South African agriculture continued to enjoy good results during 2020’s last quarter
In addition to its review of the South African agricultural sector during the whole of last year, the Bureau for Food and Agricultural Production (BFAP) also included, in its latest report, an overview of the sector’s performance during the last quarter of 2020 (4Q20). In terms of the national economy as a whole, 4Q20 saw a seasonally adjusted and annualised increase in gross domestic product (GDP) of 6.3%. During the third quarter, the increase had been 67.3%, as it had rebounded with the relaxation of the Covid-19 restrictions, which had wrought havoc on the economy.
Regarding agriculture, 4Q20 was the fifth quarter in a row which grew in year-on-year terms. It was also the fourth consecutive quarter which recorded growth in quarter-on-quarter terms. Quarter-on-quarter, 4Q20 recorded a GDP growth rate of 6%; year-on-year, the figure was 21%.
For purposes of analysis, the BFAP divided agriculture into three sub-sectors, namely animal products, field crops and horticulture. All three displayed real growth. The gross production value (GPV) from animal products rose by 1.6% year-on-year, while the equivalent figure for horticulture was 0.4% and that for field crops 27.7%.
The main contributors to the growth in animal products GPV were eggs, pigs and goats. While sheep production went down by 18%, prices increased by 33%, but real income from sheep actually declined, probably because of a tighter national lockdown over the festive season. Demand for pork increased because of its relatively low price. Chicken prices last year remained stable, benefitting from the weak rand exchange rate, which countered lower international prices. During last October and November, chicken production increased by 13% and during the quarter real GVP for poultry meat rose by 1.7%.
The horticulture sub-sector was hit by weak demand for the flower sector, which recorded an income that was 17% down, year-on-year. For deciduous and other fruits, income was up by a real 3%. This relatively low increase was the result of weather-induced delays to the start of the harvesting season. “Despite these delays, it is expected to be a good season, in terms of volumes,” noted BFAP. Vegetable sales were pretty much the same, year-on-year.
Field crops were the biggest driver in the sector’s growth during 4Q20. “The winter grains and oilseed harvest were the main reason for this strong performance, with record harvests for wheat, barley and canola in the Western Cape,” reported the Bureau. For wheat, the year-on-year increase in GPV was 37%, for barley it was 68% and for canola it was 74%. Wheat production deliveries in 4Q20 increased by 33% and prices by 13%, year-on-year.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation