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SA's agri confidence plummets amid market disruptions
Farmer's Weekly
|July 03, 2020
Despite improved output and export earnings, agribusiness confidence has fallen to the lowest level since the 2009 financial crisis, due to the impact of the COVID-19 global pandemic. Lindi Botha reports.
The Agbiz/IDC Agribusiness Confidence Index (ACI) fell from the 50-point mark in the first quarter of the year to 39 in the second quarter. A level below the neutral 50-point mark implies that agribusinesses are downbeat about prevailing business conditions in South Africa.
The 10 sub-indices that make up the index all showed a significant decline in the second quarter of the year, with most reaching their lowest levels since 2009. This followed despite the fact that South Africa’s agriculture and food sector has, for the most part, been operational during the lockdown period to contain the spread of the coronavirus disease (COVID-19).
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