South Africa Agribusiness Confidence Index reached highest level in more than three years
The ABC/IDC Agribusiness Confidence Index, which is measured by means of a quarterly survey amongst agribusinesses in South Africa, indicates that the agribusiness confidence is at its highest level in more than three years.
The survey found that agribusiness confidence rose 13% in the first quarter of 2011 from the preceding quarter, to 62 basis points.
The outlook for South African agribusiness is upbeat reflecting improvement in the economy, noteworthy progress of general agricultural conditions, elevated commodity prices driven by sharp increases in the price of grain products and the strong Rand and Government’s indication to work with the commercial agricultural sector.
However, the survey indicated that cost of capital, infrastructure, service delivery, unfavourable weather conditions have had a negative impact on certain industries.
Findings of the survey include:
Turnover and net operating income increased significantly on the back of commodity and other agricultural product price increase;
Probability for increased employment in the agribusiness sector is higher compared to last year;
Capital investment was unchanged in the short term;
The Bureau of Economic Research (BER) and Rand Merchant Bank (RMB) Business Confidence index, released on 8 March 2010, also indicated a jump in confidence;
Export volumes increased, mainly due to increased international demand as the global economic recovery continues and global food supplies remain low; and
The cost of financing for agribusiness has increased substantially.
The survey revealed positive prospects for the following year indicating that agribusiness are expecting higher turnover on the back of good summer grain harvest
Agri Service Forum newsletter
South Africa Agribusiness Confidence Index reached highest level in more than three years
The ABC/IDC Agribusiness Confidence Index, which is measured by means of a quarterly survey amongst agribusinesses in South Africa, indicates that the agribusiness confidence is at its highest level in more than three years.
The survey found that agribusiness confidence rose 13% in the first quarter of 2011 from the preceding quarter, to 62 basis points.
The outlook for South African agribusiness is upbeat reflecting improvement in the economy, noteworthy progress of general agricultural conditions, elevated commodity prices driven by sharp increases in the price of grain products and the strong Rand and Government’s indication to work with the commercial agricultural sector.
However, the survey indicated that cost of capital, infrastructure, service delivery, unfavourable weather conditions have had a negative impact on certain industries.
The survey revealed positive prospects for the following year indicating that agribusiness are expecting higher turnover on the back of good summer grain harvest
