SA must use the moment of optimism to tackle long-standing challenges in the agri sector

AGRIBUSINESS PERSPECTIVE by Hamlet Hlomendlini

- Hamlet Hlomendlini

The South African agribusiness sector is experiencing a much-needed recovery after a tough 2023/24 season marked by a mid-summer drought that caused widespread crop losses.

The latest data from the Crop Estimates Committee suggests a promising turnaround, with 2024/25 summer grains and oilseeds production expected to reach 18 million tons. This represents a 16% increase from the previous season, largely driven by improved weather conditions and better yields across key crops like maize, soya beans, sunflower, sorghum and groundnuts.

STRONG MAIZE PERFORMANCE

One of the most notable aspects of this recovery is the strong performance of maize, a staple in South Africa's agricultural output. The latest estimates suggest that maize production will reach 14,6 million tons, a significant improvement from the previous season. White maize, in particular, has seen a major boost, which is good news for food security and the broader economy.

With total maize production expected to surpass the country's annual consumption needs, South Africa is on track to remain a net exporter, reinforcing its position on global agricultural markets.

The positive outlook extends to oilseeds, with soya bean production forecast at 2,4 million tons, a 29% increase from the previous season. Sunflower production is also expected to rise by 22%, benefiting from improved weather conditions.