Agricultural GDP shows robust growth in Q3
6 Dec 2017 - by Staff reporter
South Africa’s agricultural GDP grew by 44.2% in the third quarter of 2017 according to the Agricultural Business Chamber (AgBiz).
AgBiz head of Agribusiness Research, Wandile Sihlobo, noted that this could be attributed to the good agricultural output during the 2016/17 summer production season, which in turn boosted trade.
“This is against our expectations of a moderate growth of around 20% and we think the sector should start tracking its long-term growth levels,” he said.
The growth figures mirror an increase in overall agricultural activity as well as the recovery in the livestock industry which translated into solid exports.
Sihlobo pointed out that the decline in confidence of the sector might not lead to a decline in the sector’s GDP as the improved weather outlook in summer crop-producing areas might not have been fully captured in AgBiz’s Agribusiness Confidence Index.
“The sector could remain on a positive growth path for some time as South African farmers intend to increase the area planted in the 2017/18 production season to 4.03 million hectares,” he said. “This is driven by a favourableweather outlook and the price competitiveness of some commodities.”