12 Dec South Africa’s Agricultural Outlook for 2018
In November, Absa published its Agricultural Outlook: Spring Edition for 2017/2018, comprising of a range of topics and contributing thoughts from the bank’s Agribusiness team. The Outlook spoke to trends and challenges in the sector and opportunities for the year to come.
Weather and the economy
Looking back, the drought in South Africa’s summer and winter rainfall regions, as well as a weakening rand, had a significant impact on the gross production value of agriculture for 2017. This year saw drought conditions predominantly take its affects in the Western Cape and Karoo regions of South Africa, which impacted negatively on fruit and livestock production.
However, leftover nutrients in the soil from previous seasons, together with favourable rainfall in other parts of the country, resulted in record-high dryland yields for maize and soya bean for farmers based further inland.