Agriculture
Agri podcast: Coronavirus could have impact on SA exports─── 11:46 Mon, 02 Mar 2020
The outbreak of the coronavirus in China is spreading across Asia and other regions of the world.
The health implications of this virus on people also present risks for global value chains. Given that South Africa’s agriculture is export-orientated, with exports of roughly US$10 billion in 2019, the potential disruptions the coronavirus could cause on global value chains is a key concern. This is specifically the case for Asia, as the epicentre of the outbreak, and also an area that accounts for a quarter of South Africa’s agriculture exports. The commodities most exposed to the Asian market are wool, fruit, grains, beverages, vegetables and red meat. Essentially, the potential decline in Asia’s agriculture demand and falling prices could see the value of South Africa’s agriculture exports to Asia also declining. While the picture of what could unfold looks gloomy, the agricultural business chamber - Agbiz - notes that thus far, there has yet to be disruptions on the movements of products to Asia. However, the risk could materialise the longer there is no solution to the coronavirus and the spread of the virus worsens.
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The Grahamstown High Court has struck the case between the NSPCA and among others the Al Mawashi shipping company from the role due to technical reasons. The case revolved around the circumstances under which live sheep are exported to Kuwait. In its reaction, lobby group, AfriForum welcomed the discussions on the export of livestock from the Eastern Cape to the Middle East. AfriForum CEO, Kallie Kriel, said it was in the interest of sheep farmers, meat consumers and the economy as a whole that pressure is applied to Al Mawashi to improve their shipping facilities. Agri Eastern Cape earlier expressed its dissapointment at AfriForum for supporting the NSPCA application. It said the previous shipment which saw more than 60 00 sheep exported from the East London harbour last year - observed all local and internationally accepted protocols and procedures.
Meanwhile, the National Council of SPCA's says its stance against the shipment of livestock remains unchanged. NSPCA Executive Director, Marcelle Meredith, said that despite the Grahamstown High Court court not discussing the merits of the case they believe a strong case can still be made. She said discussions with the Al Mawashi shipping company to resolve the dispute will soon get underday - with hopes of coming up with a resolution
before the next shipment - which is due next month.
OFM News