Agbiz Congress Update - Last chance to register
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We have extended the registration for Agbiz Congress until Monday, 23 May at 12:00 noon.
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Expropriation Bill now to be signed into law
 The controversial Expropriation Bill was passed in the National Council of Provinces (NCOP) on Wednesday, 18th of May2016. Having gone through the full Parliamentary process, it will now be sent to President Jacob Zuma to be signed into law. He may still refrain from assenting the Bill if it is deemed to be unconstitutional by his advisers, or if the consultation processes followed are deemed to be improper. Its intention is however to align the government's expropriation processes with the Constitution, which makes compensation a requisite. Essentially the Bill dictates the processes that need to be followed in detail, from valuation to expropriation, as well indicates the rights and responsibilities of the land owner. The Bill makes the courts the final arbiter of disputes and gives local authorities the chance to have a say over the effect that expropriation will have on municipal planning. Agbiz, together with other major partners, has however indicated its concern around the definitions of both "Property" and "Expropriation" that were included in the Bill during the Parliamentary process, subsequent to the NEDLAC process. The inclusions of these definitions are probably not unconstitutional, but increase the risk in terms of what is deemed expropriation, and what might be termed deprivation of property, i.e. expropriation without compensation. Agbiz will monitor the implementation of the new Expropriation Bill very closely, once enacted.
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Economic and agribusiness intelligence
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Fuel prices to increase amid gradually rising brent crude prices and a weakening rand
 The preliminary estimates from the Central Energy Fund indicate that petrol and diesel prices could increase by 26 cents per litre (c/l) and 47 c/l, respectively, on the 1st June 2016. Agbiz economists explain the key drivers behind the expected fuel increase and implications of the increase in the linked article.
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Farmers must manage pricing maze
South Africans along the entire food value chain have borne the brunt of the El Niño induced drought. However, grain producers must not forget to think beyond this ephemeral crisis and its associated high grain prices. Weather models are already indicating a gradual decay of the El Niño weather pattern, and it could be over in the next four months. Click here to read the full article which was published in The Greenkeeper, a discussion platform for agribusiness.
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Food and beverages manufacturing takes a knock in the first quarter of 2016
 Manufacturing data released on 12th May 2016 by Statistics South Africa indicates that the country's total output declined by 2% year-on-year (y/y) in March 2016. Meanwhile, the food and beverages sector's output - which is the largest in the manufacturing sector1 - declined by 1.5% y/y. Agbiz economists unpack the numbers in the linked article. Agbiz economists unpack the numbers in the linked article.
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Food prices expected to remain high
 The latest consumer inflation data released by Statistics South Africa indicated that in April 2016, headline inflation expectedly decelerated to 6.2% year-on-year (y/y) from 6.3%y/y in the previous month. However, the inflation of food and non-alcoholic beverages accelerated to 11%y/y, from 9.5%y/y in March 2016. We expect food prices to remain at higher levels, at least until mid-2017, assuming that there will be favourable weather conditions in the 2016/17 production year to replenish market supplies. Agbiz economists provide more insight in the linked article.
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Agbiz market viewpoints on agri-commodities
South Africa is very much integrated into a dynamic global market, which is characterised by rapid changes. To support decision makers in this environment, Agbiz members receive daily commentaries on agricultural commodity markets and macro-economic trends via e-mail. All other interested parties can view the links below for the historic and latest commentaries. This week's reports» |
International trade and investment intelligence
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