What to expect from the AgriTrends Autumn Edition
Given the numerous headwinds the agricultural industry has navigated over the past four years, the benefits of solid business partnerships are more clear than ever. Since 2020, the value of long-standing relationships in ensuring efficiencies in the logistical system, securing access to inputs, or navigating complex issues that have a bearing on production risk, has been apparent. It is in this spirit that we release the Absa AgriTrends. The information included in this document should not be used as a crystal ball, but rather as a starting point in discussions between industry stakeholders. Through these discussions, we hope to build relationships, align expectations, unlock opportunities, and move the agricultural industry forward.
How Developments in Trade and Globalisation are Shaping Agricultural Markets
Global trade is the lifeblood of economic growth but has lost momentum over the last couple of years due to events, such as COVID-19, the war between Russia and Ukraine, and increased protectionist policies implemented all over the globe. More recently, shipping disruptions in the Panama and Suez Canal have contributed to the disruptions in historical trade rhythms. In this chapter, we explore what this could mean for agriculture.
Grain and Oilseed Markets
Globally, grain and oilseed prices are on a downward trend due to a strong supply response to high prices combined with softer demand from key importing countries such as China. Since December 2023, we have seen local price trends diverging from global trajectories due to weather-related issues. We consider how the current weather dynamics are likely to affect yield producers over the coming months.
Livestock Markets
Animal disease remains a burning issue for intensive industries and has weighed on industry performance over the last couple of years. For beef producers specifically, an improvement in consumer sentiments, combined with market access to key export markets such as Saudi Arabia, are green shoots for an industry that is emerging from three difficult years.
High-value Export Industries
Market stakeholders are increasingly noting the role of efficient and agile logistics to ensure the sustainability of our high-value fruit exporting sector. We elaborate on this within the context of the Red Sea and Panama Canal developments. We also cover the efficiencies of our ports.
Leveraging Digital Technologies in Our Journey Towards Nature-positive Financing
We explore the role of digital tools in unlocking value for agricultural producers in the ESG space and showcase some of the learnings from a recently completed Remote Sensing pilot project undertaken by Absa AgriBusiness.
Plan for the Future with Insights by Agri-Industry Experts to learn more download the 2024 Autumn Edition report