Agribusiness during Covid: How leadership creates winning strategies

Source: Bizcommunity, 23 April 2021, photo credit: AquitaineOnline

The year 2020 will forever be defined by the massive disruption that the Covid-19 pandemic had across the board and around the world, says Dr John Purchase, CEO of the Agricultural Business Chamber (Agbiz). The immediate response in South Africa was a hard lockdown that restricted movement and any form of a gathering of people

“Food products and services were deemed essential goods and services, and much of the sector could continue with operations, albeit in an extremely difficult and disrupted environment,” says Dr Purchase, noting too that certain agricultural and agro-processing sectors were deemed non-essential, including alcohol-based industries (especially wine), floriculture, the fibre and tobacco industries and more.

Interestingly, even within the constraints of Covid-19, South Africa maintained an excellent rate of food security. Due largely to proactive measures taken by industry and government including the Ministerial Task Team, economic damage and loss of jobs was limited as far as possible for most subsectors. Dr Purchase highlights that a cut in interest rates by the South African Reserve Bank (Sarb) meant a saving of roughly R5,6bn for farmers over a 12-month period, relieving some pressure on farmers and agribusinesses.

“From the very outset of the initial hard lockdown, it became clear that some authorities had underestimated the hugely significant role the informal sector plays in food distribution and convenient availability through hawkers, vendors, spaza shops, and others.”

Director of Signium Africa, executive search and agribusiness talent specialist Annelize van Rensburg and Dr Purchase both agree that to come out the other side of this unprecedented disruption as well as the country did, does not happen by accident. It requires multi-disciplined leaders with experience across a number of sectors in the supply chain, from pitchfork to table fork.
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The South African Pork Producers’ Organisation (SAPPO) coordinates industry interventions and collaboratively manages risks in the value chain to enable the sustainability and profitability of pork producers in South Africa.