September 2014 - Western Cape

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Agriculture

Agri Overview

Issue No. 30

Sept 2014

FAO CALLS FOR “PARADIGM SHIFT”

TOWARDS SUSTAINABLE AGRICULTURE AND

FAMILY FARMING

DIRECTOR-GENERAL URGES SUPPORT FOR SCIENCE-BASED OPTIONS IN

PURSUIT OF GLOBAL FOOD SECURITY.

Policy makers should support a broad array of approaches to overhauling global food systems, making them healthier and more sustainable while acknowledging that "we cannot rely on an input intensive model to increase production and that the solutions of the past have shown their limits," FAO Director-General José Graziano da

Silva said in his opening remarks to the 24th session of the Committee on Agriculture (COAG).

Options such as Agro-ecology and climate-smart agriculture should be explored, and so should biotechnology and the use of genetically modified organisms, FAO's director-general said, noting that food production needs to grow by 60 percent by 2050 to meet the expected demand from an anticipated population of 9 billion people.

"We need to explore these alternatives using an inclusive approach based on science and evidences, not on ideologies," as well as to

"respect local characteristics and context," he said.

"Subsistence agriculture on small plots of land perpetuates the vicious cycle of poverty. The only way that our producers can be competitive is to join forces," the president added. "We see that by working together toward a common objective, they are producing as never before."

The COAG meets every two years. Central themes being discussed this week are water governance, livestock diseases, in particular the effort to replicate the successful eradication of Rinderpeste on the Peste des

Petits Ruminants, soil management and food safety.

ECONOMIC

The rand, along with other emerging market currencies, weakened further in the last week of September, particularly against the firmer US dollar - which was boosted by more upbeat economic data released during the week. The delay in the appointment of the new South African Reserve Bank

Governor, which kept investors in suspense, has probably added more pressure on the local unit, which closed the week at R11,23, R14,26 and

R18,25 against the US dollar, the euro and the British pound respectively.

Annual producer inflation eased further to 7,2% in August from 8,0% in July. Annual PPI for agriculture, forestry and fishing also increased marginally to

4,2% from 3,9%.

MINISTER WINDE SETS

CHALLENGE TO WESTERN

CAPE AGRICULTURE

At the recent Land Reform

Summit hosted by the Western

Cape

Agriculture,

Department

Alan of

Winde,

Western Cape Minister of

Economic Opportunities, challenged the provincial agriculture sector to organise on a district level and devise plans to speed up land reform.

Winde gave the sector 3 months to establish district land reform committees, which will be responsible for identifying land reform opportunities in the immediate area.

The wide range of delegates in attendance at the summit discussed various models of land reform together with the support mechanisms needed in order to ensure sustainable and successful projects. The outputs of the summit will be taken further by the Department.

WEATHER

The Province received near normal rainfall but above normal in the far west. Winter cereal crops and pastures in

Bredasdorp and Caledon are normal, while less promising to the east due to below normal rainfall received. In Swartland livestock is in good condition while the grazing in

Matzikama is limited but livestock is in reasonable condition.

In the Central Karoo below normal rainfall resulted in insufficient water for livestock. The veld and dryland pastures are nearly depleted by livestock and crop production conditions are poor in Eden district.

Irrigated crops and pastures experienced good growth under increasing day light and temperatures. The level of dams is nearly similar to the previous year (92% in

2013; 91% in 2014).

Compiled by:

Jacques Murdoch

Telephone:

Email:

021 808 5197 jacquesm@elsenburg.com

DISCLAIMER

Although everything has been done to ensure the accuracy of this information,

Western Cape Department of Agriculture therefore accepts no liability that can be incurred resulting from the use of this information.

WHEAT

The expected commercial production of wheat is 1,791 mill. tons, which is 0,62% more than the previous forecast of 1,780 mill. tons, whilst the expected yield is

3,76 t/ha.

The expected production in the Western Cape is 914 500 tons (51%), in the Northern

Cape 285 000 tons (16%) and in the Free State 274

525 tons (15%).

The area estimate for wheat was revised to 476

570 ha, which is 8 570 ha more than the 468 000 ha of the previous estimate. The main reason for the increase in the area was because of an upward revision in the area planted for the Free State, from 60

000 ha to 69 500 ha.

The area planted in the

Eastern Cape was revised downwards by 1 000 ha to 3

000 ha and the area planted in Gauteng was adjusted upwards by 70 ha to 570 ha.

WOOL

The wool market maintained its recent gains and the Cape Wools

Merino indicator closed the day up by a marginal 0,6% at R114,68/kg (clean). This is

2,7% higher compared to the opening sale of this season and 2,0% up compared to the corresponding sale of the previous season.

Traders commented that the weaker rand had propped up the local market however in hard currency the market remained subdued due to poorer demand from

China. They described this week’s offering as small and of poor quality and expect next week’s selection to be similar.

TRACTOR AND COMBINE

SALES

August tractor sales of 582 units were almost 16% up on the 502 units reported in

August last year. Sales for the eight months year-to-date are now almost 5% down on the same period last year. August combine harvester sales of 25 units were significantly up on the 18 units sold in August last year. On a y-o-y basis combine harvester sales are now 4% down on the same period last year.

The good equipment sales in

August reflect the current optimism in the industry.

Nevertheless, with maize prices having fallen in recent months, industry expectations are still that the market in 2014 will be between 5 and 10% down on last year.

Sources:

 FAO

 StatsSA

 Milk Producers Organisation

 Grain SA

 Department of Water Affairs

 South African Reserve Bank

 South African Agricultural Machinery Association and RGT SMART

 CapeWools SA

 Nedbank

 Landbou Weekblad

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