The consumer is always right

People are ready to buy directly from farmers and farmer groups, and the trend towards sustainable food provides a good platform for selling to consumers, writes Dr Koos Coetzee.

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Farmers need consumers to buy the food and fibre they produce. Various economic factors and trends determine and influence total demand.

ECONOMIC FACTORS

The International Monetary Fund expects the global economy to grow by 3,3% in 2025 and 2026, respectively. It is optimistic that the South African economy will grow by 1,5% and 1,6% in 2025 and 2026, respectively, after growing by 1,9% in 2022, 0,7% in 2023, and 0,4% in the first three quarters of 2024.

There are some positive trends that may result in improved growth in 2025. Higher global commodity prices as the global economy continues to grow, more favourable climatic conditions locally, improved infrastructure and service delivery as the Government of National Unity slowly manages to get government working again, and less load-shedding may help the economy achieve higher growth.

However, the danger of losing the African Growth and Opportunity Act, further sanctions by the US government, and withdrawal from South Africa by US companies who refuse to play the black economic empowerment game may impact negatively on economic growth. Positive albeit weak economic growth can be expected.