Global agricultural prices and thus food prices will moderate, but not necessarily for South Africa
Excellent years of machinery sales coincides with a tough production season that strains farmers’ finances
South Africa started the 2023-24 summer crop season with optimism, but the outlook is now lower because of the excessive heat and limited rainfall across major crop-growing regions
After a few years of robust tractor and combine harvest sales, this is more of a normalisation than an indication of trouble in the agriculture sector
Area plantings for maize and sunflower seed are above the five-year average
The favourable rainfall and an expected increase in the planting area bodes well for agriculture
Crop harvests were good in the 2022-23 season but tractor sales are down by 9%
The challenge is to make sure this growth is sustainable, inclusive and transformative
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Despite flooding, the 2023-24 wheat crop quality is good and the quantity is up from the previous season, while canola is up 13%. But oats and barley are faring less well because of heavy rains
We are in for another good agricultural season, especially if January and February present favourable rainfall