Local oilseeds industry remains resilient throughout ups and downs
As the year draws to a close, we can say with certainty that it has been an eventful one. It seems that each year requires a new perspective. The difficulties caused by load shedding have been particularly hard on the manufacturing industry. Within the local value chain, oilseed crushers, feed manufacturers, and abattoirs have been negatively affected.
Port strikes delayed the importation and delivery of essential agricultural products and goods. The Russia-Ukraine conflict continues to disrupt grain trade and energy norms, and the situation is not expected to be resolved soon.
Rainfall was above average and was positive for producers, while input costs increased substantially and put pressure on profitability. Fortunately for producers, commodity prices were high but became a heavy burden for the consumer.
Prospects of a high rainfall season for 2022/23 appear to be very likely in the initial stages. We have already seen numerous areas trying to cope with excessive rain and in some cases flooding is causing difficulty for those busy planting.
South Africans remain resilient and despite challenges, we will do our level best and adjust to circumstances. The negative impact on the economy does weigh heavily on everyone's mind regardless.
Expect a rise in oilseed production
The oilseeds industry has stepped up production, making a significant positive contribution towards easing high feed costs for the approximately 1,2 billion broilers slaughtered in 2022, which supplies the lowest-cost animal protein to the people of South Africa.
New technology
New technology remains key to the future success of the industry. International best practices, improving agronomic practices, and new seed technology are among the initiatives that have been and need to continue being pursued. We are very excited that Intacta technology will be entering the commercial space in 2023 and there is great anticipation for the contribution it could make to easier and/or improved farming practices, along with the latest germplasm-increased yields.
We are positive that 2023 will be a great year, with expansion in oilseed production and prosperity for all in the value chain.
Enjoy this issue of Oilseeds Focus.
December 2023