This site requires JavaScript to be enabled. Please enable JavaScript in your browser settings, or upgrade to a modern browser.

Why are South African farmers feeling downbeat about business conditions in the country?

Loading player...

A day after we received robust agricultural GDP data, showing that the sector’s gross value added grew by 17.4% year-on-year in 2025, following a -8.4% year-on-year contraction in 2024, some may wonder why the sentiment indicators suggest a subdued mood.

In data released on March 11, we learned that after rising for much of last year, the Agbiz/IDC Agribusiness Confidence Index (ACI) fell by 18 points in Q1 2026 to 49, the lowest level since Q3 2024. The current ACI level of 49 is just under the 50-neutral mark, suggesting that South African agribusinesses are becoming somewhat pessimistic about business conditions in the country.

But this story requires some context; we provide it in this podcast.

12 Mar English South Africa Investing · Food

Other recent episodes

Are cooling agricultural equipment sales in South Africa a temporary blip?

Last week, the South African Agricultural Machinery Association released its monthly agricultural machinery sales report for March 2026. To some observers of the South African agricultural sector, the report signalled a change from the long period of strong tractor and combine harvesters sales to a much slower pace. Tractor sales…

12 Apr 7 min

The Western Cape farmers face an immediate challenge from the Middle East war

In these times of conversations about the impact of high fuel and fertiliser prices on agriculture, the region of South Africa I find myself thinking about the most right now is the Western Cape. The Western Cape produces much of our winter crops: half of South Africa’s winter wheat, and…

6 Apr 6 min

The African continent is at the heart of South Africa’s agricultural export success

When we consider exports in South Africa’s agriculture, we typically overlook the importance of the African continent. Such an approach is wrong; the continent is central to our agricultural export success so far. In 2025, South Africa’s agriculture exported a record US$15.1 billion, up 10% from a year ago. Nearly…

30 Mar 7 min

The Middle East remains a key potential export market for South Africa’s agriculture

South Africa's agricultural exports to the Middle East, worth US$1.3 billion in 2025, or 8% of overall agricultural exports, are at risk from this crisis. Shipping costs are rising. Agricultural businesses that export to the Middle East will now be exploring whether other markets can absorb their products. South Africa's…

26 Mar 7 min

Is it not too soon to be considering food price increases in South Africa?

South Africa indeed transports much of its agriculture and food products by road. For example, 80% of South African staple grain products are transported by road. We see similar volumes in other commodities. Agricultural products are also processed in certain regions and then transported to various consumption points. This means…

18 Mar 6 min

All episodes