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Thursday, 10 December 2009

South Africa's corn, wheat and sorghum harvests predicted to grow

The South Africa Agribusiness Report Q110 continues on the themes touched upon in previous issues as the continent's top agricultural producer seeks to diversify the sector in terms of both primary production and value-added processing. The South African agricultural industry possesses typical 'dual economy' characteristics of a local subsistence sector against a relatively well-developed commercial sector. Increasingly, capital intensive production is seen to drive industry dynamics as employment in more labour intensive farming dwindle, likely fuelling tensions, particularly along racial lines. Despite having one of the continent's more developed agricultural sectors, food security is still a concern in some sub-sectors. As the country seeks to improve self-sufficiency, we are increasingly seeing the drive for food production gathering pace via overseas production. South African farmers will be able to access up to 10mn hectares of farmland in the Republic of Congo under a recent deal signed by the two countries. The agreement is reported to be one of the largest land deals to have taken place in Africa, with South Africa gaining a 30-year renewable lease-amended from the original proposition of a 99-year lease-to cultivate grains, dairy products and poultry. The deal will give South African importers tax breaks on agricultural inputs and equipment and allows full expatriation of profits.

Source: Official Spin