Reviewing South Africa’s agricultural sector in 2021

Source: Wandile Sihlobo, Agbiz, 13 December 2022, photo credit: Global Africa Network

The year 2021 can be characterised as one of the rarest yet possibly most beneficial for South African farmers. The year combined ample crop harvest with higher prices, thus boosting farmers’ incomes.

Ordinarily, a year of large harvest tends to lead to lower commodities prices, and farmers profits are squeezed. But for 2020 and 2021, commodity prices have remained elevated in South Africa and globally.

The growing demand for agricultural products, specifically oilseeds in China and India, combined with lower palm oil production in parts of Asia and a poor harvest in South America, were among the key reasons for higher global agricultural commodity prices. As an integral part of the global agriculture ecosystem, South Africa was influenced by the global price trends, mirrored in the domestic prices.
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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.