WANDILE SIHLOBO: SA’s agriculture in good shape despite quarterly blip
Decline in sector’s output for the 3 months ending March likely to be temporary with bumper harvests expected
Tuesday’s GDP data for the first quarter which shows that SA’s agricultural output unexpectedly contracted by 3.2% quarter on quarter on a seasonally adjusted and annualised basis should not be of lasting concern. Stats SA attributes the underperformance to “lower production of field crops and animal products”. But this is a temporary blip and shouldn’t be regarded as a worse season than the robust 2020. The sector is set for one of the best years on record, and such improvements should be reflected in the data in the coming quarters.
For example, the South African Wine Industry Information and Systems forecasts the 2021 wine grape crop at 1.5m tonnes, which is 9% more than the 2020 harvest. The Citrus Growers’ Association projects record exports of 159m cartons in 2021, up from 146m cartons in 2020, thanks to a good harvest. The Crop Estimates Committee forecasts 2020-21 maize and soybean production at 16.2m tonnes and 1.9m tonnes, respectively. That’s an increas...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.