ICYMI ፡ Belief in SA Agriculture is growing.

The agri-business in Mazansi is optimistic about the current state of affairs in the country. According to the African Agribusiness Index (ACI), it recovered to 74 points in the last quarter of this year after falling slightly to 67 points in the third quarter.

The survey over the past two weeks has covered agricultural activities in all agricultural sub-sectors in South Africa.

Agbiz Chief Economist Wandile Sihlobo said the results reflect a positive outlook for the 2021-2022 production year.

“The high commodity prices, combined with the good weather forecast behind Lani and the event, will help offset the high cost of inputs for farming and farmers at the beginning of the season,” he said.

ACI has ten sub-indexes, all of which have been updated since the third quarter of this year.

Profit and net operating income sub-indexes increased by 10 and 1 points to 92 and 85 in the third quarter as well. This indicates a significant improvement in the overall high commodity prices in the 2020-2021 harvest season as a whole. However, especially for cereals and oilseeds.

High input costs the only loss

“One major challenge highlighted by most respondents is the high cost of inputs, which is declining the profitability of most agricultural businesses,” he said.

Meanwhile, the sub-index index improved by 6 points to 77 points after falling eight points in the third quarter.

“Financial institutions and agriculture are among the indicators of improvement in the market share of horticulture and winter crops. At the same time, the rest of the respondents have maintained a broad unchanged view since the third quarter, ”Sihlobo said.

According to the sub-index of employment, it has increased by two points from 62 points in the third quarter.

This is expected to reflect the overall improvement in agricultural activity in the rainy season, with farmers showing a 5 percent annual increase in summer crop production this year and overall growth in fruit and vegetable production.

Amazing increase

Surprisingly, the capital investments sub-index jumped 22 points to 79, the highest level since the second quarter of 2014.

“Some respondents say that the cost of strengthening this sector and the cost of moving assets will soon be reflected in the sale of solid tractors and combine harvesters.”

Meanwhile, the sub-index, which measures exports, grew by 6 points in the second quarter of this year.

“The high productivity of agricultural crops and fruits and vegetables has helped to facilitate the export of logistics stakeholders and transit through joint ventures.”

“This transit reflects a certain level of normality in the export activity after the severe tests in the third quarter,” Sihlobo said.

Read more: Agri self-confidence improves on good crops, good attitude

Students learn the vineyard

In other news, students at the Polish Agricultural High School will be looking forward to their first experience this week after the Winnipeg Gen-Z Wine Yard Project established 40 different vineyards on campus.

Boland Agricultural High School, in collaboration with the Jane-Z team, began planning and coordinating this new project last year, after the Junior Agricultural Association announced the need to plant a demo vineyard.

“The project at Boland Agricultural High School is in line with the objectives of the Gen-Z Vineyard Project. We are proud to be involved and look forward to seeing how this project opens up value to local students and producers, ”said Franሷo Villon, project manager at Vinpro Gen-Z Vineyard Vineyard.

Jane-Z is setting up small showrooms in South Africa’s vineyards to connect wine producers, viticulture tourists, suppliers and researchers with the latest experiences, technology and equipment in the vineyard.

A total of 21 red and 19 white grapes were planted at the Polish Agricultural High School, with the aim of seeing how these varieties work in the Agter-Pearl Terror Terror.

“This is the first school we have established such a vineyard, not only for students at an early age, but also to raise awareness of the various varieties of grapes, terrorism and vineyards in the field.” You can see the show time.

Read more This week’s agri events are from November 29 to December 5

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