Sourve: Agbiz media release, 14 June 2021, photo credit: Alex Lau/Epicurious
South Africa’s agricultural sector has not, in the recent past, had a season as good as the current one. This is evident from the Agbiz/IDC Agribusiness Confidence Index (ACI), which in the second quarter of this year reached a record high (since its inception in 2001) of 75, from 64 in the first quarter of 2021.
These results reflect favourable conditions for all subsectors of agriculture, with various crops set to reach record output levels. Importantly, this comes at a time when commodity prices – domestically and globally — are at relatively higher levels, mainly supported by growing demand from China, combined with dryness in parts of South America.
Such an environment of large yields and higher prices is not a usual occurrence in South Africa and has boosted farmers’ incomes and sentiments about business conditions.
This second-quarter survey was conducted in the first two weeks of June 2021 and covered agribusinesses operating in all agricultural subsectors across South Africa.