Reportstack

South Africa Agribusiness Report Q4 2013

 

Naperville, IL -- (SBWIRE) -- 08/20/2013 -- Reportstack, provider of premium market research reports announces the addition of South Africa Agribusiness Report Q4 2013 market report to its offering
We hold a positive view on the South African agricultural sector and see particular growth
potential in the grain and livestock sectors. Both sectors' growth will be boosted by regional export
demand. The sugar sector also presents interesting growth opportunities, mainly thanks to renewed
investment and improved technologies. Overall, the country's grain and livestock producers have been hit
by recent hikes in grain prices and subdued corn supply on the domestic market. Margins have plummeted,
and foreign competition for exports has made it even more difficult for producers to stay afloat. We believe
the country's main companies, AFGRI, Rainbow Chicken and Astral Foods, can only see profitability
bounce from current subdued levels.
Key Forecasts
? Sugar production growth to 2016/17: 17.3% to 2.2mn tonnes. This is based on our view that, over the
long term, macroeconomic fundamentals, together with the increasing use of sugar for biofuels, will have
a positive impact on sugar production levels.
? Poultry consumption growth to 2017: 23.8% to 2.1mn tonnes. As more South African consumers
move towards diets containing higher levels of protein, poultry (predominately chicken but also turkey
and duck) is increasingly being viewed as a convenient, healthy and affordable source of nutrition.
? Corn production growth to 2016/17: 16.1% to 14.4mn tonnes. This relatively high growth rate reflects
the influence of base effects. Growth will be supported by an improved macroeconomic outlook and the
introduction of new corn varieties that generate higher crop yields.
? Real GDP growth: 2.3% in 2013, down from 2.5% in 2012; predicted to average 3.3% over the five
years to 2017. GDP per capita is expected to rise to US$11,578 in 2017 (from an estimated US$7,577 in
2012).
? Unemployment: 25.0% in 2013, from 26.0% in 2012, then to 22.0% by 2017.
? Consumer price inflation: 5.9% in 2013, up from an average of 5.7% in 2012.
? BMI universe agribusiness market value: 6.4% year-on-year (y-o-y) decrease to US$9.4bn in
2012/13; growth forecast to average 2.6% annually between 2011/12 and 2016/17.

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Contact:
Roger Campbell
contactus@reportstack.com
Naperville
Illinois
United States
Ph: 888-789-6604
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