This week ended with some positive news in terms of production. South African farmers intend to increase the area planted to summer grain and oilseed by 5 percent from the 2017/18 production season to 4.03 million tonnes.

The ‘intentions to plant’ data provided tentative evidence that South Africa could have another good production season, which might keep the country’s grain supplies in good shape at least until 2020.

The medium-term budget policy statement has addressed some of our bread-and-butter issues, but now that it is behind us it is time to reflect on another: food security.

The data calendar today is packed, but the most anticipated release is the ‘intentions of farmers’ to plant 2018/19 summer crops to be released by national Crop Estimate Committee in the afternoon.

While the Agricultural Research Council, the Land Bank and the National Agricultural Marketing Council initiated their collaboration in March 2017, the need to strengthen the partnership was soon recognised, and the inclusion of the Perishable Products Export Control Board and the Onderstepoort Biological Products as key state owned organisations with capacity to influence South African agriculture through collaboration resulted. 

South Africa’s food and non-alcoholic beverages price inflation accelerated to 3.9% y/y in September 2018, up by 3.5% y/y in the previous month – the highest rate in five months.