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trends south african agribusiness

Trends in South African Agribusiness 2023

Stephen Timm | South Africa | 17 July 2023

Trends in South African Agribusiness 2021

Louise Mitchell | South Africa | 02 August 2021

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Report Coverage

This report on trends in agribusiness in South Africa is one of several trends reports produced by Who Owns Whom that also include trends in mining, FMCG and fintech. The report includes information on trends such as sustainable farming, export growth, high food prices, masterplans, health and wellness, agritech and cannabis. Who Owns Whom trends reports pull together common agri-related trends which can also be found in various Who Owns Whom reports related to the agricultural industry.

Trends in South African Agribusiness

South Africa’s agribusiness sector, made up of primary agriculture and agroprocessing, and various sectors such as chemicals, fertilisers, transport and packaging that provide inputs or services, has come under pressure from challenges such as power cuts, infrastructure shortages, climate change, land reform, growing protectionism and high food prices, which are eroding its competitiveness. The sector grew strongly in the year to end-June 2022, but has contracted recently as field crops were affected by excessive rains, as foot-and-mouth disease affected the cattle industry and as loadshedding disrupting poultry production. Agribusiness is being shaped by key trends such as the shift to sustainable farming practices and agricultural technology (agritech).

High Food Prices

Food prices have reached record highs globally and in South Africa, but were expected to moderate in 2023. In February 2023 the Competition Commission launched an inquiry into the market for fresh produce. A price monitoring report indicated that there were unjustified price increases of sunflower oil and white and brown bread, and opportunistic price increases in maize meal in 2021 and 2022. High food prices have raised food security concerns.

Agritech

Farmers are increasingly relying on technology such as drones, apps, platforms and gadgets to produce data to improve yields, manage pests, adapt to climate change and get their produce to market. Agritech provides notable opportunities to drive efficiency and reduce risk in primary agriculture and for the broader value chain. Some agritech solutions include apps that connect producers to the formal marketplace, an online livestock trading platform and tech tools for fruit growers to measure, manage and protect their yields using drones and satellites images.

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Trends in South African Agribusiness 2023

Full Report

R 20 000.00(ZAR) estimated $1055.64 (USD)*

Historical Reports

Trends in South African Agribusiness 2021-08-02

R 6 500.00(ZAR) estimated $343.08 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
3. SIZE OF THE INDUSTRY 3
4. TRADE 6
5. TRENDS 9
6. CHALLENGES 17
7. COMPETITION 29
7.1. Competition 29
7.2. Ownership Structure of the Industry 29
8. SWOT ANALYSIS 30
9. OUTLOOK 31

Report Coverage

This report focuses on trends in South African agri-business across several sub-sectors, with cross-references to Who Owns Whom reports on these sectors. The report includes information on trends in farming and processing, investments, trade, corporate actions and other industry developments. It refers to over 20 Who Owns Whom reports covering everything from the fresh fruit and vegetables industry to the manufacture of dairy products, sugar and animal feeds, the liquor and tobacco industries and trade in agricultural raw materials and livestock.

Trends in South African Agri-business

Agri-business has multiple sub-sectors including maize and wheat milling, the production of livestock, dairy and horticulture. South Africa is a major producer and net exporter of finished processed food products, and food exports grew substantially in 2020. New technology and vertical integration are driving change in the industry. Challenges include tariff protection in various geographies, animal diseases, security issues on farms and the consequences of climate change. Constraints such as rising input costs, supply disruptions, dumping and illegal trade affect operating income.

Dominant Players

While there are many food production companies in South Africa, the industry is dominated by a small number of large players. High levels of market concentration, often through vertical integration, create high barriers to entry. The flour and grain milling industry is concentrated and controlled by a handful of farmers, silo owners and manufacturers. In the poultry sector, large companies are outsourcing some operations, which creates opportunity for small players.

Trends

Current trends include product innovation in line with consumer behaviour, such as demand for organic and plant-based foods. Regulatory changes and regulations such as sugar taxes and sodium content limits have posed challenges and prompted product changes. Supply and supply chain disruptions due to the pandemic led to some shortages and price increases. Cheap imports, intermittent bans during lockdown and the significant growth of illegal trade in tobacco and liquor products and have had a dramatic effect on these industries.

Read More..
Trends in South African Agribusiness 2021

Full Report

R 6 500.00(ZAR) estimated $343.08 (USD)*

Historical Reports

Trends in South African Agribusiness 2023-07-17

R 20 000.00(ZAR) estimated $1055.64 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
3. SIZE OF THE INDUSTRY 4
4. COMPETITION 8
5. STATE OF THE INDUSTRY 10
5.1. Coronavirus 10
5.2. Trade 12
5.3. Corporate Actions 14
5.4. Continental 15
6. TRENDS 17
6.1. Trends in Farming 18
6.2. Trends in Agricultural Products (Primary) Processing 19
6.3. Trends in Food (Secondary) Processing 20
7. INFLUENCING FACTORS 23
7.1. Investments 23
7.1.1. Major Transactions 24
7.1.2. Capacity Expansion and Utilisation 25
7.2. Government Initiatives 27
7.3. Unreliable Water and Electricity Supply 28
8. PESTLE ANALYSIS 28
9. OUTLOOK 30
10. REFERENCES 30
10.1. Publications 30
10.2. Websites 31
APPENDIX 1 32
List of Sectors Covered 32