Can the agriculture sector overcome some of the hurdles in its way in 2023?

POLICY PERSPECTIVE

- Theo Boshoff

January is traditionally a time when commentators provide their outlooks for the year ahead. However, the view for 2023 is about as unpredictable as the schedule for rolling blackouts, which is no surprise, as the two are inextricably linked. 

The agriculture sector had an exceptional year in 2020, and again in 2021. In 2022, the positive agricultural conditions prevailed, namely above-average rainfall and high international commodity prices.

However, this strong performance was also hamstrung last year by a multitude of factors, including rising input costs, unsustainable global shipping costs, and a declining business environment brought on by deteriorating service delivery from municipalities, public institutions and network industries.

And this trend has continued into 2023, with uncertain consequences.

UNPREDICTABLE CHALLENGES

To be fair, many of the issues that the agriculture sector faces at present could scarcely be predicted or avoided. For example, the sharp rise in shipping costs in the wake of the COVID-19 pandemic and the energy crisis brought on by the Russia-Ukraine war have led to a sharp increase in input costs.