NAMC) said as the agricultural sector flourishes, South African agricultural exports have also seen a significant uplift, climbing by 6% from the previous quarter and an impressive 10% year-on-year, culminating in a value of US$3.35 billion (R61 billion). This growth has been significantly bolstered by the rising demand for horticultural and grain commodities, including grapes, maize, and apples. Notably, the international demand for South African animal products remains robust, with bovine meat exports soaring by 31% compared to the previous year, despite ongoing biosecurity challenges. The importance of this agricultural growth extends beyond mere statistics; it plays a critical role in poverty alleviation, particularly in low-income areas. Research indicates that growth in the agricultural sector can triple the potential reduction of poverty compared to growth in other sectors. In South Africa, agriculture supports approximately 956,000 jobs, with the broader agriculture and agro-processing industry employing an estimated 1.199 million people—surpassing the ambitious target set by the Agriculture and Agro-processing Master Plan (AAMP). Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ South Africa's agricultural sector has emerged as a beacon of hope, recording a remarkable growth of 15.8% in the first quarter of 2025. Image: Supplied However, this promising trajectory is not without its challenges. The recent hike in fuel levies, which increased petrol and diesel levies by 16 and 15 cents per litre respectively, poses a significant threat to the agricultural sector's growth. The government anticipates raising an additional R20 billion in tax revenue with this move, positioned as a strategic alternative to raising the value-added tax (VAT). Yet, for farmers, this hike represents increased input costs, particularly critical for an industry where fuel accounts for about 13% of variable costs in primary production and agri-logistics. The timing of the fuel levy increase, alongside soaring electricity tariffs, has stifled the benefits of concurrent global oil price reductions. Agricultural producers, heavily reliant on energy-intensive processes, are now grappling with rising costs that impact not only transportation and machinery operations but also the affordability of basic food items for consumers, particularly in lower-income households. However the NAMC, said the cascading effects of the fuel levy increase may lead producers to limit output or shift to less fuel-dependent practices, further exacerbating the food supply challenges faced by marginalised agrarian households. It said concerns are mounting that the rising prices will render staple food items less accessible for vulnerable populations, potentially reversing the gains made in poverty alleviation. "To counteract these adverse effects, several proactive measures are being suggested. First, enhancing the existing diesel fuel rebate scheme could ensure more inclusive access for smallholder and emerging farmers, leveraging their economic potential. Secondly, investments in rural transport infrastructure, alongside promoting alternative energy sources such as solar-powered irrigation and electric farming machinery, could fortify the sector's resilience against fuel price volatility. Finally, fostering collaborative efforts among the government, farmer organisations, and agribusiness stakeholders under the AAMP will be key in formulating adaptive policies that alleviate the inflationary challenges posed by the fuel levy. Such initiatives will not only secure food for low-income households but also advance the sustainability of the agricultural landscape in South Africa. While the agricultural sector in South Africa showcases remarkable growth and potential, it is imperative to address the challenges posed by rising costs and external pressures. By investing in infrastructure, supporting smallholder farmers, and fostering collaboration, South Africa can ensure that its agricultural sector continues to thrive, providing food security and economic stability for its citizens.
IOL News
19-06-2025
- Business
- IOL News
Land Bank launches Wine and Spirits Fund to boost transformation in industry
The Land Bank has launched a Wine and Spirits Fund aimed at accelerating transformation in the country's wine and spirits sector, in a partnership backed by the European Union and the South African government. Image: Supplied The Land Bank has launched a Wine and Spirits Fund aimed at accelerating transformation in the country's wine and spirits sector, in a partnership backed by the European Union and the South African government. The initiative forms part of a broader support programme, under Financing Agreement No. ZA/DCI-AFS/040-854, designed to increase the participation of Black-owned businesses in the wine and spirits value chain and enhance global market access for South African products, it said in a statement on Thursday. South Africa, ranked seventh among the world's top wine-producing countries, produced nearly 934 million litres of wine in 2023. The sector contributes an estimated R56.5 billion to gross domestic product. The programme is divided into two components: a R195 million transformation component, managed by Land Bank, and a R98 million marketing and distribution component, led by the National Agricultural Marketing Council. The transformation component will focus on improving access to land, infrastructure, education, and financial resources for Black-owned enterprises. Land Bank CEO Themba Rikhotso said, 'South Africa is recognised as one of the leading countries in the production of wine, which is exported throughout the world. Land Bank is delighted by the support of the EU. It will drive a transformation agenda in the wine and spirits sector, which has historically not been fully inclusive in its production value chain.' Applications for the fund open on June 19, 2025. Qualifying applicants must be Black-owned and managed enterprises within the wine and spirits industry. (For more information go to Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ EU Ambassador to South Africa Sandra Kramer described the partnership as 'ground-breaking' and said it would promote equitable access to land and education while strengthening export capabilities for Black-owned brands in non-EU markets. The EU's contribution of €10 million (R207m) will provide successful applicants with access to either direct grants of between R500 000 and R3.5 million or equity-linked funding of up to R10m in partnership with Land Bank and other financial institutions. BUSINESS REPORT Visit:
Yahoo
31-05-2025
- Business
- Yahoo
Farmers warn of imminent price spikes for beloved food item: 'This is being exacerbated now'
If you're planning to fire up the grill in South Africa anytime soon, you might want to brace your wallet. The cost of a traditional braai — a beloved local cookout — is climbing faster than general inflation, and farmers say extreme weather is to blame. As Business Tech explained, the latest South African Braai Index, a monthly snapshot of food prices, revealed that the cost of a typical braai basket rose by 4% in April compared to March — and is up 4.03% year over year. While meat prices have wobbled, the real culprits behind the April spike were vegetables, with tomatoes jumping 26% and carrots climbing 20% in just one month. Over the long term, maize meal — a cookout staple — has surged by 21% compared to last year. Business Tech cited South Africa's Bureau for Food and Agricultural Policy, which said rising maize costs stem from shrinking supply in Brazil, poor harvests in Argentina, and strong export demand. Domestically, low stock levels and delayed planting seasons due to erratic weather have only added pressure. Even beef, which saw a temporary price dip earlier this year, is now spiking again. A beef carcass that used to sell for R56 per kilogram is now going for as much as R74 — a staggering 32% jump. South Africans aren't just losing access to a favorite national pastime — they're staring down a deeper issue: the growing cost of putting food on the table. As senior agricultural economist for trade research at the National Agricultural Marketing Council (NAMC), Thabile Nkunjana told The Money Show, via Business Tech, "This is being exacerbated now." Grain crops, which are essential for both human consumption and livestock feed, have been hit hard by extreme swings in weather — from droughts to downpours — disrupting supply chains and making feed more expensive. As feed prices rise, so do meat prices, especially when farmers can't afford to bring underfed livestock to market. It's a local snapshot of a global trend: As our planet continues to overheat, the cost of basic foods is becoming more volatile — and for many, unaffordable. On a larger scale, countries are working to stabilize food systems by investing in drought-resistant crops, encouraging regenerative agriculture practices, and implementing early-warning systems for extreme weather. What is the biggest reason you don't grow food at home? Not enough time Not enough space It seems too hard I have a garden already Click your choice to see results and speak your mind. Locally, South Africa is exploring smart agriculture tech to help farmers adapt — such as using predictive tools to manage planting cycles and protect against future crop losses. Nonprofits like the Southern Africa Food Lab are also working on community-based solutions to improve food access. For consumers, there are still ways to save: Buying locally and in-season, reducing meat consumption, and cutting down food waste can help stretch budgets and reduce strain on the planet. Because while the price of a braai may be going up, smarter systems and shared solutions could help keep it within reach for everyone. Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
