South Africa’s farmers are the most optimistic they have been for years, despite the threat of United States tariffs and the potential loss of duty-free access to US markets.
The Agribusiness Confidence Index, compiled by the Agricultural Business Chamber of South Africa (Agbiz) and Industrial Development Corporation, surged by 11 points to 70 points in the first quarter of this year. This is the third consecutive increase and the highest level since the fourth quarter of 2021, News24 reports.
The index surveys agricultural businesses on various factors, including exports, turnover, capital investments, profits, financing costs, employment and bad debts.
“It is heartening to see that the geopolitical tensions haven’t weighed on the sector heavily. We should build on this optimism for the sector’s long-term growth,” said Wandile Sihlobo, chief economist at Agbiz.
A report by Agbiz attributed farmers’ optimism to a combination of factors, including La Niña rains that support the 2024/25 agricultural season, improvements in port efficiency that supported exports in 2024, and the progress in controlling animal diseases.
South Africa has been hit by bird flu and foot-and-mouth disease in recent years.
