An aerial view of staff harvesting Chardonnay grapes on a Western Cape wine farm.
PHOTO: David Silverman/Getty Photographs
Sentiment in South Africa’s agriculture trade surged to a brand new excessive within the second quarter, supported by expectations of file crop yields and powerful commodity costs.
An agribusiness confidence index compiled by the Agricultural Enterprise Chamber of South Africa climbed to 75 from 64 within the first quarter, the group stated Monday in an emailed assertion. That’s the very best degree for the reason that gauge was began in 2001.
Favorable climate circumstances that allowed farmers to plant on time and improve space plantings for crops, in addition to greater commodity costs that bolstered farmers’ funds, contributed to higher sentiment, the enterprise group stated.
“Our fundamental concern for the time being is across the biosecurity challenges within the livestock and poultry sectors,” stated Wandile Sihlobo, chief economist on the enterprise chamber. “These are areas that ought to be addressed to maintain the constructive momentum in agriculture,” he stated. South Africa is affected by outbreaks of avian influenza and foot-and-mouth illness.
Agriculture contributes 3% to gross home product, in keeping with statistics company data. The group sees agricultural output increasing 5% in 2021.