Agribusiness confidence rebounds in 04 as strong exports, improved logistics lift sentiment

SOUTH Africa's agribusiness confidence bounced back in the final quarter of the year, rising by five points to 67 in the Agbiz/IDC Agribusiness Confidence Index (ACI), released on Friday.

- YOGASHEN PILLAY

The improvement follows two consecutive quarterly declines and places the index firmly above the neutral 50-point mark, signalling renewed optimism across the sector.

Wandile Sihlobo, chief economist at the Agricultural Business Chamber (Agbiz), said favourable production conditions and strong export performance underpinned the rebound.

"Favourable weather conditions, strong exports throughout the year on the back of ample grains, oilseeds, and horticulture harvests, as well as better port efficiencies, are among the key drivers of optimism in the sector," he said.

He added that government's announcement of a nationwide foot-and-mouth disease (FMD) vaccination campaign had also buoyed sentiment, given the long-running challenges the disease poses.

The survey, conducted in late November, revealed broad improvements across most of the ACI's 10 subindices.